The Fallacy of THE Watchlist - PRECISION TRADING LABS
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The Fallacy of THE Watchlist

December 14, 2021

Good traders focus on entries and exits, discipline, market analysis, risk management and position-sizing in executing a robust trading plan.

But interestingly, many of our subscribers often breathlessly ask,

​“What’s on your watchlist”, like THAT’S the holy grail. 
Of course, we want to start with trading instruments with good volume, sufficient average price movement, appropriate volatility levels for a given option strategy, and a couple other criteria. This leads to a good GENERAL watch list.
But over time we’ve found specific symbols are better trading vehicles for certain purposes versus others. For example, some are better candidates for:

  • intraday trading in lower timeframes
  • intraweek swing trading
  • longer-term swing trading
  • options trades for particular strategies
  • trading with or against the broad market

And that doesn’t get into specific sectors and industries when one or another is in or out of favor. As a result, we put forward the obvious idea that having a single watchlist is highly suboptimal. A much better alternative is having situational watchlists. 
For example, EBAY is often choppy intraday with smaller timeframes, but in higher timeframes it’s a solid performer for intraweek swing trades. It’s on our short to medium-term swing trade list. Or INTC often stalls out and is range-bound for long periods, making it a perpetual member of our credit spread watchlist.
At PTL we share our regularly updated Sweet Spot Equity list featuring stock and ETF symbols with low share prices, sufficient (but not insane) price movement, and good average trading volume. These are subdivided for intraday-only, swing-trade-only, or either style. We post long and short symbols that represent good candidates for buying puts and calls. Another for selling vertical credit spreads.
So, the next time you think about your watchlist or updating IT (SINGULAR), consider how you trade, and create specific watchlists (PLURAL) and monitor THEM. They’ll match up better with what you’re doing.

After all, a tool is only as good as your ability to use it.

I have handed you some valuable information
Now let me show you how to use it.
You see, information is good… but ACTION is better.
After working with thousands of experienced traders and want-to-be traders, in all kinds of market conditions, over the past seven years, I have found that the best way I can help you get immediate and tangible results is with our Show Me The Money Call. 
It’s where you hop on a live, 17 minute Zoom call with me where I will share my screen and take you through our exact process to determine and execute a winning trade right there on the live call, including the precise exit points of the trade.
No more guessing on your own whether something will work or not….
We do all the heavy lifting and provide you with the exact steps you’ll need to make so you can start seeing results immediately.
You can choose to make this trade yourself, or make it in a simulated trading account, or just sit back and enjoy watching how we come out ahead of the game, day in, day out, week in, week out, year in, year out…
Book your Show Me The Money Call Here

See you there,
Ryan

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