Swing Trading Tips: How to Create Multiple Stock Watchlists Video Lecture | Stock Trading: A Complete Guide (English) - Business Basics

what's up guys Allen here with eat sleep
trade that's net and we're going to be
going over the lesson video that was
voted on over the week for the poll that
we ran through Twitter so thank you guys
for everyone who voted in that and the
winner was building multiple watchlist
so that's what we're going to talk about
in this video here is how we built
multiple watchlist
over the years that we've that we've
been trading and not only will we be
doing that but hopefully in the near
future I will then be doing videos on
selling and scaling out and followed by
trading around the core position which I
thought was maybe going to be the winner
of this poll as this trading around the
core position I am really still fairly
new to do and have really only started
doing this in 2017 but it has really
pushed my profits to the next level I
believe and given me so much more
control over all my positionings and
yeah so that's going to be a good video
coming up is trading around the core
position and then lastly what we'll do
is a trade review and fox video and I
will probably maybe do that on like the
maybe the five biggest winning
trades of the year and maybe the five
biggest losing trades of the year or
something like that because you can
definitely take a lot of value from not
only the winning trades but also the
losing trades and learning what not to
do and and losing trades are definitely
far more important than winning trades
so yeah we were going to be bringing all
four of these watch lists to you guys
here in the new fear tube the future but
right now we are going to go ahead and
get started with how we build or how we
have built multiple watch lists
alright guys so if you guys have been
following me for a while or follow the
swing trading watch those updates or the
how to scan videos then you guys are
very familiar with this watchlist
right here and this is the watchlist
that we create from those scans that
I've shared with you guys and this is a
forever changing watchlist every single
week I am adding and removing stocks off
of this watchlist and sometimes multiple
times a week sometimes for a week
straight every single day I am throwing
socks into this watchlist and sometimes
for a week straight every single day I
am just deleting everything out of here
and getting rid of it so this is not a
list of stocks that you can pull up with
a scanner this is a list of stocks that
I have scanned for over years to compile
and create this watchlist and it is
forever changing nothing has permanently
earned a spot on this watchlist right
here this watchlist changes all the time
and from this watchlist I will create my
top weekly watchlist
which just gives me an idea of where I
should pay a lot of attention to nothing
is guaranteed as always when it comes to
trading or the stock market but the
weekly top watchlist helps me prioritize
some of the best setups that I can see
from all of these stocks that I pulled
from my scans and it's not a guarantee
that I'm going to get to buy anything
sometimes I don't buy any at all but
oftentimes there is a good amount of
setups that work out on my weekly top
watchlist and usually some pretty good
opportunity chances so that's one
watchlist
that we use that I've shared with you
guys a lot that I've been very open with
and showing you guys how I create it how
I do the scans how we remove and add
stocks and then how I create that that
weekly top watchlist
to help basically give me the best list
of small-cap high relative volume
trading stocks that I believe is around
I don't think anybody has a better small
cap list of stocks to trade then than
what I have right here as far as short
term swing trading and even now
developing into that trading round core
position trading and swing
trading so that being said let's talk
about how we have come up with some
other watchlist and I'll start with some
of the more basic ones and some of the
more simple ones like for example oil
plays these are all stocks on this list
that have something to do with oil that
could be within the mining of oil it can
be in the manufacturing and the
refinement it could be producing
equipment to refine or mine oil it could
be making the parts for those equipments
manufacturers so anything and everything
to do with these stocks in some way is
connected to oil and about a year ago
when oil was booming and the price of
oil was skyrocketing all of these stocks
were breaking out and stocks within this
area were breaking out one after another
after another after another and during
that time I took all these strong stocks
of that time ordering that little rush
or boom or whatever whatever term we
want to use for the excitement that was
caused within the oil industry and
everybody was pouring their life savings
into it and I compiled a watch list to
to trade through that time where oil
stocks were hot and I kept that watch
list and when oil comes back around
because it will write it always does
it's always going really high to new
highs and then it's always going really
low to new lows and it just goes back
and forth just like the rest of the
market and when that becomes the hock
sector or hot area niche or whatever
again the first thing I'm going to do
boom is pull up my own plate stock watch
list figure out which of these are
looking the best set up in that time
who's got the volume who's been trading
relative volume which of these have been
accumulated prior to this rush happening
and start to look for hints and ideas
within these stocks within this watch
list of oil plays when that time comes
and a perfect example again of that is
on the pot stocks someone asked me hey
how do I run the scan for
socks well to be honest I don't run
scans for pop socks I don't run scans
for any socks at all except for my swing
trading list and I truly believe that
scans are totally overrated and pretty
much meaningless because a scan is not
something that tells you what to buy
it's just giving you a list of stocks
that have some type of parameter which
is good in a sense but like I do the
swing trading watchlist it has to be a
forever revolving door you can't just
click find some stocks and then you can
put them on a list and then you can buy
them so again this list of pot stocks is
a list of pots that I collected and
created a year ago basically a little
little less than a year ago but
basically last year in 2016 around this
time and when the paw Sox were all
booming going into November and now I
mentioned just a few weeks ago hey you
know around this time last year you
started seeing a lot of accumulation in
Tupac stocks and things have anything
started breaking out getting pumped
right but a lot of pump and dumps you
know you don't want any emotional
attachment to any of these stocks and
and when those sectors start going hot
you're ready prepared with a list of
stocks who have performed very well in
the past right these are the stocks that
people notice there's thousands of pot
stocks but not thousands of them were
noticed in pumps or used in pumps or had
some good news or actually had earnings
or actually had revenue or were
legitimate companies you know again not
that any of these are but using those
stocks that were strong during that time
likely those same stocks are leading
that sector will be strong again and
leading again when that sector sees that
strength so that's just one way that I
can create watch lists is the niches
that happen within the market itself
that everybody gets excited about and
everybody pours into and a perfect
example that is Pop Fox
there is no scam for pot socks to show
you which ones are good not going to
happen it's experience you have to
experience that market in the time of
the rush and and create your watchlist
in that time and be prepared before that
next rush and when you know it's coming
like which is probably going to be
happening here pretty quick so there's a
good example in one way how I can create
other watch lists and there's other ways
that are even less conventional that I
believe a lot of people don't don't
think about or maybe overlook and one of
those things is Twitter
twitter is a very very powerful trading
tool there's tons of people on Twitter
that are sharing the same passion that
you're trading and that are successful
at trading and that trade the markets
every day or every week and from day
traders to swing traders to any kind of
traders you can learn from all of them
in their own ways I've learned tons of
stuff from short side traders even when
I'm not shorting stocks so you can
always be learning and Twitter is just
this huge social networking of a lot of
good traders and great for idea sharing
and you can just take so much
information from Twitter you know along
with that comes being negative
information as well you get a lot of
people that promote themselves talk
about how much money they make every day
and they're the best trader ever and
yada yada yada they're selling their
services but there are true passionate
people on Twitter that are on Twitter
and sharing their ideas simply because
they love to trade and and I think I
fall into that category I'm not charging
anybody for me explaining my ideas to
them because these are just ideas that I
have and I don't believe that you should
charge people for ideas because even if
I was charging somebody for the content
material that I'm making as other people
do it is not going to constitute them
success so I'm just sharing my ideas and
some of the things that I do in the
markets to help me and help me get to
where I want to go
but nevertheless it's get back on track
here so Twitter again a very powerful
tool if you follow the right people and
one of the people I follow which is
probably somebody you guys know as we
have a ton of followers but it is
trader Stewie and this guy has a art of
the trading net trading blog there is
some free stuff on there a lot of good
blogs to read but he also offers a
service I do I've not used his service
so I can't comment on that but this guy
is a service in and of itself in and of
himself every single day with the charts
he posts it with anna dates and ideas
and what to look for what to expect and
you know on top of that the guy cooks
delicious food for us and shares that
with us too so that's a complete bonus
but one of my favorite things or my
favorite thing about trader Stewie is
his power earning Gabor's and I not I
don't know if this is his original thing
but he's who I learned it from so I give
him credit for that every time something
one of these types of trades works out
for me but the power earnings gap and
here's an example of one right here and
he shares these all the time you guys
all the time and almost always they work
in the right direction so but a power
earnings gap is basically just that a
stock that releases earnings and it has
a power gap up and trades good volume
and they almost always continue in the
near to short-term future following a
power earnings gap now they don't always
just go straight up sometimes they
consolidate pull back do other things
and then go higher but they almost
always end up higher after a power
earnings gap so this is a tool you can
use to create watchlist and it's it's
something that I have done as well and
if you look I have a watch list with
some earnings gap urse and yes earnings
gaffer's don't always work but they are
an extremely strong list of stocks to
have on radar for potential moves
breakouts and get continuing higher
you are be in is a pretty good example
back in August of last year I put it on
watch because of this power earnings gap
right here I don't remember if I got the
idea from Stewie or not but I know this
is when I put an on watch and I was
watching this consolidation and I
actually got a really good trade out of
this consolidation you can see it didn't
last but we did get a really good trade
out of here and that the whole idea or
the whole purpose of starting to watch
this was that power earnings gap so it
can be a very powerful tool just
recently it had another power earnings
gap and it's pulling back you can see
now gas up it's pulling back going to
hit it's moving averages got good volume
this is where you start to look for that
reversal and a move coming back up
towards these prior highs again doesn't
always happen but it works a lot of the
time so let's look at some other ones
see 80 this is one that I've just added
to my watch list part about two weeks
ago same thing you see your power
earnings gap and now you've got this
consolidation and now you can you've got
twenty day support a little bit more
volume showing back up buying on Friday
so this is just a great candidate for a
power earning gap and continuation very
powerful charts another one WPW you hear
short sellers talking about WPW and how
its garbage and they are so great
shorting it and it's the investing
they've shorted since you know
OTC stocks and the goddamn thing has
gone from ten to forty you know in six
months but yet it's the best thing
they've ever found to short but just
another example you have the power
earnings gap right and this one
consolidated for a while still held
above the averages 50 and then
eventually moved higher again power
earnings gap the pullback consolidation
but eventually it's moving higher and
these are some of the most powerful
charts power earnings gap and the move
higher so they almost always continue
and for me what I like you and better
the powered earnings gap in continuation
is nice but this is much harder to get
into this this is a much easier trade
and much much less risk of a
rade when you get the power earnings gap
and then it pulls back and then you can
get entry in your support and then the
stock continues higher to me that's the
best type of setup for the power earning
gaffer's right there let's look at
charter same thing so here's a perfect
example again of that like I was just
talking about where you get your power
earnings gap then the stock pulls back
finds its support and then reverses and
moves higher and almost always it
returns back higher to that that
earnings gap day so yeah really powerful
really powerful charts a th M that's one
we were just looking at on on Stewie's
Twitter so yeah same thing
powering gap nice break out and these
stocks are always strong so you're
looking for flag setups pull backs
consolidation cup and hand whatever kind
of pattern you like to like to trade
you're looking for those setups after a
power earnings gap and you want to reap
those on that watches because oftentimes
when the market is weak these earning
gap errs remain strong and carry the
market when there's not a whole lot else
going on so that's another way that that
I create a watchlist is following the
right person on on Twitter social media
and taking those ideas and putting him
in another way let's take a look at this
one right here I named this one Kramer's
top ten sell-off so I think I was
watching Mad Money or I seen a link on
Twitter from Kramer and he had a list of
the top ten stocks that he felt if the
market fell or to sell-off correct or
crash or whatever these would be the top
10 stocks he's looking to buy and almost
every single one of these stocks are
higher now than what they were three
months ago when he three or four months
ago when he put this list out including
Nvidia which has been a great shock that
I'm always watching right hand in hand
with AMD I like trading AMD because it's
a lesser price stock it's not trading at
$160 a share but that you know like they
kind of go hand in hand with each other
so that's in videos one that made on his
list LRC X was one that made it on is
you are BN was one that made it on his
list and that's what just another adds
another point to this chart besides the
fact that it was just recently the
earnings gap er and is pulling back but
it's also on Kramer's list of stocks to
buy in case of a big seller this thing's
been trending down for three months
which is about when you put that list
out but hey maybe he knows numbers are
good in this don't know but it's on a
watch right now kind of interesting that
it was on his top ten to buy emphasize
MC HP again higher much higher than when
he then when she wrote about it sym see
again you know much higher than when he
he wrote about it so the point is is you
can create watchlist
from unconventional ways we've got this
thing in the Society of traders that the
only way to to make watchlist is to have
some super powerful scanner that is
running full speed ahead 24/7 live
scanning and throwing stocks at you
every ten minutes and you're going to
have to figure out when to buy and when
to sell and these thoughts that keep
coming at you and building these crazy
lists when it can be a much it's a much
slower developed process through
experience and living through situations
and experiencing those situations within
the markets like an oil run or pot stock
booms and and things like that or
following certain analysts that you know
have a fairly decent track record and
not assuming that everything in the
market is right now and I think that's
kind of the biggest problem people have
when they run scans is when you're
running scans it's showing you something
that's happening right now and you're
assuming that you need to act on it
right now when you can act on it over
the next six months and be just fine and
you don't have to react on it right this
second because it came up another sector
that was good for a while was gaming you
know so we have a list of of gaming
stocks that I like to trade from pen Eri
Ceasar so
those are swatch and when gaming get
strong the first thing I do is I pull
those up and I'm not afraid to add some
more anything if there's some new
up-and-comers that are getting strong
and seen a lot of volume during this
breakout I'm tossing them in that watch
list and building it up and I'm not
afraid to make more watch lists you know
make them tons of these watches as many
as I can think up another one that I
that I really like is the biggest
winners of the year and I think this is
really where me developing myself from a
swing trader short term on a three to
five day hold into a trader that can
hold for three to four weeks or a month
or two while consistently trading around
this core position of locking profits
and REE buying back at support and
locking profits again back at resistance
can really help me can really yeah help
me excel in in profits for these type of
stocks and every once in a while you
find a stock and it basically just never
stops going up you can just buy it over
and over and over and over and it just
keeps going up and I always compile the
strongest of stocks that I find on my
swing trading watchlist into the biggest
winners of the year so that way I know
these are again a bread-and-butter go to
socks right here
they have gone multiple hundreds of
percents over a year or six months or
whatever the timeframe two years however
long they've been going up it continued
going up and I've managed to you know
make multiple trades on them and be
successful multiple times so one example
is Co vs and you can see the chart here
when I first started trading this stock
it was trading at 17 bucks under $18 and
you could see the giant volume bar day
that occurred this is this is what
initially first got this stock onto my
watch list and we traded it multiple
times and right after that first initial
purchase we had a huge breakout and and
it's like right there you know this one
this one's going on the watchlist and
the goal from that point forward is to
just wait for it to set up
for you again and continue trading it
over and over as many times as it'll let
you and the stock went from 17 to a
hundred dollars over six months you know
over a year basically not less than a
year but went from 17 two hundred
dollars and gave many many opportunities
to to trade that stock if you guys have
been following me for a while then you
know one of my favorite stocks is Cece
I've been trading Cece for a really long
time been trading Cece since right here
actually even before that since right
here which was back in February of 2016
so a year and a half we've been trading
Cece and the first time I bought Cece
the stock was trading under $4 the stock
is now trading at 46 bucks so over the
last years we've been able to just trade
over and over and over again on the same
stock that has been strong bullish and
trending and take advantage of all these
different scenarios and I think that's
huge in and now if I would have had the
skills I have right now and and the
understand meant an understanding of
core position trading and swing trading
the profits on stocks like Cece or clvs
have potential of being so much more as
you can get an average that is basically
impossible to get because you're your
remaining shares that you purchased from
the very beginning and when you add to
those shares yes you're bringing your
average up but it always is going to be
lower than then the price at which
you're adding and if the stock never
never returns to that price at which
you're adding it's impossible for
anybody to ever get an average so that's
good really giving you that advantage
and such a big profit window if you can
core position trade another example here
is tech if you guys follow me then you
know I've been trading trading on tech
forever and same thing we've seen this
stock go from under $4 to 26 bucks and
it basically went straight up you know
from
at point forward and we've had losing
trades in it as well right it's not like
we just every single trades perfect and
goes forward but there's so many more
winning trades than losing trades and
not only that but when you're
calculating your risk and for example
right here this is a trade that we did
back in January at the beginning of the
year we had a purchase here at around
looks like 20 maybe 21 bucks and we were
able to scale out of that position on
the breakout which was a really good
trade very profitable and not only were
able to scale out of our position there
but less than a week later if the stock
consolidated right under that resistance
area and we were able to purchase again
and scale back out again so very
powerful the stock will set up for you
over and over and over again but not
every time is is going to work out for
you for example just a few months later
or the next month in February we wanted
to get in right here off a nice balance
your new your support area if you just
had a big major sell-off on a stock you
knows fairly strong and doesn't
typically sell off too hard so it looks
like a good entry even now knowing that
it was wrong I mean that looks like a
good entry there it's got decent volume
you expected a pretty good bounce and
there was a little bit of a bounce but
not enough not enough to really make you
say ok time the blocks and profits are
sell out of this and then the stock
reverse continue down and look we're a
soft loss was we ended up selling out
just below the day's low at 20 67 so our
losses are this small and our winds are
this big and that and that's the only
way to to be successful in the market
it's this right here this is the secret
to the market when you're wrong
be wrong and get out you can always get
back in later when you're right
stay in and be right so that's that's
what I've been trying to focus on in you
know this year in 2017 is getting that
core position adding to it on the pull
backs when the strength remains in the
stock and then selling back out again
through the resistance and continuing
this rotation around my core position
all
in stocks that I see continue higher and
become these big winners another great
example and very popular stock is AMD
well I was trading AMD before half the
people on Twitter we even figured out
what AMD was you know back in
January of 16 I was already trading AMD
it was at $2 and now it's at 15 and
we've traded AMD so many times over the
past year 2 years and nobody has really
even talked much about AMD until it
started getting up into 10 11 and 12
bucks into this area right here I mean
before that through all this trending
uptrend off the 20-day moving average
over and over and over and over again
through here 20 day 20 day 20 day 20 day
20 day over and over and over nobody was
talking about it until you know it was
12 13 14 bucks so again you guys can see
power ringing gapper by nice solid
clothes the buys here the ad always
ended up going up but what's more
important is it is the losses what's
just happened oh yes right here
so along with the winners right it
doesn't always work even though it's
worked again and again and again and
again and again it comes to a point to
where it may not work and that's the
point in time where you've got to be
able to recognize and stick to your plan
and not let emotions take you over and
here's a perfect example of that we
ended up getting along on August 26 of
2016 probably right around 750 and a
couple days later the stock came down
and started breaking down below seven
and we got stopped out of the trade and
sold out when it was breaking below that
20-day moving average and you know how
do we not stuck to that plan which ended
up being a very again minimal loss
compared to the wins that we've had and
just a few days later Sox ability tank
down 550 made a pretty big correction or
pull back and this trade could have gone
so much worse we could have basically
essentially given Mack all the profits
we made in here right here very quickly
by not not being disciplined and
following rules and not trading
emotional so again just an example guys
of some of how you can when you find
stocks that are right you can keep
trading them over and over and our
newest addition to this list right now
is my GN if you guys follow me on
Twitter then you know that this was one
of the biggest ones that I've had in a
while and I'm very grateful for it
because the markets have been so tough
lately and they're still in a spot right
now you know that's not beautiful that's
not perfect it's not really where we
want to be we're at a spot where it
could go either direction and we could
be facing a larger correction coming up
in the near future but my GN what a
beautiful stock we put this thing on
watch way back in probably June maybe
early July for this consolidation I mean
the run the consolidation the trend just
a beautiful looking chart pattern and we
kept on and watched for that for about a
month straight before we finally started
to see a little bit of a reversal and
some movement coming on and back on the
seventh is when I decided to get long
and I did post that on Twitter when I
bought this stock
and in two days before it was going to
report earnings well let's take a look
at what happened in the past both times
reported earnings we got it earnings
report here a gapped up a fairly large
gap we had an earnings report back in
May where we gapped up and actually have
a solid run after the gap up and I was
willing to put money on that we would
get another gap up and my idea was
that's probably what everybody was
thinking so I was hoping to get a bigger
run on the 8th up a little bit so I
could actually scale out a little bit
minimize my position down and then see
which way the earnings goes but on the
8th nothing really moved that much but
it still traded good volume so I just
let it play out and ended up working in
my favor and the earnings call was good
stock took off hit up into new highs and
from there it started to consolidate and
create a flag and I've been mentioning
that on Twitter as well you know almost
every stock that I buy sell or trade I
almost always walk through the process
of the buying selling and trading and my
GN is no exception I've been talking
about it for a month before we ever even
bought it with the idea of what the plan
was and what we were going to do and
then again once the breakout and
earnings happened again the flag the
consolidation what was happening and I
even mentioned again I didn't get to get
another buy but I mentioned I want to
get it by if this thing breaks out of
the flag I'm going to add back into my
position so we did sell out a little bit
on the earnings call on the 9th at right
around resistance area and if you guys
were wondering why I sold where I sold
which was around like 20 right above 27
because that's where our prior
resistance areas were right here and I
knew that that was a place where the
stock could start to reverse right
around 27 so I wanted to make sure that
I took some profits off and prepared to
go higher if the stock we wanted to go
higher but also be prepared for the
stock to not go higher because they
don't always go higher
and sure enough about a week and a half
later Friday comes and boom we get a
nice little break out of the flag and a
nice little volume coming into it and
the servic tweeted out Friday said boom
my GN it's breaking out of the flag
today and all was good I just I didn't
add back to it but I still got my
partial position left in there and
letting it ride and the market closed
and the stock ramped to $30 so that's a
huge breakout right now we're trading
you know again up at 30 bucks which is
means the market is gonna open up you
know up in here right here on on Monday
and this has basically now played out
exactly how we planned it to play out
way back here when it came up on our
scans and was first added to our watch
list we didn't rush into it I didn't say
it's on my watch list so I have to buy
it we just let it play out
waited for up this waited for it to tell
us when we thought it might be ready and
we were lucky enough to be a part of
this and and everything worked out but
it just goes to show that preparation
will create more luck for yourself
so MIG and that's getting added into the
biggest winner of the year and you
better believe I'm going to be looking
to trade the stock as much as I can and
keep this core position that I have in
it right now rolling for as long as I
can so that's another way that we create
watch lists as well and let's see what
else do we have got some home builders
so again these are just ones that go in
with a sector when home building is
skyrocketing and mortgages are
increasing and interest rates are rising
and they cannot keep enough homes built
this is the place to go home builders
you start looking at Toll Brothers
Lennar kbh DR Horton and all the
different builders and see who's
performing the best and focus on those
ones focus on the ones that are the
biggest and the best all right guys
that is going to wrap it up for creating
multiple watch lists and how I go about
creating multiple watch lists
I know it wasn't the conventional way
that you would probably expect people to
explain how to create multiple watch
lists you guys are probably expecting to
see an entire list of a hundred
different scans that I do to create
watch lists but what I've come to find
out is watch lists are really created
best through experience and experiencing
those different marketing conditions and
understanding what drives the market and
that is volume so see where the volume
is and that's where you want to be
trading alright guys thanks for watching
if you haven't already smash that like
button down below leave me a comment let
me know what you guys think of this
video and hopefully it is something that
you guys enjoy and something you can
take value from and someday you guys
will be able to learn from and kind of
expand on a tool and create your own
watch list in your own way for yourself
alright guys thanks for watching we'll
see you next week and good luck in
trading