Preparation Sheet Legend

Reason Legend

This is a list of reasons I take into consideration to include a stock in my watch list. You could develop your own reasons to consider trading a stock. This can be done as you develop you list of trading setups. Your goal should be to find the best stocks that work the best for your trading setups.

** Information that could increase the interest of people to trade the stock **
before - Earning today before the market opens
yafter - Earning yesterday after the market  close
ybefore - Earning yesterday before the market open
today - Earnings scheduled today but no time specified
after - Earnings scheduled today after the market closes
news - stock with fresh news today

** Relevant technical information that could increase the interest of people to trade the stock **
yatr - stock that had a move greater than 2 times its normal ATR (Avg True Range)
yt+ - Yesterday top positive (>2.5%) with volume above average
t+ - Today´s  top positive (>2.5%) with volume above average
yt- - Yesterday top negative (<-2.5%) with volume above average
t- Today´s  top negative (<-2.5%) with volume above average
y52h - Yesterday close price is Above or close to 52 week high with volume above average
y52l - Yesterday close price is Below or close to 52 week low with volume above average
52h - Today price is Above or close to 52 week high with volume above average
52l - Today price is Below or close to 52 week low with volume above average
2nd | 3rd - Stocks that had an important move on the previous day, that may continue to move today.
am ch - Stock from am idea that had a good volume (change from the open  +/- 2%)
am vl - Stock from am idea that has good relative volume
am al - Stock from am idea with triggered alert
vol - stocks with volume

There are times when a lot of instruments appears in the list, so I narrow it down by relative volume. The secret to trading is understanding the relation between price x time x volume.

** Lesson to be learn: "by trying to trade everything you end up trading nothing. All you need is one good stock and trade it well" ** 

Plan Legend

LRes = Long above Resistance
LSup = Long at a support
SSup = Short below support
SRes = Short at resistance
InfS* = Inflection point (preference for Short)
InfL* = Inflection point (preference for Long)

* Inflection point means that you have a preference side to take the trade, but if that level is broken to the other side, you can switch your position.

Long/Short Legend

L = Long preference because of the daily chart
S = Short preference because of the daily chart
R = Stock in Range on a daily chart
1R = one minute range
5R = five minute range
15R =  minute range

Personal Preference

So far I am trading stocks that have the following criteria:

• Average volume is greater than 1,000,000 a day
• ATR is greater than 0.40
• Price is between U$15,00 and U$60,00
• Short float less than 25%

Why? I don´t think that I have trading skills (or bank account) to trade AAPL yet and also personal preference. You must find what makes sense to you.

Where does this information come from?

Technical and Descriptive Information: Finviz

News: Seekingalpha and Benzinga

Conference Calls: Yahoo Conference Calls 

There is a very crazy Excel Sheet I created that consolidates all this information into one place. "Necessity  is the mother of invention".  

If you have any suggestions or something is not clear, let me know so I can improve it.