IPI Final Note

Friday, July 04, 2008

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2 comments:

S R 5 said...

Great chart, buddy.

As a new trader, what do you suggest as far as number of stocks to watch? I know you like IPI,& V, but how many others to you analyze deeply?

I'm 3-4 months into this fantastic voyage :), and I look at around 40 every day, which I know is too much. How many do you suggest?

Thanks!

Wall Street Trader said...

I probably look at around 25 but I think that's probably too many when you're starting. I traded the same stock everyday for the first couple months of my career. I think in trading it's better to know a lot about a little rather than a little about a lot.

I would recommend learning a specific sector that is in play. Find a sector that moves around and learn several of the stocks in the group. For you, I'd probably recommend the agriculture group.

I learned the solar sector first, which is not as in play as it used to be. Then, I learned the agricultures, and then big cap technology and then the credit cards.

For me, the best way I learned was trading laggards off leaders. So, I would trade YGE, LDK and STP off FSLR and for the ags, AGU and MOS off POT. Trading laggards is a great way to learn because you have extra confirmation on your trades.

Hope this helps!

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