Summary UPDATED FEB. 10, 2023 - CEO WATCHLIST PLAYBOOK docs.google.com
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The CEO Watchlist Playbook provides guidance on trading strategies, time management, risk management, and creating watchlists to monitor potential trades with an emphasis on proper risk management and preparation.
Key Points
- Proper risk management is crucial in trading, including setting stop losses and capping risk for each trade and portfolio.
- The focus should be on scanning the markets, building solid watch lists, and executing trades properly with high-level risk management.
- Criteria such as capitalization, beta, volume, and price must be considered when looking for breakout and bounce plays.
- The CEO's stock selection strategy involves using stochastic readings and filters to find potential trades and always using a stop loss.
- Preparation is key in trading, with a packed schedule of tasks before the market opens and a consistent and disciplined trading system.
Summaries
331 word summary
The CEO Watchlist Playbook is a guide to trading strategies and time management. The document was updated on February 10, 2023, and can be edited using the Google Docs app. The CEO starts their day before the market opens at 9:30am EST, with a packed schedule of tasks including finding trade setups, checking for news and upcoming events, and determining safe exits for trades. The playbook includes sections on time management, risk management, building powerful watch lists, and trading rules. A watchlist is a list of stocks that a trader creates to monitor potential trades. The author tends to use two watchlists at any given time: the daily watchlist and the master watchlist. The author emphasizes the importance of preparation in trading and recommends completing tasks the night before trading. The CEO's stock selection strategy involves using a stochastic reading of under 20 to identify oversold stocks and a reading of 80 or better to identify overbought stocks. They also use filters for market capitalization, beta, volume, and price to find potential trades. The best traders in the world understand that accuracy rates have little to do with success compared to proper risk management. The focus should be on scanning the markets, building solid watch lists, and executing on trades properly, with a high level of risk management. When trading stocks, it is important to limit downside risk by setting up stop loss orders. During uncertain times, it's best to avoid risky events. It's crucial to manage risk in trades by using stop losses on every trade and cutting off wrong trades quickly. The CEO Watchlist Playbook provides information on businesses, investment strategies, and stocks, but users must do their own due diligence before making investment decisions. The playbook includes information on risk management, watch lists, building rules, trading schedules, and time management. A trading strategy should include a plan for entering and exiting trades and setting stop losses. Before making any investment decisions, it's important to do your own analysis.
781 word summary
The CEO Watchlist Playbook provides information on businesses, companies, investment strategies, investments, and stocks. Users must do their own due diligence before making any investment decisions. Valuation tools are provided for educational purposes only and are not personalized recommendations. CEO Watchlist is not licensed to provide financial or investment advice. The playbook includes information on risk management, watch lists, building rules, trading schedules, and time management. A trading strategy should include a plan for entering and exiting trades and setting stop losses. It is important to do your own analysis before making any investment decisions. When trading stocks, it is important to set up stop loss orders to limit downside risk in case something goes wrong in the trade. The risk on any trade can be calculated by setting up stop losses and determining the maximum dollar amount loss that one is willing to take. During extreme periods of unknown variables, such as earnings reports or major economic announcements, it is best to stay away from events that come with risk. It is also important to cap the risk for any given day and to determine a maximum loss for a single trade and for a single portfolio. It is crucial to manage risk in trades, as ego can kill a portfolio and wipe out all profits. Using stop losses on every trade and cutting off trades that are wrong as quickly as possible are key components of managing risk in trades. The best traders in the world understand that accuracy rates have little to do with success compared to proper risk management. The main job of a trader is to manage risk. The goal is to limit losses and make correct trades. To do this, high-level risk management is necessary, especially when dealing with stocks that have a possibility of failing. One way to make profitable trades is by looking for breakout plays. When a stock surges towards a level of resistance and breaks through, it means the buyers are starting to overpower the sellers, and the price is likely to continue to push up further. Another type of setup to look for is a bounce play, where the stock is pulling back into a major support level where a potential bounce can occur. To qualify a stock for these types of plays, criteria such as capitalization, beta, volume, and price must be considered. The focus should be on scanning the markets, building solid watch lists, and executing on trades properly, with a high level of risk management. The CEO's stock selection strategy involves using a stochastic reading of under 20 to identify oversold stocks and a reading of 80 or better to identify overbought stocks. They also use filters for market capitalization, beta, volume, and price to find potential trades. The CEO looks for bounce plays by watching for a stock to drop towards support, waiting for confirmation of a bounce, and then entering the trade. They always use a stop loss and wait for a green candle to form before buying shares. The goal is to allow the stock's price to pull back until it reaches an area where buyers are likely to step in and cause an increase. A watchlist is a list of stocks that a trader creates to monitor potential trades. There are two types of plays: the bounce play and the breakout play. A stock must meet certain conditions to qualify for a spot on a watchlist. The author tends to use two watchlists at any given time: the daily watchlist and the master watchlist. The author has a set of core rules for trading, including always using a stop loss and never trading IPOs. The author emphasizes the importance of preparation in trading and recommends completing tasks the night before trading. The actual trading phase should be effortless if enough effort is put into preparation. The CEO Watchlist Playbook is a guide to trading strategies and time management. The CEO starts their day before the market opens at 9:30am EST, with a packed schedule of tasks including finding trade setups, checking for news and upcoming events, and determining safe exits for trades. The CEO adjusts their trading style based on market conditions, with swing trading for consistent markets and day trading for volatile ones. The playbook includes sections on time management, risk management, building powerful watch lists, and trading rules. The CEO emphasizes the importance of having a consistent and disciplined trading system, and provides a mini guide of their favorite trade setups and charting aspects. The CEO Watchlist Playbook was updated on February 10, 2023. The document can be edited using the Google Docs app and shared with others for collaborative editing.