I believe the smartest traders/investors use a variety of tools and have a top to bottom checklist of "to dos" they walk through on a daily/weekly basis to verify facts, create a plan of action, and ultimately pull the trigger on a buy or sell order.
Here is my list of to dos with side commentary. Depending on the particular stock, I will go through this routine daily or weekly. With respect to MJTK, it has become a weekly habit. However, I still do my best to keep one eye on the market at all times, again especially in the OTC.
Check otcmarkets.com
- this is where you should find company info such as news, filings, A/S, O/S, float, company officers and their contact info, website, transfer agent, and a general overview of the company's business overview. Of highest importance is the share structure, which is not always current, so an attempt to contact the transfer agent for the most up to date share structure is sometimes necessary.
Pull up the charts
- stockcharts.com is the most convenient. My favorite technicals to use are RSI, MACD, Accumulation/Distribution, PSAR, Bollinger Bands, 10, 50, 100, and 200 day moving averages, daily volume, and money flow index. Learn how to read charts and then select your favorite parameters.
Scan social media
- believe it or not, social media has become a driving relevant force for spreading awareness by companies and investors. It's a way one can gauge current trending interest. Twitter, Skype trading rooms, and Facebook groups, are invaluable these days!
Read/follow/contribute to investment forums
- following and participating in discussions on investment forums can be educational and fun, as long as one knows how to interpret the back and forth banter, and how to verify "stated" due diligence. Keep a level head though, it's easy to get caught up in heated exchanges with others who want to "distract" and be "perceived" as having a vested interest. Also, understand that you build a bit of a persona when posting. Post responsibly and you'll be taken seriously. Post childish gibberish, and risk being drawn into an endless battle of witless banter.
- Ihub offers a variety of tools like alerts, breakout boards, ticker buzzcloud, most read, most posted, and the all important Level 2 service for those who don't have a trading platform that offers L2 for OTC.
Intraday musts
Watch the first and last hour of trading
- these windows provide the best entry and exit opportunities.
Watch L2
- L2 gives one the entire up and down bid/ask lineup of qualifying minimum orders that are not All or None. Study L2 behavior while having the trade tape running simultaneously. After doing this religiously for a few weeks on an actively traded stock, one can start to decipher what's really going on by way of perceived supports and resistances. Also, one can learn a specific market maker's behavior patterns and have a more informed outlook on possible future stock movement.
Less frequently, but no less important...I check the Secretary of State website for the state which a company was incorporated.
- this is where I search to find newly registered shares if a company raises their A/S, trademark registrations, business license renewals and registrations, and reinstatement filings among other miscellaneous tidbits.
These habits can be used with current and potential positions. I highly recommend utilizing these helpful tools. It may make all the difference in your trading decisions. Early on, it did for me!
Much success to everyone here and go MJTK!
Rec
AI
