Replies to post #22906 on Options Wonderland

[J-RO]

Charts and my gut.

[Market Technician]

this looks pretty sweet for options trading, Barrons #1 broker:

http://www.tradestation.com/optionstationSuite/OptionStationSuite_overview.shtm

[Ithildriel]

I created a list of blue chip stocks that tend to have big swing moves and I follow them closely. My list contains several sectors. I set it up this way so that whenever a sector starts getting play, I have a stock that I know fairly well that I can follow. The stocks I follow are currently PCU, POT, HTE, DRYS, FWLT, GOOG, GS, RIMM. I recently added V to the list, though it is new. Also I have not found a solar I like to use yet. FSLR and SPWR both I found I could choose the right direction and still lose money most times. I'm going to start watching SOLF next week, and see if that works for me.

I use stock consultant to get the support and resistance numbers for me.

http://www.stockconsultant.com/consultnow/basicplus.cgi?ID=sample&symbol=FWLT&59356#ttop

It also lets me know when to watch for a break out.

Once I've documented that information each day, I look for news on each of the stocks on the list.

http://finance.yahoo.com/q?s=fwlt&x=62&y=17

Once I own the option I add it to my position list, and that list gets a little extra research every day. I start by looking at the chart on the stock. I use profit charts with a 10, 50, and 200 day moving average. I like to see the 10 day above the 50 day.

http://www.prophet.net/analyze/javacharts.jsp

I'm not an advanced charter, and I'm thinking I need to get better in this area. I've had a few problems with this charting site recently, and am looking for a better one. I've used this one for over a year though, so I am admittedly in the comfort zone with it.

Next I run them through American Bulls to see how they are feeling about my stocks. I just recently started this, and don't strictly follow their advice, but use it more as a check to what general sentiment may be on my stock choice.

http://www.americanbulls.com/StockPage.asp?CompanyTicker=FWLT&MarketTicker=NASD&TYP=S

I also check short squeeze on my position list daily, and my Blue Chip option play list from time to time.

http://shortsqueeze.com/?symbol=fwlt&submit=Short+Quote%99

The higher the "Squeeze" the greater the chance their will be some short covering.

I also have some self created tools that I like to use. Top of the list is my Blog, which is linked in my signature. It keeps all of my victories and failures in one place, and when I learn something, I'm less likely to make the same mistake again since I've publicly said what it was.

I also update several spreadsheets. Each of my accounts has a daily trade diary with a tab for each month, as well as a current holdings page which tracks my current positions in each account. I formulated it so that when I put in the purchase price it gives me a 10% stop loss number to watch, as well as price points to sell for a 10% 20% 50% and 100% gains for my stocks and 25% 50% 100% and 300% gains for my options.

I have a separate spreadsheet where I keep my high level stats for each account. In one place I can see how I've done each month with realized gains and portfolio gains for all three accounts. The second tab links to the data so that I can update my goals based on actual account balances as of the last day of the month. Goals are currently projected out through the end of 2008.

The last tab on this spreadsheet is a "profit calculator" that I made. If I get an idea to purchase a stock, I can plug in the price I'm going to bid for it, and I can see how many shares I need to purchase in order to make a targeted profit of $200 or $500 for the trade. I use this mostly for stocks though. It is broke down in round percentage gains (10, 20, 30 etc). By knowing resistance levels, I can decide where a stock is likely to get, and how many shares I need to purchase to make a targeted gain.

Last but not least, I use IHUb to get ideas. I keep a list of favorite posters and boards bookmarked that I read.

[The_Free_Nebula]

Great question - Charts, this simple motto (Is the company profitable (Yes or no) what are its future prospects (Good or bad)", guts and a firm belief that I don't know everything.....