- Waiting For Pullback: We missed the most recent swing low and are waiting for the stock to pullback down to an area of support where we can enter.
- Hotwatch (Risk/Reward & Candle): We may be able to enter a trade on this as the stock is looking like it has come down to a level of support, but need to analyze the risk/reward and see if the setup makes sense for our target price (where the last swing high was).
- Setting Up (Pullback Started): These are stocks that are not quite ready for the Hotwatch, but have begun to move off their swing high.
- Buys (It's time to buy today): Our reward:risk is at least 2:1 and we should put in our stop limit order for controlled entry (along with a stop-loss) and hope to get filled today.
- Long (stocks I own): Stocks that have been filled that we should be watching to adjust our stop-loss and otherwise manage.
Wednesday, July 12, 2006
Coaching Call Week 4
Today Rob and I began with a review of the trend concepts explained in Chapter 4 of the manual. We'll talk more about trends next week. We spent most of our time refining my watchlists. We broke down the Bulls folder into 3 subcategories: Waiting For Pullback, Setting Up (Pullback Started), Hotwatch (Risk/Reward & Candle). There are two additional subcategories to the Bulls category that we will eventually use: Buys (It's time to buy today) and Long (stocks I own). Rob explained what criteria constitutes where to place each. I'd say it's fairly obvious from the naming, but I'll breakdown the criteria a little to disambiguate ;-).