Preparation Sheet Columns


Here is a quick explanation of the columns on the sheet.

Ticker - The ticker for the stock. If the ticker is in Bold, means I have interest in trading this stock, so I will set an alarm for it. If the ticker is yellow, means it will be one of the stocks I will be watching into the open.

Reason - Reason why the stock is in my watch list. To understand each one of them, click here.

Support - Supports for the stock after my daily analysis. I like using round number whenever I can.

Resistance - Resistances for the stock after my daily analysis. I like using round number whenever I can.

(L)ong /(S)hort - This field is based in the analysis as well. It tells me a reference that on a daily level, the long or the short is more appropriate. To understand each one of them, click here.

PLAN - This is what the plan is when trading the stock. To understand each one of them, click here.

Weekly Perform - It is the Weekly performance based on the close of the previous day.

10% ATR - This is a guide to tell me how expensive a stop is. This for reference.

ATR % - this is a very important field to me. The easier way to explain it is this one: if this column show 100% means that it has moved 3 times its normal ATR. The closer it is to 100% the less likely it will move higher. Are there exceptions? Sure, I´ve seen stocks with 300% and higher, but is it likely to happen is the question I am trying to answer.

ATR - Actual ATR of the stock

Call - Are there any calls I should know about? This field is not 100% tested ok?

Float Short - Short interest in the stock just for reference. Help to identify if the move is done by new buyers or older sellers closing positions/taking profits.

News - Equals 0 (zero) means fresh news today

Avg Volume - average volume (not sure the time period it considers)

 Relative Volume - in relation to the Avg Volume

 Change From Open - it is what is its

 Pre-market Volume - as a percent of the average volume. This helps me to identify where the volume will be in the watch list.
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Preparation Sheet Legend

Reason Legend

This is a list of reasons I take into consideration to include a stock in my watch list. You could develop your own reasons to consider trading a stock. This can be done as you develop you list of trading setups. Your goal should be to find the best stocks that work the best for your trading setups.

** Information that could increase the interest of people to trade the stock **
before - Earning today before the market opens
yafter - Earning yesterday after the market  close
ybefore - Earning yesterday before the market open
today - Earnings scheduled today but no time specified
after - Earnings scheduled today after the market closes
news - stock with fresh news today

** Relevant technical information that could increase the interest of people to trade the stock **
yatr - stock that had a move greater than 2 times its normal ATR (Avg True Range)
yt+ - Yesterday top positive (>2.5%) with volume above average
t+ - Today´s  top positive (>2.5%) with volume above average
yt- - Yesterday top negative (<-2.5%) with volume above average
t- Today´s  top negative (<-2.5%) with volume above average
y52h - Yesterday close price is Above or close to 52 week high with volume above average
y52l - Yesterday close price is Below or close to 52 week low with volume above average
52h - Today price is Above or close to 52 week high with volume above average
52l - Today price is Below or close to 52 week low with volume above average
2nd | 3rd - Stocks that had an important move on the previous day, that may continue to move today.
am ch - Stock from am idea that had a good volume (change from the open  +/- 2%)
am vl - Stock from am idea that has good relative volume
am al - Stock from am idea with triggered alert
vol - stocks with volume

There are times when a lot of instruments appears in the list, so I narrow it down by relative volume. The secret to trading is understanding the relation between price x time x volume.

 ** Lesson to be learn: "by trying to trade everything you end up trading nothing. All you need is one good stock and trade it well" ** 

Plan Legend

LRes = Long above Resistance
LSup = Long at a support
SSup = Short below support
SRes = Short at resistance
InfS* = Inflection point (preference for Short)
InfL* = Inflection point (preference for Long)

* Inflection point means that you have a preference side to take the trade, but if that level is broken to the other side, you can switch your position.


Long/Short Legend

L = Long preference because of the daily chart
S = Short preference because of the daily chart
R = Stock in Range on a daily chart
1R = one minute range
5R = five minute range
15R =  minute range

Personal Preference

So far I am trading stocks that have the following criteria:
  • Average volume is greater than 1,000,000 a day
  • ATR is greater than 0.40
  • Price is between U$15,00 and U$60,00
  • Short float less than 25%
Why? I don´t think that I have trading skills (or bank account) to trade AAPL yet and also personal preference. You must find what makes sense to you.

Where does this information come from?

Technical and Descriptive Information: Finviz
Conference Calls: Yahoo Conference Calls 

There is a very crazy Excel Sheet I created that consolidates all this information into one place. "Necessity  is the mother of invention".  

If you have any suggestions or something is not clear, let me know so I can improve it.


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About the blog

I decided to write this blog because of the following reasons:

  • Passion for trading: I love trading, as simple as that. If you want to become a trader you must love it. Remember that it is a long marathon to become a consistent profitable. Don´t expect to be millionaire in a day or two. 
  • Sharing trading ideas: Instead of e-mailing my prep sheet to everyone, putting it up into the blog makes it easier for me to share it with whoever is interested in it.
  • Exchange information: Yes, this is a two way street. I don´t want to just give information, I want your feedback as well. How can I improve? How did you trade that specific stock? How could´ve we traded it better? Consider me your trading peer.
  • Part of my trading journal: This blog is part of my trading journal and by having people following, stimulates me to actually writing in it and work on the discipline skills. Also it makes it easier to keep a record of it.
  • Provide free studying material to other trades: there is so much you can learn from books. By reviewing my trades I am helping myself first. Also helps other traders out there to find good material to .
  • Practice English: English is not my first language. I lived in the US for a year, but things you don´t use that often tend to be forgotten, so expect some spelling mistakes on the blog. This is also a way for me to practice.
  • Writing: I like to write, so why not a write blog.

Things you should know: 
  • By no means the material here is a suggestion to buy or sell any stocks. You must use the information here at your own risk. 
  • The material here should be used for education purpose only.
  • I do not work for any financial or stock related institution. I am just an independent trader trying to make a living.
Final thoughts

Hope the material you find here can really help you with your learning experience and good trading!
Stuff could be added here along the way.






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