In my opening article, Effective Trading: Using Your Head, But Not Too Much, I made the point that all successful traders find a way to make their trading more efficient. They have learned to simplify and optimize the processes of identifying, executing, and managing trades on a daily basis.
Developing a series of stock screens and and trading strategies allows you to be very systematic in your trading. You’ll find that an hour in the evening and the first hour of trading is about the only time you’ll need to review your current trades, clean up your watch list, run your screens, and add new stocks to the list (unless of course you decide to blog about your trading experiences!).
Benefits Of Using a Screening Strategy
- Analyzing over 10,000 symbols by hand is a daunting task
- Gain experience trading similar price and and indicator patterns
- Only trade reliable price patterns
- Significantly improve your win / loss ratio
- Create a constant stream of profit probable trades (watch lists)
- Easily filter bad trades and pinpoint trade execution timing with the use of watch lists
- Tailor trading plans with a mix of easilly executed trading strategies that suit your personality and tolerances
- Improve accuracy of profit targets and stop losses
- Systematize your trading and eliminate “rat brained” emotional trading.
- Create a reliable daily schedule for trading
- Significantly reduce “homework” time and spend it doing other things that you enjoy
- Improve confidence in your trades and noticeably reduce trading stress
As I continue to develop this blog and present my screening strategies, I’m certain you’ll fine more reasons to utilize a comprehensive screening strategy in your trading. I’d love to hear your thoughts, so please feel free to leave a comment below.
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