Weekly recap – Traders are stocks that they trade

After making my research i was very well prepared for the last week knowing what i gonna do in every possible situation, but in despite of this, i found that my efficiency is still slow because I had too many things to watch, failing to react to what happens now. This caused trading stocks that are not in play because i can’t make differentiate between stocks that move and stocks that not in one or anether specific sector in that today.

Looking at the market all week by watching my stocks i found that if sector broke one of my pivots, usually, all majority of stocks from that sector in my watchlist will move with him, but only the strongest will give a beutifull move with folow through. Also i found in other days that these strong stocks will give me beautiful moves several times in another days in despite of that fact that this sector today is in range and only maintain its gains.

Wee all know the Pareto principle (also known as the 80/20 rule ) states that, for many events, roughly 80% of the effects come from 20% of the causes. So i decided to focus on this 20% following this rule :

It sector broke my pivot watch only stocks that broke their pivots too, focusing all my energy to them , also i can trade them intraday  because probability that they will move are very high in regedles of fact that i didn’t expect much from them and at first glance there are no difference between them and stocks that have not broke their pivot. In stocks that didn’t broke their pivot, but remain strong, only buying support bounce are allowed . ( Vice versa for weak stocks )


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