In The Trading Cockpit with the O'Neil Disciples: Strategies that Made Us 18,000% in the Stock Market by Chris Kacher & Gil Morales

Author:Chris Kacher & Gil Morales [Chris Kacher]
Language: eng
Format: epub
Tags: Personal & Professional Development
Publisher: John Wiley & Sons
Published: 2012-12-25T22:00:00+00:00

This basic monitor setup shows three portfolio lists on the upper left side with price alerts set to go off if the stock moves through a particular price on the upside or downside, as well as volume alerts that go off when a particular stock hits a specified volume level. We use volume alerts quite frequently when monitoring stocks for real-time pocket pivot buy points.

Another window shows a Watch List, which is updated daily with specific names we might want to keep an eye on that particular day. Beneath that is a list of Big NASDAQ Stocks since keeping tabs on these key “leading issues of the day,” as Jesse Livermore might say, can give a picture of what is brewing underneath the market action. In the middle is an Indexes and Market Data window where we can keep tabs on all the major market indexes and market data such as market volume, put/call ratios, advancing vs. declining stocks, key commodities prices, and so on.

On the far right of the quote windows is a basic Leader List, usually generated from our own stock research and screening work, although an investor with little time to screen the market can easily substitute the Investor's Business Daily 50 Index, which is an excellent basic list of leading stocks that any investor can work off and which will invariably have more than a few of the biggest leading stocks in any market cycle. The other three windows are just lists of different groups that we may be keeping an eye on. In this case we are watching Bio-techs, Materials, and “Cloud” stocks. One could conceivably use a smaller typeface and have more windows showing more leading groups of stocks bunched together in one window, depending on how much eyestrain one can handle!

Note that all quote windows with the exception of the Indexes and Market Data window are sorted by percentage move on the day, with the stocks up the highest percentage for the day moving to the top of the list in real time. One other very critical feature is the color scheme of the monitor. We like to keep blaring red and green colors to a minimum, and in order to offset the phenomenon known as a “sea of red” or a “sea of green,” we use cool colors such as blues and greens as our background colors. On this particular day when this snapshot of the monitor window was taken, the market was down nearly 80 points on the Dow Jones Industrials, but the window had a relatively calm look thanks to the color scheme, which mostly flashed various shades and hues of blue and green. We set up the color scheme so that we can easily distinguish which stocks are up and which are down, but the overall color is fairly diversified and emphasizes cool colors. Thus our color scheme is intended to promote a calm psychology which is necessary no matter what the market is doing in order for proper thought and decision making to occur.

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