Stock Trading Checklist

Stock Trading Checklist

Ⅰ. Flow of Money

First, assess the market conditions. Determine if capital is being concentrated in a particular sector. Trades should be made where the money is flowing. Thick order books indicate that money is being concentrated.

Ⅱ. Chart Analysis

Check if patterns such as pullbacks and breakouts are forming in the chart. However, remember that chart analysis should be the last priority; assessing market conditions and materials is more important.

Ⅲ. News Materials

Check if the stock has appeared in news about special stocks. News can significantly impact stock prices.

Ⅳ. Momentum

Verify if the stock tends to rise well, like 10-20%, in one move by looking at previous charts for consecutive bullish candles or price ceilings.

Ⅴ. Support and Resistance

Set stop-loss points near the support line after the stock breaks the resistance line and consolidates (absorbing the volume). This setup offers a good risk-reward ratio. Buy not when the resistance is broken, but when the stock consolidates with volume after breaking the resistance.

Ⅵ. Checking the Flow of Money

Use tools like VI status, instant transaction volume, Kiwoom 1413 window, and top gainers to check the flow of money. Always verify if the stock is in a sector where the money is concentrated.

Ⅶ. When to Sell

Selling criteria can be flexible. If you are satisfied with a 5% profit, it is okay to sell at that point.

Ⅷ. Stocks with Concentrated Funds

If the currently popular stocks have risen significantly, look for the next sector where the money will flow. Opportunities arise daily.

Ⅸ. Stock Investment Strategy

Select stocks based on news, materials, and market conditions. Identify momentum through charts, check support and resistance, and set the risk-reward ratio. Then proceed with the trade.

Ⅹ. Selecting Stocks After Market Close

Select stocks that have risen by more than 10% and have decent trading volume. Identify which sectors are hot.

Ⅺ. Reviewing News After Market Close

Review news in economics, society, and IT science to find potential related stocks. Narrow down the selections by stocks and refer to market news. Then, predict which major sectors will attract funds. Limit to three sectors at most.

Ⅻ. Trading Leaders and Second-Tier Stocks

During the previous day’s study, if a sector with good charts is anticipated for the next day, buy the leading stock in that sector. If an unexpected sector leader surges, follow with the second-tier stock.

ⅩⅢ. Importance of Theme Strength

The freshness, twist, and sustainability of the theme are crucial. Understanding how sensitive the market is to a theme is important as it helps capture future profit opportunities.

ⅩⅣ. Trading Third-Tier Stocks

Buy third-tier stocks when there is strong inflow into the sector, especially if the charts and momentum are good and the stocks haven’t risen yet.

ⅩⅤ. Trading Outside the Leading Sector

Even if the stock is not in the leading sector, consider trading if the news and charts are favorable and expectations are alive.

ⅩⅥ. Volume, Market Cap, Trading Value

Check trading volume, market capitalization, trading value, and circulating supply.

ⅩⅦ. Daily Routine

Check the US market and organize key news with Evernote.

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