Evaluation Of Stocks, ETFs, And Funds by Chris Pratsch
Doing It My Way
Evaluation Of Stocks, ETFs, And Funds
In times of price volatility and diverging political and
financial theories on world markets, how will independent
traders survive? Find out how one trader navigates the
markets with a daily evaluation method.
Trading activities are controlled by organizations
that trade large volumes, profit from small gains,
and use ultrafast computer trading systems. Do
independent retail traders have a place in such
In my article “Buy & Sell Signals Using Stochastics” published
in October 2012, I discussed the advantage of buy and
sell signals using variable-length stochastics. I am going to
extend those ideas and incorporate them into a daily stockevaluation
method that anybody with access to a computer
and printer can use.
Almost every evening after the markets close, I evaluate
the entire database of my trading platform. There are about
7,500 entries. To look at each of those charts for 10 seconds
would be time-consuming, which is why I use the sorting and
scanning features available in my trading platform, TC2000
v12. My evaluation, when properly planned, takes about five to 10 minutes and forms the basis of my trading decisions for
the next day. All formulas I have provided in this article are
in the TC2000 format.
There are many ways to perform an exhaustive stock
evaluation; I do not claim to know the best one, but what
I do works for me. In this article I will share my approach,
which I hope will help you set up an evaluation system that
works for you.