My Portfolio Process

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I’m not sure if I’ve ever talked about this before, but I thought some of you might be interested in knowing how I go about dealing with my portfolio.

It’s really all about the watch lists. Specifically, three watch lists of mine called Core, Bear Pen, and TK Short. Here is sort of the “flow”, which I’ll describe next.

The Core list is a general holding pen for the stocks I follow (there is actually another list, similarly sized, called Secondary, which I don’t look at nearly as often). What I do virtually every day is look at every single chart in that list and identify stocks I believe may be forming what I consider some kind of reversal pattern.

I have programmed the keyboard shortcuts in SlopeCharts to make moving symbols from list to list a one-touch process, so when I see a symbol that looks like it could be a potential short, I press F1 and it is moved from the Core List to my Bear Pen. Think of it as “nominating” a symbol for a short-sale.

Now, the symbols in Bear Pen might linger there for days, if not weeks. It is, after all, a “Pen” to hold prospective shorts. Once a day, I’ll go through the entirety of Bear Pen to see which symbols, if any, are ripe for shorting. This is a filtering process. Bear Pen is a subset of the Core list, and the actual list of positions, TK Shorts, is a subset of Bear Pen.

In other words, when I actually go ahead and execute a trade, that symbol will move from Bear Pen to TK Shorts. At any given moment, these lists represent the accurate reality of how my trading life is ordered (Gold and Diamond members have real-time access to all my lists, and all shared lists on the site are updated dynamically without refreshing SlopeCharts).

Of course, sometimes positions will get stopped out or, more happily, reach a profit target, and I’ll remove them from the TK Shorts list. At that point, they might simply be returned to the Bear Pen for a later opportunity, or they might be kicked back to Core. It depends on if the stock looks like it might produce another setup anything in the near future.

And that’s pretty much it. Given the complexity of my portfolio (as I am typing this, 73 short positions and 7 long options positions), you can understand why I made excellent watch list organization and keyboard shortcuts one of the earliest features in the charting platform.

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