Preparation is Key

02/23/2014 10:12 am EST

Focus: STRATEGIES

After 48 years of trading, Harry Boxer knows what it takes to succeed in the markets daily, and here he shares his daily preparation routine.

SPEAKER 1:  My guest today is Harry Boxer.  We’re talking about his trading preparation, what he does in his routine to get ready for fine, good opportunities.  Harry, talk about your routine every day.

HARRY:  You know, I believe that the routine for the day begins the night before.  There are so many stocks, you want to review what you traded that day, what stocks you missed, what patterns have developed.  One of the ways that I do that is I probably should video call throughout the day as it gives me ideas for the next day.  Most of my ideas frankly come in the first 90 minutes before the opening.  I look at news.  I look at stocks that are gapping up the percent gain leaders on the NASDAQ and the New York Stock Exchange pre-market.  I want to see how much volume they’re trading as well.  I’ll look at those patterns and the intra-day stuff that’s going on pre-market and how that relates to where resistance and support may have been.  For example, if it’s a gap and it’s gapping up crossing into all-time high territory there could be no overhead resistance and the stock could have a pretty strong move so that’s part of the preparation.  Then early on we create a focus list of the stocks you want to focus on.  It can get a little crazy following 40 to 50 stocks so I try to focus on about a dozen and I review them during the course of the webinars that I do, the live webinars all day.

SPEAKER 1:  Do you find that you’re kind of watching the same basket day after day or is whatever is moving that particular day you look at?

HARRY:  Exactly because we find invariably even on down days there are a bunchy of stocks that are moving up because of news so we can make money on the upside on a lousy day and that’s the thing my members like the most because they are amazed some times.  I get emails saying can’t believe the market was down 100 points and we had five or six big winners today.

SPEAKER 1:  Do you have kind of a minimum volume that you won’t look at anything below that to qualify or any stocks you won’t look at?

HARRY:  Number one, there is a rule number one on my website we cannot discuss stocks under a dollar; that’s number one.  Number two I really don’t want to discuss a stock under two or three, but if I see a stock in the first 20 to 30 minutes trading five or 10 million shares and it’s gone from two to two and a half I’ll take a look at it.  Invariably, that stock can be three, three and a half or four before the day is over.

SPEAKER 1:  There are a lot of conflicting news stories.

HARRY:  Right.

SPEAKER 1:  And a lot of news on all of the stock, so how do you kind of filter that?  I mean there is so much to look at when you sit down the first thing in the morning.

HARRY:  You see there is a lot of news, I know it’s tough.  I use briefing.com, the news service.  I look at nothing else because I feel like they’re going to give me most of what I need.  I’m constantly looking at the news and flagging the stock.  I look at the news and I’ll flag the stock.  Then I’ll have a whole list.  Then I’ll do a live webinar only video wise so they can see what charts I’m looking at before the market opens to give them some preparation too.  Then a half hour before the opening, I come in and do the pre-market talk and I go over all my patterns.  At that point, we’ll cull it down to six to eight stocks that we think we want to portray that on.

SPEAKER 1:  Okay, so the night before you’re looking at news, an hour and a half you’re looking at news, and then once you have your basket are you then looking within those for the patterns you like?

HARRY:  Yes.

SPEAKER 1:  Okay.

HARRY:  Especially after they open because follow through is key.  The stock could open, explode and then drop dead; you know the pop and drop.  It happens in biotech a lot.  If there is news or something so we fight all the following patterns to the opening gap.  We want to see a consolidation of a bull flag, a bull pennant, something that indicates this is just resting before it goes again.  Usually we’ll look at five waves.  If wave one is the opening gap and then wave gap is a consolidation, I’m looking for three more waves up.  That usually, you can catch a good two-thirds of the move for the day.

SPEAKER 1:  Are we talking, is that LE (SP?) wave, is that what you’re talking about?

HARRY:  Yes, LE (SP?) wave and Fibonacci stuff and all of that stuff is incorporated in my work.

SPEAKER 1:  How many of these things do you want to come together?  Ideally as many possible, but how many should you say okay enough of them, confirm, it’s time to trade.

HARRY:  I just think a lot of it is gut feel because I’ve been doing it for 48 years now.  After a while, you know what you’re seeing and you know what it looks like in terms of volume.  That’s another thing, if volume is not there, I want trading if the pattern looks good.  That’s a way of culling down opportunity.  Sometimes a low volume stock suddenly explodes and trades big volume because of some major news.  What I call a game-changing news.  The interesting part is not only is it that day, but how often do we find a stock on a daily trade that suddenly becomes a monthly week and month-to-month mover because of that one piece of news that was the game changer.

SPEAKER 1:  All right, thanks for your time.

HARRY:  My pleasure.

SPEAKER 1:  You’re watching the MoneyShow.com video network.

Money Show
D: 11/26/2013 04:04:15 PM
T: 11/27/2013 09:31:38 AM
J:  4199452/1025

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