Tuesday, October 24, 2006

My thoughts about HighChartPatterns

After reading Richard's udpate review of the HighChartPatterns service, I thought I would add my own two bits about it.

I used to complain about not being able to find quality, well behaved, tradeable setups. But now, I have the opposite problem - too many stock ideas, and not enough time to filter through them all!
On a typical night, I usually start with Alan Farley's 7-Bells to get some ideas for possible pullback or dummy setups. Then I go to Richard's website to look at the list of 30d Highs (I ignore the 30d Lows list mostly because I have a natural affinity to take the long side of a trade). Then I run my own custom, cooked-up MSN scan of stocks near their 52-wk highs. Then I watch Brian Shannon's nightly video for additional stock ideas. Then I check out Russ's website for stocks that look like they may be offering a "second chance". I also review some of my previous trades for ones that look like they have potential to setup again. And for the past week or so, I've also been reading the HighChartPatterns newsletter (I'm still on the free trial).
With the exception of the HighChartPatterns newsletter, I find that I have to spend a good hour or so to filter out all those ideas for the best candidates. By filtering I mean looking at the chart and deciding which ones have a tradeable setup, then working out support/resistance areas. Then actually working out a buy alert price range.
The HighChartPatterns newsletter currently costs $30/month. There are about 21-22 trading days per month, so that cost breaks down to about $1.4/day. In other words, that time that I spend searching, scanning and filtering all of my idea sources is valued at $1.4/day, and I still don't consistently come up with the quality ideas that I find on the highChartPatterns newsletter.
$1.40 cannot buy you a Starbucks coffee.
$1.40 cannot buy you a BigMac
$1.40 cannot buy you the weekend edition of your local newspaper.
But for a mere $1.40/day, I can get some consistently good quality trade ideas from the newsletter. The key here is consistently good quality. Not a bad trade at all in my mind.

Note: I do not work for, nor am I affiliated with them in any way. Heck, they probably don't even know I exist.

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