In my experience, most of the guys that I know who’ve been doing this for a long time – including myself – tend to stick to the same group of names. Big problem for new traders is that their first instinct is to look at the pre-market list to attempt to trade stocks that already put in 90% of their move, only in an attempt to make scraps. Leaving them in a subconscious scenario of all risk and no reward. This is incredibly random because the defined risk is impossible to gage.
I found out years ago that if you concentrate on a go-to list of names, you get familiar with their tendencies and average true range for the day. My specialty is trading high beta names using the #ps60 theory. It’s a theory that stocks trade from supply to supply and demand to demand, confirming through a 60min channel. Tsla, amzn, baba, nflx, nvda, googl, etc. There is a much higher probability of success because most of retail doesn’t trade them, hence making the moves more predictable after a pivot is confirmed.
As a trader, we want boring and methodical. Most traders find the pre-market list exciting. Exciting means you are not in control. If you are not in control that means your emotional levels are rising. That is a huge red flag. New traders – ask yourself a question. If 90% of traders fail, why would you want to be in the same names as them?