How I locate setups

Question:

> Some more questions came to mind...What source
> do you use for new ideas / stocks to put on your watch list? as well as
> research and to follow breaking news? Do you use one source or multiple
> sources?
>
> There are so many resources out there from Bloomberg to IBD, MarketWatch,
> Briefing.com etc. that I often find myself overwhelmed by all the options
> and commentary and experience info overload! How do I cut out all the
> "noise" and focus on what's really pertinent?

Answer:

=) No problem!

I tend to keep things really simple. In terms of scanning, I primarily
monitor the gapping stocks and the intraday % and $ gainers and losers, as
well as stocks trading near day's highs or day's lows. This generally gives
me plenty of trade opportunities to monitor and it is pretty rare anymore
that I look further than that. If I am not finding much in those lists then
it means I'm looking too much because the market risk is obviously higher
than average. Sure, I will still find a couple of things if I pour through
other sources, but it's often not even worth it.

In terms of news sources, I don't even mornitor them. It's not so much what
the news is after all, but what the reaction is. You usually don't need to
know what the news is, but there can be some risks to not knowing. These
would include if the stock is a buyout, since you can get stuck in a gapper
that just goes nowhere because of the buyout, or if the news is
rumor-related and may easily be recanted or lead the stock to be subject to
a trading halt.

All my best,
Toni
http://www.tradingfrommainstreet.com