Hi guys and Kacy - I love the way your analytical mind works :-)
"...with so many recommendations being made on the daytraders diaries thread and elsewhere how do I decide which ones to buy and which ones to avoid?"...
Your comment: IMHO the most successful traders appear to be the ones who have a bag of favourite stocks that they trade regularly.
For me it's about the 'hit rate', Can I get larger and more frequent positive trades, close out positions to minimize my risk and protect those positive results? EG: I had 17 trades this week of which 15 were profitable. But that's not hard when you trade the same stock four times, particualrly one ou know well. Essentially what you have stated is correct. Trade the stocks you know well on solid volume. Those stocks that are mentioned that you don't know well, trade in a smaller more risk adverse style. Recognise that you can't trade every stock - in fact it can hurt you (yesterday NXS, HFA, BLR, LYC etc...)...
Which brings me to your comment >
"So perhaps its all about maintaining a bag of trading stocks where for each stock the upside potential is considered to be far greater than the downside risk?"
Only need to add to this > "and stocks that have FAMILIAR tradng history, strong trend/sector/news and risk management".
I would also like to say that different partipants in the Daytrading Forum choose different stocks because they have different trading styles, different exerience/history, different risk levels.... what you might want to do is align yourself with a trader that you feel offers the most similar trading style to your own and just watch. (Kacy - that's where the results that you deliver come into play).
These days I tend to do my own thing... it's less costly and I can manage the risk better. (Even if the stock has already been mentioned). I do like pjSimon's calls and Kevi is great with the charts/resistance level calls. MNKOP when not suspended is also a regular picker of similar risk based stocks to my own. There are a host of others (sorry didn't mention all) and some that as soon as they mention a stock I tend to stay away... Others here want fundamental reasons for each stock choice.... whilst appropriate, this can be difficult simply because THIS market is not 100% fundamentally based. Lacking confidence can also be the biggest deficit to profit. If we look at the last week, the fundamentals on news and market direction have boyed the results. You will note the increase in stock prices after posting a speeding ticket response in numerous stocks this week. This is relevant... watch the news each day also! It's been huge in terms of results.
At the end of the day > try looking a Kacy's results from a different perspective. Follow the popularity, trade with momentum/liquidity and find your style of trading/risk/experience etc... that most suits your own.
