I am a paper trading newbie and currently I am trying to trawl through the ASX300 stocks, which i think has a nice coverage, but I am being overwhelmed by looking through 300 stocks and end up frozen by choice. I would prefer spending more time analysing a small watchlist, than not knowing where to look in a list of 300. I am happy to miss some of the moves due to a small watchlist (I will increase the watchlist as my skills improve), but I would prefer to use my growing technical skills to identify key moves in a very small list.
Where would I start to streamline that list down to much less than 300, and what would be the lowest (practical) number I could go and still catch a few profitable moves?
Would I use the stocks in the best sectors? Blue Chips? Mid Caps? Small Caps?
Ideally I would like to have at the most 50, although 20 would be better, 10 would be great. I would prefer spending more time analysing each stock in a list of 20, than a much larger list.
I have reduced the list of 300 to stocks trading between 0.20c and $5.00, for better percentage growth. If a large list is necessary, what's the best way to filter? I was using Leon Wilson's recommendation of anything with the price closing above the 21 moving average.