JST Core Beliefs

Market Wisdom

We believe markets are all-knowing, and price and volume are the clearest expression of what the market already understands. Charts are our way of seeing collective market knowledge in real time.

Capital Preservation

We believe preserving capital is the highest priority. Risk must be defined, controlled, and limited so that no single trade or series of trades can threaten the principle of the account.

Timing Through Price

We believe it's possible to time the market by interpreting price and volume action and that markets give an indication of their direction through their recent history.

Trend Alignment

We believe it is easier and more productive to trade in the direction of the overall market. When the market is trending, aligning with that direction provides clarity, momentum, and higher-probability opportunities.

Leadership Recognition

We believe charts reveal which sectors, industry groups, and stocks are leading or lagging within the broader market trend. Price and volume show where strength is building, where weakness is emerging, and which areas are driving the market's movement.

Methodology Matters

We believe in having a clear methodology that can be used to identify mistakes, understand why they happened, and continually improve our success rate. A defined process makes improvement possible and keeps the trading approach evolving in the right direction.

Market-Driven Exposure

We believe the market determines how much capital to deploy. Strong markets naturally produce more qualifying setups and more positions; weak or unclear markets produce fewer or none. We believe in trading only what is seen and try to limit overtrading.

Emotional Neutrality

We believe emotion is a key enemy of good decision-making. When emotional, it becomes difficult to read charts objectively or act with discipline. We believe in letting the market make our decisions for us whenever possible.

Market Truth

We believe markets are never wrong and it does not care what we think. Therefore, our objective is to read what is happening, not what we hope is happening.

Educated Entry

We believe to make money we must be in the market. Getting in is basically an educated guess (i.e. a bet) where the outcome is uncertain, but the risk is defined. Success comes from being correct more often than incorrect and by making a higher average profit when we're right (letting winners run) than is lost when wrong (limiting losses).

Confirmation Timing

We believe that buying and selling based on time will never be perfect. We strive to get to the party just a little late and leave a little early. To us, exit timing (a trend is changing) is much more difficult than entry timing (existing trend).

Downtrend Advantage

We believe that in a full uptrend, it is very hard to outperform all the major indexes. Real outperformance happens in downtrends — by avoiding losses when the market weakens and by being short when the trend is clearly down.

Market Bias

We believe the market has a long-term upward bias. Because of this tendency, we treat short positions more conservatively. Shorts are sized smaller, traded differently, and used as incremental contributors to overall performance — not as the primary driver of returns.

Method Alignment

We believe it is possible to build a methodology that aligns with our core beliefs — and a trader should consistently strive towards that alignment.

Life Harmony

We believe the methodology you choose is unique to you — and it should be harmonious and balanced regarding the other parts of your life.

Peace of Mind

We believe no price can be put on peace of mind. If an investment size creates agitation, distraction, or sleepless nights, we reduce exposure until calm returns. Peace of mind can therefore be viewed as a form of risk management — and trading from a centered, peaceful state is always best.

Strategies

Trade in the Direction of Market Alignment

We use charts to understand how the market, sectors, and leading stocks are behaving. Technical analysis helps us observe trend strength, participation, and whether different parts of the market are moving together. When things line up, conditions tend to be more supportive, and we adjust our exposure accordingly. This approach keeps us responding to what the market is showing rather than relying on predictions or narratives.

Prioritize Capital Preservation Through Selective Participation

Technical analysis helps us recognize when the market environment is constructive and when it may be more challenging. Choppy action, failed breakouts, weak volume, and a lack of leadership often show up on charts before they're obvious elsewhere. By stepping back during these periods, we avoid forcing trades in conditions that may not be favorable. Preserving capital during uncertain environments helps us stay ready for clearer, higher-quality opportunities when they appear.

Let Price and Volume Dictate Exposure

Charts show the interaction between supply and demand in real-time. By studying price and volume together, we get a picture of who is (buyers or sellers) in control at a given moment and whether the market is approaching an inflection point where its direction could continue or shift. This helps us determine if the environment is strengthening, weakening, or transitioning. Our strategy is to let supply-and-demand dynamics guide how much capital we deploy, increasing exposure as conditions improve and reducing it when the market is more uncertain.

Focus on High-Probability Setups in Leading Areas

Technical analysis helps us identify areas of the market that are acting well. These patterns often appear on charts before fundamentals or news reflect the same shifts. By paying attention to areas showing early signs of strength, we position ourselves in parts of the market that are behaving constructively. This approach can improve our odds of success and keeps us focused on areas displaying healthy price and volume history.

Use Shorts as Incremental Performance Enhancers

Charts help us observe when the market is weakening, when distribution is increasing, and when downtrends may be forming. At the same time, the market's long-term upward bias means short setups often require more caution. We size them smaller and treat them as supplemental tools rather than primary drivers. This approach helps us participate when conditions favor the downside in a risk-contained way.

Enter Only When the Market Shows Its Hand

Technical analysis provides signals that setups may be transitioning to the beginning of a firm move. Waiting for solid directional confirmation helps us enter with more confidence and defined risk.

Exit Early Enough to Protect Gains and Reduce Stress

Charts can reveal when momentum is slowing, when a move is becoming extended, or when price action is starting to weaken. These signs help us step aside before conditions deteriorate. Stop losses are also a key exit component as they provide insurance against catastrophic downside movements. In addition, tightening stop losses is a primary tool to unemotionally sell when the market indicates a run is over.

Maintain Emotional Neutrality Through Process and Structure

Technical analysis provides a framework that helps reduce emotional decision-making. Trend, volume, and price behavior offer objective reference points that keep us grounded. By relying on these signals rather than internal impulses, we maintain a more neutral mindset and stay aligned with actual market action.

Methodology Should Support Life Balance

Charts allow us to work within a structured, repeatable workflow. Because the process is visual and time-bounded, it supports a trading style that fits in with the rest of life. We avoid overtrading, respect our time windows, and maintain a rhythm that promotes clarity and sustainability. Technical analysis helps us trade in a way that supports long-term balance and helps us to stay motivated to engage with the markets.

Resources

Charting Software

One-year chart of daily candles: Creates a repetitive visual memory that aligns with our daily schedule
Trendlines and channel boxes: Define direction, slope, consolidations, and breakout/breakdown zones; hand-drawn for consistent interpretation and tactile connection to the chart
Moving averages (visual only): Show areas of support/resistance
Volume-at-price (VAP): Highlights price zones of support/resistance
Volume analysis: Gauge conviction behind moves
Candlestick behavior: Reveals supply/demand dynamics with focus on open/close and the intraday behavior
Alert setting: Creates price targets for actionable stocks directly from charts; used as a prediction and monitoring tool to capture stock behavior of interest

Watchlists

US Common Stock List (fixed): The full universe of US common stocks
Market ETF list (fixed): Small list of ETFs representing major markets like QQQ, DIA, SPY, etc.
Sector ETF list (fixed): Small list of ETFs representing major sectors like XLE, XLF, XLK, etc.
Industry Master List (fixed): Pre-filtered list of interesting industry groups. Each group is expandable to a component stock list. This list can then be sorted (i.e. capitalization, gain, loss, volume).
Stock Master List (fixed): Pre-filtered list of stocks of interest. A preselected subset of the US Common Stock List.
Daily Industry List (variable): List of industries of interest from previous day's action (gainers/losers/volume increase/technical position)
Daily Stock List (variable): List of stocks of interest from previous day's action (gainers/losers/volume increase/technical position)
Open Positions List (variable): A list of all current open positions

Scripting / Sorting Tools

Technical Setup Script: Run on the US Common Stock List to identify stocks with potential technical setups to add to the Daily Stock List
% Change Sort: Used on the Stock and Industry Master Lists to identify stocks and industries to add to the Daily Stock List and Daily Industries List, respectively
% Volume Change Sort: Used on the Stock and Industry Master Lists to identify stocks and industries to add to the Daily Stock List and Daily Industries List, respectively

Miscellaneous

Alert Console: A list of all alerts and their status.
Trading Notepad: A physical notepad used to capture all potential trade opportunities for a given day.

Methods

Review Open Positions List

What: Scan open positions list item by item to check if stop/loss should be updated or the stock should be liquidated based on context (upcoming earnings, market, sector or group failing, etc.)

Why: To preserve gains, limit loss and eliminate risk as the positions mature

How:

Scan the open positions watchlist charts
Identify if the stop should be updated
When reviewing alerts, enter into the trading notebook stocks to be reviewed based on market conditions (earnings, market/sector/industry changes, significant news)
During trade execution session, review notepad entries and take appropriate action (sell, update stops, do nothing)

Frequency: 2 times Daily

Creation of Daily Stock List

What: Generate a list of pertinent issues to add to the Daily Stock List

Why: Track and capture stocks of interest from the previous day's market action

How:

Run the technical setup script/filter on the US Common Stock List and add results to the Daily Stock List
Apply sorting tools to the previous day's results of the Master Stock List; select and copy significant gainers, significant losers, and significant volume-increase stocks to the Daily Stock List

Frequency: Daily

Creation of Daily Industries List

What: Generate a list of pertinent industries to add to the Daily Industry List

Why: Track and capture industries of interest from the previous day's market action

How: Apply sorting tools to the previous day's results of the Industry Master List; select and copy significant gainers, significant losers, and significant volume-increase industries to the Daily Industry List

Frequency: Daily

Review of Market ETF Watchlist

What: Scan Market ETF watchlist items and set alerts to identify Market ETFs actionable for 401K account trading

Why:

Help determine overall market direction
Identify leading indexes
Provides the basis for 401K account trades

How:

Open the Market ETF watchlist
Scan each Index ETF chart and draw or redraw trendlines
Set alerts at actionable inflection points

Frequency: Daily

Review of Sector ETF Watchlist

What: Scan Sector ETF watchlist items and set alerts to identify Sector ETFs actionable for IRA account trading

Why:

Helps confirm Index behavior
Helps identify strong sectors
Provides the basis for IRA account trades

How:

Open the Sector ETF watchlist
Scan each Sector ETF chart and draw or redraw trendlines
Set alerts at actionable inflection points

Frequency: Daily

Review of Daily Industry List

What: Scan Daily Industry watchlist items to identify trending industries and their trending stock components

Why:

Identify industry groups that warrant monitoring
Identify stocks within the industry groups that warrant monitoring
Provides information about market breadth
Provides information about market drivers for indexes, sectors, and industry groups

How:

Open the Daily Industry List
Review each industry chart and draw or redraw trendlines
Set alerts at actionable inflection points

Frequency: Daily

Review of Daily Stock List

What: Scan Daily Stock watchlist items and set alerts to identify stocks actionable for margin brokerage account trading

Why:

Identify stocks in proper technical setups
Confirm action of industry groups, market sectors, and market indexes
Provides the basis for Margin Brokerage trades

How:

Open the Daily Stock List
Review each stock chart and draw or redraw trendlines
Set alerts at actionable inflection points

Frequency: Daily

Alert Processing

What: Go through the alert console for stock and/or industry group alerts that have triggered.

Why:

Monitor potential trades without having to watch the daily market fluctuations
Capture significant and potentially tradeable events
Can be used as a tool to validate trading hypotheses
Assists in creating emotional neutrality and life balance while trading

How:

Open the alert console
Look at charts of triggered alerts
If a triggered alert has moved back to an untriggered level, reset it
If an alert has been triggered and is no longer a valid trade, remove it
If an alert is triggered and actionable, write the stock in the trading notepad to be considered for end-of-day trading

Frequency: Daily

Executing Trades

What: Review stocks in the trading notepad and take a final decision on opening a position

Why: To take advantage of market movements and make financial progress in our 401k, IRA, and margin brokerage accounts

How:

Go through the notepad and process market ETFs, then sector ETFs, then individual stocks
Process each item by taking a final look at the chart and other data to determine if a position should be opened
Normally, any stock with a red flag (news-driven move, upcoming earnings, poor fundamentals, extreme volatility, etc.) is crossed off the list
For stocks to be traded, determine the position size and stop location, create the position, and create a stop loss order

Frequency: Daily

Daily Schedule

Before Market Opens (9:30 ET)

Review Open Positions List
Creation of Daily Stock List
Creation of Daily Industries List

Before 11:00 AM ET

Review of Market ETF Watchlist
Review of Sector ETF Watchlist
Review of Daily Industry List
Review of Daily Stock List

2:45 PM to 4:00 PM ET

Alert Processing
Review Open Positions List
Executing Trades