how should i know what stocks to trade...

Discussion in 'Trading' started by 7rader, Mar 5, 2009.

  1. 7rader


    i know some people just focus on 1 or 2 and trade it religiously, and others scan through multiple charts before they find something tradable...

    im just trying to figure out what factors people look at before trading a certain stock/etf

    do you make sure it...
    trades above certain vol?
    has a min of "x" daily range so you can take advantage of moves?
    volatile? or not so volatile depending on your risk appetite?

    what else?
  2. 7rader


  3. bespoke


    Maybe if you tell us more about your strategy we could help. You have a strategy right?

    As for me, only stocks that do more than 500K volume, average spread < 0.03 and have on average movement of more than 1 cent a minute. That gives me both good movement and reduced slippage. I feel like there's too many games in stocks that do < 500K volume. That narrows the list down to about 500 tradeable stocks these days and the list changes everyday based on recent activity. There used to be a lot more but so many previously good stocks are less than 5 dollars now and trade like SIRI.
  4. ajr34


    check out thier site, they have a lot of usefull info on their blog. \