how should i know what stocks to trade...

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

  1. 7rader

    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

    7rader

    :confused:
     
  3. bespoke

    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

    ajr34

    www.smbtraining.com

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