Hi, I am a new part time trader, I have been trading stocks part time for about 18 months. I don't trade every day and sometimes not every week. I day trade and swing trade mostly. Overall I have done fairly well had some beginners luck and learned a few hard and difficult lessons the hard way. My question is for those that trade stocks, would you share with me how you identify which stocks you plan to watch and trade. I have a system but it seems to take to long to find good candidates. I believe that there has to be a better way at finding potential movers. I would love to hear how others find stocks to day trade or swing trade. My second question is what TA or other indicators do you look for when making a day trade vs. a swing trade? Thanks Ed
yeah i'm looking to know where to find stocks that will make me money too. all i am looking for is a buck or 2 in the direction you tell me. haha joking with you guy its just spending time reading and looking at stocks on all the website's. there are know tricks just researching and more researching
I use volume as the primary indicator. Stocks with big volume deviations are a good place to start. I have just written an article for eSignal in this regard, "The Importance of Volume", and it may help you. http://www.esignal.com or http://www.esignalcentral.com/learning/likepro/default.asp Good luck!
The 52 week highs and lows list has always proved useful for me. No stock can make a large sustained move without appearing on that list. Other filters include top 10 percentage winners/losers on the day, most active stocks, and anything in the news.
Good article, Jai. When you look at volume are you looking for an increase or decrease? What percentage change do you look for? Thanks.
I look for both. I see volume as the pulse. Whenever that pulse is lower or higher than normal, its an indication that something compelling is about to unfold. Significant and valid breakouts above strong resistance and key reversal areas are normally accompanied by strong and higher than normal volume. At a minimum I look for a 100% increase. 50% drops in vol vs. avg vol is another indicator, specifically after sharp selloffs or rallies.
You're putting the cart before the horse. Your first objective is to determine a strategy. Your selection of stocks will then flow from that decision. What I trade with my strategy may well be completely different and apart from another trader's stock list, although we may both be successful. What is the strategy you've been trading? "Swing trading" and "day trading" are not strategies.
Just a quick market note. A year ago it was "sell all the rallies" because we were in a bear market & all 22 50 200 dma were pointing down. Now it should be the exact opposite of that "buy the dips" when the markets retreat to their ma's buy the market. I'm not going to say we are in a definite bull market, but I am going to follow the trend. Everyone is saying the market is overextended, p/e ratios are too high, yada yada yada... until the market proves otherwise this market is going higher. Look at the direction of the ma's...hey this sounds too simplistic but when a market is trending this works. Don't fight the trend, listen to the market. Happy trading
This has worked well for me. I use RSI when the market is trending and to show me the strength of the current trend. Use a 21 day RSI and 50 as your major point of interest. For instance, look at the QQQ today, when the market is rallying as it has been for the last few months, the market will find support at the 50 area of the RSI. Notice how the QQQ found support at or around 50 this shows that the trend is continuing. Once this breaks below 50 and stays below for a signifigant period of time and when the 50 area becomes a resistance rather than support level you will know the trend is over. Good Fortune. http://stockcharts.com/def/servlet/SC.web?c=qqq,uu[w,a]daclyyay[dc][pb21!b50!f][vc60][iut!Up14,3,3!Ub21]&pref=G