Just curious how everyone picks there stocks? Do you study the for a few days before trading them? What criteria must bet met before you pick that stock? Thanx guys
Depends on the time frame. For a daytrade, liquidity and volatility are the key for me. For a swing trade or investment, superior performance plus an attractive entry point.
For swinging, I pick on p&f patterns. Before entering, I take a look on the sector relative strength to the market and the stock's relative strength to the sector. Works nicely ... so far ...
I also do daytrading, so cannot say anything for swingtrades. A daytrader can only surive (and in a good case make money), by trading "thin stocks". If you trade "thick stocks" (MSFT, CSCO) you're just having a nice time, but not making money in the long run, or veeerrrrryyy slllooooowwwly. How to define "thin" stocks? Well, I would say, the best would be MSFT"s for tomorrow. But how to find them? -They should have enough liquidity to be able to shuffle around 2000-5000 lots easy. So for me I keep around 3mln daily as a minimum. -Not less than 5$ -Good volatility and high ATR. -ANd in contradiction with the above, a low spread. That's where the tradeoff comes. And finally, it depends on how much risk you can/will take, which is closely related to your account size. TFD