Picking stocks?

Discussion in 'Trading' started by Kastro_316, May 15, 2004.

  1. 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
  2. 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.
  3. Look here:

  4. agrau


    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 ...
  5. 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.

  6. dgmodel

    dgmodel Guest

    with darts...