Trending Stocks

Hey can anyone help me find good trending stocks to look at? I like to trade stocks that trend nicely and have little retracement in either direction. Or if thats too broad of a question can you tell me what methods I can use to find stocks that trend better than others? Basically I want to avoid chop as much as possible and find stocks that don't act choppy even when most of the market does. Thanks for any help you can give me on this matter.

 

bump

 

I don’t wish to discourage, but do you realize your post could be rephrased as follows?

“I like to trade stocks that trend nicely and have little retracement in either direction.” = I like easy money.

“Basically I want to avoid chop as much as possible and find stocks that don't act choppy even when most of the market does.” = Can anyone tell me how to make easy money easily?

In my view the questions are too naïve to get you valuable responses here (but others may disagree, and you may get something useful!).

My suggestion: go do some reading!

My recommended list …
- High Probability Trading – Marcel Link
- Markets in Profile – James Dalton
- Trading in the Zone – Mark Douglas
- Trading and Exchanges – Larry Harris

 

You are basically looking for stocks with very low variance of, let us say, weekly returns and low beta. Simple linear regression can solve your problem. Define your slope, i.e. the return, and the variance of the returns and there you go. Software like TC2000 is maybe good for this job.

 

awesome, thanks a lot

 

+1 lol. i was about to type the exact thing when i read the op post.

op, so not to just criticize, here's a value add suggestion: realize that there is NO way to determine ahead of time which security (stock, future, fx, beanie babies,etc) will trend and/or trend huge. that's why it's important to limit your risk (e.g. 1 or 2% of equity) and scale in (e.g. in thirds or fourths). there are a lot of simple strategies that can be used to determine a trend (donchian channel, ma crossover it doesn't really matter what matters is you have a simple and sound methodology that alerts you to a trend and limits risk.