As a beginner trader one of the most difficult concepts to grasp is how in the world profitable traders find stocks to trade. There are thousands of stocks, mutual funds, and ETFs that you could trade. Somehow, a professional trader has to find 5-10 stocks worth trading each day AND maintain a 65-75% accuracy of winners vs losers.
Once you can achieve this feat, you will be a profitable trader, making a living from the stock market. That’s how important stock selection is! Today I’m going to give you some free tips that come straight out of our 15 chapter Day Trading Course! If you have any questions about finding stocks to trade, feel free to email me.
Proven Tips for Finding Stocks to Trade
I will tell you the 5-10 stocks I’m looking at each day as part of our Day Trading Chat Room. This saves you from having to do your homework and sift through all the stocks in the market. Here’s the only problem, until you understand how I choose those stocks, you’ll never be able to get started on your journey to becoming a professional trader. You can make some money following other traders, but you can’t make a living doing it.
In order to make a living as a trader, you have to adopt a trading strategy and that means a detailed stock selection process, risk management techniques, and entry/exit rules. As part of our Day Trading Course I teach the exact strategy I use to profit from the market. This strategy has been adopted by our students who are profitably trading the markets thanks to our training. Today I’m going to share some free tips from our courses on Stock Selection.
What Makes a Stock Worth Trading?
If you are looking at 5000+ Stocks, Mutual Funds, ETFs, etc., you know you only want to trade ones that have big potential. So what exactly gives a stock big potential? Almost every single day there is a stock making a 20-30% intraday move. It sounds crazy but it’s true!
Several times a month we’ll even see stocks run 50-100% in a single day. Those are the types of stocks day traders love. As soon as one of these stocks start popping up, traders flood into the name looking to get a piece of the action. It’s a predictable pattern in the market. Our job as traders is to narrow down the list for 5,000 to 5-10 stocks each day.
It’s important to understand that the market runs on rumors and crowd mentality, so when stocks start to move, other traders join in on the momentum. For example, if a stock reports bad earnings, but traders start buying up the stock, it will often surge up, despite bad earnings. In this way, the market can defy logical behavior.
The same is true with all types of headlines, FDA earnings, clinical trial results, earnings, investor stakes, etc. Rather than try to read all of the breaking news headlines, I start my morning by looking at stocks gapping up 4% or more. My watch list each day is based on the top 10 biggest gappers.
Proprietary Stock Scanners
As a student in our Day Trading Course you’ll receive access to my suite of proprietary scanners. These scanners are the result of years of development, refinement, and adjustment. Most days I make the majority of my profit by taking the trades straight off the scanners. These scanners search the entire market for the stocks that fit my criteria for having home run potential.
Without scanners, I can’t trade. They are THAT important. If you want to be a profitable trader, having the best scanners will be a must. It’s how you find your trade ideas!
The Top 10 Biggest Gappers Each Day
Each day I use my custom scanners to search the market for the biggest gappers. These stocks are almost always gapping up on news. I search for the headline and post these headlines in our Day Trading Chat Room. If there is going to be a stock that moves 20%+ intraday, there is a great chance it will be one of these stocks on my Gappers Scanner. There are several detailed criteria I check for each stock.
I outline these details in our Day Trading Course, but in summary, I review the News Sources, the Headlines, the Float, the Market Cap, the Short Interest, the Social Media Relative Activity, and the Volume. Among the Top 10 gappers each day I can usually narrow these down to a list of 4-6 stocks that I’m especially interested in. These 4-6 stocks are posted on my Watch List each morning for our Chat Room students and Day Trading Course students. This saves them from having to get up early and do the research I’m doing!
Don’t struggle to find stocks to trade!
You no longer need to struggle to find stocks to trade! By being a member of our day trading chat room you will have direct access to my watch list everyday AND you will know exactly what I’m trading, and why. If you are ready to take the leap and get a professional training, you can join our Day Trading Course, get access to my proprietary scanners, and begin your career as a trader.
Finding stocks to trade is the easiest part of my day. The next challenge will be learning to manage risk, choose the best entries, and hold your winners as long as possible! We’ll cover those topics in the day trading course! Hope to see you there.