Stock Scanners are a requirement for successful day trading
I find almost every single trade setup on one of my stock scanners. I use stock scanner software provided by Trade-Ideas (www.trade-ideas.com). I can’t speak highly enough about their tools. Without their scanning software I would be lost as a trader. A trader can have all the textbook knowledge of the markets but if they are unable to find setups in real-time they will never profit. Stock scanners are how we find those setups. Before stock scanners existed traders would trade off a master watch list of their top 50 stocks. This is not an effective method of day trading because typically there are only 5-10 stocks in play each day, out of the several thousand stocks available to trade. I consider a stock in play if it is surging up or down more than 4% with a strong catalyst. Using stock scanners I can choose the specific type of stocks I want to see. I can make complex scanners to look for specific chart patterns or I can use simple scanners to look for broad matches such as stocks that just reported earnings in the last 24hrs.
Day trading is difficult career that we can make a little easier by using the best tools. This includes stock scanners by Trade-Ideas. One of the great features of Trade-Ideas is the ability to view historical data of a stock scan. I can look back and see all the alerts from a day or week and review the results. This saves us a tremendous amount of time sitting and watching scanners in real-time. We can back test and quickly correct inconsistencies or false alert issues. I provide all of the students in our live trading courses with the proprietary stock scanner settings I’ve developed over the years. Students are able to use the exact same layout I use everyday to find trades. Although I have about 15 scanners I’m actively using everyday, they are clustered in two groups. I have scanners looking for reversal opportunities and I have scanners looking for momentum trades. Those are the two strategies I trade and those are the setup ideas I need to find in real-time. All of the stock scanners I use have been highly customized to provide me with a watch list of the type of stocks I have the highest percentage of success trading.