Find the Best Stocks to Day Trade | Day Trading Tips & Tricks

Finding the Best Stocks to Day Trade [Video]

There are thousands of stocks you can trade connected any given day. The potential count of trade opportunities can find overwhelming to the untrained eye. Do you pick pop stocks the like Apple or Google to trade? Do you scarce sport IPOs and shoot for a ready flip supported the hype? Altogether of these questions possess to be flushed out as a theatrical role of your trading programme.

Maybe you scan the commercialize in hopes of determination stocks that better fit your trading methodology. If you were looking for for a bare leaning of high volume stocks that you pot trade every day and make boatloads of money, you have come to the damage place.

Learning how to determine the Sunday-go-to-meeting stocks to day business deal requires work and quite an bit of research on your part.  Therein article, I will exemplify 7 tips and tricks you can purpose to find the best stocks to day deal.

Start Your Day Early

I am going to cover a number of day trading tips and tricks below that you can use in some the pre-market and during the trading day to identify the best stocks to day trade.  Regardless of which approach best fits your day trading style, the cardinal thing mandatory for each selection process is you essential get an future start to the trading mean solar day.

Gone are the days where you can go far at 9:15 am, log on and starting placing trades.  The market is acquiring faster and faster with the increased trading volume from hedge funds.  At a minimum, you should start your prep ferment at 8 am.

This bequeath cater you enough time to behavior your morning enquiry and configure your monitors with the stocks you are actively tracking for the day.

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#1   Find the Best Stocks to 24-hour interval Barter with Pre-market Movers

Day Trade with Pre-market Movers

For those of you that have been trading for much period, you will know that the pre-market is one of the street's favorite ways to pass fake you. ^[1] A stock could be up 6% in the pre-market lonesome to open up 2% at 9:30 am.  The reason out for the large price swing is ascribable the thin intensity that can carry a stock either way outside of the regular trading session.

I protrude my scanning at 8:00 am sharp healthy before the opening bell.  This gives me a to the full hour and a incomplete ahead the market opens to demeanour my explore.  Below is what you deprivation to look into for when scanning stocks during the pre-market.

• Stocks greater than $5 dollars.  Before all you penny stock traders set out yelling, I have nothing against you, it is just I have choky stops on my trades and trading a $1 clam hackneyed does not leave me much room.
• Bulk necessarily to be somewhat doughy.  If you envision a stock up 20% on 200 shares, then look the other way.
• Erst you see a stock that is up on decent volume and in a higher place $5 dollars you will want to check the volume normal for the conclusion 30 days.  This step is scholarly because you can filter out altogether of the stocks that normally trade lightly and are non good candidates for day trading.
• Make sure you review the broader apprais of the futures market for the major indices (Dow, National Association of Securities Dealers Automated Quotations and S&ere;P).  Patc breakouts bottom move independently of the market, it's always a fortunate estimation to go into the direction of the broad market.

Your trading platform should provide you with the pre-market movers; even so, if the scans are not thorough sufficiency to a lower place is a list of resources:

1. NASDAQ pre-market values
2. Origin Market Depth psychology – list the pre-market movers every forenoon
3. Stock Commercialise See – provides top gainers and losers but also displays the pre-market value of the leading indices.

There are other high powered scanners tabu in that respect, but to be honest, all you really need is a method to control the top gainers and losers.

The constant need for more data throughout the day will likely lead to overtrading operating room too much trust.

Not to mention whatsoever of these scanners can incur pretty pricey. My thoughts are you need to show you are able to make money with the most basic of scans before scaling up to the pricier options.

Examples of these pricier scanning options are Business deal Ideas and Finviz. What these sites deficiency in design they more than than urinate up for in their power to provide you with more scans than you can ever so stargaze of needing.

Acceptant to More &ger?

Now that we take in crusted the more conservative point of view for pre-market trading, let's delve into the wilder position of trading – low blow stocks.

Low ice-cream soda stocks are not for everyone as the Leontyne Price moves are significant. ^[2] These low float stocks are in all likelihood cent stocks that trade under $5 dollars.

Please note, if you extend down this path behave non employ much 5% or 10% on each trade. This is more of a game where you bid the belt down, but you are not making a long-term investment. Odds are these stocks are priced cheaply for a reason.

Find a Cleansed Pattern

Every bit we mentioned early, you require to avoid charts that have low volume in the morning. How do you know you are dealing with a chart with low bulk – just check over the image below.

Thin Volume

Basically, if you feel like you are looking at stars in the midnight sky, the volume is too thin. When I say stars, I am not talking about candlesticks – I mean literal dashes connected the charts.

The pattern you trade is solely dormy to you. Some of you may like up triangles, patc others may look to red to viridity setups (import the stock starts lower but later exceeds the cockcro highs).

Sharp Float

Adjacent up, after you find a stock in pre-marketplace with decent volume, you will want to find oneself the stocks with adenoidal float. Why high plasterer's float?

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These are the stocks that can really fell in the morning.

Now on the average, I find between 2 and 5 stocks that have both the bulk and the necessary plasterer's float requirements.

The key for you is only trading one or 2 of these setups per day.

You volition likely see a leaning of stocks like the unrivalled below:

Movers

As you can see there are few stocks connected some the long and short side that are prospective goodness candidates for an orifice range of mountains prisonbreak operating theater breakdown trades.

Straight off that we have covered pre-food market at length, let's shift our focus back to other ways to identify great daylight trading opportunities.

#2 Only Trade Stocks with High Loudness

Fans of the TradingSim blog know my thoughts around the amount of capital required to make it in this gamey. Then, presumptuous you have hundreds of thousands of dollars at your disposal you wish demand a store with enough book to allow you to quickly enter and exit the trade wind with ease up. My personal minimum is 40,000 shares per 5-minute bar.

If you have a securities firm business relationship your respective firm should have a most active leaning. This is a good take up but will entirely contain the top 20 or so stocks. You will need a read that is a trifle broader and provides you with trading opportunities that are non being caterpillar-tracked away every investor. You will want to also find stocks that are rising on high volume relative to themselves.

For example, if a stock normally trades 2 billion shares a sidereal day but has 5 million shares traded before 10 this is something of note. You may be saying to yourself, well these bequeath show in the most popular in my trading platform, but this is not always the case because again your brokerage firm platform English hawthorn sole restitution a maximum number of stocks (i.e. top 10, 20).

If your trading platform does not bring home the bacon you with a robust screener for commanding mass stocks below are some big resources:

1. Unusual Volume provided by Yahoo Finance. ^[3]
2. Block Chart provides a number of over 200 symbols ^[4]
3. The Street provides not only the high volume stocks only also has a scan for stocks trading under $5 for altogether you penny stock lovers out there ^[5]

#3 Evolve your Own Watchlist

You will need to develop your own list from stocks you adopt on a daily basis.  Again, due to a battalion of stocks on the exchanges, it's foremost to center on specific sectors.  Below is a list of popular ones:

• Banking
• Artful Metals
• Semiconductor unit
• Automotive
• Pharmaceuticals
• Retail
• Cyberspace

Once you have one or two sectors you would like to follow, get to data track the movement of the superlative issues.  Cave in yourself a few months of consistently observance the stocks and the sectors in terms of their price movements.

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As a follower of the Richard Wyckoff method acting, you cognise that each sector and stocks will give birth an 'operator' that is in control of the commercialise action.   This operator is the investor with the most money in your stock; therefore, they let a controlling interest.  To give you a realizable example, during the summertime of '08 I began to track the metal market heavy.

Every daylight like clockwork stocks Royal Gold (RGLD) and Golden Star Resources (GSS) would birth sharp reversals at 10 AM.  My system of buying or selling short on breakouts of the morning's trading cooking stove would fail consistently with these precious metal stocks.

While experience taught Pine Tree State to avoid this particular sector for 6 months, you could consumption the watch and learn approach to understand how a particular market moves in monastic order to gain an edge over early traders.

The one dispute with building a list is limiting the number of stocks you watch within 1 or 2 sectors.  Since you are manually tracking these stocks and building a cutaneous sense for how they trade wind.  At most you should exclusive pass over 10 stocks per sector, sol this gives you a maximum of 20 stocks you tail follow at whatsoever one point.

#4 Look back terminated your trade account

Look Support Over Your Trade History

Or else of looking to individual else for advice on what the best stocks to daytime sell are, how or so look your own trade execution.  I guarantee there is at least unitary stock you trade regularly for united reason or another.

Fishy affair is you will not be able to explain why you keep gravitating to that especial security.  Call out information technology your soul mate or just your stock of quality.  Your solace level with the stock will make you feel like you "have" its movements.  You can move in and out of the stock with ease and generally hit a profitable trade along each set about.

For me, I couldn't get enough of Baidu Incorporated (BIDU).  For all of you fans of the show Scandal, she was my Olivia.  I would track BIDU every day symmetrical if she wasn't moving much.  Somehow, I was able to predict her movements and ne'er found myself fighting the trade.

Indeed, review over your trade history, is thither one origin that keeps popping up connected your list of trades?

#5 Social Media

This is a more recent technique for scanning the market and I haven't tried it personally (I guess I'm likewise overaged), but I will move over it a shot to illustrate on the button how you can go about searching the social world to encounte stocks to day business deal.  The reason I avoid trenchant social media sites or say news program events is that I do not wish anything positively or negatively impacted my view on a stock.  I base my trade decisions solely on the Mary Leontyne Pric and volume action of the stock.  Now that I have my disavowal come out of the way, let me test boosting your ease level and talk some how I would CAT scan the social arena.

StockTwits

StockTwits streams the hopes and random thoughts of investors for each security.  They eve have a market opinion factor which displays at the circus tent of each wall for the respective stock.  In terms of which stocks to best day swap, if you visit the homepage you volition see a list of stocks crosswise the top which are trending.

These are stocks that members are actively discussing.  You leave quickly poster that these are the stocks in the newsworthiness, but there are times where members are discussing a get in a stock during the middle of the 24-hour interval earlier a news publication is able to produce an article.

The best method for victimization StockTwits without a doubt goes back to the list of pre-market movers. You can, of course, take care at the news event which is pushful the stock high operating theatre read the latest press unblock from the company, just StockTwits allows you to sustain a real beat of the commercialize.

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You can in reality use StockTwits arsenic a method acting to corroborate incisively how much matter to in that location is in the stock.

If you see a store raised 10% but with only two tweets, it's presumptive not in play.

However, if you can find oneself the stock that is up happening heavy loudness and the board for the several security on StockTwits is very active, you likely have a stock live.

Retrieve, it's not around the degree of bullishness or bearishness along the board – every last you forethought about is if people are talk or so the tired you have an eye on.

Stockcharts

Similar to StockTwits but with a twist, is the popular name charts being viewed on Stockcharts.com.  Two things I like near Stockcharts are the situation provides a time stamp of when the data was last pulled.  This sounds simple, but this is &gerous when minutes can mean the difference between winning and losing.  The other water-cooled feature is Stockcharts displays which stocks are consistently touristed over time with their user infrastructure.

TradingSim

I would be re-uncomprehensible if I did not remark TradingSim.  We are weeks away from deploying a bran-new version of the market movers component for our trading simulator.  Marketplace movers provide a list of the top 20 losers and gainers for all session in the market.  For me when I would do my historical scans, I would have a tough time identifying which stocks were trending on a given day.  Grocery movers will allow you to find fault a day 6 months in the past and you can actually assure what the hot stocks were for the day.  Just as you would explore and caterpillar tread the hot stocks for each break of the day, market movers mechanically provide this function for you on historical days, so you can just focus on practicing day trading.

#6 Monitor the Remuneration Calendar

Monitor the Earnings Calendar

One effect that is sure to bring about increased volatility is the reporting of earnings.  You will want to keep track of World Health Organization is au courant deck for the week, that mode you pot start to monitor how the store is trading going into the earnings announcement.I AM NOT advocating you place a trade in front the wage are reported, because this is another form of gambling.  You will, nevertheless, require to know World Health Organization are the likely movers, sol you can add together them to your watch list.  This wish reduce the amount of search required prior to the market open.  Infra is a list of sites that publish remuneration calendars:

• Bumpkin Finance
• Morningstar
• Pay Whisper

#7 Focus along One or Two Stocks

Focusing happening ace or two securities is each about keeping it simple.  In entirely of the above examples, you would need to scan, sentinel and react quickly happening a daily fundament to a number of issues.  If this is something that you tactile property is overmuch and you deprivation to become a get over of something simple, then look after to trade wind the like united or two issues day-after-day Crataegus laevigata atomic number 4 the answer.  When selecting a stock to merchandise you have two approaches: (1) select the near touristy stock operating theatre (2) pick your favorite stock based on your past trading operation.  #2 will largely depend on your own trading preferences, so I volition cover a fewer top stocks for day trading:

• AAPL (Apple) – shrilling mass and great price action.  The popularity of the company has transferred over to the stock's popularity in the trading community of interests
• S&P 500 Spiders – While this is not a stock but an ETF that follows the S&adenylic acid;P index, the mass is huge and provides the means for you to trade the index without trading futures
• QQQ – formerly known as the QQQQ has been a fan favorite of active traders for over a decade
• GOOG (Google) – indigence I say more?
• TSLA (Tesla Motors, Inc.) – if you like excitability the stock moves as fast as its cars
• NFLX (Netflix) – the CEO is willing to presume decisions, this has translated into significant price swings in the stock
• FB (Facebook) – there are few stocks that have polarized traders as much as Facebook

I think it's safe to say I am a bit biased towards the NASDAQ when it comes to day trading.  The NASDAQ's power in the tardive 90's to facilitate order flow has in my mind forever and a day stamped them as the preferred index for active traders.

Below are the benefits of trading one or two stocks:

• Learn the trading pattern
• Describe the technical indicators best suited for the security
• Less Punctuate
• Less knead to act before and after the market close

In Summary

There are octuple ways to prize the best stocks for you to day trade.  Remember trading is a journey, so don't try to figure IT entirely out in one daytime.  Just make sure your scan provides you the way to sell high volume stocks with a audio system that systematically makes you money.

If you do decide to create custom scans you will want to center on the following headstone areas:

• high volume plays
• gappers
• pre-market movers
• red to gullible and ill to red
• consecutive number of red operating room green candles
• biggest gainers and losers

Results for these 6 scans wish provide you more than adequate Eastern Samoa a new trader.

I hope you found this article to make up helpful in your quest to find the best stocks to day trade.  If you would like to see to it how we give the sack help you further, come over to Tradingsim.com and cave in our commercialise movers a shot. I'm secure you will find our go past stock mover tips useful.  Luckiness Trading.

– Camellia State
Photo Sources

Stock Heart –francisco.j.gonzalez

External References

1. Cramer, Jim. (2019). Don't Mess Around with Pre-Grocery store Trading During Earnings Temper. CNBC
2. Low Float Stocks. lowfloat.com
3. Most Active Stocks. yahoo.com
4. All US Exchanges Bulk Leaders. barchart.com
5. Most Actives. thestreet.com

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