Discover Winning Trades: Free Stock Finding Tips for Beginners
Table of Contents
- Introduction to Finding Stocks for Day Trading and Swing Trading
- Step 1: Scanning for Stocks on Finviz.com
- Using the Finviz Screener
- Setting Filters for Market Cap, Relative Volume, and Current Volume
- Step 2: Analyzing the Daily Charts for Breakouts
- Identifying Support and Resistance Levels
- Analyzing Volume Patterns
- Step 3: Preparing Watchlists on Broker Platforms
- Using Thinkorswim as a Demo
- Setting Alerts for Breakout Levels
- Conclusion
📈 Introduction to Finding Stocks for Day Trading and Swing Trading
Finding the right stocks to trade is an essential part of day trading and swing trading. As a new trader, it can be overwhelming to sift through countless stocks on the market. However, with a step-by-step process and the right tools, you can learn how to scan for stocks that meet your criteria for free. In this article, we will guide you through the process of finding stocks to trade without relying on expensive scanners or chat room alerts.
Step 1: Scanning for Stocks on Finviz.com
The first step in finding stocks to trade is to scan for potential candidates. Finviz.com is a beginner-friendly and free scanning platform that offers a comprehensive market view. To start, visit the Finviz homepage and click on the "Screener" tab. Here, you can input filters to narrow down your search and scan for stocks that match your criteria.
To begin, it's recommended to start with descriptive filters. You can leave the exchange blank to scan for both NASDAQ and NYSE stocks. For market capitalization, consider scanning for stocks under 2 billion dollars to focus on both small caps and large caps. As volume is crucial for successful breakouts, prioritize relative volume over average volume. Look for stocks with a relative volume of over 1.5 or even 2.
Step 2: Analyzing the Daily Charts for Breakouts
Once you have a list of potential stocks from the scan, it's time to analyze their daily charts for breakouts. Pay attention to support and resistance levels as they play a crucial role in determining potential entry and exit points. Support levels represent areas where buyers historically entered the stock, while resistance levels signify areas where sellers were present.
Additionally, analyze volume patterns on the daily charts. Increasing volume precedes a breakout, while consistent volume sustains it. Therefore, it's important to consider stocks with higher-than-average current volume and relative volume. This indicates growing interest and potential for a successful breakout.
Step 3: Preparing Watchlists on Broker Platforms
After identifying stocks that meet your criteria for breakouts and volume patterns, it's time to prepare watchlists on your broker platform. For example, using Thinkorswim as a demo platform, you can further analyze the charts and set alerts for breakout levels. Remember, setting alerts does not mean blindly buying or selling stocks. Observing the price action and analyzing intraday charts are crucial before making any trading decisions.
Create support and resistance lines on your broker platform and set alerts for breakout levels. This way, you'll be notified when a stock breaks above the resistance level you've planned. Once alerted, assess the chart and price action intraday, confirming consistent volume and a strong setup before making a move.
Conclusion
Finding stocks for day trading and swing trading requires a systematic approach. By scanning for stocks using Finviz.com, analyzing daily charts for breakouts, and preparing watchlists on broker platforms, you can increase your chances of finding winning trades independently. Remember, finding the right stocks involves considering factors such as market cap, relative volume, support and resistance levels, and volume patterns. Combine these strategies with proper analysis and risk management to enhance your trading skills and increase profitability. Happy trading!
Highlights:
- Learn how to find stocks for day trading and swing trading without premium scanners or news platforms.
- Use Finviz.com, a beginner-friendly and free scanning platform, to narrow down potential stocks.
- Focus on market cap, relative volume, and current volume to identify potential breakout candidates.
- Analyze daily charts for support and resistance levels, as well as volume patterns.
- Prepare watchlists on broker platforms and set alerts for breakout levels.
- Always analyze intraday charts and assess the price action before making trading decisions.
FAQ
Q: Can I use the same process to find stocks for long-term investments?
A: This process is more suitable for day trading and swing trading, which focus on short-term price movements. When it comes to long-term investments, different criteria and strategies may be more appropriate.
Q: What other free scanning platforms are available besides Finviz.com?
A: While Finviz.com is a popular choice, there are other free scanning platforms such as Yahoo Finance, StockFetcher, and TradingView. Experiment with different platforms to find the one that suits your needs.
Q: How often should I scan for stocks?
A: It is recommended to scan for stocks daily or at least a few times a week, as market conditions and potential opportunities can change frequently. Stay updated and adjust your scan criteria as needed.
Q: Should I rely solely on scanning or use additional research methods?
A: While scanning is a valuable tool for finding potential stocks, it should be used in conjunction with other research methods. Consider conducting fundamental analysis, reading news, and following market trends to enhance your understanding of the stocks you are considering.
Q: Is this process suitable for beginner traders?
A: Yes, this process is beginner-friendly and can help new traders develop their skills in finding potential trade candidates. However, it is important to remember that trading involves risk, and proper education, practice, and risk management are essential for success.
