How to find winning stocks to trade like $EGLE $CCCR and $VNDA
As we approach September 1st, the beginning of my intensive studying of the market 1 year ago, I think back to the questions I had just starting out. One of the biggest questions was how do I find these stocks to trade. Sure I had studied Tim’s DVDs and the theory behind the winning trades made sense, but how was I going to find these stocks that are so active.
Well it took time, but I figured it out by finding the right tools. There are some free tools that are useful, but as the saying goes you get what you pay for. It’s like trying to make a fine dining pasta dish with frozen pasta mass produced versus fresh handmade pasta.
So in the beginning before I found my favorite tools I would use Yahoo’s biggest gainers or Finviz . Both of these are good for information, but I found it was good for stocks at the end of the day. Sure it is easy to see what has happened, but the key to getting into these stocks while the movement is happening is a tool that is up to the minute.
I definitely used Yahoo and Finviz for research at night. It was great practice to see the charts and what happened throughout the day and if there was a catalyst. Was there a big announcement of a contract win? Positive Earnings? or maybe a low float stock that had a little bit of movement and the shorts got squeezed on the stock?
In the beginning it is important to understand how news is likely to affect a stock. I say likely because the market does not always react rationally and stocks can tank with positive news like $PSTG on Friday.
So write down the big movers and see the reason why they moved as well as what happens the next day. Try to figure out the why and put yourself in the brains of the other traders to understand their moves.
Back to finding the stocks. So I had found a great way to find stocks at the end of the day but how was I going to find those stocks in play at that moment. There does tend to be momentum to stocks on the second and third day as not all traders are day traders. Many people think the stock is still at a great deal even if up 5-15% so they buy looking to make money. That continued momentum will usually keep it going for max 3 days. Although sometimes it can be one day affair and boom the stock crashes.
I tried Stocks To Trade 1.0 which was served data by EquityFeed and I liked their service, but it still did not give me quick snapshot of the market to find this stocks. There was too much specific filtering for the lists for me to easily find what I wanted to see. Don’t get me wrong I love Equityfeed for my level 2 data and charting but the lists of active stocks was still missing.
Then I found Warrior Trading Chat Room that had a free Monday Trial and they had this great software on screen sharing. Well I wasn’t shy and I asked what software it was that they were using to filter all the data to come up with their lists.
Turns out it was Trade Ideas. After seeing a demo of the software in the trading room I began to do more investigation. I began using the full pro package with the back testing and Holly. Sure enough it very quickly paid for itself. The software is amazing and the customer service they provide is even better. This software no lie can be overwhelming with all the possibility of personalizing it to each individual user. However they also have amazing present channels like Surge which shows you the stocks that have a surge in volume right up to the minute.
Finally it was exactly what I was looking for in software to find stocks to trade. I mean the company name says it all Trade Ideas. This system lets you put your finger on the heartbeat of the market with the stocks that have volume and price movement.
Navigating the ocean of stocks without the right tools is like trying to cross the Atlantic with a raft . Why would you do that to yourself and make it so difficult. I completely understand the costs of getting into trading in the beginning. It can be overwhelming but not having tools that make it easy to me is foolish.
It was interesting too because it wasn’t until after I was using the software that I discovered the Free Trading Room. A Trade Ideas sponsored room that is very positive with Barrie the moderator (just tweeted 8/30 Get TI Premium for 25% or regular TI for 20% until Sept 5th! Use Promo Code LABOR2016) and Dan the CEO and other great traders all providing their experience. I have learned from them as well. It is a nice positive area to learn about the software and some winning strategies for profiting on stocks.
The whole journey of becoming a day trader is not easy. There is the psychological aspect of it. The funding of your trading account and how to use the trading software and then how do you find the stocks. I hope this helps you with the last step.
90% fail because they don’t study and learn. It’s easiest to learn from others’ successes and failures. The goal is to become self sufficient and not follow anyone but you need to learn how to do that. It doesn’t happen overnight.
So in the early phases study successful people and use the tools to help you succeed. Don’t trade blind. Do the prep work and understand what is going on before jumping into a stock.
I love hearing feedback from you. It makes my trading more personal and I like to hear how I can help you. If you have questions or comments you can contact me here or on Profitly, Twitter, Instagram, LinkedIn and Facebook.
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For my charting and level 2 I use Equityfeed.
This blog is for information purposes I am not a registered securities broker-dealer or an investment adviser. The information here is not intended as securities brokerage, investment or as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.