Wanted to make a sweet and short post on resources I use to find stocks. Finviz is a great resource, but scanning and scouring hundreds of charts gets tedious. Not only that but you start wanting to see what you want to see after flipping through a few pages of not seeing much. I realized I need to find a better way to search for stocks to not only day trade but swing trade as well.
One way is to find stocks in the news. These are stocks that will see institutional money and new investors (whether it’s into or out of the stock is up to the charts). Here is a great page to find just that.
Some people pay hundreds of dollars for in play by briefing. This is a great free alternative. Here you can see which stocks have heavy pre-market volume as well as which stocks are gapping up and down.
Don’t want to read through all of that and get right to the list of gappers and high volume pre-market movers? You sound like me.
Boom. 30 min before market opens it’ll give you a list of all the gappers plus their volume. Click gap-down tab for the gappers down. Be sure to check up on why they are gapping. (Buy-outs won’t move much, common stock offering don’t move much either).
Those are great ways to find stocks to day trade for the day. What about swing trades? Well usually a few days after they gap, you’ll see either a nice breakout, pullback or breakdown pattern forming as people sell off from the gap ups or buy their shorts on gap downs. This gives a great swing trade opportunity several days after the big gap and even if you missed it on the day trade side, they provide ample opportunities to get in on the swing trade side.
Hope this helps some of you find some consistency in which stocks to trade. I think searching for stocks after market open or just randomly flipping through charts is a losing way to trade. Prepare days in advance or pre-market how you want to trade and let it come to you.