There are thousands of stocks you can buy and sell on any given day. Can you decide on whether to trade stocks that are popular to trade like Apple or Google? Would you just play IPOs and shoot for an instant flip according to the hoopla? Maybe you scan the marketplace in hopes of finding stocks that best fit your trading methodology, or look for the latest top trades. You have arrived here erroneously if you’re looking for a simple list of high volume stocks that you are able to trade regular and make boat loads of cash. Locating the best stocks to day trade needs work and quite a bit of research on your own part. In this post, I’ll provide a few you can use to identify the top trades of te day for trading.
I ‘m going to cover a number of approaches below that you can use in both pre-market and throughout the trading day to know the best stocks to day trade. Regardless of which approach best matches your day trading style, the one thing required for each selection procedure is you must get an early start to the trading day. Gone are the days where you’re able to show up at your desk at 9:15 am, log on and start placing trades. The market is getting faster and quicker with the increased trading volume from hedge funds. At the very least, you should start your homework work at 8 am to find the best option trading ideas. This provides you enough time configure your monitors with the stocks you are actively monitoring for the day and to run.
Find the Top Trades of the Day Trade with Pre-market Movers
For those that have been trading for some period of time, you will know that the pre-marketplace is among the street’s favored ways to fake you out you. A stock could be up 6% in the pre-market only to open up 2% at 9:30 am. The reason for the substantial price swing is due to the thin volume that can carry a stock either manner beyond the regular trading session.
I start my scan sharp. Below is what you need to seek out when scanning stocks during the pre-market.
Stocks greater than $5 dollars. Before all you penny stock traders start shouting, I have nothing against you, it is just I ‘ve tight stops on my trades and trading a $1 dollar stock doesn’t leave me much room.
Volume must be somewhat hefty. Then look the other way if you find a stock up 20.
Once you see a stock that is up on volume that is decent and above $5 dollars you’ll need to check the volume average for the last 30 days. This step is essential because you are able to filter out all of the stocks that generally trade thinly and are not good candidates for day trading.
Ensure you review the broader value of the futures market for the major indices (Dow, NASDAQ and S&P). It is always a good idea to go in the direction of the comprehensive marketplace while breakouts can move independently of the marketplace.
Your trading platform should give you the pre-market movers
Enthusiasts of the blog know my ideas around the sum of capital required to make it. So, assuming you’ve countless thousands of dollars at your disposal you’ll need a stock with enough quantity to allow one to quickly enter and leave the trade without difficulty. If you’ve got a brokerage account your respective company should have a list that is most active. This can be an excellent start, but will simply include the top 20 or so stocks. You may need a scan that’s a little broader and provide trading chances that is not being tracked by every investor to you. You will need to also find stocks that are growing on high volume relative to themselves. For instance, if your stock normally swaps hands 2 million shares a day, but has 5 million shares swapping hands before 10, then this is something of note. Under are some excellent resources if your trading platform doesn’t provide you with a robust screener for high volume stocks,: Uncommon Quantity provided by Yahoo Finance. Bar Chart supplies a listing of over 200 symbols The Street supplies not only the high volume stocks but also has a scanner for those that are trading under $5 for all you penny stock lovers out there