How to Find Stocks for Day Trading and Swing Trading

Introduction

• Common question from new traders on YouTube channel.
• Goal: Teach beginners to find stocks without premium scanners or news platforms.
• Focus on building independent trading skills.

Step 1: Scanning for Stocks

• Platform: Use Finviz.com (free and beginner-friendly)
  • Get a broad market view on the homepage.
  • Use the Finviz Screener for filtering stocks.
• Descriptive Filters:
  • Exchange: Leave blank to include Nasdaq, NYSE, and Amex.
  • Market Cap: Focus on small caps (under 2 billion).
• Volume Filters:
  • Relative Volume: Over 1.5 is ideal.
  • Current Volume: Over 5 million shares.
• Price Filter:
  • Under $10, especially for small caps.

Step 2: Technical Analysis on Daily Charts

• Look for stocks consolidating on the daily chart and setting up for a breakout.
• Example Stocks:
  • GROM: Resistance around $4, breaking out towards $6.
  • NXTP: Breakout from $2 to $2.30.
  • CEI: Broke multiple resistances, now sold off.
• Key Concepts:
  • Breakout: Needs increasing volume for sustainability.
  • Volume: Essential for successful breakouts.

Step 3: Preparing Watchlist on Broker Platforms

• Platform Example: Thinkorswim
  • Analyze selected stocks like CEI and GROM.
• Support and Resistance:
  • Support: Areas where buyers historically entered.
  • Resistance: Areas where sellers historically exited.
• Setting Alerts:
  • Use broker alerts to signal key resistance breakouts.
  • Observe stock behavior before making trades.

Additional Tips

• Most trading preparation is done outside market hours.
• During market hours, focus on observing watchlist stocks and executing trades.

Conclusion

• Encouragement to be self-sufficient and conduct thorough analysis.
• Invitation to like, subscribe, and explore more content on humbletrader.com.