630,000… According to Investopedia, “approximately 630,000 companies are now traded publicly throughout the world.”
Of course, our choices are only a fraction of that number since most of the stocks that we have access to are from USA (NASDAQ, NYSE, AMEX…), but what is a good way to find fresh stocks that are hot every single day?
My method: Scanner –> Quick charting –> In-depth charting –> DD –> Battle
Finviz.com is a great scanner anyone can use, and it’s free! I mentioned in my last post that my favorites are small-cap stocks, under $10 (penny stocks), that have seen recent high volume. Why?
Small-cap stocks + stocks under $10 are more volatile and have a lot of room to run.
High volume = liquidity, you’d want a healthy volume to be able to buy and sell easily.
I have 3 main criteria I set when I scan, and they are:
- Market Cap. –> Large (under $200bln.)
- Average Volume –> Over 200K
- Price –> Under $10
Of course you can do whatever filters you’d like that fits your trading style, but this is mine. My style is quick trades, I’m usually in and out in a few hours or a couple of weeks max! Looking for many trades and around 7%-30+% gains per trade!
Once you’ve set up your filters and click search, you can hover your mouse over the names of the stocks, and it’ll show you a quick (1 year) mini chart. This is how you can quickly sift through hundreds of stock in a short amount of time and pick out which one stands out to you.
In my example, PTIE stood out to me at a glance because it looks like a Bull Flag pattern is forming to me.
Another free tool? YES! Tradingview.com is my favorite for in-depth charting. So many useful things on there, yet they’re hidden away. So it’s simple to use, but the more you dig around, you discover this charting tool is actually really advanced. Not only does it chart stocks, but Forex, Crypto, Futures, and more!
Charting PTIE, it definitely shows a bull flag pattern in formation!
0.40 seconds. A quick Google search on the stock being researched right now, PTIE.
Try to balance your analytical analysis with your fundamental analysis. It makes you that much better at trading, trust me. The more you know, the more confident you’ll be going into the trade, or shall I say… the BATTLE!
It’s a battle… of where the stock price is going. The questions are:
- When am I going to enter the battle?
- If I am going to lose, when will I exit?
- If I win, when will I exit?
Simply put, know your game plan before the game starts!
In a later post, I will retouch on Battle, and dive in a little deeper.
“Knowing is half the battle.” -G.I. Joe
Tell me in the comments what is your way of finding stocks? Did you like my method, why or why not? Let’s learn from each other!