Swing Trading Filters For Finding High Momentum Stocks

This makes them useful spots to identify so you can open and close trades as close to reversals as possible. Moving averages calculate the mean of a market’s price movements over a given period. In doing so, they smooth out any erratic short-term spikes.

  • Learning candlesticks, patterns and technical analysis basics are also very important.
  • You can customize many aspects of your search, so adjust any of the criteria as needed to get a list of stocks that are better suited to your day trading strategy or specifications.
  • Investing involved risk including loss of principal.

3) This screen will provide you with a list of stocks that have something going on, as evidenced by both the gap up and confirmed by an increase in relative volume. This is a very fertile list of potential stocks that provide excellent candidates to further develop and research. 6) FinViz allows you to set the minimum number of shares traded each day. Stocks with limited liquidity can trap you like quicksand. You get stuck in the trade as your equity keeps sinking lower and lower. If you screen for at least 250,000 you should be able to freely trade in and out of the equity at any time the markets are open.

Herd Behavior In The Stock Market

Instead of spending hours and hours analyzing, investors can follow successful swing traders and copy their trades or use it as a second opinion to validate their perspectives. Support is a concentration of buyers who are gather around a certain price level. When stocks reach support, swing traders could view this as a setup. If the support breaks, this could be the trigger to sell or short a stock.

So many swing traders will also use support and resistance and patterns when looking for future trends or breakouts. One popular way that swing traders use moving averages is to watch for when a market’s short-term MA crosses a longer-term MA. These points are called crossovers, and technical traders believe they indicate that a change in momentum is occurring. When a faster MA crosses a slower MA from below, it can be indicative of an impending bull move. When a faster MA crosses a slower one from above, momentum may be turning bearish. They may also use a mix of these swing trading strategies.

Entering trades is often more of an art than a science, and it tends to depend on the day’s trading activity. Trade management and exiting, on the other hand, should always be an exact science. A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, Balance of trade which is overseen by a professional money manager. An exchange traded fund is a basket of securities that tracks an underlying index. ETFs can contain investments such as stocks and bonds. Today, I’m still a trader — but my primary focus is teaching and mentoring trading students.

how to find stocks to swing trade

Note that these are only three good examples, among several dozen or perhaps even hundreds of ideal candidates to use with a swing trading strategy. To see if swing trading makes sense for you, consider practice trading before risking real money. ETFs can be a way to potentially mitigate risk and play a hot sector.


Investors that are looking for steady, low-risk growth tend to shy away from the penny stock markets. There are multiple ways to reduce the risk of losing money trading stocks. Learning to control your emotions during a trade is the first line of defense against losses. We have found that stock trading has a steep learning curve to conquer, but it offers the most substantial potential income with the least amount of work. In many freelance businesses, you are directly exchanging your time for money—this is not the case with stock trading. Options investors may lose the entire amount of their investment in a relatively short period of time.

As we can see, the company has been outperforming both the S&P 500, as well as the technology sector. It’s been in a steady uptrend for months now and just reported a considerable earnings beat. Because I’m writing this article during a significant market correction, these screens are fetching fewer stocks, and many of them are in the midst of a pullback. Below is a better example of your typical overextended daily chart. Keep in mind that I’m not applying hindsight bias here, I’m not saying that the stock tanked because it was overextended.

You can watch thetechnical indicatorson the chart and combine them with thefundamentalsof the company to help time your trades. Over 24 million shares are bought and sold daily as of April 2020. Rule Breakers is an excellent choice for investors who want to swing trade how to scan stocks for swing trading stock picks with minimum time consumption for portfolio management and an excellent track record. Rule Breakers is a stock picking service issued by Motley Fool. The trade alerts are different from the ones send within the Motley Fool Stock Advisor newsletter.

(You can paper trade to do that.) And once you start risking actual money, start small. If you’ve gained anything from this post so far, hopefully, it’s the fact that to swing trade well, you gotta have a plan and stick to it. Some traders won’t risk more than 1% of their total account on a single trade.

how to find stocks to swing trade

It may seem counterintuitive, but means that the stop is rallying. This is the reason for entering the position, and it’s what makes a trader put their money on the line. I want to illustrate the simplicity of trend trading by showing you one of the most straightforward chart patterns—theascending channel pattern. Nevertheless, you must understand how analysis works before you count on automated software. A full description of technical analysis is outside the scope of this article, but you canread more about it hereif you are interested.

Brokers For Penny Stocks

In a short position, the goal is to sell high and buy low. The basic idea of the trend channel swing trading strategy is to buy near the bottom of the trend channel. BUT if you do that with no other criteria you will lose a lot of money very quickly. The Bullish Bears also send out a swing trade watch list each night with trade alerts. Put that in that into your nightly watch list and practice trading them. The Charles Schwab Corporation provides a full range of brokerage, banking and financial advisory services through its operating subsidiaries.

Trending stocks are great for both swing traders and day traders. If you can identify a trending stock you can jump on for the ride! Careful though, you don’t want to pick something up at the end of its trend. One way to identify the hot stocks that will move the best is to use a stock screener. We did an amazing introduction to our favorite three stock screeners. Swing trading and day trading appear similar in some respects.

how to find stocks to swing trade

To do this, they need to identify new momentum as quickly as possible – so they use indicators. Some people might be looking for a trade alerts service that gives them hours of trading action every day. You’re certainly welcome to spend as much time as you want looking at Credit default swap the market and trading, and perhaps this service will give you some sort of inspiration to do that. But the stock picks themselves take very little time to administer if you decide you want to follow them, and since they’re swing trades they don’t require babysitting.

How To Sell Stock

In addition, frequent trading can be expensive, since every time you buy and sell, you may pay broker’s fees for the transaction. My wife and I swing trade stocks that cost less than $10 per share. Unfortunately, our luck did not last, and we lost $15,000 trying to trade stocks over the next 6 months.

For a swing trader to be successful in the stock market, they need to establish disciplined trading systems for their stock picks and how they handle stock market movements. That said, swing trading takes a more cautious approach – a more calculated risk. It’s been said that swing traders are more at the mercy of the market in general, whereas day traders watch for catalysts in the moment. These catalysts are typically unrelated to the market. Benzinga is here to inspire you with a few stocks that are perfect for swing trading.

The Daily Routine Of A Swing Trader

I love this method because I can scan the market in the morning, look for the set ups to get in and get out. Then my trades are in and I don’t have to check back in until the next day. I’m on the West coast, so I don’t have to be up trading in the early mornings. Bear Bull Traders is more of a day trading service than a swing trade alerts service. That’s because Andrew Azis and his team focus on day trading strategies with real-time trade alerts, screen share and extensive trading education.

As soon as a viable trade has been found and entered, traders begin to look for an exit. Many swing traders like to use Fibonacci extensions, simple resistance levels or price by volume. Ideally, this is done before the trade has even been placed, but a lot will often depend on the day’s trading. Moreover, adjustments may need to be made later, depending on future trading. Trading on a side while working full time is a great idea to boost your income if done right.

We had some luck early on while the market was making new highs every few months. If you’re like me and you appreciate a balanced life, then swing trading is where it’s at! It’s such an efficient use of time and gives us so much flexibility with our time. And with the types of returns my strategies have gotten in back tests, it makes for a potentially wonderful way to build wealth over time. I spent years searching for the “truth” about which strategies actually make money in the stock market by digging relentlessly through historical data. I’m a Stanford grad who got a perfect score on the math SAT test, so digging through numbers is right in my wheelhouse.

The following stock filters or screens look for stocks that have seen recent momentum coupled with a long-term uptrend . We still need to manually go through the list and look for the right trades setups, but these stock screens are great at finding some big movers. Find and compare the best penny stocks under $2 in real time. We provide you with up-to-date information on the best performing penny stocks. Unless you have an account balance of $25,000, you’ll be limited to 3 day trades in a rolling 5-day period. But most brokers won’t even let a 4th day trade execute — and you could be stuck holding the bag.

Entry and exit points mark the most favorable times, according to the trader, for entering or exiting a trade, respectively. These two emotions are probably responsible for more trading losses than any other factor. Trading stocks is a mental game, and failure to control your fear and greed is the fast track to the poor house in trading.

How To “predict” The Price Of A Stock

You can plot charts of any stocks like this for free at stockcharts.com. You will have to draw in your own trend lines though unless you purchase a premium version of the software. There is a variety of trading strategies, and so it’s best to try your hand at them to find the one or ones that work best for you.

Best Swing Trade Stocks: Limbach Holdings Lmb

Many of these support your ability to open an account with beginner stock trading app with apps like Robinhood, Webull or others, or even a fully-featured offering like TradeStation. Swing trading is a great way to make money, but it can be hard to find the right stocks and trade opportunities. The app follows over 37,000 securities and provides active alerts on when you can trade them. You can connect the stock analysis app to your online broker for direct in-app trading to see your trading in action. Motley Fool Stock Advisor provides a list of five stocks they believe deserving of your money today. If you’re not satisfied with the trading service after signing up, they offer a 100% refund within 30 days of purchase.

Author: Ben Lobel

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