How to Find Stocks to Day Trade
One of the first problems new traders have is figuring out which stocks are going to be the best for day trading. The easiest stocks to day trade are stocks that are going to have high volume (a lot of shares being traded) and a large price range (the difference between the highest and lowest price traded). As a day trader, you want to be able to buy and sell the stock quickly (high volume gives you this) and make a profit by entering and exiting the trade in the same day (you need range for this). News is the number one thing that will cause a stock to have volume and range. Here are 5 ways you can find these stocks every day.
Companies are required to report earnings once a quarter. The reports typically occur before or after regular trading hours. These reports, whether good or bad, cause lots of volatility and day traders can see massive gains (or losses) by trading earning.
To find out when company earnings are coming out, you can go to EarningsWhispers.com and then type the stock ticker (NFLX or AMZN) into the field at the top of the page. If you want to know which earnings are happening on the day you are trading, go to EarningsWhispers.com/calendar and it will show you the earnings that have come out or will be coming out that day.
2. Stocks Gapping Up or Down
If you don’t have a news scanner, one way to find stocks to day trade is to search for stocks that are gapping up or down from the previous days close. Most trading platforms have a built-in scanner to show gapping stocks but if you need something free, you can find stock gapping up and down at BarChart.com.
Another way to find stocks to day trade is by using Twitter. Every morning, many users post news that has come out and/or the stocks that they are thinking of trading. The hard part of using Twitter is knowing who to follow and what information is beneficial. The first step is to determine which