Author: Ethan

5 Ways to Find Stocks to Day Trade

Learning to find stocks to trade is arguably the most important part of day trading, but it can also be the most frustrating part for many traders.

However, you can do a few things to make the process of finding stocks to trade a lot easier.

Finding stocks to day trade is a lot easier than people think!

So let's look at 5 cool ways to find a stock to trade!


1. Find Stocks Using Scanners and Screeners

When learning how to start day trading, the ability to scan for stocks to trade is a must-have skill. You want to learn how to use a stock scanner because it is a fast way to find good stocks to trade based on your criteria. It's great to get ideas from others on what to trade, but things change fast, and stocks can pop up out of nowhere. Traders should constantly be scanning for more opportunities as they wait for a setup to enter a trade.

There are a ton of free stock scanners and screeners, but what is the difference?

A stock scanner is used to filter out and search for stocks with live active data. In comparison, a stock screener is more for research purposes when the market is closed and doesn’t use live data.

Before you go looking for that special stock, you need to know what you are looking for.

Things to Look for When Scanning for Stocks to Trade:

  1. Price - You can filter and search stocks based on their price. Before you start trading with real money, you should study trading risk management. Learning this risk management will help you figure out the general price range of stocks you are looking for. Most day traders look for stocks under ten dollars because they want to get a decent amount of shares to trade. Of course, your price range will be based on your budget and how much you are willing to risk on a certain trade.
  2. Volume - The main thing you are searching for is high volume. The volume is how much a certain stock is being traded in a specified time period and is a solid indicator showing how much attention the stock is getting. If you trade a stock that has too low of volume, you run the risk of getting into a dead trade. A low volume may take forever for it to move and may be harder to buy or sell. This is because volume affects liquidity, and liquidity affects your ability to get in and of the stock. In a nutshell, the more people to buy, the quicker you can sell – or vise-versa!
  3. Percentage of Change - You can scan for stocks by searching the percentage of change. This is how much a stock price has changed based on a chosen percentage and is a great way to find stocks that have moved or are still moving.

Stock Scan

You should also check the stock's float before trading it. The float is basically the available amount of public shares to trade. The amount of shares a stock has to trades is important because it gives you an idea of how fast stock price might move. The lower the float, the easier it is to move the price by trading it.

For example, if a stock has 100 available shares to trade, you could move it one percent by trading one share. While if a stock has 1,000,000 shares to trade, it takes more trading action to move the price. If a stock has a super high float, it will take a lot more volume to move the price.

2. YouTube

YouTube is an effortless way to find stocks!

Several day trading YouTube channels go live before the market opens daily to share what stocks they are looking to trade. Some of these channels will even have links to watch as they trade that day.

At the end of the day, many of these traders will post a recap for the day. Watching these will give you valuable insight into trading and some ideas for stocks to trades.

Recommended day trading YouTube channels:

You want to find and learn from the best. Following successful day traders and learning from their success and mistakes is a fast road to getting better!

3. Check Daily Trading News

Trading news can be tricky. There are some obvious pieces of news where you can tell for sure it will impact a stock in a certain way.

However, it can still be tough to know exactly how specific news will affect a stock. But regardless, you can still check the news is to find stocks that might be moving. You may not be able to tell if the news is good or bad, but you can still get an idea for a stock that might have the potential to move big. Sometimes news comes out right before the market opens or closes and affects prices greatly.

You should also be aware of news announcements scheduled to happen, like earnings. Companies occasionally report their earnings, which is basically a report on how the company is doing. Checking the news for earnings can help you know when to avoid trading certain stocks. These earnings can greatly affect a stock price as people try to figure out how the earnings will turn out.

In the end, paying attention to the news and learning how certain events affect certain stocks is a valuable skill to learn. Cause and effect is a valuable skill to learn in trading!

4. Join Stock Chat Rooms

There are loads of free stock trading chat rooms that anyone can join. The main purpose of a stock trading chatroom is to collaborate and communicate with other traders. Traders with all sorts of different experience levels join these chat rooms.

The main benefits of a stock chat room are to gain experience and learn from others. Traders share trading ideas, charts and even post their exact trades. There are so many different stocks moving simultaneously that it is impossible to be watching everything. Other traders in chat rooms can call out stocks that you may have missed or share some news that you haven’t heard.

Here are a few tips if you join a stock chat room:

  • Remember that most traders in these chat rooms are not experts, even if they claim to be.
  • Don’t trade or buy a stock just because someone else is. It is best is to get ideas from others, but then research those ideas for yourself.
  • Don’t just watch and hide in the background. Participate and share ideas that you have with others. This is so important because someone may see something in your trade idea that you didn’t. You can learn from others' critiques.

Recommended Stock Groups:

Tech Bud Solutions - Free chatroom

5. Build a Watchlist

Stock Watchlist

As you are going through all these ways to find stocks, you should start building a watchlist.

This is a list of stocks that you want to keep an eye on because they show some potential for trading.

Creating a watchlist is super easy.

You can create your own on a notepad or use the ones built into trading platforms. There are benefits to having them both written down and on your trading platform.

Within your trading platform, it makes it easy to select and access different stocks quickly.

However, having a written watch list can provide the opportunity to write down notes and reasons for why a stock is on your watchlist. This can come in very handy as watchlists can grow quickly, and it may be hard to remember exactly why you added a stock to your watchlist.

Remember to maintain your watchlist and keep it organized. It is good to have multiple watchlists to prioritize the stocks on them or even their market sectors. You can have a current watchlist for the stocks you are looking at today and one for those you just want to keep an eye on.

You can also ask other traders for their lists. Genius, huh? Most people don't hoard the stocks they are trading like a pile of gold.

Looking for setups and stocks that work for your personal strategies is important to think about. Traders should put time into finding and testing the best day trading strategies for themselves. As you gain more experience searching for patterns and entries, they get easier to notice.

Using all the ways we covered here will make finding stocks to trade a lot easier. Experience is the key and will be the difference-maker in helping you identify the potential "big ones." Even if you don't get the biggest ones of the day, there are plenty of opportunities every day to day trade.

REMEMBER: Beware of FOMO, or the fear of missing out. Missing a big stock move can put traders in a negative state of mind where they may become quicker to rush into trades. Of course, nobody likes missing out on huge trades and profits. Realize there will be another opportunity. You can't let missed opportunities affect your ability to stay disciplined and focused on your plans.
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