Please Help Me to Select a Stock for Daytrading

[anituchka 10]

Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.

 

I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.

 

I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).

 

On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.

 

I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.

 

Thanks!

[henryduncan12 10]

I am not well familiar with your shortlist brokers so my suggestion go to AVAFX.

[BlueHorseshoe 10]

  anituchka said:

Please suggest stocks that have nice long moves (am I asking for too much? )and good volume.

 

You want to compare the typical movement in a range of stocks. To compare them you need to find some way to normalise their movement. One easy way to do this is to look at their percentage change rather than their change in dollar value.

 

You could insert a simple percentage change indicator with a single period lookback into you chart. You could then look through a whole load of stocks and see which ones have a high daily percentage change. If you wanted to take this further you could use the scanner/radar/filter function that your charting platform probably offers and input your requirements in terms of percentage change - then the computer will do the "looking through" for you.

 

I hope that's useful.

 

My only other advice would be to consider looking at futures again in light of the Al Brooks methods that you're interested in - low costs, high liquidity, comparitively stable behaviour, and oodles of intraday volatility - futures trump individual stocks for daytrading every time in my opinion, though others are bound to disagree.

 

Bluehorseshoe

[suby 10]

Trade ETFS if your looking for swings

 

TZA and VXX

[jpennybags 11]

Hello Anituchka...

 

When searching for a stock to trade I use a search that will provide a combination of the following:

 

1. ATR of 2.0 or better (this will usually put you into the higher priced equities, but it will also list some stocks in the mid 30's)

 

2. Average daily volume >3 million shares... more is better, but I've found 3 million is sufficient... you never really know until you trade it live.

 

I will then choose a price range that fits my account size and share count that I want to trade.

 

After I have that pared down list, I would sort through these by looking at the charts... I use a 10M chart combined with a range bar chart but thats a personal preference. What I'm looking for is price action that hooks up well with my trading strategy. Usually this step will eliminate all but 2-3 choices.

 

I'll then sim trade these until I find the one that agrees with me.

 

This may seem like a lot of work, but I trade the same stock for weeks or months until the price or volume no longer gives me what I need. I periodically will do this type search just to keep a current "go to" list.

[TheRumpledOne 14]

You might want to look at the stocks from my MILK THE COWS and FADING THE GAP STATISTICS FILTERS.

 

Here is a list of the current TOP 20 "cows"

 

Symbol

GOOG

AAPL

AMZN

WYNN

FFIV

BIDU

NFLX

CTRX

FOSL

ALXN

ORLY

CTXS

LULU

TQQQ

SQQQ

LQDT

CSTR

VRTX

SINA

 

 

The top 5 moved at least 50 cents from open to high over 80 times in the last 100 days and moved at least $1 from open to high over 59 times.

[antiguatech 10]

Hi TRO,

Today I ran a scan on Stockfetcher using your "Milk the Cows" filter. It gave me a result of 906 stocks. How did you come up with the top 20 short list?

[TimRacette 11]

For day trading I'm a fan of multi-item markets (as John Carter puts it). Markets like ETFs or index's or currencies that are made up of multiple stocks. That being said learning a specific stock like AAPL or GOOG that is heavily traded might give you that edge.

[anituchka 10]

Thanks everyone. I decided to concentrate on one instrument, 6E.

 

By the way, I love your website and blog, Tim, and always read it with great interest. You have a lot of useful information there. :applaud:

[philipwade 10]

GOOG would work much better for you!

[tradelifer 10]

  anituchka said:

Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.

 

I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.

 

I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).

 

On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.

 

I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.

 

Thanks!

 

you should consider binary options.

[thermo 10]

If you want to start trading intraday stocks here is a new course from knowledgeable trader in stocks(published books) very affordable with free software and intraday data, also ability to build custom filters in addition to pre-build filters Anyone who trades US stocks will not get probably a better deal on the internet, for comparable courses with ongoing webinars and free software with data others charge thousands of dollars.

[Eddie Z 10]

  anituchka said:

Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.

 

I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.

 

I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).

 

On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.

 

I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.

 

Thanks!

 

What system do you use to trade stocks? Any stock suggestion will really depend on the system you use. What I see might not match your criteria since your system might follow different entry and exit rules/

[pushpacares007 10]

Hi,

 

GOOG, AAPL and AMZN would be the best picks in technology pack along with few stocks like BAC, JPM, WFC in banking domain which are highly active.

 

Regards,

Pushpa

[ntrader 10]

  anituchka said:

Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.

 

I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.

 

I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).

 

On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.

 

I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.

 

Thanks!

 

AAPL will continue with high volatility for the next two months so i think you can make some intraday profits. You can check also HLF, FB and RIMM but you have to be very carefull with your trades the risk is very high.

[nelsonhimes 10]

I personally suggest you that first of all you have to analyze current market condition and then after reviewing all the thing you can go further because if i suggest you any stocks for day trading then it might be not beneficial for you according current market condition but if market get changed then it will really good for you.. so go for market research before doing anything

[FXTrader25 10]

Hi,

 

Don't take a stock. I prefer a CFD on a Index. Its much better! More volatility means also more possibility to get a good performance

[ntrader 10]

More volatility does not mean better performance. I believe for inexperienced traders the safest way to start trading is with stocks and when the trader get experienced can move to CFD's or Forex. In the forum you can find a lot of stock trading ideas with analysis and research.

[FXTrader25 10]

More Volatility means more Risk and more risk means also more possibility to reach a good performance!

[ntrader 10]

Most successful day traders are not greedy bandits and day trading itself, although much maligned, is neither illegal nor unethical. However, it's risky business and should only be undertaken by people who fully understand the process. You can find some stocks that i have in my portfolio (Northrop Grumman, Exxon Mobil, after my fundamental and technical analysis, even though there are not stocks for day trading you can have an idea about the company and you can decide to go long or short

[Niko 10]

It really does not matter what you trade if you don't know how to trade. Now if i understand well you were trading futures live and were losing money, tha is normal for begginers, but the same thing will happen if you choose stocks, bonds, cfds and forex, the problem is not the instrumen,t is that you dont know how to do it ( you will know you have learned when you are consistently profitable and can follow a plan).

 

The first thing I recomend is to write a plan, based in some form of market analysis, test it, ( without money on the line) if that works for a reasonable ammount of time, then commit a small amount of money to it and see if you can follow your plan when real money is on the line (the biggest problem by that time will be you mind telling you not to follow your plan), If you can make a profit with small commitments you will be able to start taking larger positions in the market with the same ammount of risk, the one you are comfortable with.

 

By then you will not bother to ask what instrument to trade, as you will see they are mostly the same thing, buyers and sellers struggling to get control of the market.

[Gekko78 10]

My thoughts on day trading stocks are quite dim.

 

I believe there are to may barriers to entry to day trade them successfully for the average person.

 

1) capital requirements ( if in the US)

 

2) you need pretty good price movement in a day to actually make money and you need a lot of shares unless you have #1

 

3) Commission cost are way to high

 

 

4) stocks are much easier to manipulate than say futures or fx

 

You also need the right tools like level 2 and such which will eat in to your profits , if you make any , causing you to need to make more to BE athe costs for those tools is also much higher in stock trading than other markets that I have found.

 

You could always try day trading penny stocks ( which is much worse IMHO ) even though they are the sewer stocks of the market. Some have made a lot of money from them. You could get lucky and pick the next google or something like that but the odds are against it.

 

I believe stocks should be kept longer term unless you have the $$ to do it.

 

However if you do decide to venture that way I wish you the best of luck.

[Ammeo 10]

  ntrader said:

More volatility does not mean better performance. I believe for inexperienced traders the safest way to start trading is with stocks and when the trader get experienced can move to CFD's or Forex. In the forum you can find a lot of stock trading ideas with analysis and research.

 

i would totally agree - any novice trader should start with stocks and if possible dont start with day trading (most may disagree with it but i have found swing trading stocks rather more easy and relaxed in my days as a newbie) - go for the blue chips or mid caps with consistent trading zones in the past years..... (Yahoo,Msft,Arna,Intel,Blizzard,FB,Dell,HP,Groupon,Zillow etc) would be fine for swings as a starter - once u get better experience with them u may go to micro caps too...

[gavind 11]

How about this late of the year. Is there a stock where we could invest in that offers low risk?