Best Way to Find Stocks for Swing Trading

Get to the desk early in the day, and make a comprehensive analysis of the stock related news.

You can comfortingly gather the essential news either from general online financial magazines or check at the news column of your stock broker’s app. 

For authentic news, you can check-in at television companies like CNBC, Finviz, and Bloomberg. For better info on swing trading, you can view SEC filings. 

You must keep track of overall market news, relating to, political, and economic issues.

You can make technical analysis that is usually dealt by the experts in evaluating the potential trades for intraday trading. 

In case, you observe a positive catalyst that spirals a bullish pattern then the probability of even to odd in your trade can happen leading to a successful closure of trade. 

Focus on Aspects that Enables in the Selection of Stocks:

Liquidity refers to the level of volumes of stocks in trading and higher the volumes shall make you buy and sell stocks with ease. 

High liquidity represents lower bid-ask spreads, and thus loss can be reduced to a greater extent as the stock experiences low risk.  

If you enter into trading with a minimum volume of 500,000 shares per day it is admissible. 

Correlations become a decisive factor in selecting the stocks, you must consider sector stocks that are in lead, or check for the market indexes that enables you to find out the stock with higher correlations.

Such stocks having high volatility can break away from the trading range. It is here that you can make a profit.

You can check for reliable stocks that show trading patterns comforting you to move towards the stocks. 

You can also select a stock whose company is mostly in the news, and a positive news in the trading hours can make the stock bounce out from the trading range. Thus this too becomes a good chance to make an entry for the trade.  

Check for market makers, these are the customers who increase the liquidity and facilitate the transactions by keeping the stock in hold. 

These market makers tend to set the flow of  fund direction that causes an impact on the stock movements. 

Stock traders chase such stocks which are created by the market makers just to visualise and interpret to identify clues if any. 

Technical Analysis:

To obtain the flow of stock movements, upward trend, downward trend or sideways, swing traders need to conduct 200 day simple moving average analysis. It is possible with Finviz’s free tool in case you are unable to access screener.  

Try to adopt the technicality of stock swings, check for the technical patterns after the end of the day trading sessions. The candlestick chart patterns can represent rebound or break out.  

You must try to identify the stocks that have risen high, and pull back as it provides a scope of entry for stocks. 

In the above candlestick pattern, Blink Charging Co, company in the NASDAQ trading centre, the company trade volumes is 612761. 

On Wednesday,June 06 2018 the stock went low at $5.31, and the expert waited for an entry to swing back somewhere in the middle of $6 or $7. 

But, on Friday, June 08 2018, the stock hit $5.5, a good entry point.