Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit. Now that you understand what swing trading is, let’s look at its pros and cons. It’s worthwhile to learn how to swing trade because it presents unique opportunities. Let’s examine some major advantages and disadvantages of swing trading. Knowledgeable retail traders can take advantage of these things in order to profit consistently in the marketplace. Here is what a good daily swing trading routine and strategy might look like—and you how you can be similarly successful in your trading activities.

how to find good swing trade stocks

Based on what we screened, there are a few names that look interesting. The current market conditions are such that energy is doing well, while the overall market is not. FinViz allows you to easily siphon through the charts you have screened by selecting “charts” in the tab selection under the screening criteria. Financial visualizations or FinViz for short has a very powerful and free stock screener. After signing up, you may also receive occasional special offers from us via email.

How To Find Small Cap Stocks

Focus on the stocks that have the biggest Change from Open, either to the upside or down. The 5-Minute Charts are provided by TradingView – the charts I personally use. Liquidity’s importance can’t be overstated enough, but sometimes the idea behind it can get misinterpreted by newbie investors. Amazing, Full of knowledge, practice-based scenarios.

Supply is an area on a chart where sellers are likely going to overwhelm buyers causing the stock to go down. The high percentage movers tend Futures exchange to be lower-priced stocks. The list below includes stocks between $7.50 and $125. Pick one or two of these stocks and trade them all week.

how to find good swing trade stocks

Before you decide to venture into swing trading, there are five strategies you should be familiar with. These strategies are to be applied to the stocks you are interested in to look for possible trade entry swing trade scanner points. Unarguably, lightly-traded stocks can be coerced into big moves without much volume. But in the majority of your swing trades, look for stocks with more volume than usual — it matters most.

Volatile stocks are good swing trading stocks because swing traders profit from large, short-term moves. A stock trading in a tight weekly range is likely not to produce a ton of opportunities for profit. But if 5% moves are occurring daily, you’ll find a plethora of chances for swing trades. FinViz is the best scanning service for swing traders, thanks to the huge number of filters this platform provides. The FinViz stock scanner offers nearly 60 technical and fundamental parameters, many of which are ideal for finding swing trading setups.

What Stocks Are Best For Swing Trading?

Rayner Teo is an independent trader, ex-prop trader, and founder of TradingwithRayner. If this happens, you are expected to wait for the two lines to cross again, creating a signal for a trade in the opposite direction, before they exit the trade. Modest Money is the place where people come to learn about investing and how to use it as a means to a better life. This is where money management and discipline can make the difference—if you cut the loss quickly, then you will probably be successful.

  • Use the charts to identify where there is buying pressure and where there is selling pressure and then apply that information to your investments.
  • A high trade volume means the stock is easy to buy and sell which makes it an excellent choice for swing traders.
  • Trading approaches can be categorized by several different trading strategies or "trading styles", such as day trading, investing, and also, swing trading.
  • Playing on the upswing and the downswing, your trades will last anywhere from one day to several weeks .
  • It’s useful to know if you’re reading a piece written by someone with a top record or a poor track record.

The goal is to ride the momentum while potentially limiting downside risk. However, some assets are more prone to erratic and unpredictable moves. In our opinion, most commodities fall into this category.

Tradier is a high-tech broker made with the most active traders in mind. Tradier differentiates itself by using Application Programming Interface technology to partner with popular trading software to offer a wide range of platform choices to Investors. Tradier brokerage offers integration with one of the widest ranges of platforms we’ve seen, including Esignal, Orion Multi Trader, Stockstotrade, 1Option, Evati, and many, many more. Swing trading and long-term investing are completely different animals, so you’ll need a broker that fits your needs. Swing traders should look for brokers with $0 commission or discounts on high-volume trading.

In the Stock Market Swing Trading Course, I lay out some of my favorite patterns that I look for when swing trading, as well as ways to find those patterns. When we find a pattern, that is great, but finding those patterns in stocks that are also moving well can be challenging. Most people I interact with, trading strategy who are struggling with their swing trading, simply aren’t patient enough in waiting for the really good setups. If this is a problem for you, possibly some alternate screens will help you zero in on some high momentum trades. In comparison to day trading, swing trading definitely has its pros and cons.

It is swing trades alerts service which is focused on swing trading. It is considered as data- driven way of swing trade.Eric Ferguson is founder and a succesful swing trader who developed his own service using statistics and data of twenty years. 1 year subscription to Rule Breakers usually costs $99 for a year.

Examples Of Swing Trades

The world’s most poweful news scanner for profitable swing trade. Trading strategies may be shared in the community of other traders and also moderators to discuss trade setups. The Investing research services of Rule Breakers have been taking the leading place for so many years in even today’s day trading. The “best buys” are shared by analyst team and novice service, investment advice for better trading opportunities and trading service. The Motley Fool offers a number of different stock picking services, but the company’s most well-known service is Stock Advisor.

A stock trader is an individual or other entity that engages in the buying and selling of stocks. To see if swing trading makes sense for you, consider practice trading before risking real money. T3 Live provides information that viewers of its programs may consider in making their own investment decisions.

The Phi-Ellipse is a Fibonacci-based technical analysis tool used by traders to identify general market trends. The risk of loss in trading options can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in options trading may benefit you as well as conversely lead to large losses beyond your initial investment.

A sell signal is a condition or measurable level at which an investor is alerted to sell a specified investment and can have an impact on performance. A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, 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. Approximately 16 million shares are bought and sold daily in April 2020, so it is easy for you to find buyers and sellers.

Stocks that move a lot every day, in dollar terms ($2+). Stocks that move a lot every day, in percentage terms (5%+). Keep in mind it is best to take profits along the way and look for re-entry.

Stocks with very high short interest can often make sudden upside moves that blow shorts out of the water. These can be some of the most powerful swing trade opportunities imaginable. Therefore, always know which stocks are crushing the market on an extended basis, because they'll give you regular trading opportunities on both pullbacks and breakouts. Pick stocks to trade that match up with your intended holding time. It is cool that their approach to stock pick is the blending of information and strategy. They don’t suggest you to do random stock picks there, getting money for pushing a stock.

How To Buy & Sell Volatile Stocks

Also, notice how we ignore long positions when the 10 SMA is below the 30 EMA and only focus on short setups. Again we only want to trade in the direction of the trend. On the right edge of the chart the 10 SMA has just crossed down through the 30 EMA so we can no longer trade on the long side. Instead, we will manage our existing trades and wait for Williams %R to get above -20 to focus on the short side. It is estimated that stocks only trend about 20% of the time.

By the same token, volume characteristics of a breakout also can have a shortened time frame. Rather than the 50-day moving average of volume as your threshold for heavy turnover, look to the volume of the shorter consolidation area for clues. If the breakout volume can surpass the recent activity, that can be a sufficient confirmation of strength. Due to the market correction, the stock has sold off back around it’s 20-day moving average.

Tim Alerts

Swing trading and day trading both require a good deal of work and knowledge to generate profits consistently. To start swing trading, you will need to open up and fund an account with a brokerage. Once you are funded, you can begin placing trades on their platform. In the day trading community, it's common to follow the 1% risk rule.

We will never sell or distribute your data to any third parties. 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. To filter setups, I use a 3-10 oscillator, which is essentially a modified MACD popularized by Linda Raschke. If the pullback made a new momentum low on the oscillator, I would avoid the setup.

Screening For Stocks

So there's no better time to claim your slice of the pie. Above all, be wary of getting swept up in all the noise of charts. You basically choose the time frame you are most interested in. From there, pick a time frame a little longer and a little shorter than your main time frame in order to complement your findings.

Author: Korrena Bailie