There are over 16,000 stocks available to trade. Wondering how to find the right stocks? What criteria should you use? What technology can make this easier for you? Listen in as Tim and Stephen discuss how to find the right stocks to trade.
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Traders today don’t even realize how lucky they are. As your salty veteran trader co-host Tim Bohen shares at the beginning of the episode, once upon a time, before smart phones and internet connections in just about every household, buying stocks was quite different. You had to determine which stocks to buy by reviewing the financial pages in the newspaper, scouring teeny-tiny type detailing day-old information to determine the biggest gainers and losers. To say that it was an imperfect system would be an understatement.
Today, for new traders like Stephen Johnson (who remains absolutely appalled by Tim’s story about day-old stock info from newspapers) things are far different. With the technology at your fingers and with resources like stockstotrade.com, the world has become your oyster as a trader.
However, technology is a tool, not a get rich quick shortcut. The fact is, you still need to know how to utilize these resources for the best results. In this episode, co-hosts Tim Bohen and Stephen Johnson discuss an important subject: how to utilize the resources at hand to choose the best stocks to trade.
Choosing a stock: where to start?
There are thousands of stocks to choose from, and new ones being listed every day. This is overwhelming, to say the very least. So where do you even start when it comes to choosing which stocks to trade?
The internet has really revolutionized the way that traders can sift through stocks and determine what will make the best buys. However, even with these resources, it’s important to learn how the system works and to figure out a methodology that works for you. That having been said, there are certain things that traders unanimously agree work.
Scanning: your not-so-secret weapon for choosing stocks
Scanning is a vital step toward choosing the best stocks to trade. Scanning is a method of searching for particular criteria within the stock market. You can think of it like filtering a search on a retail site, where you can customize your search by color, size, price, or any number of different options.
In the episode, Tim and Stephen explain various methods of scanning, and give specific tips for what to look for while scanning stocks that might be a good indication that they are a good choice.
For instance, while everyone’s on the lookout for big gainers, many overlook the volume of a stock, which can have a big effect on your play. Without the proper combination of attributes, you might end up trapped with a time sponge of a stock. In explaining these basics, they also give anecdotal tips for things that can be potential warning signs to steer clear of a stock.
This knowledge can be customized to your own personal trading style and will help you scan the markets in the best and most effective way.
Taking your knowledge to work
As the episode progresses, Tim and Stephen get down to brass tacks and explain how to take your scanning and research to work as a day trader in an easy-to-understand way.
They break down how looking for gainers, volume, and a catalyst is the magic combination for choosing stocks, and how to determine the worth of each of these attributes in a stock.
Additionally, as you’ll learn, how to find right stocks to choose will vary depending on the time of day. The same stocks that make for a great play in the morning might not be the same as mid-day or afternoon; you’ll learn how to tell the difference and what to look for at various times of day and why.
Interwoven with Tim and Stephen’s personal experience, preferences, and tales of success and lessons learned from a failure or two, this episode offers a deeply informative look at choosing stocks, and breaks down what initially seems daunting into an extremely manageable process.
Ultimately, this episode will leave you with plenty of ideas for proceeding on your own stock scanning and what to look for in potential trades. You don’t have to spread yourself too thin to have success while searching for stocks; armed with the knowledge learned from this episode, you can confidently move forward and learn how to find right stocks .
To celebrate the first season of the Steady Trade Podcast, we’re offering some incredible giveaways. Check out the giveaway page here, and stay tuned for future episodes for more information on how to specifically compare and consider stocks.
Great knowlegde given to us for free. Thanks!
Thanks appreciate that.
Great stuff Tim, I’m finding out little secrets in each episode that are meshing everything together. I have been learning from you guys for over a year!, and it’s all starting to come together. Thank you!
This is so freakin useful especially for newbie traders!!!!!!!!! Thank you so much!!!!!!
You were right Tim and Stephen!! Your podcasts keep getting better! I just signed up to Stockstotrade last week and the information you are providing is very helpful and useful! I love the timing, feels like it’s meant to be! Failure is not an option, you all are living proof success is right around the corner if you know what to look for, learn from the experienced, and study the past, to be ready for what the future will hold. Thank you!! Thank you!! Thank you!!
ha awesome man
Another great podcast everyday is a learning day thank you so much for another lesson on stock trading…. I am already looking forward for the next episode
Great Podcast! Really enjoyed you guys detailing the steps of running scans, ESPECIALLY at different times during the trading day to change certain criteria to get stocks that are moving. Yes I’m a NewB and I’m sure I come across as one but I soak up every bit of info I can get my hands on and these Podcasts and your guys’ explanations or takes on different parts of trading is Awesome! The Podcasts really help answer questions I have on certain issues without me having to post my questions publicly and look like a moron!! LOL! Anyhow thanks again!!
Hey guys! Great podcast and the length was PERFECT!!! I am a new trader, but I did not know where to start so your podcasts definitely helps to simplify all the information. I’ve been following Tim on YouTube, and he does a great job of explaining what’s happening but he doesn’t break down the terms as you all did today. I truly appreciate all you do! This episode format, similar to a Q&A, was also very beneficial in answering questions I had and those I didn’t know to ask which made me think of more questions! I’m looking forward to more episodes, so keep ’em coming!! God bless you both and the team bringing this information to us.
Will winners be announced after the last episode, or are you already gave away prices 🙂 Asking, becasue I didn’t get anything yet 🙂
No survey today?
You can leave comments here
Awesome! Where is the Episode 3 survey?!
Best advice from Tim Bohen,
You always look for stocks are up big for the day. Stocks have volume and daily stocks have catalyst. Find those stocks that are moving, have volume and reason to move. It’s doesn’t have to have news everyday. If you can isolate those things, you can get to be a maximize your potential to be a consistent profitable traders. Thank you so much for your wisdom Tim.
Tim and Stephen, again thank you for another wonderful podcast. The information you all are sharing is so beneficial and education is so important. I definitely look forward to every weeks episode. This weeks podcast title is what has been the struggle point of finding the stocks that are moving to even grow my demo account before opening a live one. As for instance $ITUS had a 100% run today from .75 to 1.48 at high of day. I missed that whole run being alerted to late while looking at other things. Also, struggle with executing. I am not sure if you all are planning to talk about that, but it could be helpful. Still, I will keep learning and figure this out. Thank you, guys!
Great work Tim & Stephen
Some great info guys it was helping me maximize my learning while I’m at work installing satellites got you guys playing in my Bluetooth so thanks for all the info I’m new to trading so trying to study whenever I can
Awsome as usual, cant wait for the next episode. Its funny and educational, keep it up..🤘
Great information! Looking forward to the next episode!
Came for the prizes, stayed for the knowledge. Great job!
I wish you guys would explain more about the float. What is considered a high or low float and what’s actually preferred.
Three terms you should know (investopedia.com is very helpful). Authorized shares = the amount of shares a company is ALLOWED to authorize. Outstanding shares = the amount of shares that are ACTUALLY authorized, i.e., shares that people currently own. Float = the amount of shares that are currently being traded (basically everyone except insiders etc.). Float is the freely available amount of shares and thus the true number you should focus on when looking at a stock. “Low float” stocks are generally considered a stock that has a float of less than 10 million shares. The idea is that once one of these low float stocks catch fire they can spike fast and huge because the supply of stock is so scarce compared to the insane increase in volume. You’ll hear traders use the term “float rotation” which basically means a stocks volume for the day has surpassed the float size and the entire float has traded hands multiple times. It’s simple supply and demand. Hope that crude explanation helps.
Yes, the explanation was very good. When searching for amount of float. Do you consider when a stock has to much or to little to be untradeable? Or does that part all come down to the volume if the stock is in play?
Yes, you have to consider volume as well. For example, if a stock has a 20 million share float, but is trading 50 million shares/day then it can act like a “low float.” Generally, if your trading a stock with, say, 100 million share float, that stock is going to be less volatile and it may not be worth your time.
Ohhhh gotcha. So I always have to look at the float to volume ratio. That was a good lightbulb moment for me. Thank you. These are the specifics I would really like to hear you guys speak more about. Thank you so much
This was a great podcast!!! Today is the first day I have started to write down my daily/weekly plan. I work full time and I find for my personality if something is cemented in writing I will stay committed to it. Not only that it helps me to stay focused, instead of bouncy all over the place.
Another great podcast!
When Stephen says he watches the ticker, on average how long are you watching it for? days or a couple of hours?
On a future podcast can you talk about the amount you need in your account to short a stock and if you could share how you do with taxes at the end of the year? Do you put away a percentage of your profit away for taxes?
Great show. You guys both explain the basics concepts discussed today very. The personal stories and experiences help with understanding what you shou and shouldn’t be doing.
Keep them coming!
You mentioned doing a VWAP scan after hours. Do you need STT pro to use that? I can’t find the speedometer icon on my STT.
Thank you for the tips! You both make learning fun… 🙂
Once again, I appreciate you guys sharing the knowledge. I learned a lot from this podcast episode!
Your Greedy Little BastardA 😉
So useful to newbies like me! Thank You
Good job fellas….keep it coming
Great episode! Learned so much, thanks guys!
It is so useful for beginners. Thank you so much!!!
Great episode! Every episode is becoming richer with content. Question for Tim B., Based on what you have seen, how do you think the advancement in technology has affected the penny stock market? Has it become more volatile since people are able to instantly receive information? If so, for the good or bad? I am assuming that since people have faster access to information and trading that it has become more volatile and more “competitive” to get in before a stock spikes and out before it goes down.
Lastly, never thought about a scanner with vwap! I’ve only used a % gapper, Top % gainer, and a nhod scanner. Going to add vwap scanner to my list. Thanks!
Keep it up gentlemen! Looking forward to next Monday.
P.S. Where is the survey for episode 3?
Great podcast. Thanks!!!
Thanks Guys another Swell Episode Thanks a lot
Another great episode! Thanks guys, keep it up!
Thank you Pedro
Right on Guys – very informative and easy to understand :))
awesome , guys i am enjoying and also improving my knowledge about stock trading with penny stocks .
Hey guys-Thanks for the very cool Podcast 3 Episode on Running Scans & what specific useful criteria would would be the best odds to focus on. STT is such a game changer because it helps us to catch these rapidly accelerating low floats with news events.
I loved that analogy, Tim, when you compared this price action in the supply & demand to a very hot day & a limited amount of lemonade.
All I can think about is doing what I can to save up to get STT again so that I can use it on a regular basis to take my trading to the next level. Yahoo Finance fell off big time as did Seeking Alpha & being able to set the parameters to have a filter to fine tune to the best of the best could not be more important in day trading.
These are the stocks that have the largest % gains in often short bursts of price action as compared to investors who hold months to years for much less or traders who go in with much larger size to trade much larger priced stocks.
I couldn’t agree more with the attention on VWAP. So cool that STT has a VWAP scan parameter!
Thanks guys for putting this cool podcast series together-I can’t wait for the next one too!
Nice Sara – awesome response and love the time you took to give full feed-back
Great pod cast again!!!! Deepens the understanding and learning that I need to get better at. It nice to hear the Tim and Stephen show and the conversation between them.
Is there a survey specific to episode 3? I also did not find one.
The content in this episode was great
Leave feedback here that’s all good
https://www.youtube.com/watch?v=nvhVbWINsKA Great podcast guys and here is a video of some of the info presented in the podcast.
Favorite podcast so far!!!! Can’t wait till next week!! Thanks!!
YES – that’s what I like to hear!
Limiting my list to 2-5 stocks, ”Failing to Prepare is Preparing to Fail”, and VWAP: key notes for me. ” Thank you guys for another great podcast. I’ve listened to the third episode twice already and will re-listen while working out at the gym later today.
This was SO helpful! I couldn’t sleep last night so pulled up YouTube, saw this, realized I’d missed it Monday, tuned in and really appreciated it. I’m new to this, have had an unusually busy schedule that has interfered with my study schedule. Some of the webinars I’ve tuned into have been over my head, although I glean bits and pieces and figure that the more I study the more it will make sense, but this podcast actually felt like foundational information – information so valuable to getting started. Thank you, thank you, thank you!
Great work Guys! I appreciate the work you put into these podcasts.
Good episode and content
Nice podcast guys, I appreciate it. But I swear half the posts here are robots that do nothing but praise like you are gods. Or is that just Millennials?
thanks tim and Stephen. great podcast again. just like tim mentioned in the podcast, I typically use the top % gainer scanner and choose stocks based on float and volume traded to keep things simple, and this scanner is useful to find stocks to play both on the long and short side. I look at different patterns that are forming (my favorite on the long side being ascending triangle, my favorite on the short side being over-extension, hard crack, then making lower highs) and make my choice and plan to trade. the great thing about the top % gainer scanner is even though these stocks are up on the day, meaning they have strength, these stocks can keep going up or begin to lose their strength and crash and burn. therefore, as I said earlier, its useful to find stocks to play both on the long and short side. thanks again!!!
Good podcast as usual. Keep up the good work!
Great podcast. Was tweaking my scanners over the weekend so listening to this was very topical and helped a lot. Keep up the good work. Cheers.
Great information. Keep the good stuff coming.
Great podcast! I love how you guys are explaining the basics for those who don’t know much about the stock market. But also making complex things sound very easy to understand. Would love to hear more about technical analysis too!
So far this is the most informative podcasts where I’ve learnt the most. The specific details giving the numbers such as what’s considered a low float or the volume traded expected at different times of the day was particularly useful too.
One question, if we don’t have stocks to trade but will like to use the volume weighted average price scan, is there a particular website you can recommend to look up charts in real time that enables this technical indicator?
Great information, broken down to be understood easily.
I liked how you explained how to narrow stocks based on gainers with volume and catalyst, but don’t anticipate moves based on news alone. great tip.
Great material. I’m a newbie. Glad you guys are dumbing it down.
Hi, great work.
Just one doubt. On Episode 3 page, I cannot find where the survey is.
awesome , in this lesson i learn the best scanner is Vwap hold
thanks Tim and Stephen
Love you guys. Thanks again! Further explanation on what type of float you look for really helped.
Hey guys another great Podcast! I’m binge watching/listening all the episodes back to back! Hurricane Harvey wrecked havoc on my home and took me away from studying & trading for a while! It’s nice to continue to be entertained and hear lessons being reinforced! Keep up the good work!
Thanks Chix!! Hope everything works out for you!
Thank you Timothy Bohen and Stephen Johnson. This podcast has been fun to listen to and there were lots of great information! I find Stocks to trade like a lifesaver for traders! Because the features that are available on the platform allows us to get a quick easy access to numerous of selections that a traders will need during the day.
Now we have the information in a touch of a second and we don’t even have to go digging through all the others websites! Since most of the information can be found on this one and only platform “SST” that will provide the user with the proper links! I fell in love at first sight ☺ I am very grateful that you guys are doing this podcast and mainly giving out valuable information! Lots of veteran traders will be jealous because they probably wished they had this awesome podcast or STT back in the days. I find myself very lucky and I bet others traders feel the same way about this podcast and STT application! With one click I am able to get my scanners working also on the sidebar I have the % gainers and new-highs stocks and my watch-list (There are more features to include such as twitter screener that can be pulled out and viewed on a separate monitor!)! It’s simple and very efficient to look for the top % gainers on the day also able to see directly the volume plus knowing if they had catalyst or any kind of news on the day! WOW its like filling several needs with one deed! It totally maximizes your time for finding big moves with big volume!
Listening to this episode 3, I learned and created several other scanners for the different time periods on the day. This has helped me stay productive and reduce my time searching through a bunch of stocks during the day!
I Love how you refer the low float and supply & demand to this quote -> “It’s a really hot day and you have a limited supply of lemonade, every body want Tim Bohen or a British lemonade! (So when there are more buyers than there are shares available the prices will rapidly accelerate and that is what we want as traders!) We want low float stocks with big volume that has been traded multiple times on the day with preferable a catalyst but remember we are mainly trading the ticker not the company! So don’t believe everything you read hahah nice! I would like to include that the articles/catalyst can be written very positive so always check out the SEC filings that are written in a more serious manner!
Yes nice comment Stephen Johnson to focus only on a few stocks like 2 or 3 stocks on the day because I used to try and look at a bunch of stocks and then I always keep missing the sugary move on either that stock or the other stock! (Indeed, Show me the sugar on two or three stocks at least! And if they don’t move like you expected to, just patiently wait for another stock that will move like you expected because there will be plenty of stocks in play for many more years!) This is so true!
The VWAP hold scan (volume waited average price) is one of my favorites technical indicators. Because as Tim Bohen describes it will show you, the stocks that are up on the day and is holding above this key technical indicator. Therefore I know it has some kind of support below and it gives me a solid level I can risk off.
A trade without a plan is not a trade and is just a gamble. Correct, you will also get easier emotional and will probably cut your profits quicker or let your losers run longer. It is necessary to have mental stop loss or use a stop loss order if you can’t follow your plan. I always go in the trade thinking how much am I willing to lose. Then I can adjust my position size and will also know where to exit on the chart.
I love shorting pump and dump because these stocks, we all know they eventually should come down!
Another wonderful podcast and now to the fourth episode! Thank you Timothy Bohen and Stephen Johnson! I got to learn something new and this is making me a better trader! We are going for the success my friends! #No-days-off #practice-makes-perfect #rise&grinding #always-learning! #preparation #lovin’ it
VWAP = Volume-Weighted Average Price ***
Great episode guys! already helping me so much. just watching the market right now but really helped me narrow down my searches and getting me looking in the right places 🙂
Another great podcast! Keep it up, guys. And thank you!!
I didn’t find the survey for the episode 3 podcast?
i loved every bit of it .
Thank you for another great podcast!
When you create scanners do you use the same parameters ( volume, float, VWAP)
for the stocks with a lower or higher price range, e.g. $1-$5 or $15-$20?
Great show once again. Good content.
Explained very well.
lol wrong podcast. That was for #4
Another great podcast! Listening from south pacific! Thank you for this, fairwinds and following seas 😊
Very cool!! Love seeing listeners from all over!
Great podcast! Was a slow start initially but I am glad I stuck with it, just keeps getting better and learned some new things today.
Perfect, loved that you learned something!!
I love to download your podcast an listern when Im going for a cruze on the Bike Thanks guys now I can Learn and Play at the same time
I have listen to these but not sure my comments went through. Love them always learn something from them
VWAP is a great strategy that I did not really get before I started this. Thank you so much for teaching me how this works, now I have one more method for becoming profitable. Big % Gainers, Catalysts, and big volume are also great but since I have listened to Tim Sykes for awhile now, they don’t come to a big surprise, but for any newbies out there, they are very important and you should memorize and apply them.
This is Awesome! Thanks for the great knowledge. This is priceless, we cannot trade profitably if we can’t find a good stock to trade right? This episode is the answer, thanks Tim and Steve.
The float! This was the big thing I learned from this episode. I’m glad I’m beginning to understand the economy within trading. I’ve seen some low-float stocks explode lately!
This episode was extremely enlightening. VWAP seems to have been showing up everywhere lately. Also, it was good to hear what Tim and Stephen had to say about filtering stocks in a scanner. There are so many tickers, it is easy to feel overwhelmed in light of the myriad green and red numbers.
I enjoyed Episode 3.
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Very informative even years later. Thanks