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.