This is a topic that we will get seriously into in the coming weeks but since this is still a holiday weekend, almost, I’m going to give a short but to the point answer as to how I find stocks to trade. This is not the only way, but the most tried and trusted method that many experienced day traders use while online trading.
I am all about day trading based on relative strength. If the market is trending up and a particular stock does not move with it, I consider that stock weak, and I will consider shorting it. If we were having a considerable down day and of one hundred points or better and the stocks I am looking at do not go down relative to the market trend I will seriously consider buying them. One of the major mistakes that those new to online trading incur is that they continually try to fight the trend…DON’T! If the market is selling off in a big way and a stock you have been watching is up on the day, I want top own that stock at some point! Hope you all had a great holiday and if there are any topics in particular you want to discuss just comment to any post and I will make an effort to discuss that issue!