How To Find Profitable Stocks To Trade - My Secrets REVEALED

Summary

The video provides a step-by-step guide to creating a profitable stock trading watchlist. It covers how to use stock scanners to find high-volume stocks with overnight gap ups and explains why focusing on large-cap stocks is key for consistency. The video also highlights tools, both premium and free, that traders can use to build watchlists, such as Trade Ideas, Webull, Think or Swim, and Finviz. Finally, it emphasizes the importance of planning trades with key levels, avoiding common beginner mistakes, and using proper risk management strategies.

Takeaways

• 📋 Having a stock watchlist is crucial for staying organized and avoiding impulsive trades.
• 🔍 Stock scanners help identify high-volume stocks with notable percentage movements, particularly overnight gap ups.
• 💡 Large and mid-cap stocks (over $10 billion market cap) are generally less volatile and more predictable than penny stocks.
• 📈 A gap up occurs when a stock opens higher than its previous day’s closing price, often signaling a strong catalyst.
• ⚙️ Key criteria for building a gap-up stock scanner include stock price, percentage change, float size, and market cap.
• 💻 Tools like Trade Ideas Pro offer advanced settings to customize stock scanners based on personal criteria.
• 🆓 Beginners can utilize free tools like WeBull, Think or Swim, and FinViz for basic stock scanning needs.
• 💡 Planning out trades based on key technical levels, such as support and resistance, is vital for success.
• 🚨 Scanners and watchlists are guidelines, not buy/sell signals. You should always have a pre-defined plan.
• 🛑 Avoid trying to trade every stock on your watchlist; focus on a few stocks and wait for your ideal setup.

Q & A

What is the importance of having a stock watchlist for traders?

A stock watchlist is essential for traders as it helps them focus on profitable stocks and reduces the chances of making impulsive decisions. Without it, traders might end up buying random stocks, leading to potential losses.

What is an overnight gap up in stock trading?

An overnight gap up occurs when a stock's opening price is higher than the previous day's closing price, creating a gap between the two prices. This typically happens due to positive catalysts affecting the stock overnight.

Why are large-cap stocks recommended for new traders?

Large-cap stocks are recommended because they are less volatile and more predictable than penny stocks or micro-cap stocks. This makes them a safer option for beginners to trade consistently without facing extreme fluctuations.

What tools does the speaker recommend for scanning profitable stocks?

The speaker recommends using premium scanners like Trade Ideas Pro, but also suggests free options such as WeBull, Think or Swim, and Finviz for beginners who want to scan stocks without spending on premium tools.

What are the key criteria used in the speaker's overnight gap-up scanner?

The criteria include stock prices ranging from $5 to $400, a minimum of 2% change from the previous close, a float of at least 10 million shares, and a market cap of over $1 billion. These filters help focus on large-cap stocks with significant overnight gaps.

How does the speaker suggest analyzing stocks found using a scanner?

After finding stocks using a scanner, the speaker suggests analyzing the stock's daily and intraday charts to identify key levels of support and resistance. Traders should plan their entry and exit points based on how the stock reacts to these levels.

What is the difference between trading large-cap stocks and small-cap stocks?

Large-cap stocks tend to be more stable and predictable, making them easier to trade, especially for beginners. Small-cap stocks, on the other hand, can be more volatile and harder to predict, leading to potentially higher risks.

What mistakes should beginner traders avoid when using a stock watchlist?

Beginner traders should avoid treating the watchlist as a buy or sell alert. They must stick to their pre-planned strategies and not trade every stock on the list. It's also important to focus on one or two stocks rather than overwhelming themselves with multiple trades.

Why does the speaker recommend free stock scanners for beginner traders?

The speaker recommends free scanners because beginners should minimize expenses when they are starting out. Premium tools may be unnecessary initially, and free options like WeBull and Finviz can still provide valuable insights into stock movements.

How does the speaker plan trades using the stocks from the watchlist?

The speaker plans trades by identifying key levels of support and resistance from the daily and pre-market charts. They then decide on long or short strategies based on how the stock reacts to these levels during the trading session.