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Home / Investment / The Key To Finding Stocks To Trade


When you start out in day trading, you need to find out how to go about finding stocks to trade. You need more than just a newspaper and a keen eye these days. You need stock scanning software, a number of sources you trust and a daily watch list.

And you can have more than one daily watch list. The more people you follow that hand out stock tips, the more diversified your universe is going to be. When you want to find hot stocks, you need to know the fundamentals to be looking for.

What you want are small-cap stocks that are priced between $2 and $10 per share. The smaller stocks have a stronger possibility of volatility, which means that there is profit to be made, if you can time the entry and exit correctly. You want stocks that were already gapping up that morning, which means that their opening price is already higher than the closing price the day before. They are primed for a run.

Gapping up is usually a result of a catalyst, such as an earnings report or other breaking news about the company. Finding stocks to trade can sometimes be as simple as spotting these opportunities in real time. Now, the question is, how do you capitalize on that?

As a day trader, you are not an investor. You are looking for quick opportunities to grab stocks quickly and try to lock in 5-10% profits on trades. The long-term fundamentals of a company are not worth obsessing over. The management team, the depreciation of physical assets, all that stuff, is not relevant.

You want to enter these small cap stocks that are already showing promise as quickly as possible. And learning when to get into a stock and the right moment to get out entails reading charts. Lots and lots of charts. Even with a daily watch list, you need the skills and techniques and risk management abilities that many novice traders learn on the job. That can be an expensive education. Which is why it makes sense to learn strategies from veteran traders that have spent years taking their lumps and honing their skills. Learning to read charts for the hi and low candles

So how do you find stocks to trade? Warrior Trading, a day trading education site, has a trading chat room you can join that will give you a daily watch list. There are even days that you can get into the chat room for free.

Check out Warrior Trading on Facebook so you can see what the social media users are saying about the site.


About the author: Taylor


Taylor Brown is the founder of He has paid down 90% of his credit card debt through smart budgeting, frugal-living, and inspiration/support from other personal finance bloggers.


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