How to Find Stocks for Swing Trading

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Written By Adrian Cruce






Swing trading can be an excellent way to take advantage of market movements over several days or weeks. This type of investment requires a catalyst, large volume, and technical indicators. Let’s learn how to find stocks for swing trading.

A great swing trading screener will assist in discovering amazing plays. There are various to choose from – thinkorswim and Trade Ideas are two options worth checking out.

Identifying a good stock to trade

Are You A Swing Trader? Looking to learn how to find stocks for swing trading? To succeed as a swing trader, it’s essential that you know how to identify quality stocks for trading. In general, aim for stocks with high liquidity – the number of shares traded daily as an indication of market demand; these stocks tend to be safer bets when swing trading.

Consider the performance when selecting an ideal stock. Traders typically look for stocks that have outshone their sector indices and appear likely to continue outperforming. Furthermore, it would be prudent to find an investment with low volatility as sudden movements in its price can cause you to quickly lose money.

Finding a stock to trade takes considerable research. One way of discovering potential trading opportunities is using a screener; however, this may require considerable filtering of irrelevant results. The best screeners provide lists of quality stocks based on your particular criteria such as type and holding time frame; some popular options are Trade Ideas Market Club and TradeStation.

Technical analysis is also essential when selecting a good stock to swing trade, such as being able to recognize support and resistance levels through candlesticks or moving average lines, patterns such as bull and bear pennants, trend lines, or anything similar to determine its direction.

Additionally, to identify solid stocks, it’s also wise to keep tabs on news and economic events, ensuring you stay abreast of market changes so you can take full advantage of your trading opportunities. Keep an eye out for earnings calendars as earnings announcements can affect a stock’s price trajectory.

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There are various strategies you can employ when selecting a stock for swing trading, but to maximize success it’s essential that your risk-reward ratio fits comfortably with you and that you monitor all trades closely as the market can rapidly shift requiring early closure of positions if necessary.

Identifying a good stock screener

When searching for stocks to trade, a reliable stock screener is an invaluable asset. This tool allows you to enter your trading criteria and search for appropriate candidates using various parameters such as RSI, MACD, and stochastics – not forgetting breaking news, stock market sector activity, or unusual options activity – among others.

Successful swing trading requires selecting the appropriate stocks at the appropriate times. While this can be time-consuming and effort-intensive, using a stock screener can save both time and effort – even to identify potentially profitable turnaround stocks!

While the screener is an effective tool, it should not replace proper technical analysis. When searching for stocks to invest in, look for those demonstrating a strong commitment to transparency through press releases and timely reports – this indicates integrity which should reflect in their share price.

As a swing trader, it is also essential to assess a stock’s volatility and correlation. You should look for stocks with reasonable price movements that follow market trends to reduce the risk of sudden market changes nullifying your trades.

At last, it’s wise to check the daily trading volume. High daily trading volumes are an indicator of demand in the market and can help prevent choppy trades. Be wary of low-volume stocks though; their low volume may indicate a lack of interest and/or an inferior trading platform.

Keep in mind that investing in stocks is always fraught with risks, so taking time to develop an effective screening process is vital to increasing profits while mitigating losses. You can start out using free web-based stock screeners which will generate an initial list of candidates before performing more comprehensive chart analyses to select only profitable stocks to trade.

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Identifying a good stock indicator

Discovering effective stock indicators for swing trading is key to creating a winning trading strategy. Learning how to find stocks for swing trading is not easy. While various indicators exist that can help, the one best suited to you depends on your trading style and criteria; perhaps using technical analysis or searching out fundamental aspects in stocks would work better for you.

An indicator can also help you avoid making bad trades by signaling when it’s time to exit quickly from a position. Some traders use the Fibonacci retracement strategy as an indicator, while other traders look for stocks with consistent quarterly and yearly earnings and revenue growth, low debt burden, and high payout ratios – these will provide better long-term returns.

Swing traders need an indicator that signals strong trends in the stocks they trade. The length of time a strong trend lasts will depend on your trading timeframe, with four weeks being an acceptable minimum period for strength in any stock. MACD crossovers with stochastic oscillators may help confirm these signals and give traders confidence that this move will continue.

Search online for “stock screener.” There are various tools that will scan the market and identify trading opportunities for you, such as Thinkorswim, Finviz, and StockRover. Many of these can also be tailored specifically to match your criteria or search specific sectors or groups of stocks.

To maximize the success of your swing trading strategy, select stocks with high levels of liquidity and are not volatile. Furthermore, pay attention if a stock is heavily shorted as this could trigger sudden price spikes due to short sellers selling off shares quickly if they get scared away by shorting activity. Finally, investigate whether its business model offers good returns; companies producing products people will always require are likely more successful than ones selling luxury goods.

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Identifying a good stock chart

An effective stock chart is key to successful swing trading and a huge part of how to find stocks for swing trading. A great stock chart should demonstrate a clear trend supported by strong technical analysis and display clear support and resistance levels that enable you to identify entry and exit points for your trades. Furthermore, its momentum indicator such as RSI should provide additional clues.

When selecting stocks to trade for swing trading purposes, look for ones with an identifiable catalyst – an event or piece of research – which will drive their price higher. For instance, this could include something as small as new research findings from one of the big labs or even just speculation on an executive leaving their position can cause their price to quickly climb and yield profitable trades for swing traders.

Volume is another essential consideration when it comes to finding reliable stocks. A high volume usually indicates that a stock has strong support from investors and could make significant moves over time. While it is possible to identify swing trade candidates with lower volumes, these may not be as reliable and may take more effort and patience before hitting their targets.

Finally, when selecting stocks to invest in, ensure they offer high levels of liquidity to lower risk and make selling easier. Tools like Finviz and StockRover exist to assist investors with screening stocks that meet this criteria; however, remember these tools cannot always guarantee accurate information so conduct thorough research prior to trading.

Filtering by criteria you define yourself can save a great deal of time when searching for stocks matching specific market sectors or trends, helping to quickly narrow down a list of candidates that meet those criteria. Once your list is in hand, further investigation should be performed on each company by reviewing financials, news, charts, etc. This step ensures you pick appropriate stocks for your swing trading strategy.