Good traders know that there are steps that they need to prepare for trading and buying stocks that are bullish from reports and news. They are not difficult or take much time once you make it part of your trading play book. The first step is to identify the overall trend of the broad market. Many use the S&P 500 but if you are trading in other countries you can use the Nifty, the Straits Times Index, the Nikkei, the FTSE or any market index. You need to then know the probable direction for the trading day. Use your technical analysis charts to judge the strength of the trend and even see what related markets are doing.
Once you have finished that research, then you need to find the stocks that look good in the move of the market for the day. There are many stock screeners that allow you to search for these and most brokers have them. You need to filter for stocks with good average volume to avoid being stuck in a trade or tricked by a specialist or market maker. You also want to filter for stocks with good volatility but not so much that you are at great risk. Many use average true range to find them.
Bullish Stocks
Once you have finished that research, then you need to find the stocks that look good in the move of the market for the day. There are many stock screeners that allow you to search for these and most brokers have them. You need to filter for stocks with good average volume to avoid being stuck in a trade or tricked by a specialist or market maker. You also want to filter for stocks with good volatility but not so much that you are at great risk. Many use average true range to find them.
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