Monday, November 24, 2014

How to find a good stock to trade

Traders know that most stocks, ETF's and markets are not created equally. With all the choices some under lying products might present better money making trades then others. The trick is to make a custom list that can be traded to make money. Traders need to create a a symbol list that you can monitor with out creating a new list everyday. By having a list of stock you can watch you will get use to knowing when one of them is right for a trade. Most of the major brokers will have a trading platform where you can keep a stock list and it will up date daily.
You can set stocks that have good daily volume and price movements with support and resistance areas on your charts. The brokers will have a stock screener where you can search for stocks that you are interested in trading. You should pay close attention to stock market news which can show you hot stocks that are being traded before they cool off. Liquidity is very important so if you do make a trade it will be easier to get out of the stock when you decide to sell. The higher the volume the narrower the bid and ask the more liquid the stock. This will help you get trading faster and you will become more efficient at finding stocks.
How to find a good stock to trade