Finding The Best Stocks

The most suitable stocks to buy at this time are many. It all depends on your own model of trading. If you’re a buy and hold investor, then the catalyst is likely to establish what investment you will buy and just how long you are going to keep it. If you’re a position trader or swing trader, then both the catalyst and the pattern on the stock chart establishes just what stock you will buy.

For short term traders, the very best stocks to purchase are ones which have established an oversold chart pattern. Most are stocks that have come down on the price charts and also have an RSI score under 30. You can’t just purchase any oversold stock though. With oversold stocks make sure you are not surprised from a debt conversion where shares are issued or bankruptcy filing.

You should be sure that the stock chart shows a history of bouncing off the price level its presently at. Stocks which have a record of moving off a price level could possibly do it again.

One additional good trading tip is for you to visit the NASDAQ short interest website and look up the short interest in the stock. Virtually any stock having a short interest of more than 3 days to cover is a short squeeze prospect. Short squeeze stocks are ones which have a very high short interest. A short seller is required to buy the stock back to close out the short position. When the short interest climbs too much in a stock, short sellers get nervous. If many of the short sellers race out of the stock simultaneously, it may cause a stock to sky rocket.

If you are a buy and hold investor, you’ll need to focus your energy on pinpointing the catalyst. A catalyst is that which can cause the stock to move higher either from short covering or legitimate buy side demand coming into the stock. You could be the very best stock chart reader on the planet but if you do not know how to identify the catalyst, you are likely to lose money trading.

An easy way to get better at doing catalyst studies is to visit Finviz or any web site which shows the top performing stocks for that day. Click on the stocks that have the best price moves for that day and browse through the news. You are going to easily learn what are excellent catalysts which can move stocks the most.

One of the better totally free tools for finding stocks is Finviz. It has a outstanding stock screener. You may screen stocks on a technical level meaning things which impact the stock chart. You can also screen stocks on fundamental data meaning information and facts released in financial reports.

In the video below, you will see me use Finviz to do a stock screen that one of the top traders on Wall Street taught me. I suggest you pause the video while you input the settings into Finviz by yourself.

I really hope the video below can help you make a lot of money trading stocks. I really enjoy getting positive feedback from individuals who are really excited because they just used something I taught them to make a winning trade. Should you have any questions please do not think twice about emailing me and I’ll try to do my best to help.

Trade in real time with over 400 traders. Learn how to find the right stocks with this great lesson on the best stocks to buy

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