We have talked a little bit about trading stocks. You might be wondering though, “How do I know which stocks to trade?” We also have a set of rules in place for finding the right stocks for you to trade. The key to technical trading is to find the levels you want to trade. It is important to find support and resistance levels. We need to be disciplined and stick to the levels we identify on the chart. We need to make sure the stock is liquid and we can get in and out the stock quickly. We are also looking for stocks that experience volatility. We do not want to trade stocks that do not move in price.
A great free resource is finviz.com. Here you are able to pull up many charts at one time. This is a great place to screen and find stocks that we would be interested in trading. We are going to use the screener and do the following.
1. Volume greater than 500,000 shares
2. USA based equity
3. Price $10-$50