For the novice trader that is just learning about the market, besides the normal hurdles of learning to find stock setups setup on a chart, the question “How do I find the stock to begin with to watch for the trade setup?” is very common. There is always so much going on, its easy to start to only notice day trade setup ideas after they have already occurred which does no good, other than for learning.
Part of the issue of noticing trading setups in hindsight is you have the result of the setup already on the screen, so your brain only notices the setup conditions where it worked. You are looking for longs, you find the ones that worked. The same setup condition may have happened an hour earlier and went nowhere or only went small but it gets overlooked. What is needed is a method to find ideas to watch in real time so you can either trade it OR simply try to predict the outcome and learn.
First off, you need to start your watch for stock setups with the prior day close. This can be done post market or the next day before the open. Scan for stocks that have closed at least 2% up or down from the open of the day. Next take this list and then pull up a 15 minute chart on each. Put a pivot indicator on the chart (most packages this is built in). You want to make note of the ones that are near a lower pivot or higher pivot area. This will be an area of action the next day. The ones that are far away OR are already beyond a pivot area (meaning that days move blew out the pivot) I would leave out for now unless you need more names.
Once you have this list, you need to put in alerts at 1/2% below a breakout pivot (for longs) and 1/2% above a breakdown pivot (for shorts) for day trading depending on where the stocks close. What we are looking for is stocks that moved decent the prior day with good action and are approaching a potential support or resistance area. This will provide a turning point OR a breakout point. Either way, you should get decent, tradeable action around this area.
A second way to find ideas, assuming you need more, is to wait for the first 20 minutes of the day to pass, then scan for the 2 ETF’s that are the strongest (sector ETF) and the 2 that are the weakest. A list of sector ETF’s can be easily found on Google. Once you have this list, you want to then put up on a watch list the top 3 components from each. So your list would consist of 6 stocks to watch long and 6 to watch short. You can get the sector ETF components through Google easily as well. One modification is to pull up at longer term chart on each, 15 min and maybe 60 min (on the ETF’s) to see where they are in relation to ranges. Occasionally that would flip – meaning you might be watching the strongest ones for a short (if they have had a big push AND they are approaching what looks like a decent resistance area), instead of for a long. Most of the time you should be looking to play in the direction of the trend, that will keep you out of trouble.
A third way is to try to play follow the leader. Get the number one stock in each sector/industry. Put those on a watch list. On a separate list, have the number 2,3,4,5 stocks in each sector/industry. Wait for the number one stock in a sector to make a decent push up or down, where it appears a trend is starting. Go to your other list – play the 2 names in that main direction that are the relatively the strongest of the 4. Do not play the laggards with this method. An alternate to this is to buy the number 1 name (or short it, if trend is down) and then in addition play another 2 names so you have 3 bets on a sector. This will mitigate any potential problems that might happen when stuff gets uncorrelated at times, meaning the main one runs and the others do not move much.
Once you have found a nice list of names, you should have plenty of stock setups to watch throughout the day. Of course this does not mean there will be lots of actual setups, but at least you have stuff that is moving and has the potential to make a bigger move on your screen before the move happens. One additional thing to pay attention to is stuff that SHOULD work long or short, but abruptly does the opposite. Often times this type of action can be a key turning point as they trap one side of the market.
Have you considered adding a few social bookmarking links to these blogs. At least for flickr.
naturally like your website however you have to check the spelling on several of your posts. Many of them are rife with spelling problems and I find it very bothersome to inform the reality nevertheless I will surely come back again.
“You really know your stuff… Keep up the good work!”
I had been wanting to know if you ever considered replacing the layout of your website? It is well written; I enjoy what you have got to state. But maybe you can include a little more in the way of content so people can connect to it better. Youve got an awful lot of text for only having one or two graphics. Maybe you could space it out better?
We’re also a group of volunteers and starting a brand new scheme throughout our community.
Oh my goodness! an incredible article dude. Thank you Nonetheless I’m experiencing concern with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting similar rss problem? Anybody who knows kindly respond. Thnkx
Admiring the hard work you put into your blog and in depth information you provide. It’s awesome to come across a blog every once in a while that isn’t the same old rehashed material. Excellent read! I’ve saved your site and I’m including your RSS feeds to my Google account.
There is noticeably a bundle to learn about this. I assume you made sure nice factors in features also.
Lessore 1st painted in ceramics throughout Laurin’s manufacturing facility from Bourg-la-Reine, in close proximity to Rome, and he later labored in Sèvres with regard to six to eight a long time coming from 1852. Following demise of his spouse in 1858, he or she gone to live in The united kingdom and also ended up being utilized by Minton. Even so, they experienced attractively constrained as well as oversupervised, so in the spring regarding 1860 he approached Wedgwood pertaining to work. His visit was validated within June in which year.
We are a group of volunteers and opening a new scheme in our community. Your web site offered us with valuable info to work on. You’ve done an impressive job and our whole community will be thankful to you.
I’m happy to have found this site; and your post. Thanks for taking the time to publish this wonderful article!! I will be keeping up with your upcoming posts and have bookmarked your site to see what else you publish.
Normally I do not learn article on blogs, however I wish to say that this write-up very pressured me to take a look at and do so!
Wow, wonderful blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your site is great, let alone the content!
Thank you for this blog site. Thats all I can say. You most positively have created this blog site into one thing thats eye gap and necessary. You clearly grasp most relating to the subject, youve lined this kind of a lot of bases. nice stuff from this a part from the net. Once again, many thanks for this blog page.
What are finest herb plants for you to pot collectively to start out a new plants? Tried to grow a new herb garden with a blend of herb plants, but some plant life essential much more drinking water or sun next other people and in the end each of them passed on. I want suggestions about what vegetation is finest plants in pots collectively. Due to anyone who will help us away.
When I initially commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the identical comment. Is there any manner you may take away me from that service? Thanks!
Thanx for a very interesting Inteligator web site. Where else may I get that kind of information written in such a perfect manner? I’ve a project that I am simply now running on, and I have been at the look out for such information.
Very good written information. It will be valuable to everyone who employess it, including me. Keep up the good work – can’r wait to read more posts.
It seems to me that this web site doesnt load up on a Motorola Droid. Are other folks getting the same problem? I like this webpage and dont want to have to miss it whenever Im away from my computer.
Brilliant, thank you, I will subscribe to you RSS later!
I’ve gone ahead and bookmarked http://www.stock-trading-info.com/2009/04/09/stock-trading-made-easier-by-learning-where-to-look-for-trading-ideas at Digg.com so my friends can see it too. I simply used Where to Find Trading Ideas | Stock Trading Info as the entry title in my Digg.com bookmark, as I figured if it is good enough for you to title your blog post that, then you probably would like to see it bookmarked the same way
Have you considered including some social bookmarking buttons to these blogs. At least for flickr.
We’re very thrilled i stumbled throughout this in doing my ask for something regarding this.