Tuesday 11 June 2013

Finding Money Making Trades

By Jenna Burgess


The most suitable securities to purchase at the moment are many. It all depends on your style of stock trading. If you are a buy and hold investor, then the catalyst should establish just what stock you will purchase and how long you will hold it. If you are a day trader or swing trader, then both the catalyst and the stock chart establishes just what stock you will buy.

For traders that move quickly in and out of stocks, the best stocks to purchase are ones that have developed an oversold pattern on the chart. They are stocks which have dropped in price and have an MACD with histogram bars that are rounding up. You cannot just purchase any oversold stock. With oversold stocks be certain that you're not surprised with a stock offering to raise money or bankruptcy filing.

You want to be sure that the oversold stock shows a history of moving off of the price level its currently at. Stocks that have a record of moving off an area of the chart could possibly try it again.

Another good stock trading tip is for you to go to the NASDAQ short interest web page and find out the short interest in the stock. Virtually any stock having a short interest in excess of 3 days to cover is a short squeeze prospect. Short squeeze stocks are those which have a high short interest. A short seller has got to buy the stock back to close out the short position. When the short interest gets too much in a stock, it puts pressure and squeezes current short sellers. If many of the short sellers race out of the stock all at once, it may cause a stock to sky rocket.

If you're a buy and hold investor, then you will want to concentrate your time and effort on pinpointing the catalyst. A catalyst is that which can cause the stock to move higher either from short covering or legitimate investors entering into the stock. You can be the top stock chart reader on the planet however, if you don't know how to identify the catalyst, you'll lose money investing.

An easy way to become better at doing catalyst research is to go to Finviz or any site which lists the very best performing stocks for the day. Select the stocks with the biggest gainers for that day and read the news. You are going to easily learn what are excellent catalysts that will move stocks the most.

One of the best totally free tools for finding stocks is Finviz. It has a awesome stock screener. You can filter stocks on a technical level meaning things that have an effect on the chart. Additionally you can screen stocks on financial data which means information and facts unveiled in financial reports.

In the video below, you will see me use Finviz to do a stock screen I got from one of the best traders on Wall Street. You can pause the video while you input the settings into Finviz on your own.

Hopefully the video below helps you make a bundle of money trading stocks. I enjoy receiving positive feedback from folks who are happy because they just used something I taught them to make money. Should you have questions don't think twice about emailing me and I'll try to help you out.






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