Wednesday, 12 June 2013

Swing Trading Tips: Best Stocks To Buy

By Andy Nicolet


The very best stocks and shares to purchase at the moment are numerous. It all depends on your own form of investing. If you're a buy and hold investor, then the catalyst is likely to determine what investment you will purchase and how long you are going to keep it. If you're a position trader or swing trader, then both the catalyst and also the technical chart pattern will determine what stock you will buy.

For swing traders, the best stocks to buy are the ones that have already produced an oversold pattern on the chart. These are generally stocks that have come down on the price charts and have a stochastic reading of below 20. You can't just invest in any oversold stock. With oversold stocks make sure you are not caught off guard with a stock offering or bankruptcy filing.

You ought to make certain that the oversold stock shows a history of moving off of the price level its presently at. Stocks that have a history of rebounding off a price level will likely try it again.

One additional stock trading tip is for you to visit the NASDAQ short interest site and look up the short interest in the stock. Just about any stock with a short interest of more than 3 days to cover is a short squeeze candidate. Short squeeze stocks are those that have a very high short interest. A short seller has to buy the stock back to close out the short position. When the short interest gets too high in a stock, it puts pressure and squeezes current short sellers. If many of the short sellers sell out of the stock at the same time, it can cause a stock to sky rocket.

If you're a buy and hold investor, you will need to focus your energy on figuring out the catalyst. A catalyst is that which can cause the stock to move higher either from short covering or genuine buy side demand entering into the stock. You could be the best technical chart analyst on the planet but if you don't recognize how to establish the catalyst, you'll lose money trading.

An easy way to become better at doing catalyst studies is to go to Finviz or any website that displays the top performing stocks for that day. Go through the stocks that have the best price moves for that day and browse through the news. You will quickly learn what are good catalysts which will move stocks the most.

One of the best free resources for finding stocks is Finviz. It has a wonderful stock screener. You may show stocks on a technical level which means things that impact the stock chart. You can also filter stocks on fundamental data meaning information and facts unveiled in financial reports.

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

I'm hoping the video below lets you make a bundle of money trading stocks. I like receiving positive feedback from individuals who are really excited because they just used something I taught them to make money. Should you have any questions don't think twice about emailing me and I'll try to help you out.






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