How to Find Stocks Quickly with a 5 Step Process

Learning How to Trade Begins with Selecting the Right Stock

If you are a new or beginning Retail Trader, there are many exciting new ways to find stocks quickly and easily. The goal needs to be to learn how to use your software to maximize time and efforts, while generating the best list of stocks for potential trades for Swing Trading, Position Trading, or Day Trading. These are the most popular trading styles, and all begin by studying the stock chart.

Here is the list of how to find stocks quickly with a 5 Step Process:

       1. Use Stock Scans to find stocks to trade that fit YOUR criteria rather than using recommended stocks, or guru stock lists. Most of the time, recommended stocks get you very late into the trend. You want to find stocks that have high profit potential, rather than stocks the giant Institutions are selling because the stock was recommended by a guru.

       2. Use Candlestick Charts to analyze how far the stock will move based on your trading style entry, exit point gain potential, and risk tolerance.

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3. Use Stock Leading Indicators that tell you that the giant Institutions using Dark Pools have been buying the stock, even while the stock price has not moved up. High Frequency Traders HFTs chase the Dark Pool buying by the Institutions. If you want to get in on big gains, you need to be in before the HFTs run up the stock price.

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4. Determine the Risk of the trade, and whether it is within your risk tolerance. Often times traders take losses because they are buying into a higher risk trade. It is NOT just whether the stock is going to run, BUT also how much risk you are taking. Stop losses are based on support and resistance, and not percentages.

       5. Determine how to Enter the Stock and when to Exit the Stock for the highest profit for that trade. By understanding when to exit you can sell the stock at the right time, rather than seeing your profits disappear as the stock encounters profit taking.

How to find Stocks quickly with a 5 Step Process begins with setting up your charting software so that you are ready to go.

The first thing you need to do is create a white chart background, with black and white Candlesticks. Studies over many years have shown that black charts are much harder to read and interpret. In addition those who use black charts have a 25-30% lower profitability, a higher number of losing trades, find trading frustrating, hard to do, and time consuming.

A white chart makes reading the chart much easier, because that is how you learned to read in school. Textbooks in school do not have black paper and colored ink, they have white paper with black print. Your brain is hardwired to be highly proficient at reading a white background with black text. Those who do use the black backgrounds are using them because it is the “cool” or the hot new way to read charts.

Those who are serious about trading, use white chart backgrounds. If you are a new or beginner trader this is going to make reading the chart far easier and simpler. So the first thing to do is set up your charts to look like the one below.

chart example showing the easiest way to read a chart with a white background - technitrader

The indicators may be different than what you have been told to use by others. The most important indicators in the current Stock Market are not price indicators or momentum indicators.

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Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDS with every course.

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Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.