The ideal stocks to purchase right now are numerous. It all depends on your own type of trading. If you are a buy and hold investor, then the catalyst will most likely establish just what stock you will purchase and how long you will keep it. If you’re a day trader or swing trader, then both the catalyst as well as the pattern on the stock chart will determine the type of stock you will purchase.
For swing traders, the very best stocks to purchase are the ones that have established an oversold pattern on the chart. These are stocks which have dropped in price and have an RSI score under 30. You can’t just invest in any oversold stock though. With oversold stocks verify that you are not caught off guard with a stock offering to raise money or bankruptcy filing.
You ought to make sure that the oversold stock shows a history of moving off of the price level its presently at. Stocks which have a record of bouncing off a price level will probably do it again.
Another good good trading tip is for you to visit the NASDAQ short interest site and check out the short interest in the stock. Virtually any stock with a short interest more than 3 days to cover is a short squeeze prospect. Short squeeze stocks are ones that have a very high short interest. A short seller is required 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 simultaneously, it may cause a stock to climb.
If you are a buy and hold investor, then you’ll need to focus your time and effort on figuring out the catalyst. A catalyst is that which can cause the stock to move higher either from short covering or legitimate buy side demand coming into the stock. You could be the top technical chart analyst on the planet but if you don’t understand how to establish the catalyst, you will lose money investing.
A good way to get better at doing catalyst studies is to go to Finviz or any site which displays the top performing stocks for the day. Click on the stocks that have the best price moves for the day and glance at the news. You are going to easily determine what are excellent catalysts that can move stocks the most.
Among the best free tools for screening stocks is Finviz. It provides a superb stock screener. You may show stocks on a technical level which means things which have an effect on the chart. You can also screen stocks on fundamentals which means information and facts released in quarterly financial reports.
In the video below, you’ll see me use Finviz to do a stock screen I got from one of the best traders on Wall Street. I suggest you pause the video as you enter the settings into Finviz by yourself.
I really hope the video below can help you make a great deal of money trading stocks. I really like receiving positive feedback from people who are really excited because they just used something I taught them to make money. If you have any questions please do not hesitate to contact me and I’ll try to do my best to help.
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