Finding the best stocks to trade is a challenge for all traders. Swing traders, pattern day traders and even long term investors are faced with this challenge. However, pattern day traders need to address the question multiple times per day.
Personal stock research is a very time and energy consuming endeavor. However, if you want to put the time into it, it can be very rewarding.
Here Are 3 Ways To Find The Best Day Trading Stocks.
1. Watch the premarket
Look for stocks making unusual moves before the 9:30 AM EST stock market open. Often CNBC or Bloomberg TV will feature these early movers. These stocks can make ideal fast movers after the market opens. Try to discover what’s causing the sharp move and be prepared to fade it ( go the other way) if it appears to be failing as the open gets closer in time. Don’t forget to watch the volume of these early movers. Be certain that the stock you decide to trade has adequate relative volume. .
2. Use social media
Follow sites like stocktwits, seeking alpha, and even twitter for tips on the hot stocks for the day. Professional traders use squawk boxes to talk to each other and we have social media to communicate ideas. Don’t trade blindly on twitter type tips. Always dig deeper to see if there is any fact behind the claims.
3. Watch earnings
Be certain to have stocks making earnings or other announcements that day on your day trading watch list. Earnings can move a stock sharply during the trading session.
Source: http://tradingtips.com/daily/day-trading/3-tricks-day-trader/