How to Find Stocks to Swing Trade

Penny stocks present an appealing opportunity to buy when a stock trades for a low value in the hopes of making quick money when it moves up suddenly. You can also sign up for Stock Advisor and Rule Breakers, as well as Everlasting Stocks and real estate stock service Millionacres, for a considerable discount through the company’s Epic Bundle. We have an entire Motley Fool Epic Bundle review where you can learn more. Preferring to stick with companies that outperform steadily over time, Stock Advisor offers stock picks with investment rationales, research and information to inform you of your investments. Users can create their own portfolios to follow favorite stocks, see how choices perform and receive email alerts or push notifications.

While past performance isn’t necessarily a reliable indicator of future success or failure, the longer you’re able to track a given stock, the better and more reliable signals you’ll get. The same way stocks are compared to the overall market, you compare stocks to the sector, or industry, it’s in. Swing trading has advantages and disadvantages over day trading. Of course, you can make your own plan and put it into action, but having one or two of these is a great place to start.

What Is Swing Trading?

And since the best swing trading stocks are often thinly-traded small caps with only a handful of shares available, make sure your broker has a wide assortment of stocks to trade. You should also make sure that the platform is so easy to use that you can make snap decisions without waiting for the broker to catch up. Day traders’ shorter time frame means they don’t generally hold positions overnight.

Can you become a millionaire swing trading?

When done correctly using sound trading rules, swing trading can absolutely produce big gains. Even though you're aiming for 5-10% profit in a swing trade, those gains add up quickly when you reinvest the profits in new stocks and grow the overall size of your portfolio.

Get actionable tips and updates on swing trading every week in IBD’s Swing Trading column. Smaller gains can only produce growth in your portfolio if losses are kept small. Rather than the normal 7% to 8% stop loss, take losses quicker at a maximum of 3% to 4%.

Short and Long Example

Many of these services aim to simplify your subscription by not requiring prior trade experience, especially in the case of the Motley Fool services, Mindful Trader, and Tim Alerts. Consider starting a subscription to take advantage of SA’s Premium services and see if they make sense for your needs, or check out our Seeking Alpha review to learn more. This plan includes a stock screener letting you filter by average analyst rating and gain access to listen to conference calls and other presentations.

  • Additionally, swing traders often employ risk management strategies such as stop losses or other hedging techniques to protect their investments.
  • The following list will probably be legit to address when swing trading; however, we advise you to bear in mind that the market’s conditions can change.
  • IBD’s SwingTrader product also saves you time by doing some of the leg work for you, sending alerts and providing research.
  • You basically choose the time frame you are most interested in.
  • You can use FinViz to plug in the criteria you are looking for in a stock.
  • You can use this paid swing trading alerts service to take advantage of short-term movements in the market.

Patterns are really important when you’re looking for swing trading plays. What happens if you only trade certain stocks in a sector and it’s trading sideways? If you have a good scanner you don’t have to worry about finding How to Find Stocks to Swing Trade good plays. Having a tool like the barchart signal screener can set you up to have good success swing trading. If you’re more long term, you can set it up to look for plays that will happen over a period of time.

What is the best swing trading strategy for stocks?

I’ve given you some resources and strategies above can help you get started, but ultimately, you’ll need to develop your own unique strategy over time. At its core, TradingView’s greatest appeal lies in its accessibility. You don’t need to search for things — all of the Indicators, drawing tools, charts, layout customization, hot keys, and tools you need are right in front of you on the intuitive interface. If a stock is in a leading sector, it often has a greater likelihood of rising in price. That means that your chances of profit may be higher, and your risk of loss may be mitigated. Liquidity refers to how easily a stock can be bought or sold on the market.

How to Find Stocks to Swing Trade

With 2M we have 61 names that are crossing back above the 20 moving average to show us bullish strength. With TradingView’s charting, you can choose from more than 100 technical indicators and more than 100,000 community-built indicators. There are over 90 drawing tools, 14 chart types, and 20+ time frame configurations. Swing trading is like playing a competitive sport — you’re essentially in competition with other traders. And like any sport, there’s no set strategy or formula that’s guaranteed to be a winner. If you want to be a swing trader, you need a brokerage account.

In between trading stocks and forex he consults for a number of prominent financial websites and enjoys an active lifestyle. A significant volume is another feature of a swing trade stock. While lightly traded stocks can make for a big move with no need for a massive volume, the surest way to swing trade is to go for large volume stocks. Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. After entering a swing trade, place a protective stop reasonably close to your entry point.