How to Find Stocks to Day Trade?

Day Trading Strategy

In day trading we use a catalyst that will attract volume and cause large spikes in price, our technique is to use earning reports, we only trade stock that will release a catalyst that will cause the price to rise or fall. We buy stocks when they have a good catalyst and take profits when we sell the stock at a higher price, or, we short a stock when there is a bad catalyst and buy back or close when the price drops and take the profit. We only trade when the catalyst is affecting the price.

How to find stocks to day trade? No.1

Our strategy is to trade US stocks due to the large volumes.

  • First, we need to search for the catalyst which is the earning report that companies release every quarter or yearly to report how their financials are performing to attract and inform investors of how the company is doing.

  • Traders and investors watch out for the earnings report to decide if they will invest in a stock

  • We search Google for “Nasdaq Earning report” click on to find a list of companies that are releasing earning reports that day.

  • We look for the earnings reports that will be released pre-market before the stock market opens, they will have a sun symbol beside them.

  • Note, there are also aftermarket earning reports that will be released when the market closes and will have a moon symbol beside them, also, there are stocks that will release an earning report but don't set a specific time of the day for release, they will have a symbol of a circle with a dash inside.

  • So in the earnings report, we look at what the analysis earning per share forecast is, and if the company reports that they gained or beat the analysis price target the stock price will rise in value.

  • Oppositely, if the company reports that they missed the analysis price target for earning per share the stock will drop in value.

  • When searching the earning calendar we prefer the highest capital, well-known stocks as these will attract the most volume of trades.

  • An hour before the stock market opens, we search Google to find a pre-market earnings report of the company we found on the Nasdaq’s website by searching for “Ticker earning report” or “Ticker Investor relations page”.

  • We check if the company beat the analysis earning per share and beat the analysis expectation on revenue and all other figures are good.

  • Then we check the premarket stock price is in the green, or the stock has risen premarket, if it has we could have bought the stock pre-market if your trading platform allows when the earnings report was released, then sell when it spikes, before it drops again, or my preferred style is to wait to see what the stock will do when the market opens then buy, more on that in the video above.

We will cover more about buying stocks to day trade and how to find and short stocks in future tutorials.

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