How To Find Good Stocks To Swing Trade

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Sami will trade any stock with a price above $1 with average daily volume around 500K shares a day, so long as there is a quality pattern. Ensure your swing trades line up with the overall market and accept that you will lose from time to time. It attempts capturing short-term gains from a stock or other instrument over the course of just a few days to weeks. Investors analyze various stocks technically, looking for the right opportunity. This type of trading – in comparison with, say, day trading – lets you hunt a larger section of the overall market with targeted moves. But it also can leave you open to the volatility of overnight, after-market-close trades.


The basic idea of trading is to profit from high volume swings like short squeezes or earnings improvements. The chances of earning are pretty high, which makes swing trading attractive. However, one should remember that swing trading may also come with risks. As for relative strength, basically every stock on the list is recently strong.

This will keep you at a 3-to-1 ratio, a sound portfolio management rule for success. It’s a critical component of the whole system since an outsized loss can quickly wipe away a lot of progress made with smaller gains. Those types of gains might not seem to be the life-changing rewards typically sought in the stock market, but this is where the time factor comes in. All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

While this may be considered advanced swing trading, this strategy is suitable for all investors. We will tell you how to do proper technical analysis and show you when to enter the trade and when to exit the trade. We will do this by teaching you how to set the right profit target. You can use technical analysis and chart patterns to identify stocks trading in one direction with momentum. Technical analysis studies historical price and volume data to identify current trends and patterns indicating potential future activity. Chart patterns, such as head and shoulders or flag and pennant patterns, can provide insight into a stock’s potential price movements.

Adequate Number of Market Makers

The CSV and TXT files are sorted with the weakest stocks at the top of the list. TXT and CSV files are sorted with the strongest stocks at the top of the list. Here is the CSV file of the stocks, good for uploading into other programs. Here is the downloadable TXT (right click – Save Link As) document which you can upload to a watchlist on TradingView and quickly scan through them on there .

Are you looking for an investing strategy that allows you to take advantage of short-term stock movements? Swing trading allows investors to capitalize on stocks that are in a trading range, with the goal of buying low and selling high. In this article, we’ll discuss how to find stocks for swing trading and provide some tips and strategies to help get you started.

Before we move on with the list of the best stocks to swing trade, let us remind you that the stock market is not set in stone. 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. So the best option is to trade according to what’s actually going on in the market. You will have a trade blow-up when swing trading; how you react determines how successful you can be as a swing trader in the long run.

  • Swing trading indicators are primarily used to find trends that play out between 3 and 15 trading periods.
  • Most swing traders use daily charts (like 60 minutes, 24 hours, 48 hours, etc.) to choose the best entry or exit point.
  • But in order to take advantage of the ebbs and flows of the market you need to learn how to identify the right swing high and low.
  • We considered over a dozen swing trading books before choosing our favorites.

To exploit the opportunities, the traders must act quickly to increase their chances of making a profit in the short-term. Swing trading is a trading technique that traders use to buy and sell stocks when indicators point to an upward or downward trend in the future, which can range from overnight to a few weeks. Swing trades aim to capitalize on buying and selling the interim lows and highs within a larger overall trend.

How to Find Stocks for Swing Trading with VectorVest: The Easiest, Smartest Way to Uncover Swing Trading Stock Picks

We’ll go over how to select stocks for swing trading through technical and fundamental analysis. And, we’ll even teach you how to manage your position – getting in and out with perfect timing – after you’ve identified stocks to swing trade. Each swing trader creates a strategy that balances their risk tolerance and the potential reward, along with the amount of time, effort, and commissions involved. But effective swing trading strategies probably involve looking for these types of price swings to make a profit. These cyclical periods of rising and falling prices might offer an opportunity to profit.


This would ensure that you can always buy or sell your couple of hundred or thousand shares whenever you trade. Still, the stock is trending regularly enough that you can count on it to continue its pattern for a while and learn to time your buy and sell points regularly. Draw a line across the highs to determine the approximate value at which you should sell. Note that the longer trendline, the more likely it is that the line is accurate. Roughly 37.2 million shares are bought and sold daily as of February 2022. New customers need to sign up, get approved, and link their bank account.

This can water down your overall return, even if your swing trading strategy is otherwise profitable. Facebook remains one of the most sought-after stocks for swing traders. Its user base, which surpassed 3 billion users in 2021 and is still growing, makes it a safe bet as an investment.

Parallel support and resistance levels would provide potential entry and exit targets. Of course, trading in the real world isn’t nearly as clear and predictable as we might wish it was. Still, the idea that prices can bounce back and forth around a somewhat average value is the siren song to many hopeful swing traders. The steps for a successful swing trading strategy include identifying trends and chart patterns, selecting the right indicators, setting entry and exit points, and managing risk. Identifying a stock to trade is an important step in swing trading.

Technical indications are more important than price ratios and debt loads because this isn’t a long-term investment. It may be a profitable swing trade even if a company has a ton of long-term debt and minimal cash flow. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.

Picking Swing Stocks

While traders may hold stocks overnight to several weeks, day trades close within minutes or before the close of the market. Successful swing traders have to be nimble with their convictions — a stock with accumulating volume ahead of earnings might be one to sell short instead of buy. Swing traders use a variety of different strategies to enhance profits, but the stocks they look for all share a few common characteristics. At the same time, good characteristics might not be enough for your portfolio. Do your research, only invest in assets you understand and construct your portfolio in a manner that matches your strategy. Don’t just go along with the crowd when there are so many stocks to choose from.

And volume gives you confirmation that institutions are accumulating shares. If the market is strong, you can wait for the channel line to be hit. If it’s weak, grab your first profit while it’s still there. An experienced trader may shift his tactics and hold a little longer, perhaps until the day when the market fails to make a new high. A beginning trader is better advised to take profits after the channel line has been hit as it’s important to learn to take profits in accordance with one’s trading plan.

There are a variety of methods traders use to capitalize on market swings. 365.82 billion U.S. dollars in the same year, showing that it is a financially stable and reliable stock. All stocks eventually came back down to Earth, but those initial rallies destroyed the shorts, and made a lot of money for buyers. Keep in mind that Sami is a highly-experienced trader with a disciplined approach to risk management. However, the fact that they can move so much so fast may make the potential reward worth the risk, particularly for advanced traders.

stock market crash

There are several factors to consider when setting your entry and exit points. One approach is to use technical analysis to identify support and resistance levels, which are price points at which a stock is likely to experience buying or selling pressure. So you know you want to begin investing – and you’ve decided to go all in on the swing trading strategy.

How to Pick Stocks for Swing Trading

Caterpillar has high liquidity and trades more than 2.1 million shares per day and generated revenue $53 billion in 2019. Of course, by the time of publishing, this setup will already be dead and gone, but this is an excellent example of a good swing trade setup even during a substantial market correction. This is great because I prefer intratrend pullback trades, but during a market correction, many stocks’ correlation to the market increases due to the selling pressure across the board. Here’s what the screen setup looks like in ThinkOrSwim’s Stock Hacker.

Best Swing Trading Stocks List – Stocks That Are WEAK

Swing trading and long-term investing are completely different animals, so you’ll need a broker that fits your needs. Swing traders should look for brokers with $0 commission or discounts on high-volume trading. I look for sectors that are outperforming the S&P 500, are in uptrends, and have bullish technicals. In the same way, you select stocks that have a valid sell short setup from the “potential sell short” group.

The Fibonacci retracement pattern can be used to help traders identify support and resistance levels, and therefore possible reversal levels on stock charts. Traders often look at the 50% level as well, even though it does not fit the Fibonacci pattern, because stocks tend to reverse after retracing half of the previous move. Another thing that some swing traders are to group stocks with solid fundamentals under “potential buys”, while those with weak fundamentals under “potential sells shorts”. Based on the VST rating of a stock, we’re able to rate it as either a buy, hold, or sell – at any given time. These ratings are fluid and adjust with the market – so you always have real-time insights into what our system thinks of a stock.

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