How to select stocks

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deanhixson

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:confused: I am new to trading. I have read books on trading but they have not answered in a straight forward manner how to select stocks for trading. what are the "few" fundamentals for selecting stocks for swing trading and how would i search for them.

thanks

dean
 
deanhixson,
you can select stocks by many criteria, fundamental or technical. Example you can select stocks with low P/E or high Dividends, etc. Or you can select stocks by technical criteria, e.g. stocks that crossed their resistance line, oversold or met divergence condition. Look at this free stock picker tool and you'll understand how it works:
MarketInOut.com - Stock Screening and Analysis - Trading Signals and Investment Strategies - Stock Picks and Financial Market Reports - Stock Screeners and Charts - Buy and Sell Signals - Trading Strategies - Technical and Fundamental Analysis Tools
 
I started out picking precious metals and solar stocks, i.e. semiconductors and this worked quite well.

Basically I just do searches of stocks and keep the ones that are of some interest to me based on performance.
Things I consider are price, volatility, volume, typical daily range, and recent performance.
However I don't invest or trade in any industries I don't like.

There are a myriad of things you can look for.
Just start doing searches and you will find several that meet your criteria.

You don't need many.
A friend of mine trades one stock many times in a day, up and down, day after day.
 
I can partially recommend Jim Slater (The Zulu Principle etc.). I say partially because I don't use FA so can't give a personal testament to their value, though their rationalisation and reputation are very good.

I find it frustrating that TA systems are readily subject to objective testing and published books and reports regularly 'prove' that this TA or that TA or all TA is spurious. I don't see the same rigour applied to FA stock-picking systems.
 
johnlvs2run said:
I started out picking precious metals and solar stocks, i.e. semiconductors and this worked quite well.

Basically I just do searches of stocks and keep the ones that are of some interest to me based on performance.
Things I consider are price, volatility, volume, typical daily range, and recent performance.
However I don't invest or trade in any industries I don't like.

There are a myriad of things you can look for.
Just start doing searches and you will find several that meet your criteria.

You don't need many.
A friend of mine trades one stock many times in a day, up and down, day after day.
Click to expand...

I've found that can be very successful - you get to know the stock & its behaviour and can milk it dry until its trend / behaviour changes.
 
Oops - sorry dean, forgot to state the obvious - the overall market has been a bear for months and is poised to probably continue lower when volume picks up in January. You have to be a fine stockpicker to go against the tide: do you not have time on your side, so that you can wait for a rally?
 
deanhixson said:
:confused: I am new to trading. I have read books on trading but they have not answered in a straight forward manner how to select stocks for trading. what are the "few" fundamentals for selecting stocks for swing trading and how would i search for them.

thanks

dean
Click to expand...

Many trade new highs, either a break out from a horizontal channel, or a 52-week high or even a new high above the highest high of a number of days.

Good luck to you!

Ron
 
0007 said:
I've found that can be very successful - you get to know the stock & its behaviour and can milk it dry until its trend / behaviour changes.
Click to expand...

Good strategy IMHO, which can be transferable to sectors and or other indices.
 
deanhixson said:
:confused: I am new to trading. I have read books on trading but they have not answered in a straight forward manner how to select stocks for trading. what are the "few" fundamentals for selecting stocks for swing trading and how would i search for them.

thanks

dean
Click to expand...

Are you trading Intraday or Longer term?
 
You could also try trading stocks as pairs, i.e. Buy/sell similar shares based on their previous behaviour.
 
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