Looking For Trending Stocks

Feb 22, 2017
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#1
Hi Folks,

I'm fairly new to the trading scene, I have done a good bit of testing and research and I'm going to be starting my live account next week.

I will be spread betting stocks, good strong trending stocks to be more specific and so I've come here to hopefully get some help and even some insight into this kind of stock trading from more experienced traders.

I'm basically looking for some help to compile a list of good strong trending stocks that I can look to go short or long and hold the position for 1-3 months.

Any help with this would be greatly appreciated!

Thanks,
Steven
 

tomorton

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Feb 28, 2002
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#2
Welcome Steven. I am spread betting strongly trending stocks right now too, as so many of the established trends I was working in forex have stalled.

The best stock trends have been bullish for some months now, but whatever list you make today will be different by 1 month out, let alone 3. In any case, it depends how you define strongly trending.

Currently, I will only buy uptrends in which price is above the 50 and 200, and in which price is up over both 3 and 6 months. Entry patterns aren't really important but I do avoid stocks which have jumped up excessively in 1 day. If I have a conflict between several candidates, I also look at weekly charts to see which is most consistent.

Though there are always some downtrends, I am a buyer only while the US and UK stock indices are so bullish.

In January I made a 17% profit on the account - should have been well over 20% but I greedily also tried to short some bearish stocks instead of sticking to the buying the bulls. Not so good this month as I am still holding my longs in spite of the market going into consolidation. If I had closed last week under Plan A, I would have been up 20% and currently flat.
 

sminicooper

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Jun 13, 2016
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#3
Steven, – some excellent advice there from tomorton. As a trend trader myself I have over the years tried many ways and indicators for selecting the good sort of trending stocks you're talking about. After all that, I've come to the conclusion that the easiest, quickest and best solution is just to eyeball a plain chart of price. I just flick through chart after chart and with a little practice the good ones will immediately stand out. If your eyeballs don't give you a flicker of recognition then just move on to the next chart. It may sound too simple – but it works.

Also don't forget to do the same with your live trades – when the trend falters, your eyeball will pick it up. You may then have the psychological problem of making yourself exit the trade. Good luck :)
 
Feb 22, 2017
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#4
Thanks for the feedback/advice guys, much appreciated!

Where do you look through stocks to spot out good trends? Do you check the upcoming earnings calendar on Yahoo Finance or do you run through stock lists a different way?

Also do you look for stocks that have a good amount of points attributed to them and check how much they move per week? As bigger companies will have more points which generally means more movement/liquidity, how do you go about picking stocks from this angle?

Do you guys have a few I could check out and possibly enter long or short now?

Thanks again guys!
 

tomorton

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Feb 28, 2002
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#6
Thanks for the feedback/advice guys, much appreciated!

Where do you look through stocks to spot out good trends? Do you check the upcoming earnings calendar on Yahoo Finance or do you run through stock lists a different way?

Also do you look for stocks that have a good amount of points attributed to them and check how much they move per week? As bigger companies will have more points which generally means more movement/liquidity, how do you go about picking stocks from this angle?

Do you guys have a few I could check out and possibly enter long or short now?

Thanks again guys!

I check the FTSE350 charts nightly on Sharescope Gold but there are good free charts on the web, and obviously my spread betting provider also offers a very flexible chart package, MT4 I believe.

It is a fine idea to check for earnings announcements and avoid getting into these stocks just before these dates.

I only SB the larger cap stocks as this keeps the SB charges low. Larger cap stocks generally move less per week than smaller caps but this is easily enough to make a decent profit.
 

tomorton

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#7
PS: As for where you can buy in right now Stev86, I currently am not entering buy orders overnight as the stock markets are really extended and due possibly for some pull-back or at least to continue flat-lining like the FTSE100. I don't look at over-bought/over-sold indicators, but the chances of a pull-back are always higher after a run up than other times. So I'm just holding my long trades open and hoping for the main uptrend to resume.

(I wish I had closed them all a week ago when the FTSE started to falter, but hey ho.)

As the main indices' trends remain so strongly bullish, I am not considering shorting any stocks.