Hello, I have traded futures before. I actually started trading futures before stocks. I have had some success with futures but found that I wasn't consistently profitable, i.e. I will make money then lose it, etc. I have read new Al Brooks' books and want to start trading again using price action methods. Only this time I am considering starting with stocks.
I would prefer swinging a stock, i.e. buying it and holding it for a couple of hours to make a swing profit, equivalent to 4-6 points in ES.
I need your help. Please suggest stocks that have nice long moves (am I asking for too much? )and good volume. Also, I would prefer more expensive stocks (low commission if I trade with IB).
On my shortlist are AAPL, GOOG, SBUX, ATVI, WMT.
I would also consider trading ETFs but haven't had much exposure to them except for GLD, which I like but it's too wild for me now.
I would suggest using a screener like FINVIZ.com. Screen for stocks by average volume, price, ATR, etc., and create a watchlist to your liking. You can also screen by relative volume to get an idea of witch stocks are 'in play' that day.
The following user says Thank You to mRoss21 for this post:
To day trade successfully, I believe one should look for high liquidity and some volatility in a stock.
I often trade the SPY itself, but also look at the below tickers and day trade them when I have a real good pattern:
AAPL, APA, BRCM, CAT, CVX, DE, FCX, HAL, IBM, JPM, LVS, OIH, QCOM, QQQ, RIG, SLB, SMH, WYNN, and XOM
I personally have a completely different approach and understanding of swing trading versus day trading.
The above tickers for me are the ones I day trade in the sense that I hold the position for a couple of minutes/hours and scalp intraday.
Swing trading for me is when I hold overnight from a day up to a week or sometimes two; and the list is everything that can be put on charts :-)
Good luck and happy trading
The following 2 users say Thank You to Fadi for this post:
Just go with the major index etf's like SPY, IWM, DIA. I use to day trade the SPY every day, just the SPY day in and day out. Just like most futures day traders just trade one index futures like the ES, or TF or YM, etc.
When you guys trade, what type of strategy do you have? What do you see as a good profit? I have been buying volume on cheaper stocks. Watching closely for it to go down and then putting in my order when I am comfortable and selling when the stock goes up 10 cents for a $300-$500 profit. I am limited to what I can do because I am on margin and dont have the minimum $25K of my own equity in my account to make multiple trades. I have been fairly successful but would like to know what other people do.