Best way to find the best stocks for your trading style is Scanners-- custom scanners. I created this very simple scanner on Think or Swim (TD Ameritrade's award winning platform) to locate stocks that are hovering at lows and have spike history.
Setting Up Scanners on Think or Swim
Think or Swim Platform (TD Ameritrade)
I used this scanner to find $FFHL. I got alerted on this stock and waited for a good entry at 2.15, waiting a few days till it spiked and sold for a 50 cent gain, or about 23% up on my high risk trading account. How did I know it would spike again? History, history, history. If you look below where I show the history of $FFHL, you'll see why I picked this one just days before it spiked again.
My goal is to find penny stocks (subpennies are okay by me on my high risk account) that have a lot of volume and are hovering around support. Then I can dig into the filtered results and find stocks that have a history of spiking. My criteria looks like this (With scanners, you can set your price range anyway you want, that's all based on what you can handle with risk):
CUSTOM SCANNER (Think or Swim)
- Volume must be +100k (to make sure I can get in and out easily
- Last (Price) is between .005 to $4 (I don't mind subpennies on my high risk account)
- Study shows the current price is within 1.1% of the 10 period "Low"
After reviewing $FFHL (which popped up on this scanner's results more than a few times), you'll notice it had a history of spiking. I'd even alerted on it before but didn't play it. When it showed up on my scanner again, I was in.
How to Create a Scanner
With Popular Scanner Examples
Nothing's more helpful to a trader than having useful Scanners. Whether you're Buying the Dip, looking for Cup & Handle, Double Bottoms, or 52 Week highs, you need a way to see those without typing in countless ticker symbols or going off a wing and a prayer from tickers mentioned in chat rooms. Most platforms allow for some kind of scanners. Today's focus will be Think or Swim (TD Ameritrade) as that's what I use most often for my broker.
First, Click Scan>Stock Hacker
Then you can set up each of these Scanners. Below are my Most Used Scanners.
SCANNERS FOR THINK OR SWIM
PENNY STOCKS WITH MOMENTUM
NEGATIVE TO POSITIVE MOVEMENT
NEAR 52 WEEK HIGHS (Potential Breakout)
PENNY STOCKS WITH HIGH VOLATILITY
Remember to Invest In Your Education (Time/Money)
Trade smart, trade safe! Check out my most recent video on how to play a former Supernova (and how I made 20% on this one) [embedyt][/embedyt]