How to choose stocks for swing trading

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I know this is a bit of broad question but what do you guys do to narrow down the thousands of stocks out there in the beginning? A few of the things I use so far unsuccessfully are: Beta sharp volume increases EMA crossovers I guess that would be the correct term?

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Do you guys use these things too? If not, what do you use? Do certain technical indicators work better for shorting a stock? Any details provided would be GREATLY appreciated.

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I like to see consensus earning's estimates being revised up. Nothing better than an upgrade to give a boost to price. Usually analyst will steadily upgrade futures earnings estimates prior to giving an upgrade, so this way you can get in before the fact.

You can check this at moneycentral. You can see if they're being raised or lowered. I don't do much swing trading but was thinking about it recently. Someone with more experience and knowledge can comment on my thoughts and either affirm or call BS. I was thinking the best way to swing trade was to run a long short book, so basically for every long position you pair it off with a short.

You should use up moves in the market to establish short positions in weak stocks and down moves in the market to establish long positions in strong stocks. Book real profits and carry paper losses.

Something as simple as comparing RSI's of SPY vs individual stocks, or using moving average alignments or differences in short vs long MA's in the name vs SPY. In addition, you could filter by exchange, average daily volume, 40 day ADV vs 5 day adv if recent volume is greater than average, this may indicate institutional buying or selling which will help your trade , Price, and maybe even sector if you like diversity.

A filter you might find helpful. Greater than , shares traded daily 3. I've found it easier to watch a basket of stocks and wait for my setups rather than try to screen the entire universe of stocks which meet my setup criteria. This basket is fairly diverse across industries and contains the main ETFs QQQQ, IWM, XLF, etc , a bunch of commodity stocks Gold, coal , some heavy industry CAT , semis, some tech, and a few "pet" issues. It's made it far easier just to watch and wait and let the trades come to me.

Yep, I'm sure I miss a bunch of trades, but oh well. Limit your stocks to the ones institutions trade, and then watch for buying and selling pressure.

Big money cannot hide, they can be spotted. Forget about earnings, earnings are for investors. Forget about analysts's comments and reports, large institutions have their own research teams, and will have any information sooner then the public.

You cannot compete with their research teams, learn to read price and volume, instead of reading other subjective things and manipulated things. You can focus on the news of the day and try to ride the reaction - FDA announcements, pre announcements, mergers, catastrophe hurricane damage to oil rigs, refineries , product recalls, etc..

You can focus on earnings announcements directional or trade volatility via options. Or perhapts either some stocks in a sector that's volatile gold, oil or volatilie stocks that are popular AAPL, AMZN, BIDU, GOOG, etc. Unless you can program or have a program that can screen for criteria you set, just pick a modest number of stocks that interest you, follow them and get to know them.

Instead og thinking about the 1,'s and 1,'s of stocks out there and how you will screen all of them, just find a few to succeed with and then increase the number slowly.

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