How to find the right stock to trade? (For Beginner + Advanced details)

How to reduce game for stocks and I see a lot of people asking well how does teacher is really trying to find the ticker of what is supposed to trade on the current day today. So issue help you narrow it down which stock to trade and to also help you not to trade that much alright.

TOP GAINERS – So the first thing is typically what I do is that look at top person gainer on your platform this couple platform I command that there’s a trade pearl there is in fact a broker there’s trade 0 platform there’s all kinds of platform – trader platform you can choose whatever you want equity feed and all that once you find that and you basically want to select either Nasdaq or New York exchange to find out what is the top is % gainers and you cannot find anywhere between around 20% more above.

REVERSE SPLIT – Sometimes you can see there is the stocker up around ten thousand percent twenty thousand percent but no volume and you can kind of instant realize that to start get a reverse split we’re gonna get into a little bit later because that’s gonna be a little bit longer to explain tell you what I scan for is any the stock is under two hundred percent or above twenty percent in that range you wanna find a stock that fits your pattern and and also meet your criteria as well to be able to place a trade so the first thing is pre market volume super-important anywhere above a hundred thousand because if the volume is too low in the free market the stock gets really saying and you don’t really have the idea how much volume is going to trade right up to open most of the time the stocks come to trading symbol under phormium which is very very difficult to execute trades.

Flow – So the flow flow is very important in supply and demand we all know that all over the supply the higher demand the higher to supply the role the demand and that will affect the stock price and if there’s too much demand and there is only the member of supply the stock will go up if there’s too much supply and demand will go down that will decrease the stock price so that’s why I can see sometimes low flow will increase significantly compared to higher flow there is a specific range of flow that I typically don’t trade is between zero to two million so if the flows are two million is very easy to manipulate that’s number one number two it’s most of the time when there are low flow the price the volatility jumps back and forth with really big range compared to other stocks that have a little bit bigger flow and it’s really hard to execute trades and you find the your ideal entry let’s say you want to execute a 7.5 and on those lower flow we can probably get secured at 7.30 so that’s 20 cents a difference compared to what you want to execute in a higher flow especially when you’re using market orders.

Market Cap – Now I’m 3/8 the market cap we all know if the market caps too big it’s a it’s a 1 billionth our market cap it’s not going to go over a thousand percent because they need so much money to really move the 1 billion dollar market cap now if it the stock is under let’s say 100 million 200 million then it has a chance to go up 100 percent because there is a possibility that’s that will bring monger meeting to 200 media into the market cap or on the current day you don’t really see that often so most of the time the stock jumps around 200 percent 10 percent is anywhere between 0 to 100 million that’s where you consider into like a mid cap
or small cap zone you can’t trade a comfortable range is around I would say 0 to 200 million and anywhere above that I don’t really feel comfortable to trade especially on parabolic.

Crowded Trade – Now also there’s crowded trades as I talked about if the trades gets super low volume and it’s not basically not really treatable but there’s another scenario that if the stock trades too much volume and you will get crowded one stock gets crowded think about like this way so if there’s industry and there’s so many people trying to go and make money there’s too many people getting at the same time you will increase the competition and once you increase that competition is really hard for you to make money so if the stock is super crowded it’s the same idea it’s very difficult to make money so that’s why when the stock is super Katya tends to stay away.

Thank you so much for read this

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