everyone thanks for checking out this video my name is Travis rose I'm the
creator of the master the market education that you can find link below
in the description for those of you that follow me on social media you've
probably seen some of my morning watchlist that I post just about every
single day that the market is open and I wanted to make a video to kind of go
over the process of how I put together my watch list so that way you can put
together your own watch list and find stocks that are meeting the specific
criteria that you personally are looking for and on top of that if you're
somebody that follows my watch list this way you can actually put together your
own and you won't have to necessarily rely on me to post mine every day so
anyway with that being said I'm gonna jump over real quick to just show you a
little bit about my watchlist real fast alright so the first thing on each of my
watchlist are stocks that are gapping up in the morning simply put stocks that
are gapping up just means that they're opening significantly higher than they
closed the previous day due to a large move in extended hours which is after
hours trading in pre market trading and more often than not this is caused by
some kind of catalyst or piece of news that was put out in the extended hours
market okay so I have stocks that are gapping
up and then I just put their news headline I put levels of support
resistance and their number of outstanding shares then I also put
stocks that are gapping down which of course just means that they had a large
move down in extended hours and again I put their headlines support and
resistance and outstanding shares and then last but not least I also have a
list of previous day movers and the reason for this is because many times
we'll see stocks that have a big move and a lot of times that momentum will
follow into the next day and they can end up having runs for multiple days in
a row so I always like to keep track of stocks I had a big move in the previous
trading session okay now with that being said one of the ways to actually find
stocks to put on your watchlist is to use a tool like a screener and a
screener is just a tool that is used by traders and investors to filter the
market for stocks that are meeting your specific user-defined metrics and one of
the very common free screening software is that we're going to use here in this
video is on fin viscom before going on to pin biz I want to
talk about some of the common screening settings that a lot of people use when
they're looking for trade setups the first thing is average volume average
volume is simply the amount of shares that a stock trades on an average day
generally speaking we want this number to be pretty high in my opinion I like
to look for stocks that have an average volume of at least a hundred thousand
shares anything less than that means that the stock is very illiquid and that
there is not very much volume and because of that it can be hard to buy
and sell at the prices that you want to buy and sell at
second thing is the current volume and this is of course going to be the volume
for the current trading session and again just like average volume you want
this number to be pretty high as well preferably you actually want it to be
above the average volume because that means that the stock today is trading
more volume than it usually does and because of that a lot of times there's
going to be increased volatility and there's gonna be more setups for us to
trade the number three thing is the price I personally like to focus on
stocks in the $1 to $10 per share range but of course this is preference so if
you want to trade stocks that are higher you can of course put that into your
screener when you are looking for any kind of trade setup fourth is
performance and essentially what this does is tells us to look for stocks that
say have gone up maybe 10% in the past week or maybe have gone down 20% in the
past month at the end of the day kind of lets you find stocks that are already
moving in one direction or the other so if you're looking for stocks that are
up trending you may want to put into your screener that the stock has gone up
10% in the past week or 10% in the past month because that tells you that the
stock is already moving upward and a lot of times that allows you to kind of buy
into that upward momentum and the fifth thing that I often put in my screening
settings is institutional ownership now institutional ownership is going to be a
percentage of the amount of shares that are held by institutions so if I'm
looking for a good long trade or one that I want to buy into it's always a
great sign when there's a high institutional ownership because that
tells you that there are plenty of institutions buying into this stock and
at the end of the day these institutions in the huge traders with billions and
billions of dollars at their expense are the ones that are going to move the
market and essentially are the ones that you want to be on the same side of you
don't want to be opposing the trade if for example a stock has 80%
institutional ownership if you're trying to short sell a stock like that you're
pretty much trying to bet against these institutions okay so with all that being
said I'm gonna go ahead and go to fin vis now just to show you some examples
and show you how you can actually screen and look for stocks meeting your
criteria so once you're on fin biz you want to go up to screen or at the top
I mean you want to make sure you have all selected here so this is going to
give you options to screen for fundamental things technical things
descriptive things and so on and so forth so for example like I said I like
to look for stocks in the one to ten dollar range so I'm gonna go ahead and
put price as under ten dollars per share next I want to find stocks that have a
high average volume so for example we can put over 200 thousand shares and
again that just means that on an average day the stock is trading at least
200,000 shares telling us that there's enough liquidity for us to buy and sell
next let's say we're looking for stocks that are trading much more volume today
than they would on an average day telling us that they're having a pretty
big move either up or down and the way that we do that is by going to current
volume and let's say that we want this to be at least 500,000 and you can
notice that each time we put in a piece of criteria its narrowing the market
down even more so right now we're at 462 total stocks meeting all of the criteria
that we have here and just to take things a step further we can go to
institutional ownership but let's say we want stocks that only have institutional
ownership of at least 30% so that tells us that there is at least some interest
from institutions in the stock next we want to keep this just as United States
stocks then let's go ahead and go to performance and look for stocks that
have gone up at least 20 percent in the past week okay and this is going to
narrow the market down to a total of just 28 stocks and from there you can do
any kind of analysis whether it be technical or fundamental to narrow that
list down even further but this is a very good way in a very effective way to
put together stocks meeting your criteria that can be great to actually
put onto your watchlist now the next thing that I use to find
stocks for my day trading watchlist is a scanner and the scanner is a little bit
different from a screener because a scanner is actually going to pool stocks
up in real time that meet your user-defined metrics so a screener you
have to refresh time and time again to find stocks that are actually meeting
the criteria that you have in that screener but when you put settings into
a scanner it's going to immediately add stocks to that list on your scanner once
a stock meets all of the criteria that you have and this is actually how I
primarily find stocks from my trading watchlist
and I actually use thinkorswim and you trade pros free scanners that are built
into their software and to use that all you have to do is have an account with
TD Ameritrade or e Trade however if you don't want to open a new brokerage
account there are plenty of paid scanner options as well like trade ideas or
equity feed but with that being said I'm going to go over to thinkorswim
real quick just so I can show you some of the scans that I use to find stocks
for my watch list now the first thing that I have here is last and this is
going to be the last price that the stock traded at so again I like to focus
on stocks in the one to ten dollar range so I'm going to go ahead and put a
minimum of one dollar per share and a maximum of ten dollars per share the
next thing we have is volume and we like to look for stocks again with high
volume so I'm going to put 100,000 shares as a bare minimum and keep in
mind that this is something that you're going to do in free market and generally
speaking free market volume is much lower than average volume so you want to
keep this pretty low compared to what you would put say on fin biz when you're
screening for stocks and for volume I don't have a maximum because generally
speaking the more volume the better and then the last thing that I have down
here is a custom study and this is going to be price underscore change so if you
click on the study and then go down to price performance and then down at the
bottom click on price change then you want to make sure you have
clothes selected at least two percent greater than 240 bars ago and then make
sure you have ext selected as well which stands for extended hours and last but
not least you want to have one minute so to summarize basically all this means
is that we're looking for stocks whose previous candle closed at least two
percent greater than the candle 240 bars ago and when you're scanning for stocks
gapping in free market this is going to look for stocks that are at least two
percent higher but then again they were two hundred and forty bars ago which
would be from the previous day and if you want to look for stocks that are
gapping down rather than gapping up all you have to do is change this from
greater to less and then once you have everything you're looking for all you do
is hit scan and it's going to pull up a list of stocks meeting that criteria now
keep in mind the market is closed right now it's after-hours trading so this
isn't going to be perfectly accurate but in premarket this would simply tell you
all of the stocks that are gapping up or gapping down and then to arrange them I
like to have stocks that are up the most at the top and all you have to do is
click on mark percent change and so you have the top percent gainers
at the top and if you want to add a column to the top
say for example you don't have mark percent change all you have to do is
click this tiny little Settings icon there hit customize and then scroll on
the left side to find whatever you're looking for and then once you find it
all you do is hit add item and that's gonna pull up as they call them now
so anyways once I get a list of some of the biggest gainers for the market there
then the next step is to look for news for that stock so say for example we
want to look for the stock symbol I MBI because I know that this was one of the
biggest gainers today I can use the news tool here on thinkorswim to look for
headlines to give me an idea of why that stock gapped up so much today now if it
doesn't give me any information there I can go back over to Safari and I can go
to Yahoo Finance and then on Yahoo Finance I can search imv I
and if you scroll down a bit you're going to see some of the most recent
news from the stock then once I know the news all I do is pull up some of the
charts and I'll look at the intraday charts so this way I can get some ideas
of where there are levels of support and where there are levels of resistance and
that is exactly how I find some of the stocks that go on to my daily morning
watchlist now keep in mind I do use multiple scanners and I just showed you
one of the scans there and thinkorswim so if you use that and you don't find
every single stock that I have on my morning watchlist
I recommend messing with the settings a little bit and trying out some of the
different scanning settings yourself but with that being said I want to just
clarify that screeners and scanners are not going to tell you of course when to
buy and sell at the end of the day they're really just to help you find the
stocks with the best trade opportunities for the day so even with a great
watchlist you still need to have a solid trade strategy and a solid trade plan
and with that being said if you're looking for some help
learning how to trade and putting together a strategy I teach the
strategies that I use step by step in the first link down below in the
description on my website master the market there are eight different courses
available over 15 hours of content seventy practice quizzes and access to
the chat room with over a thousand other active traders and if you're interested
in more than one of the courses available you can actually get all eight
of them together in a bundle for a 50% discount so anyway I highly recommend
you check that out if you're interested in learning more about the market but
anyway thanks for watching the video if you enjoyed make sure to give it a like
and subscribe to the channel so you don't miss future videos but good luck
with your trading and I'll see you in the next video