hey everyone thanks for checking out this video my name is Travis Rosen the
creator of the mast in the market education that you can find link below
in the description and this is going to be part 6 of the day trading stocks for
beginners series that I'm doing here on my channel so if you're brand new to the
market and you haven't watched the other 5 parts
I do recommend probably starting off with those ones and those are going to
be linked down below in the description as well so when we in the past videos of
this series we covered some of the basics of technical analysis fundamental
analysis we talked about the differences between day trading and swing trading we
talked about the different types of orders that you can place we talked
about how you can profit from stocks going both up and down from regular buy
and sell orders as well as short selling and covering and in this one we're going
to kind of take a step back and actually talk about how we can find the best
stocks to trade which in my opinion is really half the battle of trading you
can be a very disciplined trader and you can be using a very successful and
accurate trading strategy but if you're trading the wrong stocks in the first
place you're going to be setting yourself up for failure so in this one
we're going to talk about again finding best stocks to trade and you have to
keep in mind that every trader has their own preferences and their own skillset
so even if you're using the same strategy as somebody else you may have
different preferences and you may want to adjust some of the things that I
talked about within this video to fit your personal trading preferences
and the way that we're gonna find the best stocks to trade is by using what
are known as scanners and screeners so really what these are are tools used by
traders and investors to filter the market for stocks meeting their selected
criteria and there's really just a slight difference between scanners and
screeners scanners update in real-time while screeners need to be manually
updated so in this video we're gonna go over both of these we're going to talk
about the screener on fin viscom which i've talked about in past videos and
then i'm going to go over to the thinkorswim platform as well as probably
the Interactive Brokers platform and I'm just going to show you some very basic
scanning options and show you some scanners that I use on a daily basis and
with that being said many brokerages like Interactive Brokers
and TD Ameritrade with their thinkorswim platform are going to have free built-in
scanning software however if your broker doesn't offer free scanning software and
you don't want to open an account with a different broker you can always look
into other paid options such as trade ideas in equity feed or you can of
course just stick to fin viscom and that's actually what we're going to talk
about right now so if we go over to fin does calm first and foremost we're going
to put in some of the common scanning and screening criteria and see what the
market is narrow down to okay so once you're on fynbos comm what
you want to do is go up here to the screener and then you're going to want
to go down here and click on all and what this does is gives you all the
different options that you can select to narrow the market down further and
further so if you just have this on fundamental it would just let you screen
the market for things that are based on fundamental analysis I mean if you just
had it on technical that would of course let you look for things based on
technical analysis but we're going to be looking for things that fall into both
of those categories so we want to make sure that we have all selected now the
first thing that many people use when they're doing their screening or
scanning is by selecting the price of the stock everybody has their own
preferences when it comes to price range I personally like to focus on stocks in
the one to five dollar range that's just kind of my sweet spot and if you're new
to trading you might not necessarily know what your sweet spot in the market
is yet but again you probably already do have some kind of idea of what your
preference is when it comes to trading stocks so what I'm going to do over here
is select price and I'm going to go ahead and just select price under $5 so
right off the bat we're going to narrow the market down from seven thousand six
hundred and fifty five stocks
all the way down to 1404 stocks the next thing that we want to do is go
ahead and select volume and of course this is just the number of shares that
were treated for this specific day
and when I'm selecting the current volume or just the volume of a stock I
like to make sure that there is enough liquidity and enough volume so that I
would be able to easily get in and out of the trade without having to worry so
much about if there's enough sellers or buyers on the other side to buy or sell
my shares so to do that I'm going to make sure that I have over two hundred
thousand selected for the current volume and you can see we narrowed the market
down even further to just 656 stocks now then we're going to want to select
average volume and this is going to be the total number of shares traded on
average over the past 30 days
and again I'm going to go ahead and select over 200,000 just to show that on
a regular basis the stock that we're looking for is trading over 200,000
shares giving us enough volume to easily get in and out of our trades
the next thing is going to be relative volume and this is just going to compare
the current volume to the average volume and a relative volume of two simply
means that the current volume is two times what it typically is for that time
day and if we're looking for stocks that are already making large moves and not
have great day trade opportunities but the most part you're going to want to
see a high relative volume so I'm gonna go down to relative volume and just
select over two and that tells us that the stock is currently trading two times
what it typically does at this time of day
so now you can see with just these very basic screening criteria we narrowed the
market all the way down to just 61 stocks so from here you can just scroll
through and if you hover over the price you'll actually get a quick chart of the
stock and that's going to help you quickly narrow the market down even
further and obviously you can make some adjustments to these and add an even
more screening criteria to get a smaller and smaller list and to find stocks that
are meeting the exact criteria that you're looking for when it comes to your
own personal trading all right so now we're over in the
thinkorswim platform with TD Ameritrade and the first thing you want to do when
you get to the platform is go ahead up here to scan and then select stock
hacker and this is going to allow us to scan the market for stocks meeting any
of our specific criteria now if you have any scans that you want to pull up that
you've previously made or if you want to look at the pre-made scans that
thinkorswim has built into the platform all you have to do is click on this icon
over here and select load scan query and you can have your personal scans pull it
up here the public ones that are pre-made here and then some top ten
commonly used scans that they already have pre-made as well so for this one
I'm going to show you a personal one that I already made in the past and this
is going to help you find quote-unquote low float stocks in the market now I
recently wrote a blog post about low floats and stocks with a low number of
outstanding shares and I talked about how they affect my trading and why most
of the biggest runners in the market are typically low float stocks so if you
haven't read that already and you don't know about low floats and what they are
you may want to go ahead and read that and know how that link down below in the
description as well but for this scan really what it's made up of first is a
last price I mean this is simply the last price that the stock traded at and
this is going to allow you to narrow the market down to a price range so for this
I have between $1 and $20 per share then the next criteria I have is volume and a
minimum of 100,000 shares third we have the total number of shares outstanding
and this is going to allow us to find stocks with no more than 20 million
shares outstanding and again if you don't know the importance of that you
may want to read that blog post but just to kind of summarize it and Load number
of outstanding shares or in other words a low float can really be thought of as
the supply for the stock and if there's a large amount of volume for that stock
the volume can then be thought of as the demand and if there's high demand and
low supply that's going to often cause a lot of volatility and these are
generally the stocks that have the largest potential for having big spikes
and big runs in the market then the next thing that we look for is unusual volume
and we have the current bars volume being at least 50% greater than it is
from a typical pure over the past thirty periods
and when I go ahead and click scan it's going to pull up all the stocks meeting
that criteria and you can see all the B's down below there's currently 50
results for this criteria and now all of these can be potential trade
opportunities for me in the near future because I know that all of them have
strong relative volume at least 50% greater than it is on a typical day
all of them have enough volume because there's a minimum of 100,000 shares they
all fall into my preferred price range of one to $20 and they all have less
than 20 million shares outstanding telling me that there is a low supply of
these stocks and because of that they have potential for a big run or a big
spike once the momentum in these stocks starts to pick up okay and that's just
one of the very basic scans that I use on pretty much a daily basis obviously
there are countless different ways that you can adjust these and make your own
scans and search the market for your preferred type of stocks but I really
just wanted to kind of cover the basics here in this video so you know how to at
least operate the scan tool would thinkorswim and from there hopefully
you'll play around with it a bit and make some adjustments until you find
some good scanning settings for your personal trading style and whatever
strategy that you may be using all right so now we're over in the
trader workstation with Interactive Brokers
and I just want to show you real quickly one more scanner that I use on a daily
basis and actually this is primarily how I find most of my personal trades
because I like to trade stocks that are making big moves whether it be to the
upside or to the downside because these are stocks that have recent news
released they have a lot of eyes on them so there's a lot of volume and a larger
amount of volatility that they see on a regular basis and basically for my
trading style that's really all I need to find some great trade opportunities
in the market so this is gonna be the largest percent gainers and the largest
percent losers now keep in mind like I mentioned I am in the Interactive
Brokers platform now but just like the other scans that we talked about with
thinkorswim in on fin biz this scan can be pulled up
and used with any other scanning software that you use it of course does
not have to be here in Interactive Brokers but I just wanted to use
different platforms because I know that obviously everybody
doesn't just use think or swim so I just wanted to kind of show the basics of how
to operate the scanning tools that are built into multiple trading platforms
but anyway if you're new to Interactive Brokers the way that you would pull up
this scanner is by going to your new window scanners and this is the mosaic
market scanner so once it's pulled up you're gonna want
to go ahead and go to edit scanner if you click on universe this is going to
allow you to narrow the market down so in this case we're just looking for
stocks rather than ETFs or futures I'm looking for stocks in the United States
and these are the exchanges that I have selected from my personal trading so
then if you go down here to your fields in filters the first piece of criteria
that I have in here is the last price followed by the shares outstanding
followed by the percentage change I'm gonna have whether or not the stock is
short a bowl because I personally short sell a lot of stocks and then last but
not least I have volume and I make sure that the volume is at least 50,000
shares after that you had done and you can go ahead and click on percent change
here on the top and when you do that it's going to arrange them from percent
change gainers to percent change losers so right now on the right side here we
have the largest losers based on their percentage at the top and if we click on
it again it's going to arrange it the other way
around with the percent change dinners here on the right side and the percent
change losers here on the left side so now we can see the stock symbol we can
see the last price that it traded out the total number of shares outstanding
how much the stock is up or down for the day based on their percentage you can
see whether or not the stock is currently short Abel and how many shares
are currently available to short sell and then you can see the current volume
for the day so basically by putting all of this information into your scanner
it's going to save you a lot of time because you're not going to have to look
up for example the total number of shares outstanding for the stock since
it's right there next to it you're not going to have to pull up a separate
window to see whether or not the stock is short Abel all you have to do is see
if it meets your criteria here on the scanner and then pull up a chart and
maybe do some technical and fundamental analysis and try to find some entries
and exits for your future trades so anyway that's going to be a wrap for
this video in for part 6 of the series I hope you found it helpful and I hope
that you're able to find the best stocks for your personal trading after watching
this video if you enjoyed please give the video a like and subscribe to the
channel so you don't miss out on part 7 of the day trading stocks for beginners
series and as always if you want to learn step-by-step how to day trade
swing trade or even long-term invest and even access our trading chat room with
over a thousand daily active traders all of that and more can be found down below
in the description on my website master the market anyway thanks again for
watching I'll see you in part 7 and good luck with your trading