welcome to this video on how to choose stocks for swing trading this is Barry
Burns from Top Dog Trading I'm going to share with you three primary ways to
choose stocks or pick stocks for swing trading - swing trading being defined as
basically short term trading but not day trading so we were definitely holding
overnight often 2-3 days sometimes we've been a week or more but not getting into
long term investing so here are the three different approaches that most
commonly are use for choosing stocks for swing trading number one is just
choosing a few stocks that you really like and this is very popular with some
people where they stay in a wet I'm going to just really learn maybe three
to five different stocks and those the only ones going to trade and one of the
things you'll often hear them say is I'm going to get to learn the personalities
and that way I'll get used to them and how they move and I'll be able to trade
them well because with a lot of repetition of creating those particular
stocks I'll understand their personalities in air quotes but I can't
say that it isn't a possibility to do because I've seen it done but my problem
with it primarily is that a lot of markets a lot of stocks especially
equities they move in cycles backed all markets moved in some types of cycles so
for example they'll trend and then they'll go into a non trending cycle
which is going to consolidation be directionless for a while we're going to
go through a high volatility period and then a low volatility period so if
you're just trading stocks that are part of major index such as the Dow or the
S&P 500 of an ass that quite often they're going to be moving in a similar
way so therefore I find that I just don't get as many opportunities that way
so that's not something that I personally do the number two is one that
I do engage in and that is having a basket of non-correlated markets a list
of non-correlated markets so and by the way I'll be happy to send you my list if
you want just send me an email Berry at top treating comm and request
the I my watch list will call it the watch less that's what I call out
actually in my trading platform and the key to this is that the markets are non
correlated so you can have leave and bring up long list here so here's I have
a list that I will send you and I'll send it to you in text format if you're
interested and for free no opt-in or anything just request it and I'll
include it in the text format so you can cut and paste because the symbols may be
different than on your charting platform and I also include what that symbol
means so if you have trouble finding the exact symbol then you can at least know
what it means and find out from your data provider what that symbol is so you
see we got cash indexes these are our basic indexes here okay they'll get some
of our leveraged ones and then I go down to current fees so this is not well
those are futures there but today's we're talking about stocks you can trade
currencies that are exchange-traded funds and so here they are alright and
then we got our heavily traded ones are more lately traded ones and then we go
down to countries and these are again basically
well mostly their I shares and so we can trade well what's going on in different
countries like Australia Canada Sweden Germany Hong Kong the UK when market
might be taking off another one in another country depending on its economy
and its stock market might not be doing very well and then other markets to
watch these are primarily different sectors and industries so you'll see
here we've got biotech and agriculture base metals and we've got well got China
mixed in there gold always throwing Google health care internet
broker-dealers etc and that's what this is to find different sectors and
industries so the bottom line with this approach the logic of this approach is
yeah now you get a lot more markets you're watching but and some are
correlated but a lot of them are not so you're going to get more opportunities
for creating because well one market might be any nam trending cycle then
there's another one that is trending like
Reesie or when that's very low volatility and just not really moving
and another one is moving and just you know going like gangbusters and blown
the doors off the market and so that's the idea here is as has often been
quoted where it says there's always a bull market somewhere in a bear market
somewhere or I think Jim Cramer even says there's a raging bull market
somewhere and there's always a raging bear market somewhere I think he's the
one who said it don't hold me to that but this is what you do so you look
through these various non-correlated markets so this is something I always do
I always have this much list up and when I'm swing trading I personally I do day
trading so I don't really do any swing trading during the day I just look at
the end of the day after my day trading is done I'll take a break then I'll
usually get some lunch and maybe you could work out then I come back and I
look at daily charts and I'll compare these various markets so it's a little
bit manual that's the downside of this is that yeah you got a lot of course you
don't have to look at all these markets you can shorten this list but let me
show you one a little trick here that's kind of cool
to help you with that manual process to speed that up for you so what I do is I
put the various markets that I'm looking at into will a ninja trader is called a
market analyzer here but the more traditional term for it is a code sheet
and let me pull this down for you here a little bit ago so you can see it but
yeah that's just the ninja trader term for it's the market analyzer but anyway
it's kind of a quote a quote window and various trading platforms have various
functionalities for these so but one cool thing is hmm I'm going to squeeze
this over so it's going to look really weird downscaling all scrunched up so
let's say that I want to go through this list and I want to see the charts for
them so a lot of training platforms have this by the way not just ninja trader
where you can link the windows together and so you'll click on here and see all
these different colors so I've got them red I've kind of both red
so that means if I go over here and let's say I want to look at Disney now
right now so you got to get that down to there right now it's eBay over here
right so I said I don't wanna look at eBay when I look at Disney I just click
on that and it brings up Disney and that's because I have the two windows
linked together with the same color so I can actually go right down the list and
just check in one by one and it pulls them up one by one as you can see that's
actually Apple and and then just click click click click all the way down
through them and that helps me save a lot of time rather than manually typing
in each symbol and another thing I'll point out here too is again some
training platforms have this and some don't but on ninjatrader they've got a
nice thing with market analyzer here where you can create these columns and
you can actually put indicators in there so that I don't have to go through the
whole list now and again that's a time-saver so I can say okay trend well
I've got the way a major trend and witness try this trend up or down I'm
looking for uptrend and what wave are we M so here we're in you know which shows
me which wave and I've got all these other parameters in there for that I use
specifically from my trading methodology so then I can just look at certain
things since in other words and I don't have to look at every single one I know
I've got my cycles in there let me pull this back for you so for me cycles is a
big big issue because cycle tells you when to get in when to get out and the
optimal time so you don't get stopped out so this is very important so now see
my cycle indicators hooking up at 44 64 and so that's okay as long as it's below
50 then I'm golden and now the cycle indicator here it's but I'm looking for
hookups so again that's more than I can explain on this video it's not early on
topic but if you like my cycle indicator I do have a webinar where I give that
away for free and it not this down the cycle indicator not only works on
ninjatrader it actually will work on ending charting platform I've ever seen
so anyway you don't want to believe at that point yes I mean email at Barry at
top trading com and we'll be happy to send you an
invitation to that free webinar it takes about an hour we give you all the
details of the indicator help you set it up on your chart and then show you how
to trade it effectively so you get the whole tutorial and it's all for free
okay so last one wait this video is lasting a long time but that's okay I
wanted to share a lot of this good stuff with you so the third option is to scam
so we've kind of gone into half of scanning here with this right so this is
a little bit of scanning but it's not really technically scanning it's kind of
a hybrid between having our basket of stocks or watchlist
and putting certain indicators in there but then you can get even more specific
with scanning so let's talk about that real quick now with the third type of
them choosing stocks for swing trading we're going to use a scanner or
sometimes it is called a screener and it was cool about this is you can put in
very very specific parameters now this is just a general one here by the way
this is thicker swim so all this is and this is just like a say simple I'm not
showing a complex one here but the basic thing I'm looking for is right here and
let me movie and I will kick away with this color so we're just looking this is
a primary theme looking for where only stocks where the price is above the
upper band of the Bollinger Band so it says that the upper band is less than
the clothes so that means that the market closed above the upper band of
the Bollinger Bands so chewing a lot of strength to the upside so that's the
primary thing now I also included a few other parameters here and in different
time frames as well that's the cool thing about this is that you can put
this on different time frames and not just on one time frame so this is a
pretty good one I gather the scan that I like better at the point is when you're
using screening or scanning and that you can really narrow down so
let's say for example that you have certain trade setups that have a list of
rules you can enter all those rules into your screener or your scanner and only
bring up stocks that meet those rules so while I'm just bring up another one here
and the nice thing about this is it's pretty fast so what do we do there okay
so here is a top dog oh this one's good so let's say and this is where my
momentum is now I gotta click the Scan button here and as you can see I've got
more parameters in this time and so this one is where the market is has a bearish
momentum on the three different time frames all at the same time so that is
what's valuable about this is that we're using multiple time frames in that the
and so we've got one two three four or five about ten of them that showed up so
it scans for you like ten thousand Marquette's or you can start with
whatever you know you can say well you don't want to have all stocks maybe you
want to do what I have all that's optional ball because I like to create
the options and it goes through all ten thousand and it just gives you a little
list then you pop these up and we can look at them on the charts as well so
the first thing I would do if you want to do this it's probably the shortcut at
the fast way to find good setups based on whatever trading method you're using
whatever rules for your trade setups and I first go to your trading platform a
software provider whether it's tickers where more tradestation has this
function available to and some others so some do and some don't but go there
first and ask them do you have a scanning platform that I can do this on
and if they do great probably best to go with that if not there's a few others
fin vis I've heard is pretty good I've never used it stockcharts.com
again it's a good platform but I've never used up for scanning and the one
that I would use and then I often do use is called stock
fetcher comm and that's totally separate so even if you don't have it on your
trading platform it's like I think $8 a month or something the last
time I looked and again what I like about that is I don't look at perimeters
on multiple time frames concurrently and also it calculates everything really
really fast and you can put in all kinds of parameters it's so flexible so and by
the way I have no financial interest in any of these so just look them up google
them and go there it's not an affiliate link or anything that I'm giving you
here so anyway okay so that's it a little
longer video today but those are the three primary ways that I have found
that I've heard of the people using for choosing stocks for swing trading so if
you got value from the video please understand of course it's absolutely
free it's my gift to you but if you did get value from it then I invite you to
pay it forward why because it's good karma hey share good things with your
friends right go ahead and click the share button below and spread the word
that's your way of paying me back the more people that share but here it goes
up in the ranks and more people see the video and also if you're watching this
on youtube click the thumbs up icon and leave a comment I love your comments
more than anything actually that really encouraged me just on personal level to
create more free tutorials for you I do one of these every week and also I've
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you