Day trader stock selection

K

kwancy

For all the NYSE day traders on ET, just want to share some of the ways to determine what stocks to trade intraday before the market opens. I understand good traders can make money on almost any stocks, but experienced traders should have a system in building a universe of stock even for day trading.
Let me write down some of the methods I use, and I hope in return someone can share theirs.

1.) Briefing.com (platinum), looking for earnings, upgrades/downgrades, "story stocks". I like to trade stocks with recent earning releases (2 days). One interesting aspect I found is upgraded stock can go down and downgraded stock can go up, which I think does not surprise any experienced trader.

2.) Earnings.com, a summary of events including split, dividends, conference...etc

3.) Stocks on the activity list on ECNs

4.) NYSE official web-site, I can see 30 top active, advance, and decline stocks which is better than e-signal as it has only top 10.

5.) Bloomberg.com

6.) Trade-idea, a technical screener

And how do you guys prepare your day before the market open or after the close everyday?? I know some people likes to watch Cramer at night to get some trade idea, but I do not.

thanks for all your opinions.
 
I used to trade mid cap NYSE stocks that had an average volume between 500k and 1.5 mil shared a day. The tricks to finding good companies that make you money are:

1. Look at earnings wispers, earnings, just about any significant news, but not headline news.

2. Look at the charts. The chart needs to show days that it closes very strong or weak on news days. But the stock does not need to move much everyday just once in a while.

3. The days those stocks move they need a minimum of 1.5 point range.

4. Just put those stocks up on your screen and read the tape. If you see it starts acting strong go long and trade with the specialist. One catch, if the stock is strong and the offer gaps up. Take your profit and don’t wait for it to fall. Just use a limit order below the ask and your order should get matched with the block trade. The same goes for weak stocks.


After a while you will find a list of stocks that you know like the back of your hand.
 
I trade stocks with at least over 2 million shares on avg. I am looking for a systematic way in picking day trading stocks. If earning is your criteria, then where do you find that information and how do you systematically do it to save your time everyday? It is definitely not possible to go from one chart to another, I want a way that makes me want to analyze its chart.

Ideally, I am looking for a way to see a 20 or more cents movement. Thanks for sharing your opinions.
 
Quote from kwancy:

I trade stocks with at least over 2 million shares on avg. I am looking for a systematic way in picking day trading stocks. If earning is your criteria, then where do you find that information and how do you systematically do it to save your time everyday? It is definitely not possible to go from one chart to another, I want a way that makes me want to analyze its chart.

Ideally, I am looking for a way to see a 20 or more cents movement. Thanks for sharing your opinions.
More...

on bloomie just before da bell there's a round-up of the most recent nyse upgrades that u wouldn't find in any web site at da same time; also a round-up of nyse earnings releases during pre-mkt and previous day's AH: most of da time those are da most active of da day and those that attract more buyin'/sellin' interest. u have to be very quick because u have a 5min window to prepare and make your decisions: most of these stocks make substantial move in just 1-2min after da bell.
enjoy.
 
Quote from Bitstream:

on bloomie just before da bell there's a round-up of the most recent nyse upgrades that u wouldn't find in any web site at da same time; also a round-up of nyse earnings releases during pre-mkt and previous day's AH: most of da time those are da most active of da day and those that attract more buyin'/sellin' interest. u have to be very quick because u have a 5min window to prepare and make your decisions: most of these stocks make substantial move in just 1-2min after da bell.
enjoy.
More...


could you by any chance provide a link to this section of bloomberg i am looking through their site and for some reason I cant find the area with the upgrades/downgrades, I had no problem finding the earnings summary but i cant find the upgrades for some reason.
 
I keep a constant list of the IBD Big Cap 20 in front of me.

The IBD® Big Cap 20, which runs each Tuesday in the Making Money section, is a computer-generated ranking of leading large-capitalization companies trading in the U.S. Rankings are based on a combination of each company’s profit growth, IBD®’s Composite Rating (which includes measures such as return on equity, sales growth and profit margins) and Relative Price Strength within the past 12 months. Some of the same firms may also appear on The IBD® 100, which often features smaller and more volatile stocks. For investors who prefer less volatile investments with greater liquidity, the Big Cap 20 offers more mature, yet still vibrant enterprises. Companies must have a minimum market value of $15 billion and trade over 300,000 shares a day.
 
Quote from dwl603:

could you by any chance provide a link to this section of bloomberg i am looking through their site and for some reason I cant find the area with the upgrades/downgrades, I had no problem finding the earnings summary but i cant find the upgrades for some reason.
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it's blommie tv; on the site u won't find the latest: those on tv are notes sent to the reporter on da floor and some of them are sent before anyone else get hold of them and read 5min before da bell.
 
Quote from ess1096:

I keep a constant list of the IBD Big Cap 20 in front of me.

The IBD® Big Cap 20, which runs each Tuesday in the Making Money section, is a computer-generated ranking of leading large-capitalization companies trading in the U.S. Rankings are based on a combination of each company’s profit growth, IBD®’s Composite Rating (which includes measures such as return on equity, sales growth and profit margins) and Relative Price Strength within the past 12 months. Some of the same firms may also appear on The IBD® 100, which often features smaller and more volatile stocks. For investors who prefer less volatile investments with greater liquidity, the Big Cap 20 offers more mature, yet still vibrant enterprises. Companies must have a minimum market value of $15 billion and trade over 300,000 shares a day.
More...

I was a subscriber of IBD, but I didn't find it insightful in my trading style. sorry, but I have problem locating "making money section".
 
kwancy,

How far ahead of time do you need this information?

What is the daily % profit on capital that you use as a minimum?
I'd rather respond to you with a rifle than a shotgun.
 
Quote from Grob109:

kwancy,

How far ahead of time do you need this information?

What is the daily % profit on capital that you use as a minimum?
I'd rather respond to you with a rifle than a shotgun.
More...

I usually come into the trading floor at 9:00 EST, and spend that last 30 min. to have a final check on the upgrades/downgrades, earnings, news, futures fair-values, ECN activity as that specific time is the most updated before the market opens.

Before driving to the office, I spend roughly 45 min. to look at economics # ahead, some news and commentary in the morning to gather some trade idea on stocks meeting my volume/volatility criteria.

After the close, I will spend as much as time I can, can up to 3 hours to do whatever I can including find that posting on ET, analyzing my trades.

I will love to hear your opinions
 
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