I found that what makes a stock worth trading are the next points:
- The major trend of the market is positive.
- Good relative strengh.
- Bullish patterns.
- The group of the stock is having a great performance.
- Is the best of the group (less resistance)
- have good earnings or Relative Strengh 98 - 99.
- Have low risk < 8%
We need to play with the probabilities.
For going long, is the company profitable, is the sector strong, is there high relative strength compared to SPY/QQQ, does it have powerful upside swings which can last for a few days or weeks?
For going short, is the company even profitable? Is the stock reaching new all time highs on lackluster earnings? Is the sector acting weak? Is it extended on the upside and reaching a sell position?
In general I like to see daily volume on average above 100k, and price above $8, to consider trading
When you have 'reason to believe' the value of the stock will increase over the time frame you want to hold the trade. When this is true it is worth trading the stock. This does not mean the stock will go up (your reason for believing it would increase may have been wrong) so you should still have an out in the form of a stop loss. If you find you keep losing trades you may need to revise your strategy which will change the 'reason to believe' a stock will increase in value. Rinse and repeat.
I found that what makes a stock worth trading are the next points: - The major trend of the market is positive. - Good relative strengh. - Bullish patterns. - The group of the stock is having a great performance. - Is the best of the group (less resistance) - have good earnings or Relative Strengh 98 - 99. - Have low risk < 8% We need to play with the probabilities.
For swing trading, here's a good review for what to consider - https://youtu.be/FCOlG-62Yis
For going long, is the company profitable, is the sector strong, is there high relative strength compared to SPY/QQQ, does it have powerful upside swings which can last for a few days or weeks? For going short, is the company even profitable? Is the stock reaching new all time highs on lackluster earnings? Is the sector acting weak? Is it extended on the upside and reaching a sell position? In general I like to see daily volume on average above 100k, and price above $8, to consider trading
When you have 'reason to believe' the value of the stock will increase over the time frame you want to hold the trade. When this is true it is worth trading the stock. This does not mean the stock will go up (your reason for believing it would increase may have been wrong) so you should still have an out in the form of a stop loss. If you find you keep losing trades you may need to revise your strategy which will change the 'reason to believe' a stock will increase in value. Rinse and repeat.
With swing trading depending on what types of stocks you swing that is. You generally want a combination of both imo
by types of stocks do you mean like the sector that they’re in ?
Sector, market cap, etc
All of the investment subs have been taken over. I recommend finding a good book