Stock picking for day trading?

[Dominover]

I have to admit, I struggle with stock picking for day trading.
I just feel that there must be a systematic approach to this. Looking for something for the Australian stock market.
I'm just adking if there's a book or a course for this area I can pursue?
Thanks

 

[ducati916]

I have to admit, I struggle with stock picking for day trading.
I just feel that there must be a systematic approach to this. Looking for something for the Australian stock market.
I'm just adking if there's a book or a course for this area I can pursue?
Thanks

Picking stocks for day trading is really predicated on your strategy. Strategies are (largely) predicated on the time of day. There are 'open' strategies, 1'st hour strategies, lunch time strategies and close strategies. Generally, they all require volatility. Lunch time is (usually) the lowest vol. time of day.

Is there a systematic approach? Of course. In the past, not sure about current situation, you could get an education at a good Prop. shop. They would run any number of strats through the day. Traders, tended to trade what they were good at and finish when that strats time frame ended.

Books: Tony Oz did a couple of good ones. 'The Stock Trader' and 'How to take money from Wall St.'. Both are still on AMZN. I think Guppy did one also, 'Snapshot Trading'.

Courses: I'm sure there will be one on YouTube, this chap makes me nervous just watching him. Do pretty much the opposite and you'll bank a small fortune.

jog on
duc

 

[over9k]

If you don't know what you're doing, don't day trade. Accumulate index etf's while you learn.

 

[tech/a]

I have to admit, I struggle with stock picking for day trading.
I just feel that there must be a systematic approach to this. Looking for something for the Australian stock market.
I'm just adking if there's a book or a course for this area I can pursue?
Thanks

Yes there is.

It is a process.

Harder if trading stock.
A lot easier if trading futures
you can trade e-minis while your on your “ L” s

I trade Index futures from 10 mins to a few hrs.

You need a charting package with lower timeframes
IB interactive brokers are the best to trade with AND have the charting you need!
Youll need around $15000 to open an account.

There is some discussion about a new thread on Basic charting which could cover day trading charting techniques
search everything hear by Trembling Hand he was a master.
Some great info
Trader girl demonstrated a day trading SPI method.

There are other methods other than charting Trembling Hand had good information

 

[Dominover]

Trading I'm fine with. It's picking the movers I struggle with.

 

[tech/a]

So you trade stock?

When looking for movers
How do you identify one—-currently

Do you identify them on the day or the day before?

Have you had successes? in say a month how many?
Youve had losses In. Month How many?

When you win how much relative investment do you win?
When you lose how much relative to investment do you lose?

Just getting a gauge of your “trading”


Can you give examples?

 

[frugal.rock]

Trading I'm fine with. It's picking the movers I struggle with.

I'm not particularly fussy about the individual stock for a day trade.
For a day trade i'm happy with a minimum profit of $300 to $400 as a bread n butter trade, so based off that, it's then about how much I am willing to risk to earn that amount.

I consider stocks suitable for day trading to be ones that have reasonably consistent daily ranges, volumes and market reactivity from sector movements etc
Market darlings in an upwards trend I generally find the easiest to predict.
Sure, you can make good money from the quick "movers" such as Tech is good at, but it's just as easy to lose good money as well, when things go wrong.

Separately, as a general rule, I won't day trade stocks I'm not willing to hold on to on a medium to long term basis.

Would love to hear your experiences of "riding the tiger" or "grabbing the tiger by the tail" stories though...

Good luck and @tech/a is your man for "tiger riding".

 

[Dominover]

Picking stocks for day trading is really predicated on your strategy. Strategies are (largely) predicated on the time of day. There are 'open' strategies, 1'st hour strategies, lunch time strategies and close strategies. Generally, they all require volatility. Lunch time is (usually) the lowest vol. time of day.

Is there a systematic approach? Of course. In the past, not sure about current situation, you could get an education at a good Prop. shop. They would run any number of strats through the day. Traders, tended to trade what they were good at and finish when that strats time frame ended.

Books: Tony Oz did a couple of good ones. 'The Stock Trader' and 'How to take money from Wall St.'. Both are still on AMZN. I think Guppy did one also, 'Snapshot Trading'.

Courses: I'm sure there will be one on YouTube, this chap makes me nervous just watching him. Do pretty much the opposite and you'll bank a small fortune.

jog on
duc

Thanks for your reply. The books you mentioned, do they go into stock selection for day trading?

 

[Dominover]

Yes there is.

It is a process.

Harder if trading stock.
A lot easier if trading futures
you can trade e-minis while your on your “ L” s

I trade Index futures from 10 mins to a few hrs.

You need a charting package with lower timeframes
IB interactive brokers are the best to trade with AND have the charting you need!
Youll need around $15000 to open an account.

There is some discussion about a new thread on Basic charting which could cover day trading charting techniques
search everything hear by Trembling Hand he was a master.
Some great info
Trader girl demonstrated a day trading SPI method.

There are other methods other than charting Trembling Hand had good information

Thanks for the suggestions

 

[Dominover]

I'm not particularly fussy about the individual stock for a day trade.
For a day trade i'm happy with a minimum profit of $300 to $400 as a bread n butter trade, so based off that, it's then about how much I am willing to risk to earn that amount.

I consider stocks suitable for day trading to be ones that have reasonably consistent daily ranges, volumes and market reactivity from sector movements etc
Market darlings in an upwards trend I generally find the easiest to predict.
Sure, you can make good money from the quick "movers" such as Tech is good at, but it's just as easy to lose good money as well, when things go wrong.

Separately, as a general rule, I won't day trade stocks I'm not willing to hold on to on a medium to long term basis.

Would love to hear your experiences of "riding the tiger" or "grabbing the tiger by the tail" stories though...

Good luck and @tech/a is your man for "tiger riding".

Thanks for that. Some good points.
I won't bore you with details about my trading. It's not full time....yet
I often find myself taking a step back and working on areas such as this. At this point I'm just focussing on stock selection.

I've often referred to the daily market movers to pick my stocks. Depending on how that Industry average is doing I'll look into it further.

However, using ATR and RVOL for stock selection and checking the stocks position relative to vwap on lower timeframes helps.

Levels, wick rejections, etc all play a role. I'll always buy in a trending environment unless I'm buying breakouts from a point if consolidation. I'm quiet careful so if a trade doesn't retest an upper level if consolidation I often talk myself out of buying.

Price action is a big part of my aporoach, however I also use volume profile (because I don't have access to market profile) to determine value areas where a trade seems to revert back to or moves between different value areas.

I'm happy with my risk management as well. I'll always look for a gain significantly better than my potential loss. 1:3 if I can get it. The potential loss also governs my trade size. This is where my levels come into it and the depth of wick rejections off lower levels below my buy price. That's unless the price is towering above previous levels and that's when I take a momentum approach and use my moving averages to gauge trend strength and weaknesses in the trend.

I'm happy with all this. I'm just not at it enough yet despite stopping and starting allot due to external factors out of my control.

What I would like to really perfect is my stock selection. I figured there must be at least one good book out there outlining a thorough approach for scanning for movers the morning before. Hopefully something which combines technical and fundamental factors.

Do any such books or online training courses exist? Would love to hear about them if so.
I'm in Australia.

 

[tech/a]

This is my opinion and from what I’ve read my feeling is you’ll try everything else before you come back to this.

(1) You should be trading Futures while on “ P “ plates —— E Minis
(2) You need lower timeframe charting capability 1 min up
(3) You need to become proficient ar Chart reading Price
specifically individual Bars ,Volume and Pattern.
(4) You need to be decisive Jet Black and Polar White.
(5) You need to trade both LONG and SHORT

Whats this got to do with getting onto a great move

EVERYTHING

Then experience I’d say 10-20000 charts and 10- 20 years.
There are very few day traders on the planet trading for a living
using their own funds.

Goodluck