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How to Find Stocks to Trade for FREE (Day Trading for Beginners 2022) - YouTube
Channel: Humbled Trader
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- How to find stocks who
day trade and swing trade.
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This is one of the most
commonly asked questions
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from new traders on my YouTube channel.
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So in this video,
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I'll be showing you the step
by step process for beginners
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to start scanning for
stocks to trade for free.
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Without any fancy premium
scanners or news platform.
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The goal of this video is to
teach you how to start planning
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and working independently
and build your own watch-list
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and find winning trades
without being a sheep,
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relying on scanners or chat room alerts.
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As always, if you enjoy step
by step videos like these,
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make sure to (mouse-click) drop a like
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and (mouse-click) subscribe
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and (bell dinging) ring
that notification bell
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if you want to learn more
from my channel in the future.
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Step number one would be
scanning for the stocks to trade.
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And my favorite free scanning
platform is Finviz.com.
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This is still the most
beginner friendly website,
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and again, it's completely free to use.
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So start with going to Finvis.com.
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And over here, you can see that
once you're on the homepage,
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you get a broad market view of everything
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that's happening in the market.
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Now the place we want to focus
on is the Finvis screener.
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So go back to the homepage
and from the home page
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and click screener on the
top over here, screener.
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And this is where you
can input all the filters
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and scan for stocks.
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That's only matching
the criteria you have,
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and I'm gonna show you
the criteria right now,
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and but first of all, let's close my ad
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Google ad on the top.
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Yes, I was shopping for
some shoes. (shushing)
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So over here, I always start
from the descriptive filters.
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I leave exchange blank because
I like to scan for both
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NASDAQ and the YC and the
AMAX. I don't discriminate.
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For market cap, I would
prefer to scan for stocks
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that's under 2 billion market cap.
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I like to separate the small cap scans
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and the large cap scans.
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For this example, let's go
ahead with a small cap scans.
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So I'm going to select small
under 2 billion market cap.
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So we got the market cap.
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Earnings days, you can leave that alone.
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Target price, I'd leave the alone as well.
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Index, dividend yield, everything.
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That's, I leave that alone.
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Now what I care more about,
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I don't even care about
the average volume.
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Now what's more important in
the current market condition
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is relative volume.
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If you are ever concerned about
any of the key terms here,
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if you hover over the
word you're looking at,
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let's say relative volume.
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You can see that relative
volume means the ratio
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between current volume and
the three month average,
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that's intraday adjusted.
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By using this key metric,
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you're gonna find stocks
that's increasing in volume
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steadily on the daily chart.
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And that's a very important in
the current market condition.
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And if you're a new trader,
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a very important concept
to start understanding
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early on is that you need
the volume to proceed
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the breakout successfully.
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If you don't have volume,
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the breakout on the stock is most likely
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going to pop and fail.
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So that's the reason we are searching
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for relative volume, ideally
over one or even two.
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So let's try over 1.5 for now.
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The next key metric that's
very important to put
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on your filter is current volume.
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So if you hover over the word,
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it will show you that current volume means
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the number of shares
that's being traded today.
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And for us, we definitely want something
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that's more than 1 million.
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For this demo, I'm going
to do over 5 million
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and see what we get.
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So there's other stuff like country,
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options and shorts and price.
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So I think for me, I'm
going to scan for stocks
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that's under $10,
especially when it comes to
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the small cap stocks.
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Again, we can always expand the range
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if we don't get enough results.
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Okay, so you can see that
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once we have all these four filters,
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we get two pages of results
and a list of tickers.
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So by default, you see the
ticker, the company, the sector,
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the industry, the PE ratio,
and the change on the day,
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et cetera, and the volume
on the very right side.
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But for us traders,
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we want to see the daily chart
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because that's where we're
gonna do the next step later on
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when we do technical analysis.
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But for now, let's go up to,
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you can see we are at overview
right now, but for us,
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we want to look at charts.
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So you can see once you click the chart,
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you actually see what these
daily charts for all the stocks
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showing up looks like.
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You can see we still have
two pages of examples.
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By default, they give us the technical one
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but I prefer the type to
be candlestick charts.
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So now this is where we can see the recent
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three month charts and what it looks like.
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Alright, so now that we
have a list of stocks
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that's matching our criteria
of being a small cap stock,
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relative voting over 1.5 and
current voting over 5 million
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and price under $10.
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We have a good list of stocks over here.
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You can see a one page
is probably at 20 stocks
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and the daily charts to look at.
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I know at this point you must be thinking,
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oh, can we just buy all these stocks?
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No, don't do that because
we need to go on to
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step number two, which
is technical analysis
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on the daily chart.
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For us short term day traders,
we want to look for stocks
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that's consolidating on
the daily charts and slowly
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about to setup for a breakout.
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What a true breakout will look like,
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will look like this
stock, GROM, over here.
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So if we click it and go
to the daily charts here,
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you can see that the stock came from $2
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all the way to about $4.
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And here is reaching some
resistance around $4,
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and it has tried breaking out to $6.
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So this will be one of the
stocks I would further analyze
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on my broker platform.
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Another good example here
would be the stock NXTP.
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If we look at the chart on the daily,
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you can see that this thing consolidated
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and held the support around
1.30 for a couple of weeks.
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Then once it broke about
1.50 and later on around $2,
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it's starting to break out from 2 to 2.30.
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So this will be another stock
that we can look at later on.
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Another one here from our scan is CEI.
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You can see this team
broke multiple resistance,
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it broke $1 resistance and
other resistance here at 1.80.
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And once it broke all these resistance,
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it went to the upside, from
1.50 all the way to almost $5.
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Now it has since then
came all the way back down
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so the breakout for this stock is over.
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But this is essentially
what you're looking for,
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the earlier parts before
this huge breakdown.
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All the other stocks that we
just talked about has a chart
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that looks very similar to the parts,
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preceding the breakout on CEI.
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And that's the reason we are
scanning for those stocks.
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So besides looking for
stocks that's breaking above
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some recent resistance of breakout charts,
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I also want to see increasing
volume on the daily chart
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because in order to have a
true breakout with a stock
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breaking above resistance to
the upside and hold above it,
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you need more people buying it.
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It's actually pretty simple,
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increasing volume precedes the breakout
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and consistent volume
sustains the breakout.
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So that's why volume is so important.
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That's why we didn't just
scam for high volume stocks,
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but high relative volume factors 1.5 to 2.
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So now that we've
selected the three stocks
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we want to focus on and further analyze
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it's time for step number three,
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which is preparing for watch
lists on our broker platforms.
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So now that we're on my broker platform,
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you can see I'm using
Thinkorswim as a demo.
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So the first stock we're
gonna look at is CEI.
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You can see this thing came
all the way from 50 cents,
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and once it broke above a
lot of resistance up here at
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all the wicks up here,
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you can see some resistance
at 1.70 and 2.40s,
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and also later $3.
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This thing just took off almost to $5.
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Now this will be a good time
to give you an introduction
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to support and resistance
because every time I asked
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for support from my ex-husband,
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all I was given was
resistance. (drum playing)
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(beeping) Okay real talk,
please be supportive
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of your loved ones,
endeavors or struggles,
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because otherwise you're
going to be that person
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messaging them many years down the road,
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asking for stock analysis.
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Okay, so a crash course
on support and resistance.
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Support other areas on the daily chart,
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where historically buyers
came in to buy the stock.
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So we can see for CEI,
the previous support
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down here, where you see
buyers come in and on 60 cents.
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And later on, over here around 1.20,
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and then all the way
here, some little support,
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you can see the stock held
that area for about 1.70s
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for an extended amount of time.
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So those are going to be
support for the stock.
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Now the other side will be resistance.
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Resistance levels are the
areas where people came in
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to sell the stock, so this will
be the opposite of support.
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So you can see that for the
same example, CEI that's a,
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I bought the stock at 1.70.
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In the past, when a stock rang up to 3.10,
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or all the way up here,
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around $4, that's where
everyone's sold the stock.
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So myself included, if I see
that there's resistance as $3,
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I would also probably sell.
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And you can see, it will
be the same thing here.
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People came in to buy the stock
around 50 cents and the ones
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that held these levels,
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you can see this line here
around a dollar, a dollar here,
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that's the prior support all the way
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from the daily over here,
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people came in to buy and a
stock when all the way to 1.70,
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the resistance we talked about
earlier and then pulled back,
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held us small, high or low support, 1.50
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didn't quite pull back to $1
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and broke out above that 1.70 resistance
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in a stock just took off
to the next resistance
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up around 2.40s,
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3.10s, and later on to almost 4, $5.
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Okay so looking at a CEI chart,
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you can see that the stock
already had its breakout.
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It went from 50 cents to
a $1.70 and all the way to
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almost $5, but now it's been selling off.
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And even though recently
we bounce from 90 cents
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to around 2.40s here, we sold off.
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We didn't hold the breakout. Right?
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You can see the stock
didn't hold above $2.
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So it's back under that 1.70 resistance,
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1.80 1.70s resistance over here.
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So for us, if we're looking
into a longer stock,
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there is really no long on
the stock until it broke above
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the resistance is sets
in, on this day, 246.
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So this is gonna be the key resistance
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I'm gonna right click and
make this line white here.
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So that's going to be the key resistance.
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So I'm going to set an alert,
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that's also part of the process
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of preparing for a watch-list.
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You don't just buy or
sell any random stock.
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You wait for the stock to
actually hit those levels
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and then you can look at the stock.
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So I want to know when CEI
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breaks above this 246 in the future,
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because remember what
we said about breakout
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in step number one, it's only if a stock
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can break out successfully
above a prior recent resistance,
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which in this case will be 2.46.
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Then this thing would have upside
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to potentially go to $3 or
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3.70 and $4
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and above.
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So until that happens,
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I'm going to leave CEI alone.
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So what we can do here
is go to a left side
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and put that on our watch list,
I'm going to put CEI here.
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So the next stock for
us to analyze the GROM.
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So first of all, I want
to go to a daily chart
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and make sure I'm looking
at yeah, max available.
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You can see this thing didn't have much
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volume on until recently.
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On the daily chart,
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the volume bar view can look at this.
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The previous trading volume is very low,
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only about 400,000 shares.
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And again, remember what we
talked about in step number one,
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we want to trade stocks that's trading
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at least 1 or 2 million
shares average on the daily.
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So it's only until recently on this day,
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this is traded over 50 million shares.
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So this is definitely worth our attention.
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So once a stock broke
out with high volume,
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you can see a trade above
all these recent resistance.
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So on a daily,
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you can see the previous
high over here is 4.90s.
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And after that, the stock sold off.
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So that's a reason,
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that's going to be the
most recent resistance.
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And over here, you can see buys
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started coming in around these areas.
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Why? Because you can see over here,
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it consolidated and held the
$3 areas for multiple days.
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This day, this day, and
all the following updates.
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And over here on the previous,
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I guess a couple months earlier,
it also held at $3 mark.
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So that's why we know
that's going to be a support
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for the stock.
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In resistance is going to
be this area about 4.90.
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If you round it up to the reason highs
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are going to be around $5 to 5.50s.
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So this area is going to
be the resistance for GROM.
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And you can see that. Yes, sure.
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It has the resistance on $5,
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which it's kind of
holding below right now,
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but you also have these
areas around 4.40s,
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4.50s has been bought up.
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So what I'm gonna to do here
is, I want to know when a stock
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breaks the most recent
resistance around 5.50.
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Now, it doesn't mean to just buy the stock
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when I hear the alert.
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It means that I want to look
at the chart on my platform
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and assess the chart and
the price action intraday.
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And whether there's consistent volume,
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remember if the volume is inconsistent,
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the breakout is going to pop and fail.
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So I'm going to set this white line here.
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That's gonna be the key
resistance for the stock
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to breakout above and hold above it
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to continue to go to potentially 6.70s.
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So that's going to be very interesting.
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So I'm gonna to set an alert right here.
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Right click, create alert.
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So I will know when a
stock hits 5.48 or 5.50.
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Now I'm gonna put that also
on the watch-list GROM.
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So this will be my process
for drawing out the support
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and resistance and setting
alerts on my broker platform.
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Again, just because you're setting alerts
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doesn't mean you just buy or
jump into the stock right away.
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The broker alerts are here
to signal you when a stock
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is breaking through that
resistance level you planned out.
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A really good example of what that means
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is on this stock. VYGR.
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This is the intraday chart.
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You can see it touch and
broke that 4.60 resistance
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around 11 o'clock.
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But if I just jump in and
buy the stock right away,
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I'll be dragged down to about 4.40.
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So that'll be a 20 cent loss.
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The idea is not to jump in right away,
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but rather to observe and look at a stock
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and how it's trading
on the charts intraday.
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So if I see a stock hitting 4.60,
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I wouldn't jump in.
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Instead, I'll start looking and seeing
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whether it's slowly trending up
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and whether there is a long setup.
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So we can see once it pulled
back from that resistance
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it's slowly trended up higher
and making higher lows.
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And once the second or
third time we retested
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that's when it finally
broke out to 4.90, almost $5
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and to new highs near the end of the day.
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It's true. Not every single
stock you find on Finvis
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and the ones you find on
your watch-list will run
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like you had planned,
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but the most stocks you find
that meet your A+ set up
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that has the right volume,
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the right breakout daily
charts and the right levels.
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The more prepared you will be
when you are alerted intraday,
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when day trading.
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Most of the work done in
trading happens outside
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of regular market hours.
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That's where I do the
most of my preparation
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charting and entering my trading journals.
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And during market hours,
I'm just observing
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and watching the stocks I
prepared on my watch-list
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and pressing buy or sell
buttons if I see them breakout
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and hold above the levels
that we talked about.
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Let me know if you enjoy this video
[1039]
and watching my process for scanning,
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for stocks to trade and
preparing for potential runners
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and the watch-list.
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If you want to learn more in
depth about my trade planning
[1049]
process for the small
caps and the large caps,
[1052]
make sure to check out my
website at humbledtrader.com.
[1056]
If this video helped you out,
[1057]
please remember
(mouse-click) to drop a like
[1060]
and (mouse-click) subscribe,
[1061]
(bell dinging) if you want to see more
[1062]
day trading content like these.
[1064]
Thank you guys for watching,
I'm the humbled trader
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and I'll see you guys next time.
[1069]
(instrumental music)
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