http://www.marketgeeks.com/best-stocks-for-day-trading/ Download Your Free Trading Report Today. How to select the best stocks for day trading will teach you the selection process that I personally use to determine if a particular stock fits my criteria. Watch this video to learn how to select the best stocks for day trading.

1. Best Stocks For Day Trading Transcript
1. Title Slide
2. Hello Traders, this is Roger Scott from Market Geeks and today I’m going to
show you how to select the best stocks for day trading and swing trading. Before
I begin I want to remind you to subscribe to our channel and don’t forget to
download your free trading report at MarketGeeks.com
3. One question I get asked often when I'm presenting seminars is how to pick the
best stocks for day trading. This is a great question and one that can make a
huge difference in your bottom line. Picking the wrong stocks can be a major
contributing factor to why some trades don't work out and others do. Often times
the same set up can have entirely different results when trading two separate but
related stocks, even stocks that have a high degree of correlation can have a
different result on your bottom line if you don't choose the better performer out of
the two?
4. Each stock that I choose for my daily hit list as I like to call it goes through a
filtering process that I've been using for several years now. It's a simple process
that you can use and adjust to your criteria. Once you begin using this type of
method it will become second nature and you will find that whenever you look at
stocks you will automatically begin analyzing and thinking if it fits your criteria
subconsciously.
5. The first and the most obvious factor I look at is the price of the stock. If I'm going
long I usually stick with stocks that are priced over $20.00. If I'm selling stocks I
may look for lower priced stocks but I never go below $15.00. There has to be a
good reason for me to look at a stock that's priced in the low range, otherwise I
stick to stocks that are priced between $30.00 and $150.00 per share. I find that
higher priced stocks have more intraday price volatility than lower priced stocks.
You want to find stocks with strong volatility so always try to go for the higher
priced stock if you have to choose between two different stocks.
6. This is something beginners don't pay too much attention to because they don't
yet realize how much wide spreads can damage your bottom line. The daily
trading volume largely influences the spread between the bid and the offer so
make sure you trade stocks that have an average daily volume over 250,000.
Stocks that have low daily volume may exhibit strong volatility but the spreads
will be so wide that your profit potential between the time you enter the trade and
exit the trade will be wiped out due to the gap between the bid and the offer.
Before you make your final decision to enter a position always check the bid and
offer live and see how far apart the spread really is. This will give you a good
idea what your loss will be on the spread alone.
7. Another important factor that you should examine prior to entry is the daily
trading range. Some stocks have relatively small trading range that makes them

2. bad candidates for day trading. However, every stock at one point or another
regardless of their typical characteristics goes through a range expansion period.
This usually occurs when there are some fundamental news related to the
particular business industry or the company itself and has a significant effect on
the daily trading range of the stock. These range expansion periods are ideal
periods for day trading so make sure you know how to determine if significant
range expansion is taking place. I prefer to use the Average True Range
indicator to determine range expansion. I wrote several articles on using the ATR
to determine the daily range and you can find them at Marketgeeks.com. In a
nutshell the ATR measures the daily trading range and averages the total over a
specified period of time. You should make sure the ATR is significantly
increasing and producing a minimum daily range of $2.00; otherwise the stock
won't give you enough profit potential to make your risk to reward level high
enough to trade it in the first place.
8. One of the biggest driving factors for individual stocks is their sector. Statistically
sectors are responsible for roughly 70% of all movement of individual stocks. So
knowing what other stocks in your chosen stocks sector are doing can be very
important in determining if you want to add the stock to your daily hit list or not.
Take gold for example you can see by comparing these two separate stocks how
they move in the same direction the majority of the time. If you look at most
sectors such as oil, semiconductors, as well as dozens of others you will see
very strong correlation between individual stocks.
9. Notice how the two separate companies are moving almost identically to each
other. You will double your position by trading these two stocks at the same time.
10. When selecting the best stocks for day trading or swing trading make sure you
follow these basic guidelines. Always pick higher priced volatile stocks that are
going through a range expansion. Make sure you look at real time spreads
between the bid and offer to make sure the spreads are tight. Always look at
correlation and sector analysis before selecting your stocks for your daily hit list.
Next time I will give you some tips to improve your hit list even more.
11. Thanks for joining us for today’s tutorial. Don’t forget to subscribe to our video
channel and visit MarketGeeks.com for your free trading report. This is Roger
Scott wishing you the best in your trading.
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