How To Choose Stocks For Swing Trading


welcome to this video on how to choose
stocks for swing trading this is Barry Burns from Top Dog Trading I’m going to
share with you three primary ways to choose stocks or pick stocks for swing
trading – swing trading being defined as basically short term trading but not day
trading so we were definitely holding overnight often 2-3 days sometimes we’ve
been a week or more but not getting into long term investing so here are the
three different approaches that most commonly are use for choosing stocks for
swing trading number one is just choosing a few stocks that you really
like and this is very popular with some people where they stay in a wet I’m
going to just really learn maybe three to five different stocks and those the
only ones going to trade and one of the things you’ll often hear them say is I’m
going to get to learn the personalities and that way I’ll get used to them and
how they move and I’ll be able to trade them well because with a lot of
repetition of creating those particular stocks I’ll understand their
personalities in air quotes but I can’t say that it isn’t a possibility to do
because I’ve seen it done but my problem with it primarily is that a lot of
markets a lot of stocks especially equities they move in cycles backed all
markets moved in some types of cycles so for example they’ll trend and then
they’ll go into a non trending cycle which is going to consolidation be
directionless for a while we’re going to go through a high volatility period and
then a low volatility period so if you’re just trading stocks that are part
of major index such as the Dow or the S&P 500 of an ass that quite often
they’re going to be moving in a similar way so therefore I find that I just
don’t get as many opportunities that way so that’s not something that I
personally do the number two is one that I do engage in and that is having a
basket of non-correlated markets a list of non-correlated markets so and by the
way I’ll be happy to send you my list if you want just send me an email
Berry at top treating comm and request the I my watch list will call it the
watch less that’s what I call out actually in my trading platform and the
key to this is that the markets are non correlated so you can have leave and
bring up long list here so here’s I have a list that I will send you and I’ll
send it to you in text format if you’re interested and for free no opt-in or
anything just request it and I’ll include it in the text format so you can
cut and paste because the symbols may be different than on your charting platform
and I also include what that symbol means so if you have trouble finding the
exact symbol then you can at least know what it means and find out from your
data provider what that symbol is so you see we got cash indexes these are our
basic indexes here okay they’ll get some of our leveraged ones and then I go down
to current fees so this is not well those are futures there but today’s
we’re talking about stocks you can trade currencies that are exchange-traded
funds and so here they are alright and then we got our heavily traded ones are
more lately traded ones and then we go down to countries and these are again
basically well mostly their I shares and so we can
trade well what’s going on in different countries like Australia Canada Sweden
Germany Hong Kong the UK when market might be taking off another one in
another country depending on its economy and its stock market might not be doing
very well and then other markets to watch these are primarily different
sectors and industries so you’ll see here we’ve got biotech and agriculture
base metals and we’ve got well got China mixed in there gold always throwing
Google health care internet broker-dealers etc and that’s what this
is to find different sectors and industries so the bottom line with this
approach the logic of this approach is yeah now you get a lot more markets
you’re watching but and some are correlated but a lot of them are not so
you’re going to get more opportunities for creating because well one market
might be any nam trending cycle then there’s another one that is trending
like Reesie or when that’s very low
volatility and just not really moving and another one is moving and just you
know going like gangbusters and blown the doors off the market and so that’s
the idea here is as has often been quoted where it says there’s always a
bull market somewhere in a bear market somewhere or I think Jim Cramer even
says there’s a raging bull market somewhere and there’s always a raging
bear market somewhere I think he’s the one who said it don’t hold me to that
but this is what you do so you look through these various non-correlated
markets so this is something I always do I always have this much list up and when
I’m swing trading I personally I do day trading so I don’t really do any swing
trading during the day I just look at the end of the day after my day trading
is done I’ll take a break then I’ll usually get some lunch and maybe you
could work out then I come back and I look at daily charts and I’ll compare
these various markets so it’s a little bit manual that’s the downside of this
is that yeah you got a lot of course you don’t have to look at all these markets
you can shorten this list but let me show you one a little trick here that’s
kind of cool to help you with that manual process to
speed that up for you so what I do is I put the various markets that I’m looking
at into will a ninja trader is called a market analyzer here but the more
traditional term for it is a code sheet and let me pull this down for you here a
little bit ago so you can see it but yeah that’s just the ninja trader term
for it’s the market analyzer but anyway it’s kind of a quote a quote window and
various trading platforms have various functionalities for these so but one
cool thing is hmm I’m going to squeeze this over so it’s going to look really
weird downscaling all scrunched up so let’s say that I want to go through this
list and I want to see the charts for them so a lot of training platforms have
this by the way not just ninja trader where you can link the windows together
and so you’ll click on here and see all these different colors so I’ve got them
red I’ve kind of both red so that means if I go over here and
let’s say I want to look at Disney now right now so you got to get that down to
there right now it’s eBay over here right so I said I don’t wanna look at
eBay when I look at Disney I just click on that and it brings up Disney and
that’s because I have the two windows linked together with the same color so I
can actually go right down the list and just check in one by one and it pulls
them up one by one as you can see that’s actually Apple and and then just click
click click click all the way down through them and that helps me save a
lot of time rather than manually typing in each symbol and another thing I’ll
point out here too is again some training platforms have this and some
don’t but on ninjatrader they’ve got a nice thing with market analyzer here
where you can create these columns and you can actually put indicators in there
so that I don’t have to go through the whole list now and again that’s a
time-saver so I can say okay trend well I’ve got the way a major trend and
witness try this trend up or down I’m looking for uptrend and what wave are we
M so here we’re in you know which shows me which wave and I’ve got all these
other parameters in there for that I use specifically from my trading methodology
so then I can just look at certain things since in other words and I don’t
have to look at every single one I know I’ve got my cycles in there let me pull
this back for you so for me cycles is a big big issue because cycle tells you
when to get in when to get out and the optimal time so you don’t get stopped
out so this is very important so now see my cycle indicators hooking up at 44 64
and so that’s okay as long as it’s below 50 then I’m golden and now the cycle
indicator here it’s but I’m looking for hookups so again that’s more than I can
explain on this video it’s not early on topic but if you like my cycle indicator
I do have a webinar where I give that away for free and it not this down the
cycle indicator not only works on ninjatrader it actually will work on
ending charting platform I’ve ever seen so anyway you don’t want to believe at
that point yes I mean email at Barry at top trading com
and we’ll be happy to send you an invitation to that free webinar it takes
about an hour we give you all the details of the indicator help you set it
up on your chart and then show you how to trade it effectively so you get the
whole tutorial and it’s all for free okay so last one wait this video is
lasting a long time but that’s okay I wanted to share a lot of this good stuff
with you so the third option is to scam so we’ve kind of gone into half of
scanning here with this right so this is a little bit of scanning but it’s not
really technically scanning it’s kind of a hybrid between having our basket of
stocks or watchlist and putting certain indicators in there
but then you can get even more specific with scanning so let’s talk about that
real quick now with the third type of them choosing stocks for swing trading
we’re going to use a scanner or sometimes it is called a screener and it
was cool about this is you can put in very very specific parameters now this
is just a general one here by the way this is thicker swim so all this is and
this is just like a say simple I’m not showing a complex one here but the basic
thing I’m looking for is right here and let me movie and I will kick away with
this color so we’re just looking this is a primary theme looking for where only
stocks where the price is above the upper band of the Bollinger Band so it
says that the upper band is less than the clothes so that means that the
market closed above the upper band of the Bollinger Bands so chewing a lot of
strength to the upside so that’s the primary thing now I also included a few
other parameters here and in different time frames as well that’s the cool
thing about this is that you can put this on different time frames and not
just on one time frame so this is a pretty good one I gather the scan that I
like better at the point is when you’re using screening or scanning
and that you can really narrow down so let’s say for example that you have
certain trade setups that have a list of rules you can enter all those rules into
your screener or your scanner and only bring up stocks that meet those rules so
while I’m just bring up another one here and the nice thing about this is it’s
pretty fast so what do we do there okay so here is a top dog oh this one’s good
so let’s say and this is where my momentum is now I gotta click the Scan
button here and as you can see I’ve got more parameters in this time and so this
one is where the market is has a bearish momentum on the three different time
frames all at the same time so that is what’s valuable about this is that we’re
using multiple time frames in that the and so we’ve got one two three four or
five about ten of them that showed up so it scans for you like ten thousand
Marquette’s or you can start with whatever you know you can say well you
don’t want to have all stocks maybe you want to do what I have all that’s
optional ball because I like to create the options and it goes through all ten
thousand and it just gives you a little list then you pop these up and we can
look at them on the charts as well so the first thing I would do if you want
to do this it’s probably the shortcut at the fast way to find good setups based
on whatever trading method you’re using whatever rules for your trade setups and
I first go to your trading platform a software provider whether it’s tickers
where more tradestation has this function available to and some others so
some do and some don’t but go there first and ask them do you have a
scanning platform that I can do this on and if they do great probably best to go
with that if not there’s a few others fin vis I’ve heard is pretty good I’ve
never used it stockcharts.com again it’s a good platform but I’ve
never used up for scanning and the one that I would use
and then I often do use is called stock fetcher comm and that’s totally separate
so even if you don’t have it on your trading platform it’s like
I think $8 a month or something the last time I looked and again what I like
about that is I don’t look at perimeters on multiple time frames concurrently and
also it calculates everything really really fast and you can put in all kinds
of parameters it’s so flexible so and by the way I have no financial interest in
any of these so just look them up google them and go there it’s not an affiliate
link or anything that I’m giving you here
so anyway okay so that’s it a little longer video today but those are the
three primary ways that I have found that I’ve heard of the people using for
choosing stocks for swing trading so if you got value from the video please
understand of course it’s absolutely free it’s my gift to you but if you did
get value from it then I invite you to pay it forward why because it’s good
karma hey share good things with your friends right go ahead and click the
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leave a comment I love your comments more than anything actually that really
encouraged me just on personal level to create more free tutorials for you I do
one of these every week and also I’ve got a gift for you today and it is one
my favorite trade strategies this is an actual trade strategy with entries of
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you’re not watching it on YouTube then there’s probably a link below or an
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