Recently I was asked how I find stocks.
It’s basically a combination of scans & input from colleagues.
I’ve been hanging out in a free chatroom on IRC for the past decade.
Small place, centered on technical analysis. $ISR came from there.
I check their charts and nearly always a couple of them will jump out at me.
Then after the market closes, I run through about a half dozen scans:
1.) New Highs – Be familiar with these names; sometimes when you see a new one, pounce
Can also be used as a sentiment gauge, over 180 hits is a boiling hot market
2.) Momo – Seek out uptrending stocks making another move on above average volume, join in the fray
$ACCL and $CSIQ get top honors for Monday potential
3.) Unusual Volume – These are more obscure, sometimes thin stocks, again solid volume
$RLH recently revealed itself & looks about as juicy as it gets
4.) Strong Volume Gainers – similar to the above, except this one includes OTC stocks
$ZERO deserves an eye here
5.) Anti Momo – look for downtrenders which are falling again on heavy volume, sell short
$GMCR for instance, is in the trash heap
When an individual name shows up amidst both my peers and my scans, the setup is perceived as having increased legitimacy.
For more detail on how I create actionable watchlists, visit this post.