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