One of the first things I do each morning is review my watchlist from the following day…
I look over all the charts to see where they closed the day before, how they're looking in premarket, and what the volume is.
Day one spikers that failed and have no volume get kicked off the list.
Now I'm left with stocks that have run for multiple days, or they're hanging around and have the potential to be multi-day runners.
In a slow market, maybe none are good enough to roll over...
Either way, my next step is to look at all the new premarket big percent gainers for the day. For that, I use my StocksToTrade scans…
I filter by price, volume, and percent gain.
Your scans give you all the stocks that match your criteria, but now you have to hand pick the best ones...
There can be plenty of low float stocks with news spiking in premarket. But you need to prioritize your list to the ones that can offer the best potential trades...
For me, volume is number one.
So I keep the highest volume stocks with the biggest percent gains at the top of my list.
From there I look for hot sector stocks…
If there's a hot sector, those stocks move to the top of the list.
The last criteria I look for to find my best potential stocks to trade is multi-day runners.
Once a stock has spiked and held its gains, it's proven it can run. It's on more traders' radars, and shorts have likely jumped in trying to guess the top.
And that can give it better odds of squeezing shorts.
Discover how to create and organize your watchlist here.
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