To be successful in day trading, one must be able to spot up and down patterns quickly in stocks theyre watching But one question remains. What stocks should I be watching? Once youve mastered this one technique, youll be a mile ahead of other day traders not using this technique.
Top day traders have what they call a Watch List. This watch list is the list theyre constantly watching, looking for patterns that indicate it would be a good time to buy. The majority of a successful day traders trades come from watching stocks on their watch list.
What are the criteria for choosing a good stock for your watch list?
One important criterion is liquidity. A stock that trades at least 1.5 million shares a day is a good rule of thumb. Even if the stock matches all the other criteria, it does no good if you cant quickly buy or sell your stock.This is not too difficult to look for as most good day trading stocks trade in many millions a day. Upto 30 million in one day for the huge liquid stocks. Keep out of thinly traded stocks. The Market Makers can manipulate their price movement too easily.
Next look at the volatility of stocks. A good stock for your watch...
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