Knowing How to Find Stocks To Buy Right Now is one of the most important skills in stock trading.
If you are a day trader or swing trader you are almost certainly focused on finding stocks that are breaking out right now… and… by the way…
Learning how to find stocks to buy right now is actually pretty easy. It takes practice and patience, (don’t get me wrong). But there aren’t any deep and dark secrets to finding the best stocks to buy right now.
So Keep reading this blog post to understand how you can find high profit potential stocks on a consistent basis.
How To Find Stocks To Buy Right Now:
Knowing how to find stocks to buy right now means knowing how to find stocks that are moving. That’s because if a stock is standing still, you cannot make any money trading it. So a good place to start is always to find stocks that are advancing. But wait…
When you’re looking for stocks to buy right now, you want to be careful. You don’t want to buy stocks that have already moved too far. And that’s because if you show up to the game too late, you’re going to be left holding the bag. That last thing you want to do is buy a stock just when it has run out of gas.
So goldilocks, how do you find the stocks that are “just right” to buy now? It’s a good question. And hopefully this video below can show you one of my favourite tricks for finding stocks to buy right now…
How to Use Finviz To Find Stocks To Buy Right Now [VIDEO]:
Technical Analysis For Finding Stocks To Buy Right Now:
Technical analysis is a key factor in figuring out how to find stocks to buy right now. The whole point of technical analysis is to study price patterns to try and forecast where a potential stock might breakout (or down). If you can get good at using technical analysis to find stocks to buy right now you can have a chance of making money in the market every single day. But let me warn you…
While it sounds simple in theory, using technical analysis to figure out which stocks to buy right now takes a lot of practice. You need to spend your evenings finding promising potential profit opportunities (mostly by looking at charts). Then you need to go in the next day, watch what happens, and jump in if you get your “trigger.” Finally, you’ll need practice cutting your losers and letting your winners run. Nothing is guaranteed in technical analysis – it can help you figure out how to find out which stocks to buy right now, but profiting from it will come over time as a you learn, ex.
So how do you get good at technical analysis when you’re looking to buy stocks?
The key goal for me when I’m using technical analysis is: “Come up with a trading plan, execute the trading plan, and then sit tight while it unfolds.” This requires patience, patience and more patience. To further put a spin on it for you: Each moment in the stock market is unique, so even the ideal chart pattern or “buy now indicator” might only be right a small % of the time.
And once you do figure out your simple stock trading system you will need emotional fortitude to stick to it and see your plans through. The hardest part of trading is often controlling your own emotions – this is especially true in the day-trading-world of technical analysis.
But truthfully, (just between you and me) I find technical analysis to be a bit of a one-dimensional approach to stock trading. So when you’re considering how to find stocks to buy right now, fundamentals should be a factor too (especially if you’re a longer term investor).
Fundamental Factors Influencing Stocks To Buy Right Now:
When you’re learning how to find stocks to buy right now, fundamental analysis should not be forgotten. While you will find fundamentals often take longer to exert themselves, they are powerful and can overcome the “technical factors” — like a hot knife through butter.
So here are the two main things I keep in mind when considering fundamental analysis as a way to find stocks to buy right now:
I like to find stocks that are well-valued and that have a shareholder friendly management. In the most basic terms, well-valued usually means the stock is trading below book value and at a low P/E ratio. It also means management has performed over the last few quarters, they are making money and they are feeling optimistic in their outlook going forward.
The reason all these fundamental factors are important to me is because they can help sustain your profits when you find a stock that’s ready to buy now. Call me old-fashioned, but I hate the idea of buying technical breakouts when the stock in question is an unprofitable company trading at a crazy valuation. There is no long-term opportunity there. When you buy stocks that are cheaply valued you can have some conviction in your decision and you might even find yourself not just playing a nice breakout, but at the start of a whole new uptrend.
Second and most importantly, fundamentals can really serve as a catalyst anytime a company announces an earnings report. Earnings often shoot a stock up or down, so they can be a great place to find stocks to buy right now. If you have a stock that you like and you are watching the price action, a positive earnings announcement can be just the catalyst you need to see your stock shoot higher. And the great thing about earnings events is that you can prepare for them with some predictability (even if it’s planning for what you will do after the announcement)
So in summary, fundamental analysis takes longer to materialize but it can really provide fuel to the fire and keep your stock moving higher for a sustained period of time. Plus you can buy or sell in anticipation and reaction to earnings announcements to try and play for some extra volatility. Does that make sense?
Wait, it gets better. Let me tie it all together for you…
The Hybrid Approach To Finding Stocks To Buy Right Now:
You might have seen this coming: But my favourite way to find stocks to buy right now is using a hybrid technical and fundamental approach. Basically, I look for fundamentally solid situations (like companies that are trading at low P/E ratios and have improving operating cash-flow) and then wait for the technical situate to shape up. Why do I do this?
My approach to finding stocks to buy right now might be a little slower, but it gives me the full pictures. And this holistic understanding is important for me if I want to have conviction in the trade. It helps me understand both the “growth story” of the company, and gives me context for any technical breakouts. If I think management is doing a good job growing the company and they are re-investing earnings effectively, then I am likely to hold more of the stock when it has a technical breakout. Pretty cool, right?
So there you have it! Those are most of my tricks for how to find stocks to buy right now. You’ll always want to do lots of your own research whenever you’re finding a stock to buy. But hey, let me ask you…
How Do You Find Stocks To Buy Right Now?
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