Where I Find Stocks To Trade

In trading, correctly picking your entry and exit points is only half the battle. More importantly, you gotta be sure you’re playing the right stocks! To find the right stocks, I use just a few different websites.

Below is a list of websites I check every night to find what’s in play—and by in play I mean stocks that moving 30-300%/day and have plenty of trading volume so that I can get in and out easily. The time it takes to research varies (anywhere from 2 minutes to 2 hours) dependingon market conditions (during boring markets, there’s not much volatility, during bear markets, there aren’t many bullish plays, during bear market spikes (hopefully we get one in the next 2 weeks, there are tons of plays because I look to short into the brief spurts of strength, etc).

I’m sure there’s a way to model everything and/or use pure screening software, but that’s not my game—I just stick with what I know. Once you start practicing the PennyStocking process, you’ll see that anybody can do this—no assembly required.

Yahoo! Finance —this is the grand daddy of financial websites and you should plunder it for information. On the left hand side, I scroll down and click Price % Gainers and I look at each day’s biggest winners. I’m looking to see which big movers will continue to run and which ones will break down. This simple list is where I get 90% of the stocks I trade. Price % Losers doesn’t interest me because I’ve found that big losers are much more unpredictable.

StockCharts.com — I use all the various stock scans to see all the various chart patterns – 52-week highs, $ gainers, gap ups, whatever. 99% of these charts are too messy / unpredictable so I ignore them. I’m looking for very clean-looking charts. I’m working on a charts page for this site so you can see examples of what I’m talking about—it should be up within a few days.

Clearstation —I use the tag and bag to see all the various charts—best trends this week, stocks in new uptrends, etc. Again, just looking for interesting charts with enough trading volume (at least 500,000 in daily trading volume).

And, even though the financial media doesn’t give them any respect—internet message boards are great places to do research. Particularly hype research. TheLion.com (more specifically one message board–Wall Street Pit) and InvestorsHub (more specifically one message board Zeev’s Turnip Patch) are the two best places—Yahoo has message boards, but they’re not great for finding stocks, they’re mostly just spam and amateurs looking to brag about their winners and comfort themselves over their losers.

After I find the stocks in play, I write down all the tickers that interest me and then do full investigations on them—fundamental, technical, and the message boards. Yes, the chart/price action is what interests me initially, but then I want a story to back it up and people who believe that story to back it up even more. In smallcaps and microcaps, it’s all one big self-fulfilling prophecy (many people can’t understand this) so as long as the hype is believable, the price action is predictable.

Certain types of news influence stocks in different ways (buyouts usually lead to little volatility aka I ignore them, FDA news leads to big gains, but I don’t understand the science nor can I predict how successful any drug will be (despite all the BSers out there, nobody does) so I usually leave those alone unless they’re big winners for several days in a row—then I might look to short, newsletter/analyst mentions lead to wild swings—the hype only lasts for so long—so those are my favorite kinds of plays to short, earnings can really power a stock—I hardly ever short these, instead I look to buy these plays if and when their trading volume proves to me that their outstanding earnings have forced people to view the company more positively, etc.

Everybody seems to like to play the same stocks, GOOG, CROX, BIDU (or maybe they just like to write about them), but if you’re willing to look beyond the most actively traded issues, you might be surprised as to how much easier it is to trade stocks that everyone and their mother aren’t playing.

Posted in 101basics, Basics, DVD, Popular Posts, Q&A

Become a Millionaire

I Turned $12,415 into

$3,980,000

Trading Penny Stocks. Now it's your turn.

Apply To Work With Me
  • vijai – moneyreallymatters.com

    That really give lot of places to look and lot more patience to scan and find stocks. If thats the only job then its good but not for a full time worker..

    Thanks for sharing this info.. It helps to pick and find our own stocks.. You are good timmy..

  • http://www.timothysykes.com TIM Sykes

    its not tough, just scan through all the patterns, and if nothing fluffy is up 50-200% in a few days dont worry about trading

  • noobtrader.08

    Are thses good sites to visit if you trade in Canada? If not, can you (or anyone else) recommend other sites I can research?

  • noobtrader.08

    When looking at the list of potential plays on Yahoo! Finance –> “Price%Gainers”, what exactly are you looking at/for?

  • noobtrader.08

    Is there a link to your “chart page” examples?

    Please and thank you.

  • noobtrader.08

    I love threads like this… a complete trading idiot (ME) can actually grasp this stuff… I’m coming from the grassroots level… so excuse my ignorance as I learn this game (and have fun in the process).

  • http://www.timothysykes.com timothysykes

    these are the kinds of charts i play:

    http://www.timothysykes.com/charts/

    greta big ups, great big downs–as u’ve read in my book, it’s when i get away from these simple patterns i lose $ trading. what works best is to find a big winner, wait for some sideways price action and bet on a 10-30% fall. thats it. nothing more.

  • noobtrader.08

    Thanks for the reply Tim.

  • jj

    your model pic is hot! you should make her into a talking TIMpic!

  • cash

    Tim other then etrade pro that you said you pay 100 a month for do you pay for any other market services or do you use all free services.

  • http://www.timothysykes.com timothysykes

    nope, everything is free, u dont need any of that expensive crap

  • cash

    Thanks for the quick response. Is the 100/mnth for etrade pro worth it or would you suggest something else for a person starting out? Dude you are the man and once I make a million your way I owe you a round of golf. You teach me how to trade and I can teach you how to play, cause from what we saw in wsw was some steller play by you.

  • Pingback: TIMalerts: 10 Of Your Questions Answered Here! | TIM - Timothy Sykes

  • Pingback: The Answer To The Most FAQ I Get: Where Do I Find Stocks To Trade? | TIM - Timothy Sykes

  • Reaper

    Scon may be in play .. $0.01 above yesterday’s close. But not an ideal play. IB has plenty of shares.

  • bestdeception

    Any chance USS will pop back to around $3 by EOD today?

  • Reaper

    has anyone tried reserving shares of USS to short? I’d short on a bounce to $3.

  • kelvin

    http://www.macupdate.com/ look for the apps you want for mac

  • http://www.timothysykes.com timothysykes

    no u dont short USS on a bounce, it could go right back up to $4…nor do u buy it here, there’s no edge either way

  • YoungGunz

    I was tempted to get a short in at the open and ride the panic…wasn’t set up yet. What you expecting USS to be doing the rest of the day. I really don’t see much more downside and no reason for upside. I still have 200 shares reserved.

  • YoungGunz

    I pretty much wrote off USS as being all syked out for the day.

    MITI i have shares reserved and its seeing a little movement.

  • Getshorty

    I have 1000 shares reserved, was waiting for a spike to short, next time I know is under $ 2.50.

    Take a deep breath and don’t force a trade
    TAKE A DEEP BREATH AND DON’T FORCE A TRADE !!!!

  • yaktipper

    When would you act on SCON? It is right at yesterday’s close now.

  • bestdeception

    Went short on BBSI at 16.10 thanks to lmsmith. Down to 15.67 now. Can’t get any shares of SCON or any of the others on the list now.

  • sur1102

    Tim, I have a MAC Book Pro but most apps are for Windows. You can use boot camp or Vmware and install Windows XP or Vista. I prefer XP. What do you guys recommend to identify your entry into a trade? I’m having a difficult time spotting entry points. I’m using the TOS software.

  • Reaper

    LVL 2 shows huge buy imbalance on SCON. 15k bid @ 2.26, 12k @ 2.20. That would keep me from playing it.

  • Buziness

    Does anyone know if all brokers fully enforce the pattern day trader rule or are their some exceptions?

  • YoungGunz

    yeah all have to. ToS was a little iffy about keeping up with your day trade but now they have it automated with a counter. I wouldn’t want to make it a practive to try and get away with more then 3 because you think your broker won’t nail you if you only go over by one.

  • notesguy88

    Hey what you guys think about NPLA? It went up about 115% yesterday and it’s been up an additional 42% today. A short-sell candidate soon?

  • Reaper

    Nice call Notesguy. My take is that I’d want to see it up big another day, or at least up some more today. I read serious resistance at $0.45.

  • bestdeception

    Reaper, I see the sellers lined up at $.48. Is there something else you’re looking at for resistance?

  • taylor5161

    Do most of y’all use ToS for day trades? I currently use E-Trade and am wondering if you can reserve shares through them. I am obviously new and have been laying back watching all the magic happen and waiting to make my first short trade.

  • Reaper

    TIM – thanks for the refer to Jon. He’s getting me set up with an account. A penny a share, but I’ll take that to get awesome borrows. Looks like I’ll be leaving TOS and maybe IB. That’s good news to everyone else who’ll have access to more shares to short!

    bestdeception – look at the daily candlestick chart. There is resistance at .45 and .60. it broke thru .45 so now .60 is resistance. Anyway, it is not worth shorting today.

  • TheParadox

    I use TOS software, but i just opened an account and TIM recommends TOS. As far as the pattern day trader, optionsXpress does NOT inforce the 3 trade rule. I have a ROTH with them thats *above* 25, but when i opened the account it was *less than* 25k and made sometimes 10 or so a day on that account. The SEC rule was in place also. I also have an individual account i just moved, and made move than 3 a day on that small account over 10k.

    I must warn you thou, OX rarely has the shares that are hard to get, customer service sucks, and you can’t short a stock under $5… which is why i moved to TOS.

    can you believe that, no shorts under $5… buncha communist.

  • http://www.timothysykes.com timothysykes

    goode, try him out first, probly divide up your accounts, not sure what borrow scene is like these days with real brokers

  • Reaper

    Tim – don’t worry. I’ve got my money split between TOS and IB evenly now. I’ll try Grace out with a measly 100k and see how it is before closing any accounts. If he doesn’t work out, I’ll try Genesis Securities — they are cheap like Interactive Brokers, but better platform/service/borrows (just not as good as Jon claims to be–he says none of his clients has ever had a forced buy-in).

    You’re right about treating brokers like overworked whores — use ‘em and lose ‘em. I have so far tried and left Etrade, Scottrade, Ameritrade, SogoTrade, and am now with IB and TOS.

  • yaktipper

    Nobody got in on CNEX? I tried but couldn’t get shares.

  • bigjimstradingpost

    Going long on USS again at $2.50 for a nuther quarter

  • Reaper

    why, big jim? why?

  • bigjimstradingpost

    lunch money

  • bigjimstradingpost

    Not a Tim stock so I didn’t post here but I have been scoring BIG on SOLR…buying in the $12.05 range and selling out in the mid $12s. Did it several times over the last week an banked over a grand. Seems like it shot up now and may be outta play.

    I just bought 10,000 shares of ETFC. I have made thousands trading that one for 20-30 cents. Anything below $3 has been GREAT for me.

    I use Etrade and rarely get in on the shorts Tim recommends but have made a lot of money using his methods and recommendations combined with my own techniques refined after nearly 20 years of active trading…

    Best of Luck!

  • Jake

    Am I the only one here going long on SKNY? Now I feel dumb for a $0.02 gain over 4 hours :P

  • bigjimstradingpost

    See Reaper… $2.50 in, $2.61 out… 3,000 shares = +$300 in 5 minutes.
    Nothing like your smashing success with the stock but I wasn’t able to short.
    a $400 a day profit on a couple stocks makes me over a quarter million a year…

  • bigjimstradingpost

    not enough volume on that one for me Jake

  • bigjimstradingpost

    USS coming back down to the $2.50 trigger pull range again. Gotta be careful though…don’t want to day trade the same stock too many times the same week. I got locked out of my margin account and could only trade cash for 90 days.

  • Jake

    Yes, yes— I still have a lot to learn. I’m on DVD 3 of PennyStocking…

    It’s really hard getting out of bed at 5am to get in on the good shorts lately.

  • bigjimstradingpost

    Ha, I live in Germany. Given the time change the market here doesn’t open until 3:30 in the afternoon. I have all day to research and the evening to trade. Works out well. Sucked when I lived in Hawaii…Market opened there at 3 o’clock in the morning…

  • yaktipper

    bigjim, when you got locked out of your margin account, was that the PDT rule or a different one?

  • Jake

    Oh wow, that would be great. I remember in Tim’s book he mentioned it was great when he was living in Spain and the market opened in the afternoon.

    Do they have PDT rules in Germany? We lucked out in Canada with no similar restrictions.

  • YoungGunz

    its not the pdt rule. theres another sec rule that i don’t know the specifics of but you can buy and sell the same stock over and over within a certain time frame. I think its part of using margin and that the money is in limbo when you’re getting in and out fast.

  • bigjimstradingpost

    It was the PDT rule that locked me out. I now have over $25,000 in my account so I don’t think it will happen again but I’m not sure. Don’t want to risk it.
    Same rules apply as I am an american citizen with a US brokerage account.

  • bigjimstradingpost

    Looks like SOLR might be setting up again. Get ready to pull the trigger under $12.10

  • YoungGunz

    take that back i may be thinking about a cash account rule where even though you bought and sold and made profit you can use that money right away to buy again.

  • Reaper

    IVVI jiggy. Nice Sykes-type chart, but very low volume. I’ll pass.

  • YoungGunz

    yeah, i didn’t get shares when the trading desk opened for ToS yesterday so i didn’t even bother watching it anymore.

  • adairjm

    MNKD just popped through its channel at 3.30. Room to run. I’m long on this right now.

  • http://murphblog.com Murph12

    mnkd broke out this morning @3.25…next resistance is 4.25

  • adairjm

    MNKD has a BIG gap to fill. Then short it back down!

  • http://murphblog.com Murph12

    word

  • Mark

    TIM SYKES. Please tell me what I can do. TOS just denied my scon request and said Penson doesn’t allow shorting stocks that are under $3. I can one day, and the next day I can’t. Why?

  • Reaper

    Mark – you shouldn’t be shorting SCON today anyway.

  • bobbymapp

    ALUS – Anyone notice this one? Up more than double in just a week.

  • notesguy88

    If TOS didn’t allow Mark to short stocks under $3, that is a concern.

  • YoungGunz

    any possible plays coming before the close timmay?

  • Mark

    I was just reserving shares but I would definitely short it now. It’s negative on the day at the end of the day.

  • adairjm

    I was watching ALUS earlier, but it has such a low float and spread that I didn’t want to play it.

  • Buziness

    anyone get in on SCA?

  • Buziness

    anyone get in on SCA the past 2 days?

  • Mark

    Could anybody find shares of SCON?

  • http://www.timothysykes.com timothysykes

    mark, deal with it, sometimes u can borrow, sometimes u cant, SCON doesnt interest me in the least though, its not up enough

  • Mark

    Right now I’m glad I didn’t get em of course, but anyway Guido at TOS said that it’s not possible to borrow stocks that are under $3. He said that’s Penson’s rule. Help me here Tim. I just don’t get it. BY THE WAY, I MADE $861 AFTER COMMISSIONS YESTERDAY SHORTING USS! My first daytrading these penny stocks in months and my first trade using TIM Alerts. Thanks man.

  • TheParadox

    Cash, Im not sure why TIM uses eTrade pro, I heard a rumor stating he got stuck with it a while back. But you should be able to pay nothing except commission on trades for the services used. Tim recommends TOS (thinkorswim) and i use TOS.

  • Pingback: This is a must Read — MaxTodorov.com

  • jharding

    K tim, here is my question. I know how to find these stocks. You have explained them very well. But I suck at research. Putting the story together. You know..finding out why it has gone up so much. What the news was etc. I already bought the pennystocking DVD but it didn’t explain this…this is what I want to learn…how to research the stocks that are in play. Do you have a differn’t DVD I should buy?

  • Pingback: Wealth Channels » Many Popular Short Selling Questions Answered Here

  • Choimaison

    reading the old posts are very helpful..wow….

    old friends like Reaper are here too…wow…

    it is fun to read how people think and wanna play stock

    also Tim and Reaper’s comments and response..

  • WilliamF

    It has ben a while since this list was compiled, are there any modifications or additions to your resource list?
    Thank’s,
    WilliamF

  • http://www.timothysykes.com Anonymous

    yes its called timfundamentals part deux a dvd where i go over my research process for several hours

  • WilliamF

    I signed up for your silver membership to get answers to questions like my last one…. NOT to pay you to try and sell me more crap…………

  • http://www.timothysykes.com Anonymous

    silver is not personal Q&A, thats my PRO plan, silver has 170+ videos…i suggest u watch them as that will answer all your questions and more…put some effort into this please