The Federal Reserve raised rates again by 75 basis points for the third time in a row, in an effort to cool down the rising inflation in the country.
Shortly after the Fed announced its expected rate hike, the market wasn’t happy…
Take a look at SPDR S&P 500 ETF Trust (NASDAQ: SPY), the SPY spiked down over 1% shortly after the anticipated rate hike.
As the recent hike wasn’t a surprise to most, the market digested the Fed’s comments and rebounded from its lows.
But here’s the thing…
I could care less what the Fed does.
You see, the type of trades I place and profit from rarely correlate with the overall market, economy, or Fed policy.
How do I do that, while consistently remaining profitable.
I follow these two steps…
Table of Contents
You Want To Build This
In today’s market, it may be difficult to find stocks that are worth trading…
And I don’t want you just guessing on what stocks may perform well.
This is not a guessing game. I continue to tell everyone if you trade random setups you will get random results!
DO NOT TRADE GUESSING GAMES, TRADING RANDOM SETUPS LEADS TO RANDOM RESULTS, NOT LASTING SUCCESS! RETWEET IF YOU PROMISE TO BE DISCIPLINED AND PATIENT!
— Timothy Sykes (@timothysykes) September 20, 2022
So let’s quit guessing what stocks to trade…
And let’s learn to scan for stocks like I do every day!
So let’s begin…
First of all, you will all need to make sure you all have a platform that will allow you to customize your own scanner.
I use StocksToTrade to scan the market to find stocks that fit my trading strategies.
Next, you will want to set up your scan to look for a few key indicators…
Let’s take a look at the top 3 indicators I like to use!
Indicator #1
Big Percent Gainers – I bet all of you could’ve guessed I was going to use this as my main indicator to look for.
Every morning I want to know what stocks are the biggest movers.
If there are penny stocks that don’t have the ability to move quickly, I tend to stay away from them.
When there is a stock that has early movement, it catches my attention and I continue to look to see what may be causing this change.
But it is not all about the move that should make you instantly jump in…
You need to continue to study every day and make sure you understand these 9 trading patterns to help you make an informed decision.
Indicator #2
Penny Stocks – I tend to look for stocks that trade for less than $5 a share.
Why? Penny stocks have the most room for growth.
If you are able to spot these low-priced stocks, with a big percent gain…
You may benefit from the recent spike.
As penny stocks can be scary, I tend to trade them conservatively.
You can set your price amount to anything you wish, but I like to see what stocks are moving below the $5 price range.
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Indicator #3
Volume – This indicator can usually tell you if there is something going on with the stock.
What do I mean by that?
Well, let’s say that Stock A usually trades at a volume of 5 million.
Then it is trading at 20 million…
This shows that something got traders excited about this specific stock.
When there is a higher volume, this means there is more liquidity, which can impact your entry and exit point of any trade.
I like to know what stocks have a volume over 1,000,000 on any given day, I don’t like to look at anything below that.
The Power Of Intel
After you have set up your scanner, most traders aren’t sitting there watching it every minute of the day.
There are other things that you may be doing, depending on the time of day you like to trade in…
As I like to look for stocks that are moving early in the morning, it doesn’t mean I wouldn’t trade a stock at any point during the day from breaking news…
SOBR Safe, Inc. (NASDAQ: SOBR)
This breaking news was spotted by our team and the stock spiked 187% in just a matter of minutes going into the close!
These alerts can be very beneficial for those who are notified prior to other traders!
Final Comments
It is important to understand that there are other indicators to look for as a trader to help you make a more informed decision before you place a trade.
There isn’t an exact science when it comes to trading…
But there are ways I can continue to help you grow as a trader, but there is a lot of other key information that I can’t share with you here…
I have made the most millionaire students by teaching them my fundamentals, and I am looking to make more millionaire students!
If you are looking to take trading seriously and move to the next level…
Don’t miss out on what else I can share with you!
Cheers,
Tim
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