There's a lot a data to go over. I mean one of the great things about the world we live in is unlimited access to information, but especially in trading. At times it can be information overload.. Today, I'm gon na talk about the 12 data points that you really need to care about without wading too much into the weeds..

Hey everyone before we get started, be sure to like share, subscribe and ring that bell to be notified. As soon as we drop a new video. All right, let's get started.. That being said, I am lead trainer with StocksToTrade Tim Bohen here today., I'm gon na talk about the 12 data points.

Most of them are fundamental related.. Some of them are technical.. Some of them are key levels, but these are really the data points. I think you really need to consider when making that trade decision..

It's not. Everything doesn't compose all of them, but these are the criteria and the information that you should definitely be looking at before. You enter that trade., So I'm gon na go fast.. I got 12 of them..

I always talk fast, but I'm gon na go extra fast, so that this doesn't end up being a six hour. Video. All right. Let's get started.

Right off. The bat is the high.. When we talk about the high we're talking about the day high., You can see on SPRT. Currently it is 1662..

I like to round to whole dollar half dollars.. I consider a breakout level on this that 1650 level.. Why do we care about that level, Especially when you're talking about a low float stock? Like SPRT, 9 million float trading, 39 million shares and it's just the middle of the day.? You can see I'm recording at 1:30 PM.. That means we're probably gon na end up with 10 times float rotation.

And you can see. Actually this is just kind of the stock du jour, but you can see what happens when that high day tends to break.. That's why we focus on that.. So that being said, next one we look at is the low of the day..

You can see. The low of the day is 1399 on SPRT. I'll. Just stick with this'cause.

It's really an in play. Stock. Plus I wan na see how high this thing goes during this video.. This has been, I mean I tell you when you talk about repeating stocks if you've been on pre-market, prepare every day, 8:30 Eastern on the YouTube.

This has been the number one stock for four days running and look at where we are here. Anyway. We care about the day low, because that's that breakdown level.. So let's say you took the high of the day in pre-market at say, 1450..

You know, that's another. Whole dollar, half dollar another key level., You wan na stop out on the low of the day when you're talking about these momentum stocks'cause, when the low of the day breaks the selling there tends to come in. Vice versa, if you're short, biased, you can hammer those Lows., I mean listen. I'm still, I think SPRT has a long way to go, which drop me a comment., I'm recording on August 26th.

2021. Drop me a comment.. How high did SPRT go So that being said, you look to short those lows'cause. I mean again, this stock incredible run all the way up from two bucks back this spring and then it started running and really broke out at five..

Here we are at 17.. So when the momentum turns you look to short those low of the days. Next we look at is that close area. You'll see right, here.

Every chart. I always have that clothesline.. I call it the red to green green to red line, but it's the previous day's close. Again.

These are all these key levels.. Listen when you again, these are set up. You hear me talk about it all the time that weak, open red to green. Anytime, a stock is green on the day when it's above the previous day's close, it's considered bullish.

If it's below the previous day's close, it's considered bearish.. So it's really a good sentiment. Indicator. And here's the thing you can test this, whether you trade, these momentum, these big runners of the day, look what happens when they break down.

When they go red on the day, you tend to get that wash out.. We talk about again good short entries. And then also when they open red, like that gap down gaps down in pre-market and then goes green, especially midday late day. You'll see spikes Now, and is it always going to spike $ 2 or $ 3 a share? No but you'll see the volume come in and you'll see a price spike or a price spike to the downside on a green to red, because that's those panic points., That's what we really look for.

And they create great entries. That red to green great entry on The long side. When you're talking about a stock again like SPRT, squeezing squeezing squeezing vice versa tomorrow, the next day, maybe next week when the momentum shifts, goes red. On the day you hear first green day, first, red day, those are two patterns.

We talk about all the time is day trade patterns.. That's that idea.! It's based on the previous day's close.. Next is volume volume volume volume.. Ultimately, the same goes: only price pays only price action matters., But I tell you I always think of like if there was a number one indicator, it's always price action steadily up.

Trending stocks that are up trending tend to continue to go. Higher. Stocks that are down trending tend to continue to go lower., But actually Steven Johnson on the podcast. I think it was this first time I'd ever heard, this.

He called price action and volume dancing partners and they work together.. So it's one thing: if you see a stock chart like SPRT, again I'll jump back to it., You know beautiful breakout, especially I mean look at when it broke out again for the third time over eight nine. Look at these four green days in a row exploding to the upside., That's price action, but you can see accompanying with it notice. I mean look at this volume other than this one big gap up day back in March volume, huge volume relative to April May June July - August., That's what we look for volume is confirmation., I mean think about stock market supply and demand.

More buyers. Higher potential stock goes higher., Vice versa, short side, you get that have feigning volume. The buyers start to leave. That gives you your short entry..

We always always care about the volume price. Next at 52 week high. I really fixate on this, especially when we're talking about swing, trades., There's several academic studies that have shown that stocks, especially with good news. You know you might be familiar with William O'Neil's CANSLIM..

I read all of the CANSLIM materials back when I was getting started and kind of in the mid 2000s and really kind of respun. You know most of that. Canslim is geared towards more real stocks, but I really kinda respun, that for momentum and breakout stocks. - And you know, one of the key components of CANSLIM is: when stocks break a one year high.

They tend to continue higher.. So again, it's not like you buy every stock at 52 week highs, but if you're checking off the list and you're like check, check, check, check check, that's increasing your likelihood of a continued breakout. And I love every scan. I run.

You know especially like from a swing trade perspective. You'll, see me run this 52 week breakout scan every single day.. If you're on the SteadyTrade team. Every afternoon webinar, I do a webinar every day, click below check out the SteadyTrade team.

Every day, 3:30 Eastern. We're looking at swing trades overnight, trades, PDT, friendly trades, if you're under the Pattern Day Trader rule - and we love those 52s. The scan again, if you're there every day for a decade now I've ran this scan into the market. Close.

Next is we're. Looking at that volume average., I probably should have flip-flopped these a little bit.. I shoulda kept 52 week before, but the reason we look at the volume average is again we wan na spot unusual volumes.. So another saying I wish I could attribute.

I can't remember where I got it from, but the quote is `` unusual volume brings unusual price action.'', So go back to where I said a few minutes ago and again sorry for putting them out of order. But you know, volume and price action are dancing partners. And it's one thing if a stock's trading 50 million shares, but if the daily average is 50 million or 55 or 60 million yeah, you might think. Oh, it's trading 50 million shares, but it's just trading its average volume..

What I wan na see is again I keep using the SPRT as an example, but you know you can see that the average volume 9 million shares a day. And that's actually probably high, because this thing's been in play for about 30 days. But still here we are midday, it's trading five times its average volume and we got half of the day to go.. So you wan na look for that two times three times: five times 10 times.

I mean listen. I've seen, especially in the post-2020 world. I've seen stocks trade 1,000 times their normal volume.. I mean not typical, but I've seen it, but that's what you're looking for.

Great opportunities there. Next is the float. Understand what the float is.? That is, the freely tradable shares. And actually another data point.

I'm gon na bring them together, shares outstanding and float. Two data points.. So if you're like hey, you didn't list 12 but understand the shares are all of the shares available. Now, typically, especially on IPOs and SPACs, and recent issues.

A lot of the shares are locked up with insiders. Okay, Insiders can't always sell. A lot of part of like, and maybe you've worked at a publicly traded company and in lieu of compensation. Maybe they gave you some shares, but they're locked up..

You can't sell them for 90 days, six months a year or whatever. So.. That's all of the shares out there. Now.

The float is more what we care about.. Those are the freely tradable shares that are accessible to us. Retail traders. And general rule of thumb is lower.

The float higher the volatility. Now double-edged, sword. Volatility cuts both ways., So if you're more of a part-time trader or you're a very risk, averse trader, listen, maybe you're in retirement and you wan na trade. But you wan na stay safe, avoid the low float stocks.

They make wild moves, but remember with high reward, comes high risk, but vice versa., If you got a small account, you've got $ 1,000 account and you're looking to make something really happen. Like you're, not trying To make five bucks a day or something low floats are where it's at., But now you got ta have bulletproof risk management.. You got ta stick to your stops, but if you have that ability to stop out when the trade doesn't work, low floats make huge moves. Because of back to what I said, supply and demand.

Think about your basic high school economics, class., Lower the supply higher the demand., What happens to the price Explodes higher.? That's what we're talking with low float stocks. And for me. Typically, we kinda use 10 million shares in the float as kind of the delineation between a low float stock and then you'll hear me say: like kinda low float, like even 15 million, 20 million, 30 million is on the lower end of the spectrum.. I mean if you look at stocks like Apple, they have billions of shares in the float., But in standard day trading nomenclature, less than 10 million is typically considered.

A low float. Price to earnings is the next one.. That's just a ratio.. The price is a multiple of earnings.

Keep in mind. I want you to look at that.. I want you to be cognizant of it., It's more of a real stock.. The last two criteria - I'm gon na finish on - are real stock criteria because listen most low price stocks, most low float stocks.

They have no earnings at all., So you can't have a price to earnings, multiple. They're money. Losing. I mean if you're talking biotechs, some of them have no sales even..

So, typically, you've got a disaster when it comes to the price to earnings ratio., But if you're swing trading, if you're investing if you're long-term holding you do wan na look at that, because I mean the idea is, if they're making money and they have a good Multiple they're not trading exponentially higher than their earnings, then there's growth potential there in the stock price.. Now, if it's getting too rich, as they say, maybe you wan na wait for a pullback to get in. And then last is earnings per share.. Again, that's just a multiple that you can look at to understand.

One cent per share $ 5 per share $ 10 per share.. Again you wan na look at that over time'cause, every company is gon na, have a slightly different earnings per share. Ratio.. You know technology speculative stocks are gon na be lower, but if it's steadily up trending, maybe that's something that you wan na look at more of the old line.

More boring stocks will have a higher earnings per share but again drop it in your spreadsheet graph. It over time to get an idea. In closing just a beautiful breakout here on SPRT kind of fun to watch it.. If I got a little distracted, it's because ah it's gon na break 17 too..

Hopefully these 12 simple data points helped you again.. A lot of what I think is important is to focus on the KISS methodology, Keep It Simple Stupid, and these are the 12 most important. And just ask yourself if you're branching out beyond that, you know. Are you just making things needlessly complex? I really think you add in a couplE technical indicators.

You don't need more information than that.. So all right, everyone have a great day. Drop me a comment.. Let me know if you liked this video.

What you did like about it, what you didn't like about it. And there's another whole dollar, half dollar cross on SPRT. Hope you have a great day and hope this video helps you spot the next SPRT. We'll see you Next time,.