How to find stocks who day trade and swing? Trade. - This is one of the most commonly asked questions from new traders on my YouTube channel.. So in this video I'll be showing you the step by step process for beginners to start scanning for stocks to trade for free., Without any fancy premium scanners or news platform.. The goal of this video is to teach you how to start planning and working independently and build your own watch-list and find winning trades without being a sheep relying on scanners or chat room alerts..

As always, if you enjoy step by step, videos like these make sure to drop a like and subscribe and ring that notification bell. If you want to learn more from my channel in the future. Step, number one would be scanning for the stocks to trade. And my favorite free scanning platform is Finviz.com..

This is still the most beginner friendly website and again it's completely free to use.. So start with going to Finvis.com. And over here you can see that once you're on the homepage, you get a broad market view of everything that's happening in the market.. Now the place we want to focus on is the Finvis screener..

So go back to the homepage and from the home page and click screener on the top over here screener., And this is where you can input all the filters and scan for stocks.. That's only matching the criteria you have and I'm gon na show you the criteria right now and but first of all, let's close my ad Google ad on the top.. Yes, I was shopping for some shoes. So over here I always start from the descriptive filters..

I leave exchange blank because I like to scan for both NASDAQ and the YC and the AMAX.. I don't discriminate. For market cap. I would prefer to scan for stocks.

That's under 2 billion market cap.. I like to separate the small cap scans and the large cap. Scans. For this example: let's go ahead with a small cap scans., So I'm going to select small under 2 billion market cap..

So we got the market cap. Earnings days. You can leave that alone. Target price.

I'd leave the alone as well. Index dividend yield everything.. That's I leave that alone. Now what I care more about, I don't even care about the average volume.

Now what's more important in the current market, condition is relative volume. If you are ever concerned about any of the key terms here, if you hover over the word You're looking at let's say relative volume., You can see that relative volume means the ratio between current volume and the three month average. That's intraday adjusted. By using this key metric, you're gon na find stocks, that's increasing in volume steadily on the daily chart.

And that's a very important in the current market condition. And if you're, a new trader, a very important concept to start understanding early on is that You need the volume to proceed, the breakout successfully.. If you don't have volume, the breakout on the stock, is most likely going to pop and fail.. So that's the reason we are searching for relative volume, ideally over one or even two..

So, let's try over 1.5 for now. The next key metric. That's very important to put on your filter is current volume.. So if you hover over the word, it will show you that current volume means the number of shares, that's being traded today.

And for us we definitely want something. That's more than 1 million.. For this demo, I'm going to do over 5 million and see what we get. So there's other stuff like country options and shorts and price..

So I think for me, I'm going to scan for stocks. That's under $ 10, especially when it comes to the small cap. Stocks. Again, we can always expand the range if we don't get enough results..

Okay, so you can see that once we have all these four filters, we get two pages of results and a list of tickers.. So by default you see the ticker, the company, the sector, the industry, the PE ratio and the change on the day, et cetera and the volume on the very right side.. But for us traders we want to see the daily chart because that's where we're gon na do the next step later on when we do technical analysis., But for now let's go up to you can see. We are at overview right now, but for us we want to look at charts., So you can see once you click the chart.

You actually see what these daily charts for all the stocks showing up, looks like. You can see. We still have two pages of examples. By default.

They give us the technical one, but I prefer the type to be candlestick charts.. So now this is where we can see the recent three month charts and what it looks. Like., Alright. So now that we have a list of stocks, that's matching our criteria of being a small cap stock relative voting over 1.5 and current voting over 5 million and price under $ 10..

We have a good list of stocks over here.. You can see a one page is probably at 20 stocks and the daily charts to look at.. I know at this point you must be thinking. Oh, can we just buy all these stocks? No don't do that because we need to go on to step number two, which is technical analysis on the daily chart.

For us short term day traders. We want to look for stocks, that's consolidating on the daily charts and slowly about to setup for a breakout.. What a true breakout will look like will look like this stock GROM over here., So if we click it and go to the daily charts here, you can see that the stock came from $ 2. All the way to about $ 4.

- And here is reaching some resistance around $ 4, and it has tried breaking out to $ 6.. So this will be one of the stocks. I would further analyze on my broker platform.. Another good example here would be the stock NXTP..

If we look at the chart on the daily, you can see that this thing consolidated and held the support around 1.30 for a couple of weeks., Then once it broke about 1.50 and later on, around $ 2. It's starting to break out from 2 to 2.30., So this will be another stock that we can look at later on. Another one here from our scan is CEI.. You can see this team broke, multiple resistance, it broke $ 1 resistance and other resistance here at 1.80., And once it broke all these resistance, it went to the upside from 1.50 all the way to almost $ 5..

Now it has since then came all the way back down, so the breakout for this stock is over., But this is essentially what you're looking for the earlier parts before this huge breakdown.. All the other stocks that we just talked about has a chart that looks very similar to the parts preceding the breakout on CEI. And that's the reason we are scanning for those stocks.. So besides looking for stocks, that's breaking above some recent resistance of breakout charts.

I also want to see increasing volume on the daily chart because, in order to have a true breakout with a stock breaking above resistance to the upside and hold above it, you need more people buying it., It's actually pretty simple. Increasing volume precedes the breakout and consistent volume sustains the breakout.. So that's why volume is so important.. That's why we didn't just scam for high volume stocks, but high relative volume factors 1.5 to 2..

So now that we've selected the three stocks we want to focus on and further analyze it's time for step number three, which is preparing for watch lists on our broker platforms.. So now that we're on my broker platform, you can see I'm using Thinkorswim as a demo.. So the first stock we're gon na look at is CEI.. You can see this thing came all the way from 50 cents and once it broke above a lot of resistance up here at all the wicks up here you can see some resistance at 1.70 and 2.40s and also later $ 3..

This thing just took off almost to $ 5. Now this will be a good time to give you an introduction to support and resistance, because every time I asked for support from my ex-husband, all I was given was resistance.. Okay, real talk, please be supportive of your loved ones, endeavors or struggles, because otherwise you're going to be that person messaging them many years down the road asking for stock, analysis., Okay, so a crash course on support and resistance. Support.

Other areas on the daily chart, where historically buyers came in to buy the stock., So we can see for CEI the previous support down here, where you see buyers come in and on 60 cents. And later on over here around 1.20 and then all the way here. Some little support you can see the stock held that area for about 1.70s for an extended amount of time., So those are going to be support for the stock.. Now the other side will be resistance..

Resistance levels are the areas where people came in to sell the stock, so this will be the opposite of support., So you can see that, for the same example CEI that's a. I bought the stock at 1.70. In the past when a stock rang up to 3.10 or all the way up here around $ 4. That's where everyone's sold, the stock., So myself included.

If I see that there's resistance as $ 3, I would also probably sell. - And you can see it will be the same thing. Here. People came in to buy the stock around 50 cents and the ones that held these levels.

You can see this line here around a dollar a dollar here, that's the prior support all the way from the daily over here people came in to buy and a stock when all the way to 1.70 the resistance we talked about earlier and then pulled back held Us small, high or low support 1.50 didn't quite pull back to $ 1 and broke out above that 1.70. Resistance in a stock just took off to the next resistance up around 2.40s 3.10s and later on to almost 4 $ 5.. Okay. So, looking at a CEI chart, you can see that the stock already had its breakout..

It went from 50 cents to a $ 1.70 and all the way to almost $ 5, but now it's been selling off. And even though recently we bounce from 90 cents to around 2.40s. Here we sold off., We didn't hold the breakout. Right.

You can see the stock didn't hold above $ 2., So it's back under that 1.70 resistance. 1.80. 1.70S resistance over here.. So for us, if we're looking into a longer stock, there is really no long on the stock until it broke above.

The resistance is sets in on this day 246., So this is gon na, be the key resistance. I'm gon na right click and make this line white here.. So that's going to be the key resistance., So I'm going to set an alert. That's also part of the process of preparing for a watch-list..

You don't just buy or sell any random stock.. You wait for the stock to actually hit those levels, and then you can look at the stock.. So I want to know when CEI breaks above this 246. In the future, because remember what we said about breakout in step number one: it's only if a stock can break out successfully above a prior recent resistance, which in this case will be 2.46., Then this thing would have upside to potentially go to $ 3 or 3.70 And $ 4 and above.

So until that happens, I'm going to leave CEI alone.. So what we can do here is go to a left side and put that on our watch list. I'm going to put CEI here., So the next stock for us to analyze the GROM.. So, first of all, I want to go to a daily chart and make sure I'm looking at yeah max available..

You can see this thing didn't have much volume on until recently. On the daily chart, the volume bar view can look at this.. The previous trading volume is very low. Only about 400,000 shares.

And again remember what we talked about in step number one. We want to trade stocks, that's trading at least 1 or 2 million shares average on the daily.. So it's only until recently. On this day, this is traded over 50 million shares..

So this is definitely worth our attention.. So once a stock broke out with high volume, you can see a trade above all these recent resistance.. So on a daily you can see. The previous high over here is 4.90s.

And after that the stock sold off.. So that's a reason. That's going to be the most recent resistance., And over here you can see, buys started coming in around these areas.. Why? Because you can see over here, it consolidated and held the $ 3 areas for multiple days.

This day this day and all the following updates. And over here on the previous. I guess a couple months earlier. It also held at $ 3 mark..

So that's why we know that's going to be a support for the stock. In resistance is going to be this area about 4.90.. If you round it up to the reason, highs are going to be around $ 5 to 5.50s., So this area is going to be the resistance for GROM. And you can see that., Yes, sure..

It has the resistance on $ 5, which it's kind of holding below right now, but you also have these areas. Around 4.40s 4.50s has been bought up.. So what I'm gon na to do here is, I want to know when a stock breaks the most recent resistance around 5.50.. Now it doesn't mean to just buy the stock.

When I hear the alert., It means that I want to look at the chart on my platform and assess the chart and the price action intraday. And whether there's consistent volume. Remember if the volume is inconsistent, the breakout is going to pop and fail.. So I'm going to set this white line here.! That's gon na, be the key resistance for the stock to breakout above and hold above it to continue to go to potentially 6.70s..

So that's going to be very interesting., So I'm gon na to set an alert right. Here. Right click create alert., So I will know when a stock hits 5.48 or 5.50.. Now, I'm gon na put that also on the watch-list GROM..

So this will be my process for drawing out the support and resistance and setting alerts on my broker platform. Again, just because you're setting alerts doesn't mean you just buy or jump into the stock right away.. The broker alerts are here to signal you. When a stock is breaking through that resistance level, you planned out.

A really good example of what that means is on this stock. VYGR.. This is the intraday chart.. You can see it touch and broke that 4.60 resistance around 11 o'clock..

But if I just jump in and buy the stock right away, I'll be dragged down to about 4.40.. So that'll be a 20 cent loss.. The idea is not to jump in right away, but rather to observe and look at a stock and how it's trading. On the charts intraday., So if I see a stock hitting 4.60, I wouldn't jump in.

Instead I'll start looking and seeing whether it's slowly trending up and whether there is a long setup.. So we can see once it pulled back from that resistance. It's slowly trended up higher and making higher lows. And once the second or third time we retested that's when it finally broke out to 4.90, almost $ 5 and to new highs near the end of the day..

It's true., Not every single stock. You find on Finvis and the ones you find on your watch-list will run like you had planned, but the most stocks you find that meet your A+ set up. That has the right volume, the right breakout, daily charts and the right levels., The more prepared you will be when you are alerted intraday when day trading., Most of the work done in trading happens outside of regular market hours.. That's where I do the most of my preparation charting and entering my trading journals.

And during market hours, I'm just observing and watching the stocks I prepared on my watch-list and pressing, buy or sell buttons. If I see them breakout and hold above the levels that we talked about., Let me know if you enjoy this video and watching my process for scanning for stocks to trade and preparing for potential runners and the watch-list.. If you want to learn more in depth about my trade planning process for the small caps and the large caps make sure to check out my website at humbledtrader.com., If this video helped you out, please remember to drop a like and subscribe. If you want to see more day trading content like these., Thank you guys for watching I'm the humbled trader and I'll see you guys next time.