How to find
best stocks to buy now
Free stock screener ideas
to find best stock buys
Active traders and active investors has question "how to find best stocks to buy now" in their mind very often. I think that every day. And they are looking for answers.
Solution how to select best stock buys is based on several different parameters. First one is trading/investing style.Do you plan to find 10 best stocks as short term trading opportunity for your swing trading strategies ? Or do you plan to hold these shares for mid term period as position trade preferably ? If you prefer short term swing trading style then you would like to find momentum based stocks with good
volume levels
which are trending up. List of parameters then should include average daily trading volume above 350000 shares per day or higher. If you plan to hold these best stock buys for several weeks or maybe months, then it is much better to find stocks which are in early phases of their
uptrend
or better which are preparing to break up and start new uptrend. These stocks could be less liquid, i.e. their average volume could be above 200000 shares per day.
Best stock investments
with global macro approach
Some active investors and stock traders also like to understand bigger picture or have idea where the economy is headed. What sectors or international markets could perform the best.These Global macro fundamental ideas will not help you to select individual stock immediately but can give you another parameters for stock selection process. Is it better to look for technology stocks these days ? Or basic materials and miners are best stocks to buy now? But it is not easy to create such ideas. It takes a lot of analytical works. I cannot do it alone as it take a lot of time. But I have hired good analytic team. How? I subscribed to some newsletters which produce good fundamental ideas about actual global macroeconomic conditions in the world. I also cooperate with good analysts and read their materials. And based on these work I create
Global macro research notes
for my needs. I use these notes for my position trades in my active stock market portfolio.
Best stock screener ideas
to find best stocks to buy now
I already mentioned basic parameters of best stock buys. But how to use them practically? How to find 10 best stocks which are trending higher ? Or 10 best stocks which are trying to break into new uptrend ?I think that it is possible to define such conditions. Best stocks to buy now should show relative strength to the market. Such feature can be find more easily if stock markets are in pullback or some correction. Then it is good to use your best stock screener with conditions like : Find 10 best stocks which are very close to their 3 month highs. Such stock should not be far then 3% or 5% from their 3 months highs. Using all mentioned parameters you are able to define you own stock screener which will allow you to find best stocks to buy now. It will be easy to define stock screener in good
stock analysis software
. Here are two examples of such stocks in actual stock market conditions.
As you produce list of 10 best stocks to buy now, you must apply rules of your
stock trading strategy
and
stock trading system
to prepare best stock trading setup for next day.
Check stock market conditions
It is also very important to know what are current
stock market conditions.
Why ? It is much harder to rise in price for every of 10 best stocks you find if stock market is in big decline or worse - in downtrend. When stock market is in uptrend then it is possible to expect that price of best stock buys selected by process above will go up much higher.It is also good to modify you position size for such trade based on
stock market conditions.
Bullish stock market or neutral stock market situations allow you to enter full position size of any trade you want to do. But if you are trying to buy stock in prevailing stock market downtrend then it is better to be much less aggressive with
position sizing
and use only 1/3 or 1/2 of position. Sometime it is better to be in cash or select best stocks to sell short for possible short trade. Here is actual stock market index chart of SP500 :
As you can see current market conditions are not very favorable to long based trades. So if you want to buy something, select stocks like are examples on the charts above and modify your position size.
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