How to Find the Top Day Trading Picks

Three Parts:Getting Ideas from News ReportsLearning from OthersUsing Your Trading Platform to Get Ideas

All the knowledge in the world about the best trading strategy won't help you one bit if you can't apply that strategy to specific stocks. That's why it's important that you locate great trading opportunities in the financial markets. Fortunately, there are numerous ways that you can do that.

Part 1
Getting Ideas from News Reports

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    Read financial news reports every day. If you stay on top of the business reporting, you'll glean information about specific companies that you can use during trading sessions. Your trading platform will likely provide news reports, or you can check sites like,, and for more information. Specifically, keep an eye out for the following:
    • Earnings reports - especially for companies that beat or miss the expectations of Wall Street analysts.
    • New developments - a company's stock might move on anticipated future revenue from an upcoming product release or rumors that the CEO is about to be fired.
    • Insider buying and selling - if executives are buying or selling the company's stock, that could move the price.
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    Watch financial news on television. If you're day trading from home, you should have a financial news channel on as much as possible. You'll get up-to-the-minute information about what's moving the markets and also receive tips on stocks that might be poised for a significant price change.[1]
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    Browse non-financial news. It's possible that some news with possible ramifications on a company's stock price hasn't worked its way into the financial news reports. You can get the jump on other investors by paying attention to all news sources.
    • If a movie production company drops hints that it might produce a sequel to a very popular movie, that might move the company's stock price.
    • If some tragedy or crime occurs at a store owned by a company that's publicly traded, that will sometimes cause the stock to drop temporarily.

Part 2
Learning from Others

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    Join an online group of like-minded day traders. Sometimes it will cost you money, but you might find the advice you receive from your peers is worth the investment. They'll also advise you about stocks that they're watching and will likely mention a couple of ideas that you would otherwise have missed.[2]
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    Follow day traders on social media. There are many day traders out there who share their trades, in real time, for free on social media. Why not follow them to get some great ideas about stocks you should watch?
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    Join meetups. Although the Information Age has made it easy to "meet" people online, it's also great to connect with others in real life as well. Join an investment club meetup in your area to gain insights about which securities other people are watching as well as to just enjoy a bit of a social life.[3]

Part 3
Using Your Trading Platform to Get Ideas

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    Set up alerts. There are numerous technical signals that could indicate that a stock is about to move.[4] Decide which ones you think are the most important and are consistent with your trading philosophy. Then, use your trading platform to set up alerts in line with those signals. When a specific stock hits one of your technical signals, you'll receive an online notification and you can decide whether or not you should act on it.
    • You might want to set an alert when a stock has reached its 52-week low. If it's dropped for no apparent reason, it might present a good buying opportunity.
    • Many traders think that a stock price will increase when its 50-day moving average crosses its 200-day moving average. You can set an alert to notify you when that happens with a stock.
    • The Relative Strength Index (RSI) is another indicator of potential stock price movement. When the RSI indicates that the stock is "oversold," it might present a good buying opportunity as the stock price might increase over the short term.
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    Screen stocks. All sophisticated trading platforms have a stock screener. Use it to search for stocks that exhibit technical signals indicating price movements.
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    Pay attention to trending stocks as reported by your trading platform. It's often the case that your trading software will let you know, without you taking any action at all, that certain stocks are "hot" or are likely to move based on certain criteria. Evaluate those stocks with your own trading strategy in mind and make the appropriate decision.


  • One of the most important steps to take to find the top day trading picks is to keep up with daily trading news. You can read daily financial reports listed in most national business newspapers, such as the Wall Street Journal, New York Times, and U.S.A. Today. You can also learn about international stocks when you search foreign newspapers. Not only that, but all these major newspapers are available online.


  • Stay away from investment opportunities that seem too good to be true.

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Categories: Investments and Trading