Selecting stocks to day trade is one of the easiest tasks you'll encounter while trading my system. The act of actually trading them for consistent profits is the real challenge!
I've devised a stock-selection criterion system for you. This system greatly reduces a lot of guesswork in choosing the right stock to trade, and when you trade these stocks you'll have a better chance at profiting consistently.
You may already have a few stocks that you're accustomed to trading. You may have been successful at trading them in the past, but they must pass my selection process. If they don't pass, then you will have let them go. If you're emotionally attached to your stock(s), it will inevitably hurt you in the long run. If you have been trading a loser simply because you are trying to recapture your previous losses, then just let it go—move on.
Before we get into the actual criterion list, I want to make these two points: First, this system does not foretell whether the stock is going to gain or lose value in the near future. It focuses more on the consistency of the stock price's intra-day and swing fluctuations. This means that your stock should be highly predictable on how it trades. We are day traders, not investors; therefore we don't focus on what the stock will be doing next week or next month. We simply need to know how it will be trading today.
Second, your stock may be great to trade today, but it ...