Finding the Best Swing Trade Stocks

Picking the best swing trade stocks is one of the most important things you can learn. You can know all the best set ups but without the right stocks, you won’t make money. What is swing trading? Traders attempt to capture gains in a stock within an overnight hold to several weeks. In other words, swing trading stocks is short term trading where your position typically lasts 2-6 days up to a few weeks or months.

What Are the Best Swing Trade Stocks?

  1. Here are some of the best swing trade stocks criteria:
  2. Large cap stocks.
  3. Solid fundamentals.
  4. On major exchanges.
  5. Tight bid/ask spread.
  6. High liquidity.
  7. High open interest.
  8. Weekly and monthly expiration’s.
  9. F.A.N.G – Facebook, Apple, Netflix, Google.
  10. Make sure to follow the technicals.

Swing trading allows you to bypass the PDT (pattern day trader) rule if your account is smaller than $25,000. As a swing trader, you need to know how to pick stocks to trade.

The best swing trade stock you can find needs to be able to make good moves in a shorter period of time. Read our post on swing trading strategies for beginners if you’re just starting out.

Don’t Fall for Hype!

Best Swing Trade Stocks

The best swing trade stocks make nice moves quickly. You’re not getting in and out in the same day so you want something that will move at least overnight. One thing you want to remember is not to get caught up in hype.

Yes there’s excitement with stocks that have nice moves but don’t jump in when you hear a stock being hyped up. That’s a good way to lose money. Instead focus on price action. Price action is a stocks movement in price coupled with technical analysis. When you find a stock that makes significant moves on a multi-4day time frame without hype, you’re not relying on others to pump it up.

Large cap stocks such as Amazon, Nvidia and Tesla make pretty large moves from day to day. They can also get expensive. Being able to find stocks that are $20-$50 is good.

When you’re looking for the best swing trade stock, you want to have a little variety. They say variety is the spice of life. The same can be said for swing trading.

You don’t want to put all your eggs in one basket (try our stock picks service for 14 days).

Know Your Time Frame and Follow News

When looking for the best swing trade stocks it’s important to know the time frame you plan on holding the stock. You can look at your trading history to see when you’re most profitable.

If it’s on a monthly time frame or a daily time frame then stick to trading those charts. It’s all about the swing trading techniques that work best for you. We teach swing trading live each day in our trading rooms.

Because you’re swing trading you need to follow news. News can change the direction of a stock. Since you’re holding at least overnight, it’s important to follow the news.

Earnings, good news and bad news can cause you to make or lose a lot of money. It’s important to be aware of whats on the calendar for swing trade stocks you’re interested in.

Technical Analysis

Technical analysis is incredibly important when looking for the best swing trade stocks. Candlesticks provide support and resistance along with moving average lines such as the simple moving average formula.

Traders are super aware of these levels. Candlesticks also tell stories. It’s important to know what bullish candlesticks, bearish candlesticks and doji candlesticks mean. That along with moving averages can give you buy and sell signals.

You’re holding a stock for more than a day so you need to know what direction it’s going to go. If you miss on that, you’re looking at losing out on profit. Technical analysis can tell you so much.

It is important to remember though, that even with these tools, you will lose. Even the best traders lose 30-40% of the time and that’s ok. Technical indicators can help to minimize the loss. We teach you how to swing trade options in our free courses.

Can You Get Rich Swing Trading?

  • Can you get rich swing trading? Yes you can. Many swing traders make over $100,000 per year incomes. However, like anything in life it takes time and practice. Swing trading is just like any other profession. If you put in the time and the energy to study and learn then it can be a very lucrative profession.

Patterns Help You Find the Best Swing Trade Stocks

Something else that’s important to know when picking the best swing trade stocks is patterns. Patterns can help you determine a direction along with those technicals. Make sure to learn shorting to make money when the market is bearish.

Depending on what type of trader you are, long or short, you can use the patterns to get the perfect set up. Those candlesticks you learned about group together to form patterns.

Patterns break down all the time though. You can wait for confirmation before getting in. It’s ok to be a little late to the party. It’s safer and you still profit.

Look for signs that candlesticks such as gravestone doji candlesticks or inverted hammer candlesticks give you. There’s always warnings and signals to be found. Look for patterns within patterns to trade as you wait for the big patterns to set up (bookmark our stocks lists page which is updated daily by 9 pm).

Best Swing Trade Stocks

Hunting for awesome swing trading patterns like the one above on $CLVS paid off nicely.  The inverse head and shoulders pattern was hinting to a bullish move.

Conclusion: Best Swing Trade Stocks

Finding the best swing trade stocks is important if you want to make a profit. Knowing patterns and technical analysis will help to get those good entries and exits.

If you’re looking for a good watch list you can subscribe to our swing trade watch list as well as join our trade room to talk with other like minded traders.

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