Hello there, today I am going to show you how I scan for winning stocks to trade. It will be the step by step technique I started recently using, basically an insider’s view to my process. It has taken over a decade to get to this point. Every time I refine the process it gets better and better. Before I would simply look for some type of stock that fit my technical setup. This was a huge mistake!
The stock market is different than Forex and futures (mind blowing concept, right?) because every stock runs the risk of going bankrupt. If you simply look for depressed stocks and think they are going to turn around then let me save you some money with this advise: most won’t turn around and become winners. When a stock goes from $30 down to under $2 there are huge reasons why. They are circling the drain and are most likely on borrowed time before they go bankrupt.
I used to think they were heavily discounted and were a bargain. After a couple I owned went bankrupt I soon realized this way of trading was doomed.
So I started researching what to look for when investing in stocks. The process I came up with I will go over in the next section. Basically I look for stocks with good growth fundamentals. Then if they pass the screener I look for the ones that fit my setups.
So far this has proven to be extremely helpful and has helped me avoid the absolute crap stocks that are doomed for bankruptcy.
The Process on How to Scan for Winning Stocks
You can do this too. In fact, you need to have your own way you scan for stocks that fit your trading style. I’ve done many different trading styles over the past decade. But for the past 2 years, I’ve dialed it in based on discovering the trading style that works for me.
That is the key, you have to create your own trading style. You cannot copy someone else’s signals and expect to be profitable long term. Have you ever met or seen anyone post their account statement from a trading room that made them a millionaire? I never have seen one. I’ve seen doctored videos with claims but no proof. It’s so weird how providing proof of trading profitability is so easy to do but how almost everyone selling a product doesn’t provide it. Food for thought.
Here is the post where I go over every step it takes to create your own trading style: https://evancarthey.com/how-to-become-a-profitable-trader-using-meditation/
People selling you courses, books, and subscriptions to their trading rooms or signals won’t tell you this. They don’t want you to discover the trading style that works for you. They want you to rely on them and keep giving them money. Most of the “experts” are losing traders and only make money by people buying their trading products and services.
If they were as good a trader as a marketer then they would be up tens of millions in profits. The reason why they sell a $2,997 course or a $99/month trading room access fee is that they can’t make money trading. That is the truth. Unless they show you verified statements of profitability then assume they are a losing trader. If they won’t show you verified statements or come up with an excuse as to whey they can’t then they are a losing trader. It is that simple.
Without further ado here is the video where I show how I scan for stocks that fit my trading style. I leave nothing out and show you everything I do when I am looking at purchasing a stock or option.
Video Review
Conclusion
I hope the video accurately describes what I am looking for when investing in stocks. The screening technique I use filters most of the crap stocks so I don’t waste my time and invest in doomed investments. It isn’t guaranteed this will work 100% of the time but it does make the odds higher that I am avoiding stocks I should not go long with.
If this helps you then awesome! If not then don’t worry about it. The goal is to pick and choose what works for you and then develop your own trading style and system around it.
If this post benefits you and if you haven’t used Robinhood for trading stocks but are thinking to then please consider using my referral link when you do sign up: http://share.robinhood.com/evanc203.
This way each of us will receive a free share of a random stock if you sign up through my referral link.
My Robinhood Review: https://evancarthey.com/review-robinhood-trading-service-with-no-fees-part-1/
