Trade stocks with the help of scanner, instead of watching too many stocks and getting tired, trade selectively and have a wonderful day. During my early days of trading, there was a scanner Afl used in Amibroker which was used by few of the traders and this method worked all the time because it was based on chart patterns and volume. Every afternoon, traders would run their scanner setup in AFL (Amibroker formula Language) to find the stocks that are close to the resistance or support.
You can make a lot of money from breakout trades. The stock might explode with more pips to deliver than a usual trade on a normal day. The returns are immediate and most traders would love the money. There is no holy grail in stock market everyone would say but this one is a masterpiece in day trading. The idea is to find the support and resistance where all the buyers would become sellers or vice versa. This is of course the psychology behind the trading of stock.
Scan the stocks in the market to look out for opportunities. We can’t stare the monitor for hours to make one good trade in a day. Best time suitable for trading the breakout is during afternoon, where all people reverse their trade or people don’t want to risk their money and close position. This is one way to identify the opportunity which is someone’s threat. In other terms it is being greedy when others are in fear.
Jstock is very interesting software available in the market from more than 8 years and helps traders to track market easily. There is no need to spend money to track your investment, with the Jstock android for mobile. You can now track all your investment in one place. Scanning for the best opportunity is possible. You can make swing trading very easy with Jstock Android/Jstock for PC. All you need to do is look for high volume stocks (say 1 lakh volumes in a day) and stocks which surpass for the first time above 5 day maximum high price. You must also know how to read the stock charts (Important!!)
You can sell at resistance or buy at resistance depending on the market condition. You can find the nature of the trade using the options data. Learn to read about the options data where you can find whether the stock would break the resistance or it’s just a false breakout. I will explain about the options trading and steps to find the bear or bull mode in another post. But for Now find the stocks that make 5 day high price for the first time (the time period is one month mostly or 20 days) and buy or sell accordingly. This is one of the best swing trading technologies, you must develop the intuition to make a trade, and the levels don’t work if you don’t know the basics.
- Track all your investments in one place
- Get all the latest news about your stock on the go
- Get the summary of your gain percentage
- Also comes with an interesting chart tool
With Jstock for PC create your own scanning ideas. The scanner is developed using Jdraw and can scan stocks at a faster rate using Google finance. It is now possible to be own stock adviser and make successful trades. The interface is cool and comes with three styles , easy to view. Check out the scanner formula that I use,