Jul. 4, 20226 min read

Reader mailbag Q&A!

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Written by Tim Bohen

Happy Fourth of July everyone! I hope you’re all enjoying your holiday. 

Even though it’s a holiday, I’m still working to get 1% better today, and I hope you are too… 

So to help you get ready for the week ahead, I’m answering YOUR trading questions… 

You see, a few months ago, I asked readers to submit their trading questions…

And I got so many replies and questions that I wasn’t able to answer them all in one issue. 

So today, I’m reaching back into my reader mailbag…

These could be the answers you’re looking for to start a fresh week of trading.

Let’s dig right in… 

Get your trading questions answered daily here. 

(Note: Some questions have been lightly edited for clarity and length.)

How to Find the Right Stocks To Trade

Before you make any trades, you need to be sure you’re watching and planning trades in the right stocks… 

It’s the foundation of trading, so I’m glad Linda asked, “How do I know what stocks I should look for? How do I do my own research on the stock and what do I look for?”

First, the types of stocks you want to look for will vary based on your trading style and what you’re good at. 

Before you consider trading any stock, enter these criteria into a stock screener to find stocks with the most potential:

  • Volume
  • Catalyst 
  • Big percent gainer

You can use this news scan to find big runners.

Once you have a list narrowed down, you can look through the stock charts to find the ones you like best. 

From there you can use StocksToTrade’s Breaking News Chat to find the ‘why’ behind the move. Or you can search other free news sites like Yahoo Finance, or Globenewswire

Once you have stocks with charts you like, and you know the ‘why,’ you can start to plan your pattern and trade from there. 

Read this post for my five steps to conducting stock market research

Andrea has a related question. She wants to know, “How do I know what notifications from StocksToTrade’s Breaking News Chat are good to trade?” 

Remember, we never try to anticipate what news matters. And we never believe the news. What we want to do is find the stocks that are already reacting to a news catalyst. 

So if you see a breaking news alert, always check out the stock’s long-term chart, the intraday chart, the float, and the volume before considering a trade. Look for signs that the news matters… 

Is the stock gapping up? Is it trading high volume? Does it have a low float and the potential to go higher? 

Then you can determine which pattern to watch for and make a trading plan

How to Let Winning Trades Run

Once you’re trading the right stocks and you have a winning trade, you want to get the most out of it, right? 

That’s what most traders think. They want to capture big gains and get rich quick. 

But don’t underestimate the power of stringing small wins together. They really do add up over time. 

But readers like Alex want to know, “Do you have any tips on how to stay patient in a trade and resist the urge to take profits early?”

One of my trading mottos is: See green, take green. That means if you see profits, take them. 

I don’t trust any sketchy penny stocks for long. But if you want to get the most out of a winning trade, consider sizing into your winners. 

You can watch this video to learn more about that.

Also, get Jack Kellogg’s tips on sizing into winners here

How to Use Tech to Help You Trade

I talk a lot about using tech to help you trade. There are so many tech advancements that can make trading easier. But one drawback is that it can come with a learning curve for some traders… 

But I can tell you, it’s worth putting in the time to learn how to use it. Because it can save you so much more time in the long run. 

That’s why I like Bobby’s willingness to learn. He says, “I would really appreciate a breakdown on how to use Oracle.” 

Basically, Oracle is a proprietary algorithm that narrows down thousands of stocks into just 20 with the highest potential for explosive moves. 

I use it every day in the SteadyTrade Team to find trading opportunities. Even with my years of experience, it saves me a ton of time. Especially in this chaotic market. 

It’s a bit complex to get into detail in this post, but check out the resources below to see how Oracle works and how to use it. 

Read this blog post to find out how to use StocksToTrade’s Oracle algorithm.

Get an introduction to Oracle in this video

And try it for yourself with StocksToTrade’s Fourth of July sale here. 

Have a great day everyone, I’ll see you back here tomorrow. 

Tim Bohen

Lead Trainer, StocksToTrade