Ask Colin

Apart from sticking to the big companies which have good liquidity, and scanning them in search of a profitable trade, is there any easy way, or faster way, to find where the good trades are?

The specific answer to your question is going to depend upon what you are trying to do. In other words, your trading plan should specify the set-ups that you are looking for. The scanning method you use will than be driven by what that those set-up situations are. For example, my investment plan is looking for upward breakouts from broad trading ranges or ongoing strong trends. I have found that one of the best scans for this is to filter the database of stocks for those that are making 52-week new highs. Ant stock on that list will have broken upward from a trading range that was at least 12 months in duration, or it will be trending up. It also finds a few double-top situations, but these are easily discarded if they are not interesting. So, what you need to do is to design a scan that filters out the kinds of stocks you are looking for.

Another approach is to create a watch list. When you go through your list of stocks, keep track of which ones are actually or potentially interesting. You can put these into a shorter list and review it each day. Insight Trader makes it really easy to add stocks to a watch list as you go through your scan, for later review.

An even better method might be to use something like the alarm system in Insight Trader to alert you when a stock has moved to a level that interests you.

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