Finding the right stock to trade

[legion3pm]

Just wondering how you find the stock that you are going to trade that day? Do you look through hundreds of charts and try to watch hundreds of stocks that day or do you just watch a few and wait for them to get to the price where you want to buy in at?

[Goods]

I have a list of 15-20 I flip through for anything good. I'll look at news on Yahoo finance or Scottrade or occasionally CNBC. Flip on Cramer to see what he's recommending so I can avoid it ;)

Always look at what the guys on here post of course. Sometimes bring up a hot sector and go down the list to see what's moving. Scottrade's got the 'top performers' that tell the top or bottom in price, percent, volume, etc. If I look at that list and see 4 or 5 of the top movers are in a particular sector, I'll concentrate on that sector.

By watching a few stocks constantly, you start to get a feel for them and how they react. For example, if you can pin down VMW or BIDU, you can make a fortune just buying and shorting that particular stock all day.

Also, I try to make a list of stocks that move on news, like a surprise rate cut. So that when it happens again, I know exactly where to go and what to expect.

[legion3pm]

so those books you recommended really help you out GOODS? im more of a hands on person to learn anything but ive been gettin beat down in some of the trades i have made. ive never been one that could read a book and learn. always done better when i was taught rather than reading a book and teaching myself. i think i need to get a "how to trade for dummies" book

[Goods]

I'm the same way legion, no question. Best lessons learned getting sodomized by some bad trade

The books give a general understanding of charts and more importantly, the mindset of how crowds trade and why the markets move how they do. Without that, you're just another target. Some books are boring but most I've read have kept my interest and taught me a ton. Consider it college and the money you eat through on bad trades the tuition. Get through the hard parts and the potential money you can make is unlimited.

Hope this helps.

[legion3pm]

yes everything you all post on here helps and i am very grateful. thanks for all the help.