Best stocks to buy today
What are the best stocks to buy today? How to find good stocks to buy right now? Which stocks to buy? These are some of the questions I get asked most frequently.
It was also the first question I asked myself when I started trading stocks.
The answer turned out to be more comprehensive than I had initially imagined.
The best stocks in my portfolio
Friends and family sometimes ask which stocks I own. Or they ask which of my stocks in my portfolio are the best-performing stocks.
I don’t mind sharing some names of the companies and the stocks that I am trading or that I have been trading recently.
- NVIDIA Corp.
- Ollie’s Bargain Outlet Holdings Inc.
- SodaStream International Ltd.
- Weibo Corp.
- Lam Research Corp.
- Scientific Games Corp.
- Baozun Inc.
Some of these stocks have more than doubled in price in just a few months or years.
The wrong question to ask
I am, however, careful in my response when friends ask me what stocks I am trading. Not because I mind sharing, but because it’s often the wrong question to ask.
In fact, it’s a dangerous question to ask.
Because there is much more to stock trading than a list of names of stocks to buy that have been performing extraordinarily well in the past.
You just can’t go around buying stocks whenever you want, or without knowing beforehand how you will trade them once you have bought them.
If you buy a stock without knowing what to do afterward, you will end up losing money.
No matter how great a stock is.
Timing is everything
It’s indeed a much better question to ask what are the best stocks to buy “today“.
When I first started trading stocks, I didn’t quite grasp that concept.
Every few weeks I looked for a number of stocks to buy. I then found way too many interesting looking stocks and bought them all on a paper trading platform to practice.
It simply doesn’t work like that.
The watch list
I now have a watch list. That is a list of stocks that I go through every single day.
I look at the candlestick chart of each of these stocks in order to identify a new buy opportunity. I only buy a stock when it signals a buying opportunity.
I have learned to wait for a new buy signal for as long as it takes.
I also don’t chase a stock. If I didn’t take a buying opportunity at the moment it was triggered, I wait for the next opportunity to come.
What stocks are on your watch list?
What stocks are on your watch list? In other words, what are the best stocks that you should look at every single day, looking for new buy opportunities?
When I was busy writing my trading plan, this is one of the questions that has kept me puzzled for quite some time.
Two main reasons
There are two main reasons why this is such an important question to answer.
First of all, because you will miss out on the best opportunities if a stock is not on your watch list. Simply because you never get to see some of these incredible new buy opportunities.
On the other hand, you daily just can’t or won’t go through a watch list of stocks that contains hundreds of names. You have to limit the list to just a few dozen names if you need to go through it manually. It will take too much time otherwise.
So, how to find these few names of stocks to go on your watch list?
Why I don’t use stock screeners
One solution would be to limit the watch list to just a few stocks I know or I hear about in the news. Stocks like Amazon and Facebook.
Or I could use a free stock screener like Finviz, and find a few names that interest me.
I could then work with this watch list for some weeks and later on, perhaps, use the stock screener once more to find some new names to add to my watch list.
I personally don’t use any of these online stock screeners to find my best stocks to buy.
Because a stock screener often returns me hundreds of interesting stocks of which I need to choose a dozen. I just don’t want to limit myself to such a small and static watch list.
How I find the best stocks to buy
I ended up developing my personal stock screener.
Is scans nearly 10,000 stocks on a daily basis and withholds the TOP 20% strongest stocks.
The result is a few hundred names that go on the watch list. This watch list is updated daily, so now and there some names fall off, and some other names are added.
Of course, I don’t manually go through this watch list of hundreds of names.
My trading setups
In a second run, my software automatically goes through the remaining stocks on the watch list. It filters out the stocks that match the criteria for a stock that is setting up constructively. That means these stocks might be getting ready for a new buy opportunity.
Next, my software checks if any of these stocks match the criteria for a new buy.
The buy alert list
The remaining list that is generated daily is very small and actionable. This is my “buy alert list”. It contains just a few names to go through.
So that’s what I do daily.
I check the names on the buy alert list that was generated by my software that night and go through the charts of each of these few stocks.
These are my best stocks to buy.
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