Best Stocks To Scalp And Day Trade In ThinkOrSwim

[picasso11205]

It seems that a key to the successful scalping is to have a small group of stocks with solid ATR movements everyday.

I am looking for simple to use tools that can be used on a repeated basis, as I am pretty much a beginner and probably would fail at things that are more sophisticated and complex.

 

[useThinkScript]

You are correct.
Successful daytrading and scalping relies on trading Futures, Highly Liquid ETFs, and/or Stocks with solid ATR movement.

Most volume is traded in the first and last hours of the day.
The idea is to not be wasting time, running scanners to find what stocks to trade.
The group of stocks with solid ATR movements changes seldom.

Run a one-time scan to find strong ATR movement.
scan filter:

ATR() is greater than x within 5 bars on a daily aggregation

where x is a number between 4 and 8
Create your small corral. Review your pre-market and EOD grids to determine which is lining up best.

VIP-ers:
If you do not have your small corral,
here is where to start:
https://usethinkscript.com/threads/identify-the-big-movers.20100/#post-150248


Here are the current top stocks that work best with AGAIG chart setups.
https://usethinkscript.com/threads/identify-the-big-movers.20100/#post-150094

Review which ones best fit your style of trading.
For instance, many newer traders stay away from higher volatility stocks like TSLA, GME, etc..
Higher volatility == higher potential profits. However, unless experienced in reading price action and candlestick patterns, the swift movement of volatile stocks can wipe out newer traders' portfolios.
Therefore, it is important to review a stock's price action within your trading chart to see if that stock aligns with your strategy.

See which fit you best.

 

[picasso11205]

Your feedback and guidance are most appreciated. I have spent so much wasted time scanning for stocks to trade rather than actually trading. You are helping me to understand that I am a carpet buyer/seller at the souk on a daily basis looking to support his family from the carpets that are available. I am not the carpet manufacturer or supplier who brings the carpets to the souk.

 

[MURFMURF]

May I suggest a Market CAP sort of 1 billion or more. Should be a good filter of stock with enough volume to consider for day trading.

 

[useThinkScript]

May I suggest a Market CAP sort of 1 billion or more. Should be a good filter of stock with enough volume to consider for day trading.

You are correct that liquidity is a key ingredient. But not Market Capitalization.

The stocks currently traded by successful day traders have a range of market caps.
Market Sentiment NOT Market Capitalization drives the intraday day big moves that ensure significant profitable day trades.

Given the politics, news, and sentiment surrounding Energy & Utilities:
VST was one of the top day-traded stocks favored by retail traders last month with a mere market cap of 59mil

The most important aspect of evaluating a stock's scalping / day trading potential is its ATR or big mover status.
https://usethinkscript.com/threads/best-stocks-to-scalp-and-day-trade.20523/#post-150095