When you’re swing trading, it’s sometimes hard to figure out what to trade. Here’s our tutorial on how to swing trade stocks.

Swing trading is a difficult task, and oftentimes, you’re using various analysis tools to try to catch profit over multiple day holds.The benefits of buying and holding over multiple days is that you’re saving capital by “trading” less, when compared to day trading. However, there is some risk associated with holding stocks for multiple days, such as news events that may be released overnight. That being said, if you’re looking to swing trade and understand the risks, you need to know how to find stocks to swing trade.

Depending on your trading style, you might want to use a catalyst event, technical analysis or fundamental analysis when conducting due diligence. For the most part, combining technical analysis and catalyst events work well in the trading community. That in mind, let’s look at how to find stocks to swing trade.

How to Find Stocks to Swing Trade

The first thing you want to do is see if there’s any upcoming events, such as earnings. You can do this by going on the company website, or EarningsWhispers. Next, you want to see if there are any news events. Generally, stocks need a catalyst to move.

A few quick tips:

  1. You’ll want to start your trading day early and check on company news, Most trading platform should have news built in so make sure yours does as well before proceeding.
  2. On the other hand, if you don’t have access to this, then you can check CNBCBloomberg and Finviz. Moreover, swing traders will also look at SEC filings too.
  3. Keep in mind, you need to be mindful of overall market news, such as political and economic events.
  4. For the most part, we use The Basics of Technical Analysis in Day Tradingtechnical analysis to spot potential trades, and if there’s a positive catalyst to support a bullish pattern, it could increase the probability of the trade being successful.

Technical Analysis

If you don’t have access to a screener through your trading platform, you could use Finviz to do that. For example, let’s say you find buying stocks above the 200-day simple moving average and is trading in an up channel works well for swing trading. You could easily do that using Finviz’s free tool.

How to find stocks to swing trade

Source: Finviz

For the most part, we swing trade penny stocks, as well as low-dollar stocks. Now, keep in mind, not all penny stocks are bad. You should find the ones that trade on Nasdaq or NYSE. It’s not hard to learn how to trade penny stocks, if you know what to look for.

Examples of Finding Stocks to Swing Trade

Now, I’ve found what works best for me, and learned how to find stocks to swing trade over time. If you’re a technical trader, it helps to look at technical patterns every night and see which ones are poised to rebound or break out.

I like to look for stocks that have been up big, and pulled back, giving another potential entry. A lot of the times, I’ll screen for this on my trading platform, and look at the chart to see if it fits my setup. For example, here’s a look at some of my trading plans.

BLNK – I’ve been waiting for a pullback to swing this one. Using Wednesday’s low of $5.31 I’m watching for an entry and swing back to the middle $6’s or maybe $7 if it heats up.

How to find stocks to swing trade

AETI – Picked this one up on Thursday and it ran about 30% for me, I took 2/3 off for about $3,000 and hold 1/3 in play above the MA(200). Will consider adding 10,000 shares above $1.33 for a move to $2ish.

How to find stocks to swing trade

Final Thoughts

Once you’ve filtered and found stocks to swing trade, you need to come up with a plan. That means having a specified entry price, stop-loss price and target price. If you don’t have a plan, you’re setting yourself up for failure. Especially when you’re swing trading, you need to devise a plan and properly risk manage.

Thereafter, if you execute a trade on the stock, you need to stay up to date on any news and figure out if there are any upcoming events. Finally, once you’ve exited the trade, you should journal and write out whether the trade worked. If it didn’t, write out why you think it didn’t work and how you could trade it differently if you see the same pattern next time. You should also make a note for your winning trades too.

When you review your trading journal, you could see which swing trades worked best. Ultimately, you would learn how to find stocks to swing trade by doing this.


 Jason Bond runs JasonBondTraining.com and is a swing trader of small-cap stocks.

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles