Day traders already know that scanning for stocks or options to trade is an essential part of your day. This article will discuss what day trade scanners are and how to use them to find profitable trading opportunities. We’ll also include tips on specific day trading scanner settings to use to make them more effective. No matter if you’re just starting or have been trading for a while, read on for some valuable information.
Day trade scanners are software programs that search the market for potential trading opportunities. They can be used to scan for stocks, options, or other securities that meet specific criteria. For example, you can use a day trade scanner to find stocks trading above their moving averages or having significant volume.
Many different day trading scanners are available, each with its own features and benefits. Some day trading scanners are free, while others may cost a monthly fee. Your best day trading scanner will depend on your individual needs and preferences.
Many online brokerages provide tools to scan for stocks or other equities meeting a given set of criteria (like thinkOrSwim). We will discuss configuring them to check for stocks based on your criteria.
Day trading scanners can be beneficial for traders as they provide a quick and easy way to find potential trades. However, it is essential to remember that day trading scanners are not perfect. They may miss some potential day trades, and they may also generate false positives. It is always important to do your own analysis before entering a position.
Please note many other methods of finding trades, such as technical analysis, fundamental analysis, and news-based strategies. It is important to find the best approach for you and use day trading scanners as just one aspect of your overall trading strategy.
Day Trading Scanner Settings Tips
Once you’ve found a day trade scanner that meets your needs, learning how to use it effectively is essential. Here are a few tips:
– Set up filters to narrow down your search. This will help you focus on the most promising stocks or options.
– Use multiple scanners. This will give you more results that you can filter through to increase your chances of finding profitable opportunities.
– Test out different day trade scanners. Not all scanners are created equal, so finding one that works well for you is essential.
By using the proper settings on day trading scanners, day traders can save time and make more money.
Day Trading Scanner Settings Criteria
Here are some settings to consider using for a day trading scanner:
Price is important because the price of a stock or option can provide clues about its future direction. If a stock or option is trading at a high price, there is likely significant buying interest. Conversely, if a stock or option is trading at a low price, there is likely significant selling interest.
Day traders should set the price range to find stocks or options within their budget. For small trading accounts, you may not be able to afford expensive stocks and may want to look for stocks less than $20 or $50 per share.
Day traders should set the time frame to find stocks or options that will be profitable in the short term. For instance, consider looking for stocks within 1% of the low price over the first 15 minutes of the trading session.
The day trading scanner should show stocks moving on high volume. Volume is a critical factor that most day trading scanners include. This is because volume indicates how much interest there is in a particular stock or option. The more volume there is, the more likely there will be further movement in the price.
News or Catalyst
A good scanner could show stocks with news or a catalyst moving the stock in one specific direction. Most scanners may not inherently have settings to search for news announcements. However, many traders look for high-volume stocks and research if a catalyst is moving the stock price, like earnings announcements, FDA trial results, mergers, or acquisition news.
Pre Market action
Gap up or down is another common criterion that day trading scanners use. Gap ups and downs occur because the price has moved significantly in a specific direction overnight. The stock that has gapped up or down is likely to be experiencing increased volatility. This can be a prime opportunity for day traders to make profits.
If you are a trader who relies on information about potential companies, you may also consider configuring settings for fundamental criteria, such as P/E ratio. Some scanners allow you to set up fundamental settings to help you narrow down your list of stocks to trade.
If you rely on technical analysis, then be sure to include the specific settings used to determine your scanner’s entry criteria. This can allow you to find potential stocks where moving averages have crossed or where the price is oversold or overbought (as examples).
Lastly, day traders should set the number of day trading scanner results to find the most profitable stocks or options.
By using the proper settings on day trading scanners, day traders can make more money and save time. Try different criteria on your day trading scanner to see what works best. With the proper settings, day traders can succeed in the stock market.
Day Trading Scanner Settings: Free Stock Screener – thinkorswim
Here are instructions on setting up a simple day trading scan on thinkorswim:
1. Open trading platform. Navigate to ‘Scan’ tab.
2. Under ‘Stock Hacker’, select the criteria to add. Select ‘ Last’ to set a minimum and maximum price range.
3. Select ‘Add Filter’ to add additional criteria to the list for Stocks, Options, Fundamental Criteria, Study and Pattern Criteria (Technical Indicators).
4. Continue to add criteria to the list.
5. Select the number of results to display. The default is ’50’ results. Select ‘Scan’ to display results.
Summary: Day Trading Scanner Settings
If you’re day trading, you know it’s important to find good stocks to trade. One way is to use day trade scanners. Day trade scanners are software programs that scan the markets for potential trading opportunities.
Day trading scanners are excellent for those who want to trade a different stock daily. However, what if there was a more straightforward way to day trade where you focus only on one ticker at a time. Well, that is how our day trading program works.
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”