To get in on a stock runner for a short-term gain, you need to identify stocks that are showing potential for rapid price movement. Here are some strategies and criteria to help you find these opportunities:
- Focus on Pre-Market Activity: Look for stocks that have gapped up or down in the pre-market. These can be indicative of significant news or events that may continue to impact the stock after the market opens1.
- During the Day Scan: Utilize tools like TradingView or Finviz Elite to scan for stocks that are moving significantly after the open. Criteria such as high volume and price percentage gains can help identify these stocks2.
- Volume Boost Scan: Implement a scan that focuses on stocks with a significant increase in volume. This can be a sign of increased investor interest and potential for price movement3.
- Momentum Indicators: Use momentum indicators such as moving averages or the VWAP (Volume Weighted Average Price) to identify stocks that are trending upwards. These can be particularly useful in identifying multi-day runners4.
- 52-Week Breakout Scan: Breakout scans can help you find stocks that have been consolidating for a long time and are now breaking out of their ranges. This can be a sign of a potential short-term gain3.
- Price Patterns: Look for stocks that are forming bullish or bearish patterns such as flags, pennants, or head and shoulders formations. These can provide insights into the stock's potential direction4.
- Market Volatility: Trade during periods of high market volatility, such as news events or earnings releases, as these can cause significant price movements1.
- Short Selling: If you're inclined towards short selling, look for stocks that are overvalued or have poor fundamentals. Shorting these stocks can allow you to profit from their potential price declines5.
Remember, short-term trading involves high risk and requires quick decision-making. It's important to have a clear trading plan, manage risk effectively, and keep emotions in check. Additionally, always consider the overall market conditions and news that may impact stock prices.