2. Stock Scanners

How To Use Stock Scanners to Find Hot Stocks

I find almost every single trade setup on one of the stock scanners that I built with the team at Warrior Trading. I can’t speak highly enough about this tool, because without scanning software I would be lost as a trader.

A trader can have all the textbook knowledge of the markets but if they are unable to find setups in real-time they will never profit. Stock scanners are how we find those setups. Before stock scanners existed traders would trade off a master watch list which they would make by manually going through charts, which you can imagine took a long time.

This is not an effective method of day trading because typically there are only 5–10 stocks in play each day, out of the several thousand stocks available to trade. I consider a stock in play if it is surging up or down more than 4% with a strong catalyst.

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