Below are my Top 3 FinViz Short Scans for Day Trading. When looking for stocks to short sell, its best to find stocks that are over extended. Any stock with a recent parabolic move is a great example of this.
A solid earnings report or a salacious news story can send a stock soaring to the stars. After the smoke settles and the stock is yesterdays news, the price is bound to come back to earth at some point.
To find stocks that went parabolic yesterday, I use the following search perimeters in Finviz. Some of the stocks found on this scan will continue higher based on recent events and to fake other short sellers out.
Daily Gainers Scan
The next scan looks for stocks that have been up big over the past week or so. You could use this scan in conjunction with a Kiss of Death scan to find stocks that have closed in price multiple days above the Upper Bollinger Bands.
Weekly Gainers Scan
The final Finviz short scan below looks for stocks that have been up big over the past month. These stocks can make for good day trades as most strong stocks will experience pull backs. Volume, news, fundamentals and sentiment all play a role when determining a stocks current value.
Monthly Gainers Scan
Its not wise to trade a stock simply based on the chart. You’ll probably hear the trading gurus go on about how they “trade the chart only”. If you’re trading the chart and not keeping an eye on news, you might get burned.
Start with the chart, look for news on the stock, checkout the fundamentals and stay connected with a day trading chat room like the one here to keep your finger on the pulse of a stocks overall sentiment.
I recommend signing up for a free account at Finviz so you can save these scans and others. The free account works great when scanning for stocks after the market closes. If you’d like to see up to the minute stock quotes or use Finviz during the day you’ll need to subscribe to the Elite plan.
When using Finviz for these top 3 short scans you can use the free version. My daily routine involves using Finviz to scan for these trade setups and others at the end and/or beginning of each trading day.
If you’re just starting out and would like to begin short selling I’d recommend Suretrader. They offer 6 to 1 leverage, no pattern day trading rules, $10 round trip trades and you can open an account and start shorting with just $500.