Here’s How To Use FINVIZ In 2018 To Find The Best Trade Ideas

finviz logo

Making sense of the market is never easy. After all, there are tens of thousands of securities one could trade. Who has time to get intimate with all them?

Finviz Review – Is It Worth It?

Trading has become a game of speed, a competition on who can act on new information the fastest. To keep up, traders use tools like stock screeners and alerts, as it allows them to process information and organize thoughts quicker. There are plenty of stock screeners to chose from, but I prefer using finviz.com.

It’s a web-based platform, and free to use. Some of its most useful features include quotes, charts, and screening. However, if you register for free you’ll unlock more features like customizing layouts, screener presets, and creating a portfolio. To unlock more features, they offer a paid version called FINVIZ*Elite, which gives you real-time quotes, charts, and screening. Also, it has fundamental charts,  and the ability to set email alerts,  as well as, all the features in the registered version.

finviz homepage

Source: finviz

Now, a lot of useful information can be picked up just from the home page. For example, at the top, you’ll see how the major indices are doing. Below that, are the largest gainers and losers on the day. If you look to the right, you’ll see a heat map, the giant red in AMZN, AAPL, GOOGL, and FB tells me that the NASDAQ and tech are weak. Below the heat map is a list of stocks that are in the news.

You can catch up to speed on the markets daily activity from the home page.

Using Finviz For Idea Generation

Day traders need volatility more than anything if they want to make money in the stock market and in this finviz review I want to point out exactly how to use the stock screener to lock on to good trade ideas. The typical day starts hours before the market opens. Day traders spend their pre-market time reading news and morning research reports. Of course, they are also looking at the pre-market movers. If a stock is moving in the pre-market, there is a good chance its because of news or a corporate event like an earnings release.

The Top Gainers & Top Losers signals on the home page are great for day traders looking for fast moving stocks to trade.

finviz top gainers

Source: finviz

You can get into greater detail by switching to the top gainers signal and viewing a snapshot.

finviz top gainers view

Source: finviz

Here we can see a chart of Therapix Biosciences Ltd. (NASD: TPRX) along with key data about its fundamentals, the latest news, and how it trades. For example, we can see that the average trading volume is 288K shares, but on this day the stock traded more than 788K. The stock jumps to  52-week highs on above-average volume, a healthy sign for the bulls.

headlines finviz

Source: finviz

Now if you look at the headlines, you’ll see that it is involved in medical cannabis, a fast-growing sector in the economy. Scroll further down, and you’ll see that the company signed an LOI to be acquired by FSD Pharma Inc. (OTC: FSDDF) October 22.

What should the stock price of Therapix be right now according to the terms of the deal? Will investors approve the deal?

These are the types of questions a trader might have. On the other hand, some traders may ignore the news and primarily focus on the price action. They might be asking questions like– Is the stock overbought here or does it have more room to run?

Using Finviz To Find Day Trades

Day traders like to focus on stocks that are making significant moves on above-average volume, and this one fits the bill. You’ll be able to create a watchlist easily if you scroll through the top gainers and losers. For example, there is usually a second-day trade which can be made. Check out TPRX the following day.

tprx day two finviz

Source: finviz

More Ways You Can Use Finviz To Generate Day Trading Ideas

For the most part, day traders focus on stocks that are in the news or are experiencing above-average volatility. Two of the most popular day trading strategies is trend trading and reversal trading.  Trend traders go with the momentum, while reversal traders go against it.

For example, if a stock is gapping up higher, a momentum trader will buy the stock with the idea that it will continue to trend higher. On the other hand, the contrarian or reversal trader will short stocks that are trending higher and buy stocks that are selling off.

When a company issues a press release, it is presenting new information to the market. That said, traders are trying to decipher that news in real-time and what its impact is on the stock price.

With finviz, you can do quick scans for stocks that could be poised to make big moves.

Jones Energy, Inc. (NYSE: JONE) announced after the close on Nov 6 that it appointed two new independent directors to the company. The news was viewed as bullish because the company has been struggling and maybe some new blood can shake things up.

The following day, the stock spiked to the upside.

jone finviz

 

One of the worst performing stocks on the year, the bounce in Jones Energy stock could imply that more positive catalysts are on the way.

jone short sqeeze finviz

Regardless, the company had a 21% short interest. In other words, 21% of the stock float has been loaned out and shorted. Generally, when a heavily shorted stock has a positive catalyst, it creates a “short squeeze.”

How To Create A Short Squeeze Scan With Finviz

A short squeeze occurs when the shorts are forced to cover their position, adding further buying pressure to the stock.

The beauty of finviz is that it allows you to create watchlists. For example, here is one that highlights stocks that have high short interest:

  • Float Short: Over 15%
  • Average Volume: Over 100k
  • Price: Over $2
  • Institutional Ownership: Under 50%

short squeeze watch list finviz

You can even sort out stocks that have had news over the last 24 hours.

news finviz

Do this in the pre-market, and you’ll have a solid list of short squeeze candidates for the day.

Bottom Line

Finviz is a powerful and affordable tool that investors and traders can use to make more informed decisions. It allows you to sort out stocks by its financials, technicals, valuation, news, and much more. It’s excellent for creating watchlists and getting caught up with the day’s action.  Check it out for free and see for yourself.

Leave a Reply

Your email address will not be published. Required fields are marked *

[index]
[index]
[523.251,1046.50]
[523.251,1046.50]
[523.251,1046.50]
[523.251,1046.50]