If you’re a beginner and not sure how to start looking for stocks to trade, don’t worry, there are some simple ways to build a solid foundation.
As a beginner, you likely also have a smaller trading account. This can actually be an advantage because you’ll have more flexibility and a wider selection of stocks to choose from. However, it’s important not to trade low-quality stocks just because they’re cheap or accessible. In the beginning, it can be difficult to distinguish between high-quality and poor-performing stocks, so filtering is essential.
One great place to start is by using the same scans recommended by Qullamaggie, a well-known trader.
In This Article:
Swing Trading Scans For Beginners
These scans help you identify strong momentum stocks:
- 1-Month Gainers
- 3-Month Gainers
- 6-Month Gainers
These will give you a solid universe of stocks that have already shown strength and momentum.
Add These Filters to Refine Your List:
To narrow it down further and focus on quality names, add the following filters:
- Price > $3-5
Lower-priced stocks are often harder to trade and more volatile. Also, brokers may offer lower transaction fees on higher-priced stocks. - ADR > 5-6% (Average Daily Range)
This helps you filter for stocks with momentum. As a beginner, momentum is difficult to spot, but it improves the odds of the stock continuing in your direction. - Dollar Volume > $50 – 100M
Dollar volume = Price × Volume. Higher dollar volume increases the chance that institutions and funds are involved, which can fuel further price movement. - Average 5-Day Volume > 500K – 1M Shares
Higher volume means tighter spreads and better risk management. Low-volume stocks can be unpredictable and harder to trade.
With these filters applied, you’ll typically narrow your list to around 100–300 stocks, depending on the overall market conditions.
Focus on the Strongest Momentum Stocks
Once you have your list, you can refine it further by focusing on the top 50 stocks from each of the 1-month, 3-month, and 6-month gainer scans.
Look for stocks that appear across multiple scans, these are often the strongest candidates and deserve extra attention.
Optional (But Recommended) Filters
To make your trading even safer and more effective:
- Exclude Biotech Stocks
If you’re not comfortable with biotech, consider excluding them. These stocks often carry “gap down” risk due to unpredictable news like clinical trials or FDA decisions. - Look for High Growth Fundamentals
For an added edge, prioritize stocks with strong fundamentals, such as:- Revenue growth of 40% or more (year over year)
- Positive or improving EPS (Earnings Per Share)
Platforms That Support These Scans
You can use most modern trading platforms to run these scans. Two that I’ve personally tested and recommend:
Both platforms support the filters and scans mentioned in this post. Here is an example of how it’s written in TC2000:
Final Thoughts
This scanning process will give you a curated list of high-quality momentum stocks. The next step is to learn specific setups and patterns that suit your style. But by starting with a strong list of candidates, you’re already halfway there.
I post trade setups, market structure insights, and lessons like these daily on X/Twitter. If you have any further questions about swing trading scans, feel free to leave a comment down below. You can also check out our other articles about scanning for swing trading stocks. We have several different articles for different software.
