In my last post, I discussed how to find stocks using press releases. If you are trading every day, you can’t rely solely on good press releases. You need other options. The main tool that I use for finding good OTC penny/subpenny stocks is EquityFeed. The tool has a monthly cost, but there is a free trial available for you to test out the software. Let me make it clear that I am not trying to force this software on anyone. I am bringing it up because it is a valuable tool in my arsenal of trading software. You can probably apply some of these strategies without EquityFeed if you would prefer not to buy the software, however, I do recommend checking it out.
Let’s get right to it. Here’s are the many ways I find stocks with EquityFeed:
Equity Feed has a streaming news module. This module constantly refreshes and alerts you whenever there is press releases or SEC filings for OTC companies during the trading day. This allows you to react to these catalysts much faster than traders who are using slower sources for news. It also allows you to view important data such as the stock’s volume, price changes, etc. You can filter the news by keywords, types of stocks, and other criteria.
Another one of my favorite features of EquityFeed is the Market View feature. This shows you all of the OTC stocks and allows you to sort them by different criteria. I split this feed into stock that are under $0.10 and stocks that are between $0.10-$0.50. Then, I sort the stocks by their dollar volume for the day or the # of trades. This allows you to see what the hottest stocks are during the day and make trading decisions accordingly. It also helps you find stocks that may be hot the next day as they continue their trends. Of course, you can filter these lists down even further, but I like to keep it simple.
This window gives you live trading alerts throughout the day and organizes them by type (each color is a different type of alert). You can create alerts for new highs, new lows, unusual volume, and block trades. This assures that you are always aware of what is going on in the market. When people bring up stocks breaking out in chat rooms or on Twitter, I have already been alerted in EquityFeed much earlier. Setting up alerts is very easy to do, unlike some other scanning tools.
EquityFeed has a feature called Filter Builder that allows you to scan the markets for stocks with very specific criteria. For example, you could create a filter for stocks with increased volume approaching their 200 day moving average. You can use this tool for live streaming during the day, however, I rarely do because I already have the trading alerts window. I will use this tool at night to find stocks that may be good swing trades or day trades for the next day. There are so many different filter variations you can make it so you need to constantly test new strategies.
EquityFeed is a great tool for people who trade a lot of OTC stocks. I recommend messing around with it a bit and seeing if it aligns with your needs. They have a 30-day free trial, and you can also get 10% off of your subscription when you use this link. If you have any questions, you can feel free to contact me through the contact page on my site.
Check back tomorrow for Part 3 of this series where I will discuss Stock Scanners.