How do i start developing a day trading strategy?

I have been reading books on beginning day trading but i have one question they dont answer well. whats the best way to decide out of all the stocks out there which one to trade. Alot of the books say to go by chart indicators and thats fine but i cant scan for chart indicators how do i decide which stocks to look at for chart indicators im just having problems finding a starting point

Public Comments

1. You decide what criteria you need to enter a trade..... many brokers and software companies offer scanning. The brokers that are best for trading are the ones that cater to the professional trader (someone that makes their living trading); Their systems will scan for indicators.
ThinkOrSwim
TradeStation
LightSpeed
and others.

The platform you pick is critical. Learning to day trade can take 3-5 years.
http://joefahmy.com/2010/03/17/recommended-reading-list-2/
http://www.chrisperruna.com/2010/01/10/2010-stock-reading-list/

2. What's your time frame?

A stock, or the market, can only do one of three things: up, down, or sideways.

You are either looking for a trend, or a trend change, or a range to trade, or maybe a breakout of the range.

If you make a list of two hundred tradeable stocks, you can flip through those charts in about half an hour.

Since most stocks follow the Dow, you could also simplify your life and just trade the Diamonds or S&P ETF, or the index options or index futures. Then you don't have to worry about earnings reports and the CEO falling out of his chair, and other adverse news specific to one company. You are diversified by trading the market rather than a stock.

Before you decide to become a day trader, check out these articles, first by the SEC (Securities & Exchange Comm), second by the FTC (Federal Trade Commission, and third by the Motley Fool:

http://www.sec.gov/investor/pubs/daytips.htm
http://www.ftc.gov/opa/2000/05/daytrading.shtm
http://www.fool.com/investing/small-cap/2004/12/27/daytrading-dangers.aspx

You really need to learn more about trading before you start making decisions about a system ... I would suggest initially exploring these sites and authors ...

http://www.iitm.com/ (Van Tharp)

http://www.hardrightedge.com/ (Alan Farley)

http://www.elder.com/

They each have books on amazon, which you can review before purchasing, or check them out at your local library. If your library doesn't have them, ask about the Interlibrary Loan System.

Also: New Trading Systems And Methods by Kaufman

Also, you'll need to develop a Trade Plan. Check out David Nassar, "Rules of the Trade." Then test your Trade plan on a simulator before risking your hard-earned money. You've got a lot of work to do, a lot of proving of your theories before you're ready to trade.

About.com: 'Becoming a Day Trader'
http://daytrading.about.com/cs/education...

Day Trading World:
http://www.daytradingworld.com/...

Daytrader's Bulletin:
http://www.daytradersbulletin.com/...

http://www.teachdaq.com/