The most important question on every market participants mind daily is which are the best stocks to buy today. It doesn’t matter whether you are experienced investor or novice trader. Everyone is looking for the best stocks to buy today.
You can find several articles online that give you the list of best stocks to buy. But such lists make you dependent on someone else. I believe that investing is a basic right of every individual and he should be empowered so he can invest on his own.
Investing is not a one-time exercise. It is a life-long journey. To help you navigate this journey we have decided to empower you with knowledge and tools required to identify the best stocks to buy today. It will help you buy best stocks not only today but also tomorrow, the day after and forever. So let’s begin…
In this article
- What are the qualities of best stocks to buy today?
- How to find best stocks to buy today
- Screener to find best stocks to buy today
- Video on best stocks to buy today
- Other articles with list of best stocks to buy
If you want to buy the best stocks today then you must first understand the qualities of a best stock. There are four main qualities of best stock.
A stock with good liquidity
Best stock to buy is one that has good liquidity. A stock that is frequently traded on the stock exchanges is considered liquid. The benefit of buying a liquid stock is that you can get entries and exits quickly. The impact cost which is the difference between bid and ask spread is less in liquid stocks.
1. A stock with high probability of good returns
Best stock to buy is one that has high probability of success. If you are buying a stock means you are expecting the prices to go up. You make a profit only if you sell the stock at a higher price then you bought it. The skill to identify stocks with high probability of success is crucial to succeed in markets. But you must not worry as I will reveal it all in this article. You must read on till the end…
2. A stock with low risk
Best stock to buy is one where risk is minimal. People often neglect the risk associated with a stock while chasing returns. You must also consider the risk involved in a stock before buying. You don’t want your capital to be stuck in poor quality stocks. Right?
3. A stock that can move quickly in your favour
Time is another important factor in buying best stocks. You want to buy a stock that moves in your favour quickly, right. If you can identify such stocks then you could generate higher returns on same capital.
So these are the four qualities that must be present in the best stock to buy today. Now where will you find such stocks regularly?
Twenty-twenty is the answer.
Don’t be surprised. I am not talking about twenty-twenty cricket. I am talking about twenty trading days.
There are about 20 trading sessions in a month. I believe how stocks trade over the last 20 days can give you several insights about how they could trade for the next 20 days.
Now here is what you must look to pick the best stocks to buy today.
- Find breakout stocks
Stocks don’t move in a straight line. In fact they remain trendless for atleast 70-80% of the time. This isn’t a good time to buy these stocks. You must buy stocks when they are breaking out of their sideways range to make profits in them.
But how do you identify which stocks are breaking out today?
Just track stocks which are closing above the highs of previous 20 trading days. A month is made of about 20 trading sessions. When a stock closes above its 20 days highs it means that it is trading on a one month high. Chances of up move from such levels are higher. Thus, you are improving your probability by buying these stocks today.
Now there are more than 4,000 stocks listed on the exchanges. How do you track which stocks have closed above their 20-day highs today?
Traders who want to buy best stocks daily can look out for stocks breaking out of 20 day highs. On the other hand, if you want to short sell a stock then you can look for stocks that are breaking below 20 day lows.
I have covered that too in the video. So it’s a complete package for traders who want to trade the best stocks today.
- Find high action stocks
One must also keep an eye on stocks with high volumes. After all volume is the best indicator after price. Stocks that rise on high volumes indicate traders interest. If market participants are loading up a stock with rising prices then it suggests demand. This is a precursor to an uptrend and traders must watch out for such stocks.
Now the question is how do you figure out the stocks with high volumes. What criteria should you use for it?
Here again our T-20 formula will help us. You must look for stocks with today’s volume greater than average volume of last 20 days.
You must not calculate this manually. Our screener will help you do this daily.
- Find momentum stocks
Last but not the least is identifying stocks that are already in momentum. Stocks that are top performers are stocks with positive momentum. Investors who want to buy stocks with a potential to generate quick returns must watch out for these stocks. They have the potential to move in you favour quickly.
Now how do you measure their performance?
Here again we will use the last 20 days performance to identify best performers. Since 20 days represent a month. We are essentially looking for stocks that are in the top of the list. These are your high-flying stocks.
You will get this list in the screener that I have built along with other two lists as well. And along with this you can also see the worst performers. It will help you figure out stocks with negative momentum.
So aggressive traders can short sell these stocks too. If you are conservative trader then you must stay away from such stocks.
You can notice that there are too many stocks when you include all the three lists – breakout, high volume and momentum stocks. How does a trader with limited capital decide which stocks to buy and which ones to avoid?
It may take a while to get used to these screeners. However, I am certain once you start using them you will get a feel for the stocks to buy.
One of the most important factor is sector. If you notice the last column in each of the above tables represents the sector of that stock.
Generally, stocks do not move alone. They move in groups. So stocks from the same sector tend to move up or down together.
When you observe stocks from the same sector lining up together in a list then that is the time to watch out for those stocks closely. There is high probability of success when you pick stocks from such sectors.
This is an effective way to use this screener. I am certain once you start using it you will be able to identify best stocks to buy today like my YouTube viewers who have found it extremely useful.
A best stock to buy today is one that offers high probability of good returns with low risk. It also has good liquidity and moves in your favour quickly.
I believe this screener is the best thing one could get to identify best stocks buy today. What do you think?
Please share your views below.
Before I sign off I would like to share the other list of best stocks to buy. You can find many more list of best stocks to buy in our Samco Stock Market Library. Do check it out without fail.
- Best Long Term Stocks to Buy now in India
- Best Midcap Stocks to Buy now in India
- Best Large Cap Stocks to buy now in India
- Best Multibagger Stocks to Buy now in India
- Best Dividend Paying Stocks to Buy in India (Updated List 2021)
- Best Blue chip stocks to Buy now in India
- Best Growth Stocks to Buy in India
You could buy and hold these stocks at almost zero brokerage from the Samco Samco App. You can hold them in your demat account to compound your wealth over time. You can also get live updates for all the above stocks at your fingertips with the Samco App. Open a Free Demat account to buy and hold these stocks today.