Can you tell me what to buy and why

Screening Filters

1. Price: $5–$50 per share

   • Purpose: Find stocks that are affordable for a $300 account while avoiding very low‑priced “penny stocks.”
   • Rationale:
     • With ~$300, this range lets you buy multiple shares (position sizing is easier and safer for learning).
       • E.g., at $15/share you can buy 10–15 shares; at $45/share you can still buy a small position.
     • Below $5 tends to include highly speculative, more easily manipulated names, which is not ideal for a beginner swing trader.
     • Capping at $50 keeps you out of very high-priced stocks where you’d only be able to afford 1 share (or less), which makes risk management and learning position sizing harder.

2. Monthly Average Dollar Volume ≥ $25,000,000

   • Purpose: Ensure you’re looking at liquid stocks where it’s easy to get in and out near the quoted price.
   • Rationale:
     • “Dollar volume” = price × volume. A $25M+ threshold means a lot of money trades hands daily, which usually:
       • Narrows the bid–ask spread (you lose less to trading friction).
       • Makes entries and exits smoother, which is crucial for swing trading.
     • For a small account, you don’t need such high liquidity to fill your own orders, but it protects you from thinly traded names that can move erratically and gap hard against you.

3. Moving Average Relationship: PriceAboveMA20

   • Purpose: Focus on stocks in a short‑term uptrend, which is aligned with typical swing‑trading strategies.
   • Rationale:
     • The 20‑day moving average (MA20) roughly represents the past month of trading.
     • Price above MA20 means:
       • The recent trend is upward.
       • You are trading with the trend, not trying to “catch a falling knife.”
     • For a new swing trader, trading in the direction of the trend (rather than trying to predict bottoms) is usually safer and easier to learn from.

4. RSI Category: Moderate (neither overbought nor oversold)

   • Purpose: Avoid stocks that are extremely stretched in either direction, which can lead to sharp reversals.
   • Rationale:
     • RSI (Relative Strength Index) is a momentum indicator; “moderate” usually means RSI is somewhere in the middle (e.g., not above 70, not below 30).
     • This helps you:
       • Avoid chasing a stock that has already run too far, too fast (overbought).
       • Avoid “falling knives” where downside momentum is strong (oversold).
     • For swing entries, a moderate RSI often means you’re catching a move that still has room to run without being extremely late or extremely early.

5. List Exchange: XNYS (NYSE) and XNAS (NASDAQ)

   • Purpose: Limit the universe to major U.S. exchanges with better regulation, reporting, and liquidity.
   • Rationale:
     • NYSE and NASDAQ:
       • Host most large, reputable companies.
       • Typically have tighter spreads and more stable trading.
     • This avoids over‑the‑counter (OTC) and lightly regulated markets, which can be riskier and more prone to manipulation—again, not ideal for a new hobbyist swing trader.

6. Index Component: GSPC (S&P 500) or NDX (Nasdaq 100)

   • Purpose: Focus on larger, more established companies that have passed strict index inclusion criteria.
   • Rationale:
     • S&P 500 and Nasdaq 100 components tend to:
       • Be larger, more liquid, and better covered by analysts.
       • Have more stable business fundamentals than small speculative names.
     • For learning:
       • Price moves often relate more clearly to news, earnings, and technical levels.
       • You’re less likely to be blindsided by random illiquidity or “pump and dump” moves.

Why These Results Match Your Situation

• You have a small starting account (~$300) → the 5–50 price range gives you realistic position sizes and better practice with risk management.
• You’re new to swing trading and want to learn → focusing on:
  • Liquid stocks (high dollar volume)
  • Clear short‑term uptrends (PriceAboveMA20)
  • Moderate momentum (RSI not extreme)
  • Well‑known, index‑quality names (S&P 500 / Nasdaq 100, NYSE/NASDAQ)
    reduces noise and “weird” trading behavior, making it easier to see how patterns, support/resistance, and indicators actually work.
• You want to “still make money” but treat this as a hobby → these filters bias you toward higher‑quality, more stable swing candidates rather than speculative lottery tickets, which fits a learning‑focused, small‑capital approach.

If you’d like, next step could be: I can walk through 1–2 example stocks that meet these filters and explain exactly why they might be good or bad swing setups (entry, stop, and target) so you see the full reasoning in action.