Finding trade ideas

Regardless of how much you trade, sometimes we all need help coming up with smarter trading ideas.

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Discover more about:

  • Common tools you can use to help generate trading ideas
  • Ways to validate your ideas
  • Methods to keep track of all of this information

We have the tools to help

Learning how to find new trading ideas is personal. Everyone has different goals, time horizons, and risk tolerances. And while there is no "silver bullet" that everybody uses, Fidelity offers many tools and resources that can help you find and validate ideas.

Let's highlight a few of the tools available on Fidelity.com or the Fidelity mobile app that you can use when looking for trading ideas:

  • News
  • Trending stocks
  • Stock Screener

Start the day by looking at the news

It’s not uncommon for stocks to move based on news—in fact, it happens every day. Looking at the news can help find a starting point—is there a particular company or market in the spotlight? Who or what is shaping the conversation?

Use the News & Insights on Fidelity.com to stay up to date on market news, your investments, and companies you may be watching. You’ll find details about upcoming earnings, dividends, and changes in Analyst Opinions.

Pay attention to trending stocks

Every day you can find a list of stocks that stand out based on various criteria. The most common of these lists are:

  • Stocks hitting 52-week highs and lows
  • Top gainers/losers for the day
  • Stocks with the most trading volume
  • Stocks with the highest rating by sector

These lists can be a great resource to help find new companies that are interesting to you. For example, you may see the largest loser of the day was the result of an earnings surprise which could be used as an opportunity to help you choose a particular stock.

Find ideas with the Stock Screener

When it comes to searching for trading ideas, filtering through all the opportunities that are available can be an arduous task—if you don’t have the right tools.

You can use themes in Fidelity’s Stock Screener as a starting point and way to help pick stocks. Find something that you're familiar with or are interested in exploring more—for example, 3-D printing or cloud computing. Then with just a few clicks you'll be provided with a list of companies to further research.

How do I know if a trading idea is right for me?

Now that you’ve put effort toward finding new trading ideas, it’s time to determine which may be right for you. We’ll look at a few ways to approach validating an idea with the Equity Summary Score, S-Score, as well as fundamental and technical analysis.

First, you can start by looking at the Equity Summary Score provided from StarMine by Refinitiv, which Fidelity offers as a consolidated view of ratings from a number of independent research providers. With this single score, you can quickly get a sense of how analysts view a stock, which can help to formulate your opinion. For example, an 8.4 bullish rating tells you that analysts think favorably about the stock.

Can social media assist in making a trading decision?

Social media is an everyday way to communicate and if you’re interested in what other traders are thinking, it could play a role when making a trading decision.

Properly analyzed social media data can help measure the impact of breaking news and potential market moves. The S-Score, provided by Social Market Analytics, can help to do just that. It’s a single, dynamic sentiment score ranging from −4.25 to +4.25. It helps assess if a conversation on social media is significantly more positive or negative than normal for a specific stock.

For example, a high positive 2.200 S-Score is generally associated with favorable changes in social sentiment and may result in increasing stock price. Keep in mind, the opposite sentiment applies for negative levels.

Look at the fundamentals

Fundamental analysis is the foundation of investment research that traders use to better understand a company and determine its value. This analysis can help you decide whether a company stock may be a potential trade or not.

Because fundamental analysis is such a broad subject, a good place to get started is by looking at the Fundamental Analysis Scores on Fidelity.com developed by S&P Global. This information presents an overall assessment of a company’s valuation, quality, growth stability, and financial health. It can help you to understand a company’s strengths and weaknesses in relation to its peers.

How’s technical analysis different from fundamental analysis?

It’s a lot of information to keep straight, we know. Rest assured there are tools to help!

  • Be sure to save any screen you modify so it can be easily accessed next time you use the screener.
  • Take advantage of the Notebook which allows you to capture, track, and save trading ideas in one convenient location across all devices.
  • Monitor your securities with the Watch List.

And of course, there’s nothing wrong with going old school and using a pen and paper to keep track of your ideas.

Key takeaways

  • Finding new trading ideas is personal—based on your goals, time horizons, and risk tolerances.
  • The Fidelity Stock Screener is a useful tool to help you quickly find trading candidates based on characteristics that are important to you.
  • Use the Notebook and Watch List, common tools to help keep track of your trading ideas.
  • Facebook.
  • Twitter.
  • LinkedIn.
  • Print
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