Biggest Stock Losers
This is a list of the biggest stock losers today that are trading on the NYSE, NASDAQ, and AMEX with a minimum trading volume of 500,000. In general, it is not a good idea to buy stocks that are making a new low. Buying stocks that are trading a new 52-week low is like catching a falling knife. However, there are cases when a stock is so oversold that it becomes undervalued allowing traders and investors to pick up the stock on a bargain. Today's stock losers may become tomorrow's gainers.
Biggest Stock Losers Today
The stock screener for stock losers is a complete list of the biggest stock losers today. For traders who want to get a list of the stock gainers, use the biggest stock gainers today.
8/11/2022
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How to find top losers?
There are many ways to find beaten-down stocks such as this biggest stock losers screener. Traders can also find other cheap stocks with the following stock screeners.
Oversold stocks - this is a stock screener that shows oversold stocks based on the RSI indicator.
Stocks with 52-week low - find stocks that are making a new 52-week low. For traders who plan to go long on any of the stocks on this list, it is recommended that they put a tight stop loss because stocks that are making new lows may go even lower.
Gap down stocks - find stocks that are gapping down today. These stocks may or may not recover during the day. Gap down stocks is a list to watch for intermediate and advanced traders. Stock market beginners should stay away from stocks that are gapping down unless they have a solid entry strategy and an exit plan.
There are many other technical indicators that traders use to find beaten-down stocks, use the technical stock screener to find stocks based on your indicator.
How to trade top losers?
Buy low sell high is a classic trading strategy that many traders use. The goal is to buy when a stock is beaten down, and sell it when it goes higher.
Buy low sell high strategy
The biggest stock losers is a list of stocks that are worth watching for value investors and traders who are looking for bargains.
Most stocks decline for a reason, either they report bad earnings, management changes, or other bad news. Sometimes, when this kind of bad news is reported, the market overreacts and the stock plunges.
If the general market is down at the same time, it may drag the individual stock down even further. This allows investors and traders to load up stocks at bargain prices.
The buy low sell high strategy is more like a bottom-fishing strategy which is different from a trend-following strategy where a trader buys only when a stock is trending up and short stocks on a downtrend.
It is human nature to buy stocks on the cheap, but buying cheap stocks is not always the most profitable strategy. A lot of time, a stock becomes cheap because the company is not doing well. A cheap stock may get even cheaper. If a stock is on a long-term downtrend, it is not advisable to buy the stock because the stock could fall further. Instead, a trader should wait for the stock to bottom out before loading up the stock.
Buy low sell high example
Let's take a look at an example. In early March, the stock HUSA rallied from under $2 up to over $16 per share in 3 days, which is a rise of over 800%.
There is no way we would have known the stock was going to make this kind of move and get in just in time for the big rise. However, we can take advantage when the stock decline to the support level of $3 and get in for a quick swing trade.
The stock closed at $1.98, 2 pennies away from the round number of $2, and gapped up on the next trading day with a low of $3. This establishes support at $2 and $3 for the HUSA. If you are just starting out and not sure what support is, read the article on Support & Resistance.
Trading Strategy
Our goal is to buy HUSA at around $3 and have a stop loss of about 12% from our entry. If the stock keeps declining to the next support of $2, we would enter again and have another stop loss of 12%.
We are essentially using the penny stock strategy that we discuss in How to Swing Trade Penny Stocks.
- HUSA declined all the way down from above $16 to a low of $3.2 on April 11. The stock then consolidated for 3 days around this price before it ran up to $5 a share in 2 days.
- Unfortunately, for conservative traders, an entry at $3.2 is still too high. The preferred entry price is around $3.05, which means we miss this rally.
- HUSA then pulled back yet again to our entry price of $3.05 on May 10. The strategy is to buy the stock at $3.05 and set our stop loss for 10% or $2.68.
- HUSA kept going lower and bottom out at $2.72, which is just above our stop loss of $2.68. Notice that if we bought the stock at $3.2, we would have gotten shaken out of this stock because our stop loss would have to be $2.81 (12% of $3.2).
- HUSA then traded sideways for about two weeks before rising again and peaking at $8.6 on June 8.
Profit Taking
We need to set a goal for profit taking. For this trade, we set our target to about 24% which gives us a 1:2 risk-reward ratio on the trade. This makes out the exit price at $3.78.
It may seem foolish to beginners that we set a profit target as the stock almost tripled in a month. However, a profit target protects our profit when a stock doesn't work out as nicely as this one.
Traders can test different profit-taking strategies than this one. One can sell half of his position once the stock hits 24% and have the rest of the position on. One can also have his whole position on but move his stop-loss higher as the stock rises.
Stop Loss
To utilize the buy low sell high strategy, traders should set a tight stop loss to protect their investment just in case the stock keeps declining due to other fundamental factors of the company. Sometimes, after a stock hits our stop loss and bounces right back. That is fine, it is just part of the trading game. In the long run, it is better to have a stop loss instead of allowing one or a few trades that crush your whole portfolio.
Conservative traders should wait for a stock to recover before buying. With that being said, the biggest stock losers are still interesting for swing traders to watch. Some stocks may be down because the overall market is down for the day, and their long-term weekly trend may still be up which may offer an entry signal to buy a stock.
To learn how to trade stocks that are down today, read the buy low and sell high strategy from stock trading strategies.
Biggest Penny Stock Losers
This losers list does not include penny stocks. To find a list of the biggest penny stocks losers, go to Penny Stocks Losers.
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