Best day trade stocks

Screening Filters

1. Price ≥ $1

   • Purpose: Exclude ultra-low-priced “penny stocks” and focus on more established, tradable names.
   • Rationale:
     • Many sub‑$1 stocks trade on low volume, have wide bid‑ask spreads, and can be heavily manipulated—all of which are problematic for day trading.
     • Exchanges may have listing requirements around minimum prices; stocks under $1 often face delisting risk, which can add unnecessary noise and risk for intraday traders.
     • Focusing on stocks priced ≥ $1 generally improves trade execution quality and reduces extreme slippage, which is critical when entering and exiting positions quickly.

2. Monthly Average Dollar Volume ≥ $50,000

   • Purpose: Ensure a minimum level of liquidity so intraday trades can be entered and exited without moving the market too much.
   • Rationale:
     • Dollar volume = Price × Volume. Using dollar volume rather than just share volume helps capture how much real money trades in the stock, not just how many cheap shares change hands.
     • A threshold of $50,000/month is a very basic liquidity floor to filter out nearly inactive or illiquid names. For serious day trading, many traders would actually prefer much higher dollar volume (hundreds of thousands to millions per day), but this filter is at least removing the worst, illiquid outliers.
     • Better liquidity typically means tighter spreads and faster fills, both essential for active intraday strategies.

Why Results Match:

• The user wants stocks suitable for day trading, which requires:

  • Sufficient liquidity (so you can get in and out quickly).
  • Avoidance of the most illiquid, low-priced names that can have erratic, manipulative price action and poor fills.

• As a whole, these filters:

  • Remove the riskiest, thinly traded penny stocks (Price ≥ $1).
  • Enforce a base level of trading activity in dollar terms (Monthly Average Dollar Volume ≥ $50,000).

This combination helps move the universe closer to stocks that are at least tradable intraday, even though a more refined day-trading screen would often add further filters (e.g., higher daily dollar volume, volatility, tighter spreads, etc.).