Small cap stocks for day trading

Screening Filters

1. Market Cap: {'max': '2,000,000,000'}

   • Purpose: To identify small-cap stocks.
   • Rationale: Small-cap stocks are typically defined as companies with a market capitalization below $2 billion. By setting the maximum market cap to $2 billion, the filter ensures that only small-cap stocks are included in the results, aligning with the user's request.

2. Weekly Average Turnover: {'min': '1,000,000'}

   • Purpose: To ensure sufficient liquidity for day trading.
   • Rationale: A minimum weekly average turnover of $1 million ensures that the stocks have enough trading activity. This is crucial for day traders, as they need to enter and exit positions quickly without significant price slippage.

3. Relative Volume: {'min': '1.5'}

   • Purpose: To identify stocks with higher-than-usual trading activity.
   • Rationale: A relative volume of at least 1.5 indicates that the stock is currently trading at 1.5 times its average volume. This suggests heightened interest or activity, which is often attractive to day traders looking for volatility and momentum.

4. Weekly Price Change Percentage: {'min': '5'}

   • Purpose: To find stocks with significant recent price movement.
   • Rationale: A minimum weekly price change of 5% ensures that the stocks have shown recent volatility. Day traders often seek stocks with price momentum, as these are more likely to provide intraday trading opportunities.

Why Results Match:

• The market cap filter ensures that only small-cap stocks are included, directly addressing the user's request for small-cap stocks.
• The weekly average turnover filter ensures that the selected stocks have sufficient liquidity, which is essential for day trading.
• The relative volume filter highlights stocks with increased trading activity, which often correlates with higher intraday price movements, making them suitable for day trading.
• The weekly price change filter ensures that the stocks have shown recent volatility, which is a key characteristic that day traders look for to capitalize on short-term price movements.

Together, these filters effectively narrow down the stock universe to small-cap stocks that are liquid, volatile, and currently experiencing heightened trading activity, making them suitable candidates for day trading.