Today’s stock pick for day trading

Screening Filters

1. Weekly Average Turnover (min: 1,000,000):

   • Purpose: To ensure the selected stocks have sufficient liquidity.
   • Rationale: Day traders need stocks with high liquidity to enter and exit positions quickly without significantly impacting the stock price. A minimum weekly average turnover of $1,000,000 ensures that the stocks are actively traded and have enough volume to support day trading activities.

2. Relative Volume (min: 2):

   • Purpose: To identify stocks experiencing higher-than-usual trading activity.
   • Rationale: A relative volume of 2 means the stock is trading at twice its average volume, which often indicates heightened interest or news-driven activity. This increased activity can lead to greater price volatility, which is essential for day traders looking to capitalize on short-term price movements.

3. Week Price Change Percentage (min: 0):

   • Purpose: To filter for stocks that have shown positive price momentum over the past week.
   • Rationale: Stocks with upward momentum are more likely to continue moving in the same direction, providing potential opportunities for day traders to profit from short-term trends.

4. Beta (HighRisk):

   • Purpose: To focus on high-beta stocks that are more volatile than the overall market.
   • Rationale: High-beta stocks tend to have larger price swings, which is ideal for day traders who rely on volatility to generate profits. These stocks are more sensitive to market movements, making them suitable for short-term trading strategies.

5. P/E Ratio (TTM) (max: 20):

   • Purpose: To screen for stocks that are relatively undervalued based on their earnings.
   • Rationale: A lower P/E ratio (below 20) suggests that the stock is not overly expensive compared to its earnings. While day traders typically focus on price action rather than fundamentals, this filter ensures that the selected stocks are not excessively overvalued, which could reduce the risk of sudden price collapses.

Why Results Match:

• The filters collectively focus on stocks that are liquid, volatile, and currently experiencing heightened trading activity, all of which are critical factors for day trading.
• By including a momentum filter (positive weekly price change) and a high-beta filter, the screener identifies stocks with the potential for significant intraday price movements.
• The P/E ratio filter adds a layer of fundamental screening to avoid excessively overvalued stocks, which could be more prone to sharp declines.
• Overall, these filters are well-suited to finding stocks that align with the fast-paced, high-risk nature of day trading.