What are good stocks for day trading

Screening Filters

1. Price: $5–$30

   • Purpose: Focus on reasonably priced, actively traded stocks that are suitable for small to medium-sized day trades.
   • Rationale:
     • Below ~$5, stocks often behave like “pennies”: wide spreads, manipulation risk, and unreliable intraday behavior.
     • Above ~$30, position sizing becomes harder for smaller accounts and percentage moves per dollar risk can be less attractive.
     • The $5–$30 band tends to have many “in play” names that move enough intraday but still allow you to buy sufficient share size for meaningful gains.

2. Monthly Average Dollar Volume ≥ $5,000,000

   • Purpose: Ensure strong liquidity so you can get in and out quickly without moving the market.
   • Rationale:
     • Dollar volume (price × volume) is a better liquidity measure than share volume alone.
     • ≥ $5M/day on average means tighter bid–ask spreads, deeper order books, and more reliable fills—crucial for day trading where you may enter and exit multiple times a day.

3. Relative Volume ≥ 2

   • Purpose: Find stocks that are trading at least twice their normal volume today—i.e., “in play” names.
   • Rationale:
     • Relative volume ≥ 2 flags unusual activity (news, earnings, catalysts) that often leads to stronger intraday trends and larger price swings.
     • Day traders typically hunt for these high-activity stocks because they provide more trading opportunities and clearer momentum.

4. Moving Average Relationship: PriceAboveMA20

   • Purpose: Bias results toward short-term uptrends / bullish momentum.
   • Rationale:
     • Price above the 20-day moving average indicates a positive short-term trend.
     • For day trading, starting with stocks in an existing uptrend increases the odds that intraday pullbacks become buyable dips rather than attempts to catch a falling knife.

5. Price Change % (Today): 5% to 12%

   • Purpose: Target stocks already making a meaningful move, but not yet in an extreme blow-off.
   • Rationale:
     • A 5–12% daily move signals strong momentum and volatility—exactly what day traders need to capture intraday profits.
     • Below ~5% might be too quiet; above ~12% can indicate overextended moves that are more prone to violent reversals and harder to trade for late entries.

6. Exchange Listing: NYSE (XNYS), NASDAQ (XNAS), AMEX (XASE)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale:
     • These exchanges offer higher regulatory standards, better liquidity, and tighter spreads than OTC/pink sheet markets.
     • For day trading, that reliability and microstructure quality matter a lot for order execution and slippage.

Why Results Match Your Day-Trading Goal

• The liquidity filters (dollar volume and major exchanges) ensure the stocks are easy to enter and exit intraday.
• The volatility/momentum filters (relative volume ≥ 2, 5–12% daily price change, price above 20-day MA) focus on names that are actively moving and trending, which is what day traders need.
• The price range filter ($5–$30) keeps you in a sweet spot: not illiquid penny stocks, not ultra-expensive slow movers, but mid-priced names with enough movement and tradable share size.

Altogether, these filters are tuned to surface U.S. stocks that are liquid, in play today, and showing bullish short-term momentum, making them strong candidates to consider for day trading.