Screening Filters
Price: $2–$300
- Purpose: Focus on tradable, reasonably priced stocks suitable for active day trading.
- Rationale:
- Stocks under about $2 often behave like illiquid “penny stocks” with wide spreads and higher manipulation risk—less ideal for consistent day trading.
- Extremely high-priced stocks (e.g., $500+ names) can require more capital per share and may be less practical for quick scaling in and out of positions, especially for smaller accounts.
- The $2–$300 range captures many actively traded names that move enough to be interesting but are still accessible in terms of position sizing.
Volume: Minimum 400,000 shares (today’s volume)
- Purpose: Ensure there is enough trading activity to enter and exit positions quickly.
- Rationale:
- High share volume generally means tighter bid‑ask spreads and less slippage—critical for day traders who make frequent trades.
- A 400k+ daily volume threshold removes thinly traded stocks where a single order can move the price too much, making intraday trading risky and inefficient.
Monthly Average Dollar Volume: Minimum $500,000
- Purpose: Confirm consistent liquidity over time, not just a one‑day spike in activity.
- Rationale:
- Dollar volume (price × volume) captures both how many shares trade and how much money flows through the stock.
- A $500k+ average over a month helps ensure the stock is regularly liquid, so you’re not dependent on rare “hot” days to trade efficiently.
- This supports strategies that require consistent intraday opportunities rather than one‑off anomalies.
Price Change % Today: +1% to +100%
- Purpose: Target stocks that are actually moving intraday, providing tradeable volatility.
- Rationale:
- Day traders need price action; a stock that barely moves offers little profit potential.
- A minimum of +1% price change ensures the stock has notable momentum or volatility today, often driven by news, earnings, or sector moves.
- Capping at +100% avoids bizarre outliers (extreme gaps or erroneous prints) that may be illiquid or event‑driven in ways that aren’t tradable for most strategies.
Region: United States
- Purpose: Focus on U.S. markets, which are highly liquid and well‑regulated, and align with many traders’ primary trading hours and broker access.
- Rationale:
- U.S. stocks generally have strong liquidity and reliable market structure, which day traders rely on.
- This also ensures consistency in trading hours, regulations, and data quality.
Exchanges: NYSE (XNYS), NASDAQ (XNAS), AMEX (XASE)
- Purpose: Limit results to major, reputable U.S. exchanges.
- Rationale:
- NYSE, NASDAQ, and AMEX host the bulk of actively traded, institutionally followed stocks.
- These exchanges typically offer better liquidity, more reliable order execution, and tighter spreads than OTC or pink‑sheet markets—ideal for intraday trading.
Why Results Match “Good Stocks to Day Trade”
- They are liquid, with solid share and dollar volume, allowing rapid entries and exits with less slippage.
- They show intraday movement (price change filter), which is necessary for day traders to find profit opportunities.
- They avoid the riskiest illiquid penny names while still staying in a price range that’s accessible for active trading.
- They are listed on major U.S. exchanges, enhancing reliability, execution quality, and data transparency—key for short-term trading decisions.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.