What are good stocks to day trade

Screening Filters

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.