What penny stock should i trade

Screening Filters

1. Price (max: $5):

   • Purpose: To identify penny stocks, which are typically defined as stocks trading below $5 per share.
   • Rationale: The user specifically asked for "penny stocks," and this filter ensures that only stocks priced at $5 or less are included in the results.

2. Market Cap (max: $500,000,000):

   • Purpose: To focus on smaller companies, which are more likely to be classified as penny stocks.
   • Rationale: Penny stocks are often associated with smaller, less-established companies. By capping the market capitalization at $500 million, the screener excludes larger, more stable companies that do not fit the typical profile of a penny stock.

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

   • Purpose: To ensure that the selected stocks have sufficient trading activity and liquidity.
   • Rationale: Penny stocks can sometimes suffer from low liquidity, making them difficult to trade. By setting a minimum weekly turnover of $1 million, the screener filters out stocks that may be too illiquid for practical trading.

4. Relative Volume (min: 1.5):

   • Purpose: To identify stocks with higher-than-usual trading activity.
   • Rationale: A relative volume of 1.5 or higher indicates that the stock is currently experiencing 1.5 times its average trading volume. This can be a sign of increased interest or activity, which may be relevant for short-term trading opportunities.

Why Results Match:

• The filters collectively focus on identifying penny stocks (low price and small market cap) while ensuring that the selected stocks are actively traded (minimum turnover and relative volume).
• These criteria align with the user's interest in trading penny stocks by narrowing the results to stocks that are affordable, small-cap, and have sufficient liquidity and trading activity to support active trading strategies.