What's a good stock to buy for day trading

Screening Filters

1. Price: min $5, max $80

   • Purpose: Focus on reasonably priced, actively traded stocks and avoid extremely low-quality penny stocks or very high-priced names that are harder to scale into with a small account.
   • Rationale:
     • Day traders usually avoid stocks under ~$5 because they’re often illiquid, more easily manipulated, and have wide spreads.
     • Extremely high-priced stocks (hundreds or thousands of dollars per share) can be impractical if you’re trading with a smaller account or want flexibility in position sizing.
     • 5–80 is a “sweet spot” where many actively traded momentum names tend to fall, with enough volatility but still good liquidity.

2. Relative Volume (relative_vol ≥ 1.5)

   • Purpose: Capture stocks that are trading with significantly higher volume than usual today.
   • Rationale:
     • Day trading thrives on unusual activity—news, catalysts, or big institutional interest.
     • A relative volume of 1.5+ means the stock is trading at least 50% more volume than its normal average, which often correlates with larger intraday price moves and better trade opportunities.
     • Higher relative volume usually brings tighter spreads and smoother fills, both critical for short-term trading.

3. Monthly Average Dollar Volume (≥ $3,000,000)

   • Purpose: Ensure the stocks are consistently liquid in dollar terms, not just in share count.
   • Rationale:
     • Dollar volume = price × volume; it’s a good measure of how much money actually flows through the stock.
     • For day trading, you want to be able to enter and exit quickly without moving the price too much.
     • A minimum of $3M per day (on average) helps filter out thinly traded names that can have big slippage and unreliable price action.

4. Moving Average Relationship: PriceAboveMA5, PriceAboveMA20

   • Purpose: Focus on stocks in a short-term uptrend—useful if you’re primarily looking for long (buy) setups.
   • Rationale:
     • The 5-day and 20-day moving averages are short-term trend gauges.
     • Price above both suggests recent strength and upward momentum, which is what many day traders look to ride intraday.
     • This avoids stocks in clear downtrends where long trades are fighting the dominant direction, which can lower win rates.

5. Price Change %: min 2%, max 10% (for the day)

   • Purpose: Target stocks that are moving enough to be tradable, but not so extreme that they’re completely overextended or chaotic.
   • Rationale:
     • Under ~2% daily move often isn’t volatile enough to offer good risk/reward for intraday trades.
     • Over ~10% can indicate excessive volatility, gap-and-crash behavior, or news-driven spikes that are harder to manage risk around.
     • 2–10% intraday move gives a reasonable band of volatility that suits many day-trading strategies.

6. Region: United States

   • Purpose: Restrict results to U.S.-listed companies, matching your request for US stock market opportunities.
   • Rationale:
     • Ensures you’re seeing stocks that trade during U.S. market hours and are subject to U.S. regulations and reporting standards.
     • Avoids foreign exchanges with different hours, liquidity profiles, and trading rules.

7. List Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)

   • Purpose: Focus on major U.S. exchanges.
   • Rationale:
     • NYSE, NASDAQ, and AMEX are where most liquid, reputable, and institutionally followed U.S. stocks trade.
     • This filter excludes OTC and pink-sheet stocks, which are usually much riskier, less liquid, and often unsuitable for serious day trading.

Why Results Match Your Request

• The filters collectively find U.S. stocks that:
  • Are liquid and actively traded (dollar volume + major exchanges + relative volume).
  • Have enough volatility for day trading (2–10% daily move).
  • Are in a short-term uptrend, helpful if you’re looking for long setups (price above 5- and 20-day MAs).
  • Avoid the riskiest penny stocks and impractically expensive names ($5–$80 price band).

So, the screener is tailored to surface tradable, liquid, and actively moving U.S. stocks that are technically aligned with typical day-trading criteria.