What’s the best stock for day trading

Screening Filters

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

   • Purpose: To ensure the selected stocks have sufficient liquidity.
   • Rationale: Day traders need stocks with high liquidity to enter and exit positions quickly without significantly impacting the stock price. A minimum weekly average turnover of $1,000,000 ensures that the stocks are actively traded and have enough volume for day trading.

2. Relative Volume (min: 2.0):

   • Purpose: To identify stocks experiencing higher-than-usual trading activity.
   • Rationale: A relative volume of 2.0 or higher indicates that the stock is trading at least twice its average volume, which often signals increased interest or volatility. This is crucial for day traders who rely on price movements and volatility to generate profits.

3. Beta (HighRisk):

   • Purpose: To focus on stocks with higher volatility.
   • Rationale: A high beta indicates that the stock is more volatile compared to the overall market. Day traders typically prefer volatile stocks because they offer more opportunities for significant intraday price movements, which are essential for short-term trading strategies.

4. Price Change Percentage (min: 3%):

   • Purpose: To filter for stocks with significant recent price movements.
   • Rationale: A minimum price change of 3% ensures that the stock has experienced notable price action, which is a key factor for day traders looking to capitalize on short-term price fluctuations.

5. Market Capitalization (min: 1,000,000,000):

   • Purpose: To focus on larger, more stable companies while still allowing for volatility.
   • Rationale: Stocks with a market cap of at least $1 billion are generally more reliable and less prone to manipulation compared to smaller-cap stocks. This ensures that the selected stocks are not only volatile but also come from companies with a solid market presence.

Why Results Match:

• The filters collectively ensure that the selected stocks are liquid, volatile, and actively traded, which are essential characteristics for day trading.
• High relative volume and significant price changes highlight stocks with strong intraday momentum, providing opportunities for quick trades.
• The inclusion of high-beta stocks ensures that the results are focused on stocks with greater price swings, which are ideal for day traders seeking short-term profits.
• By setting a minimum market cap, the screener avoids overly speculative or illiquid small-cap stocks, balancing risk and reliability for day trading purposes.

These filters are well-suited to identify stocks that align with the needs of day traders, focusing on liquidity, volatility, and active price movements.