What should I buy

Screening Filters

1. Price: $1–$20

   • Purpose: Find stocks you can realistically buy with about $20.
   • Rationale: With $20, you need low-priced shares so you can buy at least 1–2 whole shares (or more). Capping at $20 keeps the list focused on names that fit your capital without relying on fractional shares.

2. Beta: HighRisk

   • Purpose: Target higher-volatility stocks that can move enough in the short term to produce noticeable gains (or losses).
   • Rationale: For short-term trading, very stable, low-volatility stocks often don’t move enough to matter on a $20 position. High beta screens for names that typically move more than the market, increasing the chance of meaningful short-term price swings.

3. Monthly Average Dollar Volume: ≥ $2,000,000

   • Purpose: Ensure good liquidity and active trading.
   • Rationale: High dollar volume means many buyers and sellers are trading the stock every day. This helps you:
     • Get in and out quickly.
     • Avoid extreme bid–ask spreads that can eat a big chunk of a $20 trade.
     • Reduce the risk of being stuck in an illiquid “penny stock.”

4. RSI Category: Moderate

   • Purpose: Avoid stocks that are extremely overbought or oversold.
   • Rationale:
     • Overbought stocks (very high RSI) can be at risk of a near-term pullback.
     • Oversold stocks (very low RSI) may be cheap for a reason and can keep falling.
     • “Moderate” RSI focuses on stocks not at an extreme, trying to balance momentum with avoiding obvious “too late” entries.

5. 1-Week Price Change %: ≥ 3%

   • Purpose: Capture stocks already showing short-term positive momentum.
   • Rationale: A positive move of at least 3% over the last week suggests:
     • The stock has recently been in demand.
     • There may be a short-term catalyst or trend in place, which is what you want to ride for short-term gains.

6. Region: United States

   • Purpose: Focus on U.S.-listed companies.
   • Rationale: For a small, beginner-sized trade:
     • U.S. markets are generally more liquid and better regulated.
     • Easier access via most brokerage accounts.
     • More consistent trading hours and information flow for a new trader.

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

   • Purpose: Restrict to major, reputable U.S. exchanges.
   • Rationale: Avoids OTC and pink-sheet names that can be very illiquid, easily manipulated, and extremely risky—especially dangerous for a $20 short-term trade. Major exchanges have stricter listing standards and better transparency.

8. One-Week Predicted Return: ≥ 0%

   • Purpose: Tilt the list toward stocks with a favorable short-term forecast.
   • Rationale: While no model is perfect, requiring a non-negative predicted 1-week return:
     • Filters out names where signals suggest likely short-term downside.
     • Aligns with your goal of seeking short-term appreciation rather than just any volatile stock.

Why Results Match Your Goal

• The price filter ensures everything is actually buyable with ~$20.
• High beta, positive recent performance, and non-negative predicted return all aim to find stocks with stronger potential for short-term moves to the upside.
• Liquidity (dollar volume) and major U.S. exchanges improve the safety and tradability of those moves, which matters when every dollar is meaningful.
• The moderate RSI setting tries to avoid chasing extreme spikes or catching falling knives, which is a sensible balance for a new, small-capital trader seeking short-term gains.