What stocks should I buy as a day trader?

Screening Filters

1. Relative Volume (relative_vol: {'min': '1.5'}):

   • Purpose: To identify stocks with significantly higher trading activity compared to their average volume.
   • Rationale: Day traders rely on liquidity and volatility to capitalize on short-term price movements. A relative volume above 1.5 indicates that the stock is experiencing heightened interest, which often leads to increased price action and trading opportunities.

2. RSI Category (rsi_category: ['moderate']):

   • Purpose: To filter stocks that are neither overbought nor oversold, as indicated by the Relative Strength Index (RSI).
   • Rationale: Stocks in the "moderate" RSI category are in a neutral zone, which means they are not at extreme levels of buying or selling pressure. This provides day traders with opportunities to trade based on momentum or technical setups without the risk of entering at a peak or trough.

3. Price Change Percentage (price_change_pct: {'min': '5'}):

   • Purpose: To focus on stocks that have experienced a significant price movement (at least 5%) within a given time frame.
   • Rationale: Day traders thrive on volatility, and a price change of 5% or more indicates that the stock is experiencing meaningful movement, which can create profitable intraday trading opportunities.

4. Market Capitalization (market_cap: {'min': '500000000'}):

   • Purpose: To filter out micro-cap or penny stocks and focus on companies with a market cap of at least $500 million.
   • Rationale: Larger-cap stocks tend to have better liquidity and tighter bid-ask spreads, which are essential for day traders to execute trades efficiently. Additionally, these stocks are less prone to extreme manipulation compared to smaller-cap stocks.

5. Beta (beta: ['HighRisk']):

   • Purpose: To identify stocks with high beta, which are more volatile compared to the overall market.
   • Rationale: High-beta stocks are more sensitive to market movements, making them ideal for day traders who seek price swings to capitalize on short-term trades. These stocks tend to exhibit larger intraday price fluctuations, which align with the user's goal of day trading.

Why Results Match:

• Liquidity and Volume: The relative volume filter ensures that the selected stocks have sufficient trading activity, which is critical for day traders to enter and exit positions quickly without significant slippage.
• Volatility and Momentum: The combination of high beta and a minimum price change percentage ensures that the stocks are volatile and exhibit meaningful price movements, providing ample opportunities for intraday trades.
• Risk Management: By filtering for moderate RSI levels, the screener avoids stocks that are at extreme overbought or oversold levels, reducing the risk of entering trades at unsustainable price points.
• Market Efficiency: The market cap filter ensures that the selected stocks are from relatively stable companies with better liquidity, making them more suitable for day trading compared to illiquid micro-cap stocks.

Overall, these filters collectively address the user's query by identifying stocks that are liquid, volatile, and exhibit significant price movements, all of which are essential characteristics for successful day trading.