Finding High-Volatility Stocks To Day Trade

Day traders much focus on high-volume stocks that are seeing meaning price movements, because those stocks offer the best opportunities for making money in a topic of hours, minutes, or even seconds. You can use an online stock screener to find stocks that meet those and other criteria .

You can use screeners in unlike ways to find stocks that fit your trade needs. For exercise, you can find stocks that much experience a lot of price excitability on high trade volume ; ones that are likely to be volatile and highly traded on a detail day ; or ones that are showing excitability during a certain time of day .

Key Takeaways

  • High-volatility stocks are popular with day traders because they offer the opportunity to make money in a matter of hours, minutes, or seconds.
  • You can find regularly volatile stocks by using a stock screener such as StockFetcher to help you search.
  • You can also do some research in the middle of the trading session to find the stocks that are moving the most that day.

Searching for Regularly Volatile Stocks

To search for stocks that routinely display high excitability and big trade volumes, go to StockFetcher or another screener of your choice. If you’re on StockFetcher, click “ New Filter ” and copy and paste the follow lines into the pale-yellow area :

Show stocks where the average day range (50) is above 5%
and price is between $10 and $100
and average volume (30) is greater than 4000000
add column average volume (30)
add column average day range (50)

once you have entered in each trace, cluck “ fetch Stocks ! ” to get your results. You can see the beginning five stock results for free. The results will besides be delayed by a day. To see more than five results and access data from the most late trading day, you must pay for a subscription .

Those criteria will generate a list of stocks that :

  • Typically move more than 5% per day, based on a 50-day average; you can use any time frame you want, but a 50-day average or more will help you find stocks that have moved significantly, and with regularity, over an extended time frame.
  • Are priced between $10 and $100; you can alter those amounts to suit your preferences.
  • Had average daily trading volume of more than 4 million during the past 30 days
  • Are individual stocks, not leveraged ETFs

The “ add column ” commands enable you to see at a glance which stocks had the biggest average trade ranges and volumes .

Run that search on a stock screener each weekend. Pick two or three stocks from the list, and trade them for the workweek. Repeat the process, and note your successes and failures. You can customize many aspects of your search, therefore align any of the criteria as needed to get a list of stocks that are dependable suited to your day-trading strategy or specifications .

Analyzing Stocks Daily

Another approach is to monitor for stocks that are likely to move significantly each day. You can do this by using a stock screener or by paying attention to newsworthiness events such as earnings reports .

Finding daily Opportunities With a Stock Screener

Look for stocks that were explosive during the anterior trade session or had the biggest percentage gains or losses. Add a volume percolate to make sure the stocks are suitable for day trade ; day traders generally look for stocks that have at least one million shares traded daily .

For model, you can set up that search easily on FINVIZ, another unblock breed screener. Click the “ Screener ” check. Select “ Most Volatile, ” “ top Gainers, ” or “ top Losers ” from the “ Signal ” drop-down menu. The trickle options should automatically display, but if they do n’t, click the arrow next to “ Filters. ” then, you can set the “ average book ” percolate to more than 1 million ( “ Over 1M ” ). If you want to exclude ETFs, you can specify this in the “ Industry ” trickle ( “ Stocks only ( ex-Funds ) ” ). If you get excessively many results ( and you credibly will ), increase the average volume level to reduce the total of stocks in your list of results .

Earnings Calendars Offer Day-Trading Opportunities

aside from using banal screeners, you might besides want to check each dawn to see whether any well-known stocks have earnings releases due out. Announcements about a company ‘s quarterly profits or losses much cause big price moves. Be prepared to trade angstrom soon as the news is announced ; that ‘s when the most volatility occurs, and day traders can potentially capitalize on that volatility. Yahoo Finance ‘s earnings calendar lists the companies scheduled to release their fiscal results on any given sidereal day .

Both of these approaches will produce a meaning number of stocks. You ‘ll have to narrow down the list to a handful of stocks you can manage to watch ( and potentially trade ) that day.

Monitoring Intraday Volatility

Another day-trading method is to do some inquiry in the center of the trade school term to find the stocks that are moving the most that day. You can do this by using volatility and clear gainers/top losers filters on neckcloth screeners such as FINVIZ or TradingView. Most brokers and trade platforms will besides provide this information in veridical time .

determine for changes in the list throughout the day. If a standard opens down 10 % and stays there, it does n’t provide much opportunity for day traders. however, if a stock opens polish 10 % then moves in one direction or the other, it may be worth trade .

You can besides use stock screeners to check for stocks that are breaking through resistance levels or sending another technical deal signal. With a paid subscription, you can follow these intraday signals in real time .

frequently Asked Questions ( FAQs )

What stocks should you invest in when the U.S. market is volatile?

Investors who want to protect themselves from fickle or down-trending markets should emphasize strong fundamental investments. When a company has a strong counterweight sheet, consistent earnings, and a relevant business model, then short-run volatility should n’t be angstrom much of a business .

During which months are stocks most volatile?

October is typically the most explosive calendar month of the year for the stock market.

What are good moving averages to use with highly volatile stocks?

The best move average for volatile stocks depends on your trade strategy. If you’re a sidereal day trader hoping to capitalize on fleet changes, then you ‘ll want a shorter move average that ‘s more sensitive to the most recent price military action. If you’re trying to cut through the volatility and find good long-run investments during volatile times, you might want to use a longer move median that smooths out short-run volatility .

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