Most of the day traders usually focus on trading stocks that have big price movements. These stocks usually provide the biggest opportunity to quickly gain profit. To find high volatility stocks, you can use the stock filter of the stock screener.
Here are ways to find high volatility stocks.
Finding Regularly Volatile Stocks
You can access various stock screener to get stocks that routinely have heavy trading volume and high volatility. In most of that screener, you just need to adjust the filter.
The top five stocks that appear from your search should have the highest volatility. Here are the criteria you have to find in the high volatility stocks.
- These stocks move more than 5% a day on, at least 50 days average. You can also use 75 or 100 days average.
- The price of these stocks is between $10 and $100. You can alter the price based on your preferences.
- The trading volume of these stocks is above four million shares per day during the past 30 days.
Regularly search the stock through the screener on a weekly basis. Then, choose two or three stocks from the result to trade for the week.
Daily Analyzing the Stocks
The second way high volatility stocks is by monitoring the potential stocks every day. The potential stocks can consist of stocks that are very volatile during the previous trading session or the stocks with the biggest gains or losses.
To do it, you can also utilize the stock scanner. But, you also need to adjust the volume filter to make sure that the stocks are suitable for day trading. The stocks for day trading should have at least one million shares exchanged daily.
You may also want to check these stocks every morning to know if they have to earn releases due out. Big price moves can occur due to an announcement about the company’s quarterly profit or loss.
After that announcement, you have to quickly make the trade. Day traders often gain big capital during that moment.
