Finding the Most Volatile Stocks for Day Trading

Finding the most volatile stocks for day trading can be a daunting task, but understanding the right metrics can help.

High volatility is often measured by the average true range (ATR), which can be a useful indicator for day traders.

A stock with a high ATR is more likely to experience large price swings, making it a good candidate for day trading.

Stocks with a high beta value, typically above 1, are also more volatile and can be a good fit for day trading strategies.

The beta of a stock measures its volatility relative to the overall market, so a beta of 1.5 means the stock is 50% more volatile than the market.

To find the best stocks for day trading, you need to look for those with the most momentum, volume, and volatility. These stocks are often the ones that will move quickly and with force in either direction.

To identify these stocks, you can use a scanner that sorts and filters stocks based on volatility and volume, or keep tabs on the most volatile stocks in the market on a regular basis. TSLA is a great example of a stock that's always known for its volatility.

Some key characteristics of the best day trading stocks include top volume in the premarket, highest percentage gainers or losers, market cap, float size, relative volume, price, and gap percentage. By filtering stocks with these criteria, you can create a list of potential candidates for the day.

Here are some popular stock screeners that can help you find volatile stocks:

Coinbase (COIN) has been on a tear this year, up more than 68% in 2024. It's also down 22% since it came public in 2021.

The performance of COIN is heavily levered to the performance of Bitcoin, which is an immensely volatile asset. Shares are currently within about 5% of their 52-week high.

COIN trades with a beta of 3.4, making it the most volatile stock on the list. If you're a momentum trader, this stock certainly looks like a promising setup with the stock surging toward recent highs.

The best stocks for trading are often the ones that have the most momentum, most volume, and most volatility. These stocks are usually the ones that will move quickly and with a lot of force, making them ideal for day trading.

To find the best stocks for day trading, you need to look for stocks with high volatility and liquidity. This can be done using stock screeners like StockFetcher, which allows you to set filters to find stocks with average moves greater than a certain percentage per day. You can also use Finviz.com and Nasdaq to find top gainers, losers, and most volatile stocks based on specific criteria.

The best day trading stocks today are often the ones that have top volume in the premarket, highest percentage gainers or losers, and a market cap that is substantial enough to provide liquidity. You can also look for stocks with a float size that is not too small, as this can make it difficult to enter and exit positions.

The following table shows some of the key factors to consider when looking for the best stocks for day trading:

TSLA is a great example of a stock that has the kind of volatility that is ideal for day trading. Its intraday swings can be as high as 12%, making it a great candidate for traders who are looking for stocks with high momentum and liquidity.

Market dynamics play a crucial role in identifying the most volatile stocks for day trading. Third-party platforms like Finviz.com offer free tools to scan for volatile stocks, providing valuable insights into new highs, top gainers, and more.

Stock screeners are valuable tools that can help traders identify volatile stocks. One such tool is StockFetcher, which allows traders to set filters and find stocks with average moves greater than a certain percentage per day over a specific timeframe.

To find high volatility stocks, traders should also consider volume as an important factor. Stocks with high trading volume make it easier to enter and exit positions, providing liquidity and minimising slippage.

Here are some key features of popular stock screeners:

The Beta Index serves as a compass for traders, helping gauge a stock’s sensitivity to market fluctuations. A beta value above 1 signals heightened volatility, indicating a riskier investment.

StockFetcher is a robust filter designed to uncover consistently volatile stocks, which is key to success in day trading. It allows traders to set filters and find stocks with average moves greater than a certain percentage per day over a specific timeframe.

By customising the filters, traders can create a list of volatile stocks that match their trading specifications. This enables traders to narrow down their search for volatile stocks, saving time and effort while maximising potential trading opportunities.

StockFetcher is one of several stock screeners that traders can utilise to find top gainers, losers, and most volatile stocks based on specific criteria. Other options include Finviz.com and Nasdaq, which provide additional options for traders to explore and broaden their volatile stock picks.

StockFetcher's main features include the ability to set filters to find stocks with average moves greater than a certain percentage. Here are some key features of StockFetcher:

By using StockFetcher and other stock screeners, traders can refine their understanding of market dynamics and identify the most volatile stocks for day trading.

Understanding volatility is crucial for successful day trading. The Beta Index offers unique insights into the dynamic world of volatile stocks.

The Beta Index measures a stock's volatility relative to the overall market, with a beta of 1 representing average volatility. A beta higher than 1 indicates higher volatility.

Volatility Indicators beyond StockFetcher also provide valuable insights into volatile stocks. These indicators can help traders identify potential trends and patterns.

In the quest for successful day trading, understanding these perspectives is paramount. It's essential to consider multiple factors when evaluating volatile stocks.

By analyzing both the Beta Index and Volatility Indicators, traders can gain a more comprehensive understanding of the market. This can help inform their trading decisions and increase their chances of success.

To assess a volatile stock, you need to look beyond the surface level.

Incorporating open interest and implied volatility into your evaluation can provide a more nuanced perspective. This is especially true for stocks with high volume, a favourable put-call ratio, and elevated implied volatility.

A high volume in a stock can indicate a lot of buying and selling activity, which can be a sign of volatility.

The put-call ratio is another indicator to consider, as a favourable ratio can suggest that investors are expecting a price increase.

Elevated implied volatility can also signal that a stock is more likely to experience price swings.

Day trading can be a high-risk endeavor, especially when dealing with volatile stocks that can swing wildly in value.

Experience and resilience are essential for navigating these risks, as they require traders to stay calm and focused amidst market fluctuations.

Built-in scanners are a valuable tool for identifying the most volatile stocks in the market, allowing traders to quickly adjust filters and stay on top of real-time changes.

These scanners can help traders make informed decisions and mitigate potential risks by highlighting stocks experiencing significant intraday movements.

By staying informed and adaptable, traders can better manage their risk and make the most of the opportunities presented by volatile stocks.

To identify the most volatile stocks for day trading, you need to know what's at play. These stocks are often characterized by their high volatility, making them ideal for short-term trading strategies.

The key is to find stocks that are currently in play, which means they're experiencing significant price movements due to various market factors. One way to do this is by looking at the top gainers and losers in the premarket, as mentioned in Example 2. These stocks are often the subject of news releases or other market events that drive their price action.

A stock scanner can help narrow down the list of volatile stocks by filtering them based on criteria such as average daily range, trading volume, and stock price. Stock screeners like StockFetcher can filter stocks based on criteria such as average price moves and volume, as seen in Example 4.

To identify stocks that are in play today, traders often focus on specific criteria, including top volume in the premarket, highest percentage gainers or losers, market cap, float size, relative volume, price, and gap percentage. These criteria can be applied using online platforms like Finviz.com and Nasdaq, as mentioned in Example 4.

Here's a summary of the key criteria to look for in stocks that are in play today:

By applying these criteria, you can identify the most volatile stocks for day trading and increase your chances of success in the market.

Technical indicators are a must-have for trading volatile stocks. They help identify potential entry and exit points.

The Keltner Channels and Stochastic Oscillator are two commonly used indicators. They can help you gauge market volatility and make informed trading decisions.

These indicators can be especially useful when trading stocks with high price fluctuations. By using them, you can stay ahead of the market and make the most of your trades.

The Keltner Channels, for example, use moving averages and volatility to create a channel that the price must break through to signal a potential trade. This can be a powerful tool for day traders.

The Stochastic Oscillator, on the other hand, compares the closing price to its price range over a given period. It can help you identify overbought and oversold conditions, which can be a key indicator of market trends.