This day trading stock pick tip is for every trader who is interested in day trading – very active trading of stocks during one trading day. Selection of the best stock to buy or sell in any daytrading strategy is one part of the complete day trading plan that every day trader should have prepared.
All actions that a day trader performs should be in accordance with his plan for day trading. The definition of daytrading systems described in this plan contains also specific rules how to select the best stock for daytrading – the great picks for the current trading day.
This selection process could be done in some picking software or using some market screener for these short-term strategies.
Ideas for a free screener for daytraders
Every daytrader should choose its own daily picks based on these parameters:
Liquidity
The most important issue is enough liquidity in shares. It means that you need stocks with very good daily trading volume. The best volume is above 1000000 shares per a day.
The liquidity is very important because it allows you to enter and exit a trade without problem with price movements against your position. A slippage will be minimal.
Volatility
Ideal candidate for daytrading must be ticker which is able to make strong movements. Strong movements generate profits for day traders. The volatility is often measured with a beta coefficient. So choose stocks with high volatility.
“Hot” sector
It is always good to choose stocks from a sector which is popular. Such popular sectors are often mentioned in TV (CNBC, Bloomberg) and it often means that there will be a lot of volatility in them.
During last few years we have heard about Internet stocks, semiconductors, then China stocks were in focus, oil stocks and more. Every time there are one or more interesting sectors.
Hot stock picks free screener ideas for day trading systems
When looking for the best pick for daytrading then it is possible to use some market screeners. You can utilize hot picks free screener available on FinViz site.
You can put these parameters into the screener:
- The Price above 10 USD
- Stocks only (no ETFs andother funds)
- High Beta
As I put these parameters to FinViz screener today I received 24 results. Here is a part of table with these results.
Similar stock screener you can use on ChartMill website. Their stock screener is very powerfull feature.
The results above are sample from ChartMill stock screener.
Find more on related pages
- Explore options to test your day trading strategy
- How to daytrade stock index funds
- Read more stock market trading tips