I screen for day trading stocks with a strong history of percentage volatility or dollar volatility. That means these stocks are highly likely to move big (up or down–trade the intraday trends) each day for the next week.
This list is updated each Tuesday before the Open. Bookmark this page and come back for the latest list and statistics.
The list is broken down into two sections.
The first section looks at stocks that typically have high percentage volatility each day. These are the criteria for these volatility-based day trading stock picks:
- Greater than 4% moves intraday, on average.
- More than 4 million average volume (typically more).
- No leveraged ETFs.
- Priced between $5 and $150…although this screen typically tends to produce stocks that are on the lower end of that price range.
The second section looks at stocks that tend to move big in terms of dollar movement. Here is the criteria for those.
- move more than $1.50 per day
- more than 5,000,000 average volume
Since these sections look at different criteria, they also produce different stocks.
I’m not recommending a specific trade or direction. For some guidance on day trading the stock picks discussed below, see How to Day Trade Stocks in 2 Hours or Less which discussed how and where to enter trades, how to exit trades, when to trade and risk management.
Pick a few stocks and trade them; don’t try to trade all of them.
Trading volatile stocks isn’t for everyone. It takes quick reflexes and fast execution to take advantage of the large moves in these stocks. Make sure you have a stable high-speed internet connection. Your broker should execute trades instantly. If there is a lag or delay between when you place your order and when it reaches the exchange (is confirmed), that presents a potential issue as you may end up missing your entries or exits.
Day Trading Stock Picks for Week of October 16
5-minute charts provided by TradingView. Charts may take a moment to update. Charts show BATS only transactions (BATS provides free trade data, which isn’t the same as official real-time data of all transactions).
Mankind Corp. (MNKD)
Average day range (30) is 13.11% and average volume (30) is 11.5 million (volume is currently much higher than typical, normal volume is below 5 million).
Himax Technologies (HIMX)
Average day range (30) is 6.02% and average volume (30) is 8.8 million.
Average day range (30) is 5.44% and average volume (30) is 8.3 million.
Endo Pharmaceuticals (ENDP)
Average day range (30) is 5.38% and average volume (30) is 5.1 million.
Whiting Petroleum (WLL)
Average day range (30) is 5.12% and average volume (30) is 19.3 million.
Hertz Global Holdings (HTZ)
Average day range (30) is 5.08% and average volume (30) is 6 million.
Ensco plc (ESV)
Average day range (30) is 4.83% and average volume (30) is 17.8 million.
Snap Inc. (SNAP)
Average day range (30) is 4.01% and average volume (30) is 24.4 million.
Other Good Day Trading Stocks and ETFs
Another option is to look for stocks with large daily moves in dollar terms (for example, the price typically moves $1.50 a day and does at least 5 million in volume). This type of screen also tends to produce stocks that provide ample volatility for trading the intraday price moves. These stocks are typically higher priced or have experienced a recent price shock. Average True Range is a common indicator that measures daily average movement (in dollars).
Nvidia (NVDA): ATR (14) is $3.99 and Average Volume (30) is 16.5 million.
AliBaba Group (BABA): ATR (14) is $3.28 and Average Volume (30) is 16.6 million.
Inverse VIX ETF (XIV): ATR (14) is $2.47 and Average Volume (30) is 7 million.
Facebook (FB): ATR (14) is $2.36 and Average Volume (30) is 14.2 million.
Gilead Sciences (GILD): ATR (14) is $1.79 and Average Volume (30) is 8.5 million.
Apple (AAPL): ATR (14) is $1.76 and Average Volume (30) is 28.6 million.
Additionally, the stocks and ETFs below typically move enough to create tradable intra-day trends, have ample volume but aren’t quite as volatile as the stocks above.
S&P 500 SPDR ETF (SPY)
Bank of America (BAC)
PowerShares QQQ (QQQ)
Got a volatile stock you like day trading/found? Let me know in the comments section.
Remember Risk Management
Losing trades WILL happen. Don’t risk more than 1% of your trading account on a trade (risk = difference between entry price and stop loss price, multiplied by the number of shares). Slippage is likely in these stocks. Make sure the stock can support the position size you wish to trade. Failing to do so could result in further slippage.
See the video: How to Find Volatile Stocks for Day Trading (in 20 minutes a week) for the method used to find these stocks.
By Cory Mitchell, CMT