How to Real-Time Scan For Great Day Trading Stocks
Learn how to scan for great day trading stocks, in real-time, as they are making their moves. This is accomplished with the Finviz scanner which allows us to filter stocks for volume, relative volume, average volume, price, percentage change since the last close, and the percentage change since the open. All of these elements are critical, and we can stay on top of the biggest daily stock performers by tracking these statistics throughout the day. Finviz can automatically refresh them every 10 seconds.
Why Real-Time Scan For Day Trading Stocks?
Monitoring a real-time watchlist for day trading stocks isn’t required. There are other options. The Day Trading Stock Picks page provides resources on how to pick a few stocks to trade the whole week. Other traders prefer to focus on just one asset and trade that all the time. I do that when I day trade forex; I only trade the EURUSD.
That said, the biggest opportunities lie in day trading stocks that are having the biggest moves. Unfortunately, finding these stocks is not as easy as looking at the biggest percentage gainers and losers list on Yahoo. Such lists are typically not filtered for volume or price. You may also get stocks that have gapped, but then fail to move significantly after the open.
What if there was a way to find the type of stocks you like trade, and you could get a filtered list of those types of stocks which are seeing big moves AFTER the open! And that list refreshed every few seconds. You would have a list of best day trading stocks for that day, all day, constantly updated. Here’s how to do it.
Real-Time Day Trading With Finviz
To best utilize Finviz for day trading, a Finviz Elite subscription is recommended. This provides the screener customization and real-time quotes required for this style of day trading.
On Finviz Elite, go to the Screener tab and input the following criteria, all under the Descriptive tab:
Exchange=Custom=NYSE + NASDAQ
Average Volume=Over 2M (Only want stocks that do a decent amount of daily volume. You can increase this if you like.)
Relative Volume=Over 1.5 (I use this in the pre-market, but once the market has been open for about 10 minutes I usually change this to Over 2.) Relative volume is important because it shows there is greater interest in the stock today than there is on a typical day. This helps propel big price moves.
Industry=Stocks only (Trade stocks, not ETFs.)
Current Volume=Over 100K (This will be adjusted throughout the day. Over 100K applies to the premarket. Once the market opens, you want to keep increasing this so that once the market has been open for a few hours this will be set to Over 2M. This will help keep the list smaller and more precise to what we want.)
Price=Custom=$7 to $100 (Fine-tune this based on the type of stocks you like to trade…I typically keep mine between $7 and $70.)
What To Focus On
Here is a sample of what the scanner looks like once the day gets going. This screenshot was taken 2 hours after the US market open.
The list has been sorted by Change from Open, as this is the price movement day traders care about. Since we are two hours into the session, the Relative Volume has been bumped up to Over 2 and Current Volume to Over 2M.
Focus on stocks with the greatest change from the open. This could be to the upside or downside. In other words, when sorted by Change from Open, focus on the stocks at the top or bottom of the list.
Not every stock on the list, even near the top or bottom, is worth trading. Some will suit your strategy better than others. I like to trade trends. So I look through the stocks and will only trade those that are trending…preferably a lot. I will also monitor the list continually, watching for stocks that are making a big move, breaking out, or reversing. Sometimes this can be seen by simply watching the percentage change from open fluctuate.
Here are the charts from the top and bottom stocks on the list, PDD and DKS (the yellow area is pre-market). These showed up on the list early in the day.
How to Day Trade These Stocks
For guidance on how to day trade these types of trending stocks, see
How to Day Trade Stocks in 2 Hours or Less – Extensive Guide: Here’s an extensive guide on how to day trade stocks in two hours or less each day, including how to find stocks to day trade, when to day trade, strategies you can use to profit, staying focused and how to work your orders.
My Tactical Day Trading Cheat Sheet – This is my tactical day trading cheat sheet. It’s things I do that makes my trading easier and less complicated, so I can focus on what matters: implementing my strategies. Works whether trading stocks, ETFs, forex or futures. [You would use the screening method discussed above instead of the ones mentioned in the article.]
Time-of-Day Stock Market Patterns – When Prices Tend to Trend and Reverse: The stock market has time-based tendencies throughout the day. These intraday patterns have been playing out for years. The tendencies let us know at what time (area) the trend typically reverses, or at least tends to have a significant pullback, so we can be on the lookout for that. The time of day patterns also let us know when volatility tends to increase and subside, which affects the quality of the trading opportunities during those periods.
Trend Trading: How to Spot Trading Opportunities – You can consistently catch trend trades by understanding how trends work and developing trade triggers. Here’s how to spot trading opportunities.
The Strong Trend Reversal Trading Strategy – There are a lot of reversal strategies, but there is one that I really like, and that is the Strong Trend Reversal Strategy. It works on any time frame and in all markets I trade (stocks, forex, futures). The strategy combines the concepts of trends and velocity/magnitude, which are key ingredients for analyzing price action.
Truncated Price Swing Trading Strategy for Stocks or Forex – The following day trading strategy for stocks and forex works best near a market open. I call the trading strategy the Truncated Price Swing.
Day Trade Trending Strategy – A simple and highly effective day trade trending strategy that gets you into trend trades, but keeps you out when the market isn’t trending.
by Cory Mitchell, CMT