How can I find stocks with high volatility for day trading?

How can I find stocks with high volatility for day trading?

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2 answers

by marion.bernhard , 10 months ago


There are a few ways to find stocks with high volatility for day trading. Here are some strategies you can consider:

  1. Use a stock screener: Stock screeners allow you to filter stocks based on various criteria, including volatility. Look for screeners that offer filters for average true range (ATR) or historical volatility to find highly volatile stocks.
  2. Watchlist popular volatile stocks: Identify stocks that are known to have high volatility due to news events, earnings announcements, or upcoming catalysts. These can include stocks with recent IPOs, biotech companies with pending FDA approvals, or companies undergoing mergers and acquisitions.
  3. Utilize technical analysis: Volatility can be identified through technical indicators such as Bollinger Bands, Relative Strength Index (RSI), or average daily volume. By learning to read these indicators, you can spot stocks in a heightened state of volatility.
  4. Follow social media and financial news platforms: Pay attention to real-time discussions and news articles about stocks that are experiencing significant price movements. Online communities like Reddit or Twitter often discuss the latest volatile stocks.

Remember, always conduct thorough research and analysis before making any trading decisions. Volatile stocks can offer lucrative opportunities, but they also involve higher levels of risk.

by paolo.leuschke , 10 months ago


There are several ways to find stocks with high volatility for day trading:

  1. Use stock screeners: Online stock screeners allow you to filter and search for stocks based on specific criteria, including volatility. Look for screeners that provide options to sort stocks based on factors such as beta, average true range (ATR), or historical volatility.
  2. Monitor stock market news: Stay updated on the latest news and announcements related to stocks. An earnings report, regulatory approval, or significant events can cause a stock's volatility to increase. Financial news platforms and websites, such as Bloomberg, CNBC, or Yahoo Finance, often provide real-time news updates.
  3. Analyze technical indicators: Technical analysis tools can help identify stocks with high volatility. Look for stocks with indicators such as high ATR, wide Bollinger Bands, or significant price swings. Popular charting platforms, like TradingView or Thinkorswim, offer a wide range of technical analysis tools and indicators.
  4. Track unusual volume: Unusual spikes in trading volume can indicate increased volatility. This might be due to significant news, earnings announcements, or market events. Keep an eye on volume scanners or stock screeners that highlight stocks experiencing higher-than-average trading volumes.
  5. Follow sector performance: Certain sectors tend to exhibit higher volatility than others. For example, biotech and pharmaceutical stocks often experience increased volatility due to drug approvals, clinical trial results, or regulatory actions. Real estate, utilities, or consumer staples sectors, on the other hand, tend to be less volatile.
  6. Join trading communities and forums: Participating in online trading communities and forums can provide insights and tips from experienced traders. These communities often discuss stocks with high volatility and share potential trading opportunities.

Remember, increased volatility may introduce higher risk, so it's crucial to have a well-defined trading strategy, risk management plan, and sufficient knowledge before engaging in day trading.