How to pick a good stock for day trading

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Finding good stocks to trade without proper tools can be difficult

Day traders are always on the lookout for ideas and strategies to pick the perfect stocks. While there is no such thing as “perfect stock,” traders can always learn how to scout profitable stocks and rake in decent earnings.
Speaking of scouting for profitable stocks, there are thousands of companies in the US stock market, and finding the right stocks can be tasting — like finding a needle in a haystack. 

Thanks to advancements in technology and its numerous applications in stock trading, there are reliable tools you can use to aid your trading and enjoy a relatively smooth and hitch-free trading experience.
Coupled with trading education, you will be surprised at how much information is at your fingertip and how you have been missing out on trading opportunities. 

Imagine how profitable your trades will be if you have crucial information about stocks beforehand — stock volunteers at any given time, price points, stocks with a high gap up percentage, and those with a gap down percentage, among several other parameters you need to make the right choice of stocks.
While some traders make trading decisions based on fundamentals, others go for technical, and at the end of the day, virtually every trade has a unique trading style and strategy. 

To become a profitable trader in the stock market, you need to strike a balance in both technical and fundamental analysis. It would be best to equip yourself with relevant trading tools that will take much of the trading stress off your shoulders. Underscore relevant trading tools.

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Making the right choice of trading tools

While you are out scouting for day trading tools, you need to keep an eye out for those that fit in your strategy.
As a day trader, the last thing you want is to be flooded or become overwhelmed by information— information paralysis. What makes you a day trader is your ability to find good stock for day trading, execute your trades, and close all positions at the end of the day.
That means you don’t have the luxury tile and cannot afford to miss out on goof stocks for day trading because you are occupied with processing information.

This brings us to stock screeners and scanners. Suppose you are first-timer stock day trading; you can think of stock screeners and scanners as tools that will help you scout the market for stocks that fit into your plan and notify you automatically.

Some tools can do that, and we will share more with you as we tag along.

What are stock screeners?

There are screeners out there that will locate tickers for you based on the criteria you input into the system. They have dozens of filters that allow you to input all your criteria to help you scan the market. Then, they will search and return with the stocks that fall within the criteria you chose. 

These types of screeners can be found on our member’s dashboard to use for free. These screeners are a great tool for you to use for swing trading and to study charts during off-market hours. The downside of screeners is that they do not show live data. In addition, they do not update automatically, which means you will need to refresh them for you to get updated info.

Stock Scanners

Unlike screeners, stock scanners are scanning the market live and do not need to be refreshed. As a result, they are the best choice for any trader out there who needs fast live data.
Now, if you ever typed “Scanners” into google, you would have your head spinning because the options are endless! However, one stock scanner stands out tall in the seat of stock scanners. Trade Ideas scanners, you should give them a try.

What is the big deal about Trade Ideas scanners?

The first reason is their filters. These scanners are the most customizable in the market. They will allow you to search for volume, low float stocks, trending tickers in Stocktwits, price points, percentage increase, and more.
You can input so much specific data requirements into those filters that you will be left with only the best stocks. Thus, completely simplifying your stock picks for the day.

Trade Ideas Advanced AI

The second reason this scanner software stands out is because of its proprietary artificial intelligence system. These AI can fully automate your trading where you barely have to do anything. The stock trading AI system is hands down one of the best, if not the best system a retail trader could find. And countless stock day traders will attest to their effectiveness.

Are there rules for picking good stocks for day trading?

As we mentioned earlier, there is a long list of equities you choose from, and it’s entirely up to you to decide if you want to trade on stocks or not.
Having decided that you want to trade in stocks, your focus should shift to what stocks you want to trade — are you looking to trade one stock, multiple stocks, or ETF (exchange-traded funds). It doesn’t matter what stocks you choose to trade. All that matters is for you to make profits because that’s all that matters at the end of the day.
To answer the question, whether there is any rule for picking stocks, we will say there is no general rule for that. However, there are factors you should consider before making your decision.

AMC Short Squeeze

Here are tips on how to select good stocks for day trading


Finding liquid stocks for day trading is arguably the primary objective of every trader. Liquid stocks have high volumes and can be purchased in large numbers without significant impact on the price.
Since day trading strategies emphasize speed and precise timing, trading stock with high volume makes it relatively easier to get in and out of trades. While you are at it, you should also consider the liquidity of stocks at various price levels.

Look out for stocks with medium to high volatility

The only way you will make money as a day trader is when there is movement in the market. You don’t want to see stagnant prices.

So, while making your choice of stock for day trading, it’s advised that you opt for stocks that register lots of movements — either in percentage terms or dollar terms. Regarding percentage, you should keep your eyes out for stocks that move 3% or more. In dollar terms, you will be looking for stocks that move more than $1.50 per day.

We are moving on!

Don’t forget your entry and exit strategies while choosing good stocks for day trading. You might have chosen the best stocks in the market. However, if you don’t have the right strategy to execute your positions, you will most likely end up losing trades.
It’s always best to adopt a strategy that works for you and stick to basics rules for entry and exit.

Here are some tips on how to be profitable on your trades:

  • Trade the trend – Always trade the current market trend. If the market is in an uptrend, look for long opportunities and take short positions in downtrends.
  • Trade strong stocks in an uptrend and weak stocks in a downtrend 
  • Don’t jump the gun and enter trades on a knee-jerk. Instead, be patient and wait for pullbacks. That way, you will get confirmation of where the market is headed.
  • Make the most of your trailing stop loss and take regular profits 
  • Stay out of quiet markets. As we mentioned earlier, the more volatile the market is, the greater your chances of making profits as a day trader


The wisdom behind being a successful day trader is your ability to see through the noise, discern the market trend, and follow it. While you are at it, your watchwords should be market liquidity, volatility, and correlation. However, you still need the right entry and exit strategies to secure more wins and keep the “reds” low.

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