How to Find Stocks to Day Trade

One of the first things new traders ask me is, “How do you find the right stocks to trade each day?” The truth is, it all starts with a good stock screener.

A screener is your most important tool as a day trader. It automatically filters through thousands of tickers and shows you only the ones that fit your specific criteria. Without one, you’re flying blind instead of being prepared for real opportunities.

Here’s exactly how I use scanners and filters to consistently identify quality setups.

1. Start With a Reliable Scanner

Before we talk about filters, let’s start with the foundation….your scanner.
Platforms like Trade Ideas and Tradingview offer great scanning tools that can track volume, price changes, and other key stats in real time.

The goal isn’t to find every stock that’s moving, it’s to find the right kind of stocks. Ones with high activity, clean movement, and enough liquidity to trade safely.

That’s where your filters come in.

2. Focus on the Right Exchanges

When learning how to find stocks to day trade, one of the first things I teach is to stick to the main U.S. exchanges. NYSE, NASDAQ, and AMEX.

These exchanges offer reliable liquidity, cleaner price action, and fewer manipulation issues compared to OTC markets. Stocks listed here trade smoothly and are ideal for short-term momentum trading.

3. Filter for Market Cap Under $3 Billion

Next, set your market cap filter to show only stocks under $3 billion.

This keeps your scanner focused on small-cap and lower mid-cap stocks. These stocks tend to move 20–50% intraday and offer the volatility needed for day trading, especially for small account holders.
Large-cap stocks move slower and are better suited for swing trading or investing, not quick intraday moves.

4. Require At Least 1 Million in Daily Volume

Volume is your lifeline as a trader. It’s what gives you clean entries and exits without getting stuck in a position.

Any stock you trade should have at least 1 million shares traded on the day. If it doesn’t, skip it. Thinly traded stocks often have wide spreads and unpredictable fills which are two things that can kill a trade before it even starts.

When building your process for how to find stocks to day trade, remember: liquidity is opportunity.

5. Set Relative Volume to a Minimum of 3

This is one of the most important filters of all.

I always set relative volume (RVOL) to a minimum of 3, meaning the stock is currently trading at least three times more volume than it does on an average day.

High relative volume tells you that something significant is happening and traders are paying attention. Momentum is building and the stock is in play.

Even if the price hasn’t made a big move yet, unusual volume can be the first sign that a breakout or major move is coming.

6. Set minimum change from close at 5%

Finally, make sure your scanner includes a filter for percentage change from the previous close — set to a minimum of 5%.
This ensures you’re only looking at stocks that are already showing strong momentum and catching trader attention early in the session.
Anything below that usually lacks the volatility and follow-through needed for solid intraday trades.

7. Combine It All Together

When you put these filters together, your scanner instantly cuts through the noise and gives you a focused list of high-quality setups:

• Exchange: NYSE, NASDAQ, or AMEX

• Market Cap: Under $3 billion

• Volume: Over 1 million shares

• Relative Volume: 3+ minimum

• % Change From Close: 5% minimum

This method has helped me and my students consistently find the best opportunities every morning.

8. Keep Your Watchlist Small and Focused

When you first start learning how to find stocks to day trade, your scanner might show 20 to 30 stocks that meet your filters. Don’t worry, this is perfectly normal. Out of thousands of stocks on the market, you’ve already narrowed it down to the ones that are active and liquid.

But that’s just the first step. From there, you need to narrow it down even further by looking for stocks that form specific chart patterns that align with the strategy you’re trying to trade. For example, I use a setup I call the HVD Strategy which is a structured pattern that focuses on clean technical criteria and a high-odd momentum setup.

Once you’ve identified 3–5 of the best candidates, build a plan for each one:

• Where’s your entry zone?

• Where will you cut losses?

• What’s your realistic target?

This level of preparation separates consistent traders from emotional ones and it’s what allows you to trade with confidence instead of reacting on impulse.

Final Thoughts

Learning how to find stocks to day trade isn’t about guessing or following hype….it’s about using structure. With the right scanner and filters, you can consistently spot the most active stocks on the market every single day.

By focusing on NYSE, NASDAQ, or AMEX-listed stocks, keeping market cap under $3B, requiring over 1 million volume, and relative volume above 3, you’ll always be trading where the action is.

This is the exact process I use when creating my daily trading plans for 1215 University members. Each plan includes high-odds setups, entry zones, stop levels, and target areas to help you see how the process works in real time.