Therefore, it’s essential to know what drives volatility in stocks, and most importantly, how to find the most volatile stocks. High volatile stocks are both lucrative and risky stocks to trade, and generally requires a wider stop loss because of the volatility. Stock market beginners should be cautious
because volatile stocks can go up and down pretty quickly. If you are new to stock trading, it is safer to trade trending stocks with lower volatility until
you learn more about the stock market.

• Any stock that trades with a beta greater than 1.0 can be said to be more volatile than the broader market.
• That blue-chip stock is considered to have low volatility, while the tech stock has high volatility.
• It’s important to note, though, that volatility and risk are not the same thing.
• Investors who want to protect themselves from volatile or down-trending markets should emphasize strong fundamental investments.
• This pattern consists of a single candlestick with a nearly identical open and close.

Day traders won’t see the returns this stock produced in the early days, but there still may be some upside here. The average trading volume is 24.63 million shares, out of 2.21 billion shares outstanding. Over the past 52 weeks, the stock price https://forexhero.info/liteforex-broker-overview/ has ranged from $88.09 to $276.57. But the big money with massive gains has always been in day trading volatile stocks. From penny stocks to biotech companies, these unstable investments can lose or gain multiples of 10x in a single day.

What Are the 10 Most Volatile Stocks?

While you can achieve the same thing with other stock screeners, like Finviz, Trade Ideas is my favourite for finding high volatility stocks. Later, I will cover some alternative ways to find volatile stocks for different investment styles. Google Trends also provides data on web searches, which may highlight stocks that are receiving the most interest and, therefore, may be worthwhile taking into consideration for day trading. When day trading, look for stocks with betas greater than 1.0, but remember that you may not want the stock with the highest beta you can find — it could expose you to unnecessary risk. Inflation can have a big impact on the stock market, leaving unprepared investors in for a bumpy ride. In this article, we’ll explain why inflation impacts the stock market and take a closer look at how the stock market has reacted to inflation in the past.

It’s important to note, though, that volatility and risk are not the same thing. For stock traders who look to buy low and sell high every trading day, volatility and risk are deeply intertwined. Volatility also matters for those who may need to sell their stocks soon, such as those close to retirement.

Candlestick Screener

Let’s have a look at stock market sectors that have shown the most volatility historically over a sustained period. Both of these approaches will produce a significant number of stocks. You’ll have to narrow down the list to a handful of stocks you can manage to watch (and potentially trade) that day. The “add column” commands enable you to see at a glance which stocks had the biggest average trading ranges and volumes.

This can make it not only possible but highly tempting to just buy a ton of shares and see what happens. You gotta do your research if you want to ride the momentum as undervalued stocks rebound and make huge gains. This is how I earned my money, and it’s the method of trading I focus on most as a teacher with my Trading Challenge students. As you get more confident and comfortable with your strategy, you can potentially increase your position size over time. Once you click “OK”, a new window will appear like the one below. This “Top List” – which I’ve called “Small Cap Up Gappers” – displays all the stocks that meet my filters, as well as the data columns I chose.

Datadog (DDOG)

Other companies owned and operated by JD include JD Health, JD Property, JD Industry, and Dada Group. Financhill is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of Financhill are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory. However, it was later discovered that the reason the market inflated so much in the first place was due to market manipulation involving a stablecoin called Tether (USDT).

A 20-year-old investor committed suicide in June 2020 because his Robinhood account was left with a negative $730,000 balance through options trading. These are typically done through established indices that vet companies for performance to outperform the dollar. This is a diversification strategy that doesn’t depend on one single investment.

The Pros and Cons of Trading Based on the 200 Day Moving Average

However, if a stock opens down 10% then moves in one direction or the other, it may be worth trading. Another day-trading method is to do some research in the middle of the trading session to find the stocks that are moving the most that day. You can do this by using volatility and top gainers/top losers filters on stock screeners such as FINVIZ or TradingView.