How To Find Stocks With High Volatility

4 years ago
10

Today's Quick tip is how to find stocks with high volatility for Day Trading, Swing Trading, and even Options Trading. More importantly than how to just find volatile stocks, I will show you how to pick volatile stocks with high volume so that you do not get caught in a liquidity trap.

Volatile stocks are known to have more risk as well as high reward. I will be discussing the following 2 important filters to use when searching for volatile stocks (Beta, and Volume).

"Beta is a measure of a stock's volatility in relation to the overall market. By definition, the market, such as the S&P 500 Index, has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns." (Article referenced below)

"Market liquidity (Volume) is important for a number of reasons, but primarily because it impacts how quickly you can open and close positions. A liquid market is generally associated with less risk, as there is usually always someone willing to take the other side of a given position. This can attract speculators and investors to the market, which adds to the favourable market conditions." (Article Referenced below)

STOCK TRADING PLATFORM I USE
○ Webull (★GET 2 FREE STOCKS★): https://bit.ly/3i5U591

Free Screener:
- https://finviz.com/screener.ashx

Articles Referenced:
- Beta: https://www.investopedia.com/investing/beta-know-risk/
- Market Liquidity: https://www.ig.com/en/trading-strategies/what-is-market-liquidity-and-why-is-it-important--190214

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DISCLOSURE: I am not a professional investment advisor, nor do I claim to be. All my videos are for entertainment and educational purposes only.

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