How to select a low cost stock (<20$) with high returns + moderate risks for day trading purpose?

I want to know what parameters (with what values) to look in a stock to buy for 1-5 days investment/trading period.

Also, I want to know if I can buy mutual funds for day trading purpose? If yes, I guess that will be safer approach to invest for this short periods, make profit and then re-invest.

Please advice.

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4 Responses to “How to select a low cost stock (<20$) with high returns + moderate risks for day trading purpose?”

  1. Mike says:

    Gold/ silver mining stocks. They are usually under $20 and they go up. They’re easy to short, too because when gold/ silver does move, it’s big – 10-15% is nothing for one or two days.

  2. MVD34 says:

    High returns with moderate risks?

    Seriously, you think such a thing exists? It does not.

    High return = high risk.

    End of story.

  3. BD in NM says:

    Almost all mutual funds restrict short term trading by imposing stiff penalties for investors who move in and out on a short term basis.

  4. A nobody says:

    Based on the wording of your questions, it would be in your best interest to study the markets and the products traded in them.

    Here are some websites that can be used to screen for stocks that can meet parameters you set

    http://busystock.com/index.php
    http://screener.finance.yahoo.com/newscreener.html
    http://www.nasdaq.com/reference/guru.stm
    http://www.stockta.com/
    http://screen.morningstar.com/StockSelector.html
    http://moneycentral.msn.com/investor/StockRating/srstopstocks.asp
    http://www.zacks.com/
    http://screen.morningstar.com/StockResults.html
    http://www.options-trading-advice.info/

    You can not “day trade” mutual funds. Funds prices are determined on the asset value of the fund as of the close of business on the trade date and the price movement of the fund is not that great to warrant profits from short term holding periods