Published on 4 Dec 2023 on Insider Monkey via Yahoo Finance

11 Most Volatile Stocks Under $5 For Day Trading

In this piece, we will take a look at the 11 most volatile stocks under $5 for day trading. If you want to skip our introduction to stock indicators and the broader market environment, then take a look at 5 Most Volatile Stocks Under $5 For Day Trading.

While all stocks can be bought on the market, not all stocks are equal. There are several ways in which analysts and investors analyze a stock before making a buying or selling decision. These can be separated along the lines of financial statements or market performance. The financial analysis of a stock is called fundamental analysis and it evaluates a company's ability to earn profit, generate cash flows, maintain debt sustainability, and demonstrate other indicators of fiscal health.

On the other hand, evaluating a stock's market performance is called technical analysis. This plots the share price on a graph over a fixed time period and then analyzes the trends to see if any factors are driving the price up or down. Some metrics that are used in technical analysis are moving averages, relative strength indicators (RSIs), standard deviations of returns, and beta analysis. These measure the momentum behind share price surges or drops to try to determine whether the trend will hold or reverse.