Best Way To Find Less Volatile Stocks(With Free Tool)

Today, you’ll learn how to find less volatile stocks.

Including:

  • What is a low volatile stock?
  • Why is volatility so low?
  • Best low volatility stocks
  • Stock volatility screener

Volatility is essential in stock trading to earn in the market. Traders use stock screeners daily to scan for both high and low.

Also, most professionals will look for high volatility stocks when trading to capitalize on the price moves.

However, invest only to earn from dividends.

When I started trading, I only focused on high volatile stocks because I’m always trading, but now, I use both investing and medium-term trading to increase my capital.

Later on, I will show you how to look for slow-moving stocks to decide if we can take positions.

Someone can use this strategy for long-term investment.

You can earn an income with high dividends to increase your capital.

The real question is how do you look for these kinds of stocks?

You’ll learn how to invest in low volatile stocks below to increase your profits.

Also, I will introduce to you the concept of 52-week high and low to look for slow-moving stocks.

You’ll see how to scan the stock market below later to see how I do it.

It will take a bit of work on your part to accomplish this method.

However, once you get the idea in your head, you’ll be able to find outstanding stocks to buy for the long term or for cash flow.

First, we will talk about what are volatile stocks. Second, I will show you why market volatility is low.

Third, what are the best volatile stocks?

Finally, I’ll show you how to find slow-moving securities using our tool and using other software.

You can use the stock analyzer tool above daily to find low volatile stocks.

Also, you can use Amibroker when you want to scan the stock market to find the best stocks to buy.

Non-volatile stocks or low beta stocks are stocks that have a range of 5% or less in the last 52 weeks. The range is so narrow in which making money is difficult, considering its volatility is not huge. Volatility is important for stock traders.

What is a low volatile stock?

Low volatile stocks are stocks that range 5% or less between the highest and lowest price within the previous year.

The range is too short, which is usually suitable for dividend traders or players, considering that these stocks are in the category of safe stocks. (e.g. 52-weeks highs and lows)

It means the stock security was bouncing up and down on a short-range only in that period to consider it non-volatile.

Professional traders can find slow-moving stocks in stock trading easily because they know how to find it.

How do they do it?

Well, you can use the 52-week high and low to measure the volatility of the stock.

You can look at the change of the price from the low to high to get the actual range.

If you are a pure technician, you’ll use support and resistance only in stock trading to measure the volatility of a stock.

However, professional traders use the 52-week high or low to find low volatile stocks or low volatility equities.

The annual highs and lows are the actual range of the market to look for a good buy and sell areas.

Let me tell you a secret today to introduce you to a non-popular idea.

I am a quantitative trader in the stock market because I don’t enjoy trading without testing the strategies.

Some quants use box trading in the market to determine the momentum of a stock.

They use the 52-week high and low range only their trading strategies to make everything simple.

Also, they can divide the area into four parts to see the position of the price relative to the area.

Okay, let’s go back to our topic to continue studying low volatile stocks.

If you use an 8% range, you’ll likely buy at the low and sell at the high to increase the probability of profiting in that trade.

Also, if you add dividends, you’ll add another income to increase your capital to compound your profits.

What if you add fundamental analysis?

Wouldn’t it help you?

Why is volatility so low?

Volatility is low in the stock market when there is enough liquidity.

Well, I know you have learned how to trade high volume equities to reduce risk.

If there are enough willing buyers and sellers, the price rarely moves because of the balance or interest of an institutional investor or traders.

Lower volatility causes traders to close positions because of lack of patience.

Why do the prices of blue chips stocks and stocks with market cap under large category rarely move over 10% in a week, month or year?

I have written a post on this website before to show you that volatility is low for liquid stocks in the short-term.

In reality, you can not day trade high liquid stocks, so it is better to avoid slow-moving equities.

If you buy and sell the same stocks at the same price, you will make no money or have no higher return.

Large liquid stocks move less than one percent per day in stock trading to make something worthwhile.

The percentage move can not even cover the spread and commission to breakeven.

To make money, the price of the stock must move over three percent in stock trading.

Well, you’ll see when you compute the volatility of a high liquid stock.

When I started trading, I had learned the truth that day trading is a losing game.

Of course, trading educators have been teaching that you can always use leverage on a one-minute timeframe daily to earn a living.

In reality, you’re increasing your risks when you borrow money from brokers.

You should look for trading imbalances in the stock market daily to earn money.

However, some traders will use low volatile stocks to grow their portfolios.

For example, they will invest in securities to get quarterly or annual dividends.

You can diversify your portfolio in stock trading to reduce the risks.

Today, I will show you how to trade slow-moving stocks to profit every year.

You can use our tool above every day to scan low volatile stocks

Well, you can use our stock analyzer on this website to do other things.

Stock volatility screener/strategy

Okay, in this low volatility strategy, let’s find low volatile stocks to invest in dividends.

I’m not saying you can’t make money on less-risky equities with price appreciation to discourage you.

However, if you choose high volatile stocks, you will have more opportunities to increase your capital.

To find low volatility stocks, here are the steps:

  • Go to our free stock analyzer above.
  • Click on historical performance.
  • Filter stocks 10% above its 52-week low.
  • Filter stocks 10% below the 52-week high.

Determine if the company had paid dividends or had enough dividend yield in the last five years to know if it is an outstanding stock.

For the probable success of an investment, the investment style should have optimization of the Sharpe ratio ratio.

In these steps, you can get stocks that have moved 10% or below in the previous year.

You change the rate in the filters to select your preference.

I enjoy buying stocks near obvious support and resistance levels to increase my win rate.

In this tutorial, you’ll see to know that the stock can move 10%, either up or down within one year to follow the trend.

More Reading: How to Lower Average Cost of Stock?

Also, you are waiting to receive dividends to increase your profits.

Update: Unfortunately, our server can not handle the requirements of our free stock analyzer, so we stopped the free services.

However, traders can still use Investing free stock screener.

First, go to our stock analyzer:

I have provided the web application on our website every day to help traders.

In addition, you can use it in your stock trading daily without limits.

Second, click on historical performance:

You’ll see all 52-week high data in that page to scan the stock market.

Well, you should not forget to choose the stock exchange above.

Okay, let’s filter stocks above the 52-week low.

Set the parameters to 0 to 10 percent.

Next, filter stocks below the 52-week high.

Set the parameters to -90% to 0.

You can find stocks that move 10% or less in the previous year.

What should you do afterward?

Well, traders should look at the dividend yields of each stock to select the best. (Must be higher than the normal interest rates.

You should see that the company pays dividends every year to earn money. 

Did you learn something about our post, “Non-volatile stocks or low volatility stocks?”. Please share it.

Related Articles