If you’ve looked into the market long enough, you’ve probably heard people talking about trading low float stocks. They usually attract hungry investors, and with good reason. They have the ability to change your portfolio in a matter of hours. And, once people learn about them, the next natural question is how to find low float stocks (of course)!
If you would perform a poll, I’d venture a guess and say that most people don’t know what low float stocks actually are, or how they function. Maybe you have some understanding, but you’ve been too nervous to jump in before getting a full understanding, and that’s probably wise!
In this post, we’ll explain exactly what a low float stock is, how they work, and how to find them!
This post was written by our staff writer, Lindsey Smith.
Before we dive in and explain what a low float stock is, we need to define what the float of a stock is, or what floating shares of a stock are.
What is the float of a stock?
Simply put, the float is the freely tradable shares of a stock.
Every stock has a pre-set number of shares that are freely traded on the open market. Something like Apple might have a huge float, like 5-6 billion.
The float can be thought of like the supply, the amount of shares that traders and investors can freely trade. These are the shares that are not locked up by institutions, insiders, or employees and compensation plans.
How do you know if a stock is low float?
Low float stocks are the type that can make huge moves within a day or a week, and can help you quickly grow your money. They can often go from $1 per share, to $3, to $9 and more all within a day. Low float stocks traditionally mean there are less than 10 million freely tradable shares available.
Low float stocks are volatile. They go up quickly and once they reach a boiling point, they often come down quickly too. In fact, sometimes people look at these to short on the other end. Because of this, in order to be successful you’ll want to have a trade plan and be disciplined on your stop loss.
Low float stocks also require close attention not only to the market and how the stock has performed, but also current events, mergers, FDA approvals and other world events.
Some past examples of low float stock that went crazy are:
- Artificial Intelligence,
- and .com stocks.
Any company that mentioned these would see their stocks shoot up, usually temporarily. You could make a lot of cash trading on that temporary spike.
So, to summarize, how do you know if a stock is low float? It will have less than 10 million shares that are freely tradable on the market, not locked to employees, companies, or institutions.
How Do I Find the Best Low Float Stock?
This is the million dollar question! There are a lot of people out there searching for the next best low float stock. It takes some research but it’s worth it when you find that stock that grows 300% in a day. For this, you’ve got to know how to find low float high volume stock.
Use a low float stocks screener
First, you need to find a stock screener platform that you like.
- Trade Ideas,
- and Benzinga,…
…but there are lots of options out there.
Set up a low float stock screener
Next you’ll want to learn how to set up a low float stock screener. Here’s how I’d recommend doing it.
- Adjust the filter to fit your criteria.
- For a low float stocks screener, you can set the price to be under $10 (this is flexible),
- and the percentage change to be over 10%.
- You’ll want to select a float that’s below 10 million,
- and a volume that’s above 500k.
(The volume metric shows how often a stock is traded – the higher the number, the more often it’s traded, and the more liquid it is. It usually means a stock is doing well.)
Once you have your screen set up, you can go through the individual stocks and choose one.
Some screener tools allow you to set up alerts for stocks that fit your criteria, it just depends where you’re searching.
How To Find Low Float Stocks on Webull
Wondering how to find low float high volume stock? Webull is actually a pretty good place to take your search.
When you login to your Webull account, it’s pretty easy to set up a screener to find low float stocks.
- Click screener
- Then click “create screener”
- For region, select United States
- For price, select anything below $10
- Then, for percent change, select anything above 10%
- For volume, select anything above 1 million (this makes an active stock screener, and omits any dead stock
This should populate a list of stocks for you to look through. In Webull, you’ll need to click each one to check the float. If it’s below 10 million, it’s worth considering.
First, login to your Etrade account.
- Click on “Research”
- Click “Products”
- Then click “Stocks”
- Click the tab at the top labeled stock screener
- For the share price, select less than $10
This will populate a list of stocks. Click on the stock you want to research. At the top, click the tab labeled fundamentals. This will show you the float shares. If it’s under 10 million, it could be an option for you.
How To Find Low Float Stocks on Finviz
Finviz is another great tool for finding low float stocks. You’ll need to set up an account on the platform.
Once you login:
- At the top, choose “screener”
- In the dropdown menu labeled “Signal”, choose “Top Gainers”
- In the field marked price, choose under $10
- Then, in the field marked float, choose under 10 million
- In the field marked volume, choose over 500k
As with the others, this will populate a list for you to investigate!
What Are Some Low Float Stocks?
How about some actual examples! Based on our research, what are some low float stocks? See our discoveries below!
List of Low Float Stocks
It would be really nice to just have a pre-populated list to find low float stocks, right? There are a couple of places that will give you a list, though I’d still caution to research what’s on there yourself.
- Trade-Ideas has pre-set and custom lists for low float stocks in the U.S.
- Reuters also has an easy low float stock scanner. You just need to register for free and filter the scanner with “float” in the criteria.
- Low Float and Stock Screener also keep running lists that are easily searchable.
Take a look and check them out! Maybe they’ll be some good ones that you can make a quick buck on!
How To Find Low Float Stocks – Will You Be On The Hunt?
Low float stocks are exciting, volatile, and embody what the stereotype of what day trading is.
It’s not easy. You need to have solid boundaries and pay attention closely. You also need to be okay with losing some money too.
If you want to get out there into low float stocks, have a realistic plan, and start small. Investing small amounts of money lets you learn and develop a knack for it before putting big money out there (that you could potentially lose!).
What do you think? Will you be searching for low float stocks in the near future? Why or why not?
AUTHOR Derek Sall
Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially--one email, one article, one person at a time.