Trading low float stocks can be an exciting, albeit high-risk, strategy for many traders. The potential for rapid price movements can lead to significant gains, but it's crucial to understand what you're getting into. If you're looking to explore this niche on Webull, you've come to the right place! This comprehensive guide will walk you through the process step-by-step.
What Exactly is a Low Float Stock?
Before we dive into how to find them, let's quickly define what we're looking for. The "float" of a stock refers to the number of shares that are publicly available for trading on the open market. It's important to distinguish this from "shares outstanding," which is the total number of shares a company has issued, including those held by insiders, employees, or restricted from trading.
Low float stocks are those with a relatively small number of shares available for public trading. While there's no universally agreed-upon exact number, many traders consider a stock with fewer than 10-20 million shares in its float to be "low float."
Why are they so appealing? The limited supply of shares means that even a relatively small increase in demand can cause a significant price surge. Imagine a small pond – dropping a pebble in creates a much bigger ripple than dropping it in an ocean. Similarly, a small influx of buyers can have a dramatic impact on a low float stock's price, leading to high volatility and the potential for quick profits.
But beware! This same volatility is a double-edged sword. Just as easily as prices can skyrocket, they can plummet if selling pressure builds. Low float stocks are also more susceptible to manipulation (like "pump and dump" schemes) due to their illiquidity. Therefore, a solid understanding of risk management is paramount.
Now, let's get down to business!
 |
| How To Find Low Float Stocks On Webull |
Finding Low Float Stocks on Webull: Your Step-by-Step Guide
Ready to uncover these potentially volatile, high-opportunity stocks? Let's navigate Webull's powerful tools together.
Step 1: Engage with Webull's Platform
First things first: Are you logged into your Webull account? Whether you prefer the desktop application or the mobile app, ensure you're logged in and ready to access the market data. If you don't have an account yet, it's a straightforward process to sign up. Webull offers a user-friendly interface, and you'll find the stock screener to be a valuable asset in your trading arsenal.
Tip: Let the key ideas stand out.
Step 2: Access the Stock Screener
Webull provides a robust stock screener that allows you to filter through thousands of stocks based on various criteria. This is where we'll focus our efforts.
For Webull Desktop App/Website:
Look for a section typically labeled "Market" or "Screener" in the navigation bar.
Click on "Stock Screener" or a similar option. It might be under a "Tools" or "Research" menu depending on your layout.
For Webull Mobile App:
Tap on the "Markets" tab at the bottom of your screen.
You'll likely see a search bar or a "Screener" icon/button. Tap on it.
Once you've accessed the screener, you'll be presented with a range of filtering options.
Step 3: Set Your Float Criteria
This is the most crucial step for finding low float stocks. The "float" parameter is usually found under "Fundamentals," "Share Structure," or a similar category.
Locate the "Float" Filter: Scroll through the available filters until you find "Float Shares," "Shares Float," or simply "Float."
Define Your Low Float Range:
Input the Maximum Value: This is where you'll define what "low float" means to you. As mentioned, a common starting point is 20,000,000 (20 million shares). You can certainly go lower, such as 10,000,000 (10 million shares), to find even more illiquid stocks.
Set the Operator: Ensure the operator is set to "Less Than" or "Less Than or Equal To" (e.g., "Float Shares <= 20,000,000").
Pro Tip: Start with a slightly higher float (e.g., 50 million) and gradually narrow it down. This can help you understand the universe of stocks that fit your criteria before going for the extremely low floats.
Step 4: Add Complementary Filters for Better Opportunities
While finding low float stocks is the primary goal, a low float alone isn't enough for a high-probability trade. You'll want to combine this filter with others to identify stocks with momentum and liquidity.
Here are some essential filters to consider adding:
Sub-heading: Volume Filters
Average Daily Volume: Low float stocks can be illiquid. To ensure you can actually enter and exit positions, it's crucial to look for sufficient trading volume.
Set a Minimum: Consider a minimum average daily volume of at least 500,000 shares or even 1,000,000 shares. This ensures there's enough activity.
Current Volume (Relative Volume): Look for stocks with higher than average trading volume today. This indicates current interest and potential price movement.
Filter for High Relative Volume: Webull's screener might have a "Relative Volume" or "Volume Ratio" filter. Aim for a value greater than 1.5x or 2x their average volume.
QuickTip: A quick skim can reveal the main idea fast.
Sub-heading: Price and Performance Filters
Price Range: Low float stocks are often (but not always) penny stocks or lower-priced stocks.
Set a Minimum: Perhaps a minimum price of $1.00 or $2.00 to avoid true "junk" stocks.
Set a Maximum: You might want to cap it at, say, $20.00 or $50.00, depending on your capital and risk tolerance.
Percentage Change (Daily/Weekly): To find stocks that are already moving, filter for those with a significant percentage change.
Look for Upward Momentum: Set a minimum daily percentage change, for example, "+5%" or "+10%". This indicates that the stock is currently gaining interest.
Pre-Market/After-Hours Volume/Change: For even more timely opportunities, check if Webull allows you to filter for pre-market or after-hours activity. This is often where low float stocks show their first signs of life.
Sub-heading: Technical Indicators (Optional but Recommended)
If you're comfortable with technical analysis, consider adding these:
Moving Averages (e.g., Price above 20-day SMA): This can indicate an uptrend.
RSI (Relative Strength Index): Look for stocks that are not excessively overbought, even if they're moving up. An RSI around 60-70 might still offer room to run.
Step 5: Run Your Scan and Analyze Results
Once you've set all your desired filters, click the "Scan" or "Search" button. Webull will then present you with a list of stocks that meet your criteria.
 |
Review the List: Don't just pick the first one you see. Carefully examine the results.
Check Key Metrics: For each stock, pay attention to:
Float Shares (double-check it aligns with your low-float definition).
Current Volume vs. Average Volume.
Percentage Change (daily, weekly, monthly).
Price and Market Cap (often smaller for low floats).
Dig Deeper:
Click on individual stocks to view their detailed quotes, charts, and news.
Read Recent News: Catalysts are key for low float moves. Look for recent press releases, earnings reports, or significant company announcements that could be driving the price.
Analyze the Chart: Look for clean price action, identifiable support/resistance levels, and volume spikes.
Step 6: Set Up Alerts for Future Opportunities
The market is dynamic, and new low float opportunities emerge constantly. Webull allows you to set up custom alerts to notify you when a stock meets your specific criteria.
Save Your Screener: Most screeners allow you to save your custom filter sets. Do this so you don't have to re-enter them every time.
Create Price Alerts: For stocks you're watching, set price alerts for key levels (e.g., if it breaks above resistance, or drops below support).
Create Screener Alerts: If Webull offers it, set an alert that notifies you when any stock matches your saved low float screener criteria. This is incredibly powerful for catching emerging opportunities.
Important Considerations When Trading Low Float Stocks
High Volatility, High Risk: We can't stress this enough. These stocks can experience wild swings. Only risk capital you can afford to lose.
Liquidity Issues: Even with volume filters, some low float stocks can have wide bid-ask spreads, making it difficult to enter or exit at your desired price, especially with larger position sizes.
Due Diligence is Paramount: Don't just trade based on float. Always research the company, understand why it's moving, and assess its fundamentals (even if you're a short-term trader, a basic understanding is crucial).
Small Position Sizes: Start with small position sizes until you're comfortable with the extreme volatility.
Stop-Loss Orders: Always use stop-loss orders to limit your potential losses. The rapid price movements mean a quick exit is vital if the trade goes against you.
"Pump and Dump" Schemes: Be acutely aware of potential manipulation. If a stock is heavily promoted on social media without clear underlying news, exercise extreme caution.
By following these steps and keeping the risks in mind, you can effectively use Webull's tools to identify and potentially capitalize on low float stock opportunities. Happy hunting!
QuickTip: Pause after each section to reflect.
10 Related FAQ Questions
How to identify a stock as "low float"?
Generally, a stock is considered "low float" if it has fewer than 10-20 million shares available for public trading. You can find this number in a stock's fundamental data on Webull or other financial platforms.
How to use the Webull Stock Screener effectively?
Go to the "Markets" or "Screener" section, then select "Stock Screener." Here, you can add various filters like "Float Shares," "Average Volume," "Price," and "Percentage Change" to narrow down your search.
How to set up custom alerts for low float stocks on Webull?
After running a scan, you can save your screener criteria. Webull also allows you to set price alerts for individual stocks you're watching, and sometimes even alerts for when a stock meets your saved screener conditions.
How to check a stock's volume on Webull?
On a stock's quote page, you'll see "Volume" (current day's trading volume) and "Avg. Vol" (average daily volume). Comparing these two helps assess current trading activity.
Reminder: Focus on key sentences in each paragraph.
How to filter for penny stocks on Webull's screener?
In the stock screener, use the "Price" filter and set a maximum value, typically under $5.00 or $10.00, to identify penny stocks.
How to determine if a low float stock has enough liquidity?
Look for a high average daily volume (e.g., over 500,000 or 1 million shares) and a tight bid-ask spread. This indicates enough buyers and sellers to easily enter and exit positions.
How to avoid "pump and dump" schemes with low float stocks?
Always perform due diligence. Be wary of stocks being heavily promoted on social media without legitimate news or fundamental reasons for their price surge. Look for credible news catalysts.
How to manage risk when trading volatile low float stocks?
Use small position sizes, always set stop-loss orders to limit potential losses, and never invest more capital than you can afford to lose.
How to find news and catalysts for low float stocks on Webull?
On a stock's detailed quote page on Webull, navigate to the "News" or "Press Releases" section. This is where you'll find recent announcements that could be driving price action.
How to practice trading low float stocks without real money?
Webull offers a "Paper Trading" feature. This allows you to practice your trading strategies with virtual money in a simulated live market environment, perfect for honing your skills with volatile low floaters.
 |
