Best Stock for Day Trading: Rev Up Your Trading Game with These Stocks
Day trading is a popular investment strategy that involves buying and selling stocks within the same day to profit from brief periods of volatility. This investment strategy requires diligent market research, knowledge, expertise, and patience to choose the right stocks. In this article, you will discover the best stocks for day trading in 2022, their benefits and risks, tips for choosing the right stocks, and tools to help you succeed.
Choosing the right stocks is crucial for day traders, and we have compiled a list of 14 top stocks that are perfect for day trading. These stocks have high volume and volatility, excellent trading history, and good industry sector. Here is a list of the best stocks for day trading:
- Tesla (NASDAQ:TSLA)
- Nio (NYSE:NIO)
- Amazon (NASDAQ:AMZN)
- Apple (NASDAQ:AAPL)
- Carnival Corp. (NYSE:CCL)
- Canopy Growth Corp. (NASDAQ:CGC)
- Advanced Micro Devices (NASDAQ:AMD)
- Farfetch Ltd. (NYSE:FTCH)
- Marathon Digital Holdings Inc. (NASDAQ:MARA)
- Peloton Interactive Inc. (NASDAQ:PTON)
- Nvidia Corp. (NASDAQ:NVDA)
- Meta Platforms Inc. (NASDAQ:FB)
- Etsy Inc. (NASDAQ:ETSY)
- Palantir Technologies Inc. (NYSE:PLTR)
These stocks have a good track record of moving, making them ideal for day traders who want to make quick profits. They are also flexible and allow traders to trade independently. However, day trading is a high-risk investment strategy that requires discipline and patience. Therefore, it is important to weigh the benefits and risks of day trading before investing.
Best Stocks for Day Trading
Choosing the right stocks for day trading is critical for day traders. The best stocks for day trading are those that have high volume and volatility, excellent trading history, and good industry sector. In this section, we will explain why these stocks are the best for day trading.
High Volume and Volatility
The best stocks for day trading are those that have high volume and volatility. According to Go Banking Rates, volume is the number of shares traded in a particular stock within a given time frame. High volume implies that many traders are interested in the stock, making it easier to buy and sell shares. Volatility, on the other hand, refers to the degree of price movement in a stock. High volatility means that the stock price fluctuates rapidly, providing ample opportunities for traders to profit.
Solid Trading History
The best stocks for day trading have a solid trading history, meaning that they have a good track record of moving. These stocks move quickly and provide ample opportunities for traders to make quick profits. A solid trading history also means that the stock has a good reputation and is less likely to be delisted. According to Benzinga, a good trading history is an essential factor to consider when choosing a stock for day trading.
Good Industry Sector
The best stocks for day trading are those that belong to a good industry sector. A good industry sector is one that is growing, has a high demand for its products or services, and is less vulnerable to economic downturns. Some of the best industry sectors for day trading include technology, healthcare, and financial services. According to Investopedia, specific industry sectors are an important consideration when choosing stocks for day trading.
Decent Trading Volume
The best stocks for day trading have a decent trading volume. A decent trading volume means that the stock is actively traded, providing traders with enough liquidity to buy and sell shares. A stock with a low trading volume may be difficult to trade, and traders may struggle to buy or sell shares at the desired price. According to Trade That Swing, a decent trading volume is important when choosing stocks for day trading.
In the next section, we will discuss the benefits and risks of day trading.
Benefits and Risks of Day Trading
Day trading is a high-risk investment strategy that requires discipline, knowledge, and expertise. In this section, we will discuss the benefits and risks of day trading.
Benefits of Day Trading
Quick Profits
Day trading allows traders to make quick profits by buying and selling stocks within the same day. Unlike long-term investing, day trading provides traders with the opportunity to make profits in a short amount of time.
Flexibility
Day trading is a flexible investment strategy that allows traders to work independently. Traders can work from anywhere, as long as they have access to the internet and a computer. This flexibility allows traders to work at their own pace and on their own terms.
Independent Trading
Day trading allows traders to work independently without the need for a broker. This independence allows traders to make their own trading decisions and to take full responsibility for their investments.
Risks of Day Trading
High Risk
Day trading is a high-risk investment strategy that requires discipline, knowledge, and expertise. Traders can lose a significant amount of money if they make poor trading decisions.
Psychological Addiction
Day trading can be psychologically addictive due to the quick profits that are possible. Traders can become emotionally attached to their trades, and this can lead to poor decision-making.
Costly Investment Strategy
Day trading is a costly investment strategy that requires traders to have a minimum account balance of $25,000 at all times. In addition, margin rules apply, and traders may incur significant trading fees.
In the next section, we will discuss tips for choosing the right stocks for day trading.
Tips for Choosing the Best Stocks for Day Trading
For day traders, selecting the best stocks for day trading is crucial. The best stocks for day trading will be covered in this section along with advice.
Market Research is Conducted by ###
Market research is crucial before selecting a stock for day trading. Trading professionals should examine the stock’s performance history and industry sector, according to Benzinga. They should also stay current with news and events that might influence the stock’s price.
Use paper trading to your advantage.
Paper trading is a trading simulation that enables traders to trade without putting real money at risk. Paper trading is a great way for traders to gain experience and test their trading strategies, according to Benzinga.
Be mindful of risks associated with mental addiction.
Trading on a day can be mentally addictive, and traders may develop an emotional attachment to their trades. Trading professionals should be aware of the risks associated with day trading, according to Benzinga.
Look for Liquid Stocks: ###
Liquid stocks are those that are actively traded, giving traders enough room to buy and sell shares. Traders should search for liquid stocks with reasonable trading volume, according to Investopedia
P Penny Stocks: Avoid them
P Penny stocks are those that trade for less than $5 per share. P penny stocks are unstable and unsuitable for day trading, according to Investopedia.
Take into Account the Different Industry Sectors
When selecting stocks for day trading, particular industry sectors are crucial to take into account. Investopedia advises traders to take into account particular industry sectors, pay attention to the trade volume index, and shop around online financial services.
The best online brokers for day trading will be covered in the next section.
Best Online Brokers for Day Trading
Choosing the right online broker is crucial for day traders. In this section, we will discuss the best online brokers for day trading.
Express Market Access
The best online brokers for day trading offer express market access. According to Benzinga, express market access allows traders to execute trades quickly and efficiently, providing them with an edge in the market.
Excellent Trading Platforms
The best online brokers for day trading offer excellent trading platforms. According to Benzinga, a good trading platform is intuitive, user-friendly, and provides traders with the necessary tools for technical analysis.
Robust Tools
The best online brokers for day trading offer robust tools. According to Benzinga, these tools include real-time quotes, charting tools, and news feeds.
Solid Fundamental Research
The best online brokers for day trading offer solid fundamental research. According to Benzinga, fundamental research includes financial statements, earnings reports, and other corporate data that can help traders make informed trading decisions.
Costly Investment Strategy
Day trading is a costly investment strategy, and online brokers may charge significant fees. According to Benzinga, traders should consider the fees charged by online brokers when choosing a broker.
Minimum Account Balance
Day trading requires traders to have a minimum account balance of $25,000 at all times. According to Benzinga, traders should consider the minimum account balance requirements when choosing an online broker.
In the next section, we will discuss the best stocks for day trading in the US and Canada.
Best Stocks for Day Trading in the US and Canada
Choosing the right stocks is critical for day traders. In this section, we will discuss some of the best stocks for day trading in the US and Canada.
Best Stocks for Day Trading in the US
According to Trade That Swing, some of the best stocks for day trading in the US include:
- High Percentage Movers: stocks that have moved up or down more than 5% in the past week.
- Consistent Big Dollar Movers: stocks that consistently move $1 or more per day.
- Finding Today’s Big Movers: stocks that are making big moves today.
According to GoBankingRates, some of the best day trading stocks to buy for 2022 include:
- Meta Platforms
- Apple
- Amazon
- Carvana
- Peloton
- Farfetch
- AMC Entertainment
- Marathon Digital Holdings
- Nio
- Tesla
- NVIDIA Corporation
- Block
- Advanced Micro Devices
- Etsy
Best Stocks for Day Trading in Canada
According to Trade That Swing, some of the best stocks for day trading in Canada include:
- Stocks with an average volume over 1M
- Price above $8
- Move at least 3% per day
Day traders should monitor these stocks daily and be aware of external catalysts that may influence their prices.
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If you found this article helpful, be sure to check out our other great content on day trading, investing, and personal finance.
FAQs
Who are the best online brokers for day trading?
The best online brokers for day trading include those with express market access, excellent trading platforms, robust tools, and solid fundamental research.
What are the best stocks for day trading in the US?
Some of the best day trading stocks to buy for 2022 in the US include Apple, Amazon, Carvana, Farfetch, and Tesla.
How can I choose the best stocks for day trading?
To choose the best stocks for day trading, look for liquid stocks with decent trading volume, consider specific industry sectors, and pay attention to the trade volume index.
What are the risks of day trading?
Day trading is a high-risk investment strategy that can result in substantial losses. It is important to be self-aware of the psychological addiction risks.
Who should consider day trading?
Day trading is best suited for experienced investors who are knowledgeable about the market and have a high tolerance for risk.
What is the minimum account balance required for day trading?
Day trading requires traders to have a minimum account balance of $25,000 at all times.