Day trading is a skill that has made fortune for many well-known traders from Jesse Livermore to Steven Cohn. The names mentioned were the best day traders of all time and proved to the world that trading is not speculation but a highly calculative and strategic business.
In this blog, you will find well known proven strategies of day trading and we have also compiled an in-depth list of best day trading stocks with its analysis to make your day trading journey convenient and rewarding. Today, when everything has shifted online, you don’t need to join a college or start extra classes to learn the art of trading. There is a vast array of trading courses available online which you can join, each with its own merits and every course suitable for different types of traders.
How to Choose the Right Stocks for Day Trading?
One of the most essential skills of a trader is the ability to pick good day trading stocks. Trading is not only about buying and selling stock the same day but ensuring liquidity and high-risk reward for each trade.
Before you begin your journey as a day trader, it becomes crucial to learn how to day trade as well as how to strategically choose stocks that can make money day trading.
Below are the few tried and tested aspects of stock picking which traders can live by and help traders not to fail in market:
– Trending Stock
By Trending Stock we mean those stocks which are grabbing the most attention of the stock market. An increase in attention results in more traders participating in the stock which consequentially increases the traded volume and volatility giving high price movements. Tech Stock investment has its own set of Pros and Cons which you should consider as an investor before deciding to invest.
– Volatility Analysis
It is well known that Volatility is the bread and butter of day traders. No day trader could ever make money day trading with stocks moving sideways.
One of the best technical tools to analyze price to volatility action is Bollinger Bands.
Bollinger Bands named after John Bollinger is a helpful tool that provides insights into market trends and their estimated volatility.
As mentioned in Point 1, a stock that is trending is very much likely to experience the action from traders. However, staying updated with recent developments help traders understand the market sentiment.
Positive news that is perceived positively by the market results in stock moving up whereas news that is perceived negatively by the market results in stock moving down.
The best part of being a day trader is that a skilled day trader can make money in both markets. Review free weekly forecast to get an updated related to stocks and trends in stock markets.
– Increase in Traded Volume
Most people only focus on the increase in total volume when picking up stocks for day trading, however, the secret lies in picking stocks with an increase in traded volume.
Total volume is divided into two parts which are Traded Volume and Delivery Volume. Traded volume is the volume that shows the number of participated traders who squared of their position by the end of the day and delivery volume is the number of deliveries that were taken in the cash market.
- Tesla Inc. [NYSE: TSLA]
- Etsy Inc. [NYSE: ETSY]
- Advanced Micro Devices Inc. [NYSE: AMD]
- Roku Inc. [NYSE: ROKU]
- ZIOPHARM Oncology Inc. [NYSE: ZIOP]
- Amrep Corp [NYSE: AXR]
- Aegon N.V. ADR [NYSE : AEG]
- Twilio Inc.
- AMC Entertainment
1. Tesla Inc. [NYSE: TSLA]
Tesla Inc. has been defying odds & exceeding market expectations from the past decade. Recently Tesla Inc. made its mark again when the company’s revenue jumped by almost 40% to around $9 billion, turning Wall Street’s pessimistic estimates upside down.
Moreover, Tesla Inc. is one of those companies that will not only grow your capital money but TSLA will also make you proud of being an active participant towards environmental upliftment & preservation.
Reasons that make Tesla Inc. Best Day Trading Stock
Trending Stock: Due to recent developments, Tesla Inc. has become one of the most trendy stocks of 2020 making it highly attractive for day traders as trendy stocks attract more swing trading opportunities.
Bollinger Band Analysis: Bollinger Band analysis shows a strong price to volatility action with changing trends. This shows the stock has high price movements with more profitable swing trade opportunities in both directions.
News: With Tesla Inc. being in the news more often than ever, a mere positive or negative speculation can make the price move significantly making it one of the best stocks to buy for day trading.
Increase in Traded Volume: Tesla Inc. has seen its daily volume shot up exponentially showing increasing interest of traders in the stock. As per the analysis the stock has seen a volume increase of around 200% in one month.
2. Etsy Inc. [NYSE: ETSY]
Established in 2005, Etsy Inc. is a fast-growing e-commerce company primarily dealing with handmade products. Etsy Inc. offers a wide range of products such as bags, jewelry, clothing, home decoration, furniture, and many more.
Etsy Inc. also offers its shoppers authentic vintage products that are at least 20 years old, ensuring quality and authenticity for vintage lovers. As per the 2018 reports, Etsy Inc. has over 60 million products registered on its platform and due to a paradigm shift in online shopping in the year 2020, it is estimated to grow exponentially.
Etsy Inc. has seen its stock price shot up by over 250% in the year 2020 itself.
Reasons that make Etsy Inc. Best Day Trading Stock
Trending Stock: Due to pandemic and increasing mass fear, Etsy Inc. has experienced drastic growth in the past few months. With the general population now turning more towards online shopping, Etsy Inc. is one of the top e-commerce players has been on the radar of traders for the past many months.
Bollinger Band Analysis: Bollinger Band analysis shows a strong increase in price to volatility action with trends moving towards buying making it one of the top 10 best stocks to buy now. Such high price movements in a single upward trend make Etsy Inc. one of the good stocks to invest in.
News: With the e-commerce industry being in the news due to its skyrocketing demand and increase in sales, Etsy Inc. is sure to be on the radar of traders and investors alike making it one of the top day trading stocks.
Increase in Traded Volume: Etsy Inc. has seen a consistent total volume, however, a deeper analysis shows that there has been a drastic increase in the traded volume as compared to deliverables resulting in high volatility and traders’ interest.
3. Advanced Micro Devices Inc. [NYSE: AMD]
Established in 1969, Advanced Micro Devices Inc. (AMD) has become a household name when it comes to computer processors and other technologies.
With its markets expanding to both business as well as consumer spheres, it offers a wide range of product lines which includes primarily microprocessors, motherboard chipsets, graphics processors, PCs, and embedded system applications.
Since january 2020 AMD has seen its stock price grow around 200% and is all set to move to triple-digit.
Reasons that make AMD Best Day Trading Stock
Trending Stock: Another stock that is going to benefit from the onset of a pandemic is AMD. With Work From Home becoming the new norm and the need for the companies to provide their employees a better infrastructure at home, the demand for laptops and PCs with faster processors has experienced drastic growth in the past few months.
Bollinger Band Analysis: Bollinger Band analysis shows a strong increase in price to volatility action with trends moving towards buying making it one of the top 10 best stocks to buy now. Such high price movements and expected continued exponential growth makes AMD one of the good stocks to invest in.
News: With work from home gaining momentum and companies investing heavily in technological infrastructure, AMD has been in the news constantly due to continuous US law-makers negotiations for a $900 billion stimulus deal.
Increase in Traded Volume: AMD has seen a continuous increase in total volume. Moreover, due to continued speculations regarding stimulus, the traded volume has seen a tremendous increase.
4. Roku Inc. [NYSE: ROKU]
Established in 2002, Roku Inc. is an American company offering digital streaming services and hardware. Roku Inc. being a unique OTT (Over the Top) hardware as well as service provider, has seen extraordinary growth due to a consistent increase in OTT viewership.
Roku Inc. offers Roku Streaming Players which are set-top boxes meant to deliver OTT content and live streams as well as its own channel that is free but ad-supported.
Reasons that make Roku Inc. Best Day Trading Stock
Trending Stock: With on-demand and live streaming services gaining popularity and recent lockdowns adding to the viewership, Roku Inc. is a trending stock to follow.
Bollinger Band Analysis: Bollinger Band analysis shows a strong increase in price to volatility action with trends moving towards buying making it one of the top 10 best stocks to buy now.
News: OTT platforms like Amazon Prime, Netflix, Disney Hotstar, and others have been in the news for their attractive content and skyrocketing viewership. The recent lockdown has behaved like a growth catalyst for the OTT industry with major new movie releases now adopting OTT platforms instead of theatres.
Increase in Traded Volume: Roku Inc. has been experiencing high traded volume each day for the past many months as traders are gathering to benefit from its high price movements.
5. ZIOPHARM Oncology Inc. [NYSE: ZIOP]
Established in 1998, ZIOPHARM Oncology Inc is a renowned name in cancer research and therapy development.
With its primary focus being in the development of advanced methods to leverage the human body’s own immune system to fight against cancer, ZIOPHARM Oncology Inc has gained a good reputation in the biotechnology sector.
Reasons that make ZIOPHARM Oncology Inc Best Day Trading Stock
Trending Stock: ZIOPHARM Oncology Inc. has been a trending trade stock lately due to the recent developments related to its board members.
Bollinger Band Analysis: Bollinger Band analysis shows a strong increase price to volatility action with trends showing high daily volatility.
News: From its CFO stepping down to Jaime Vieser and Holger Weis gaining a seat in the Board of Directors, ZIOPHARM Oncology Inc is an ideal stock of day traders who desire to benefit from high speculations and price movements.
Increase in Traded Volume: ZIOPHARM Oncology Inc has seen a drastic increase in the volume in the past few days. On December 18, 2020, the stock observed a high volume day with more than 7 million shares traded.
6. Amrep Corp [NYSE: AXR]
Established in 1961, Amrep Corp is a well-known New Jersey-based company primarily involved in real estate and media services managing its operations through its subsidiaries namely, AMREP Southwest Inc. and Kable Media Services Inc.
Amrep Corp Is one of the best top day trading penny stocks which is the beloved stock of many day traders.
Reasons that make Amrep Corp Best Day Trading Stock Under $10
Trending Stock: Amrep Corp. has been a trending stock lately due to the unexpectedly positive results reported of fiscal 2021 ended in October 2020 where the company reported a net income of $798,000.
Bollinger Band Analysis: Bollinger Band analysis reveals a strong build in price to volatility action with an uptrend. This happens with stocks in which traders start taking positions recently.
News: From its positive fiscal 2021 results to breaking its 52 weeks high of $7.53, Amrep Corp is an ideal stock of day traders who desire to benefit from high speculations and price movements with best day trading stock under $10.
Increase in Traded Volume: With Amrep Corp getting on traders’ radar recently, is destined to see a drastic increase in the volume in the coming future. On December 2, 2020, the stock observed a high volume day with more than 77,000 shares traded.
7. Aegon N.V. ADR [NYSE : AEG]
Established in 1983, Aegon N.V. is a trusted life insurance and asset management company based in the Netherlands, Dutch.
Aegon N.V. ADR or an American Depository Receipt which provides simplification for American market participants when dealing with foreign companies and considering the present situation is one of the best day trading stock under $5.
Reasons that make Aegon N.V. ADR Best Day Trading Stock Under $5
Trending Stock: With Aegon N.V. Now adopting efficient cost-cutting by selling a non-core volatile business and reducing its risk exposure, has made it a trending stock lately. Such growth-driven financial decisions are always welcomed by the market.
Bollinger Band Analysis: Bollinger Band analysis reveals strong speculation build up in price to volatility action as higher volatility is observed opening sessions. This happens with stocks in which institutional buyers are starting to take an interest.
News: Targeting a cost cut of 13% by 2023, Aegon N.V. is a great opportunity for day traders who desire to benefit from high speculations and price movements with best day trading stock under $5.
Increase in Traded Volume: With Aegon N.V. ADR getting on traders’ radar recently, is destined to see a drastic increase in the volume in the coming days.
Zoom Video Communications, commonly known as Zoom, has become a household name today. Since the pandemic led to lockdown, millions of people around the world shifted to the virtual mode of communication for personal and business work. For that Zoom provided the ultimate solution. Since COVID-19, the share of Zoom has skyrocketed and so has the number of downloads of the app.
Zoom touched a market cap of $162 billion, increasing its value more than IBM. For the fiscal year ending 31st January 2021, the company reported:
⦁ Total revenue of $2,651.4 million, up 326% year-over-year
⦁ Net Income of $671.5 million
⦁ EPS was reported at $2.25/ share
The reason behind the explosive growth in revenue is exponential growth in customers and expansion of business across existing customers. At the end of the fiscal year 2021, the company reported:
⦁ Approximately 467,100 customers with more than 10 employees,
⦁ 1,644 customers contributing more than $100,000 in trailing 12 months.
The below chart shows the bullish journey of Zoom since the pandemic in March-20. The share of Zoom touched its peak of $559 in Novemeber’20, exhibiting an approx. 400% increase from March till November. The share of Zoom has bounced after hitting its peak and is currently trading around $298.
The company is well-positioned for strong growth in the coming years. They currently have an innovative video communications platform, on which customers can build, run, and grow their businesses; and a globally recognized brand. Zoom is a trending strong and has been in the news quite often since the pandemic. It is, without doubt, one of the best day trading stocks for 2022.
9. Twilio Inc.
Twilio is a cloud communications platform. It allows software developers to programmatically make and receive phone calls, send and receive text messages, and perform other communication functions using its web service APIs. Twilio has evolved as the top cloud computing company. Since its IPO in 2016, it is continuously growing and is a $62 billion company today.
The fiscal year 2020, ended with exceptional performance: total revenue rose by 55% and the company had more than 221,000 active customers. In the recent quarterly report, the company reported:
⦁ Revenue of $669 million, up 67% year-over-year
⦁ More than 240,000 active customer accounts, compared to 200,000 Active Customer Accounts as of June 30, 2020
Since the pandemic, Twilio stock is on a rising streak. From a price of $80 in March’20, the stock rose to $435 in Feb’21, exhibiting an approx. 450% increase in less than a year. Currently, Twilio share is trading at $367.
Active customer accounts are an important indicator of the growth of Twilio’s business. It indicates the market acceptance of its platform and future revenue trends. With the exponential growth in its stock price and the volatile nature of the stock, makes Twilio is an excellent Day trading stock. Get to know the best signal providers.
Nike, Inc. is a multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. Despite the global recession and major disruptions for much of 2020, Nike’s earnings and sales stayed strong. The sporting brand stays focused on innovation which leads to increased margins. International sales are growing strong and the company has been able to increase its digital presence and digital sales.
The company recently reported its fiscal year 2021 report:
⦁ Revenue of $44.5 billion, reporting an increase of 19%
⦁ Net income was reported at $5.7 billion
A $254 billion company, the stock of Nike currently trades at around $163. After the initial stock market crash due to COVID-19, Nike’s share has been on a rising streak and there is no stop till today. From the lows of $67, the share has increased by more than 100%. The below chart displays the stock performance of Nike:
The company is focused on innovation and boosting margins. Its Nike Direct business has been performing well and international growth has also been solid. Nike is connecting with customers through, both, its digital offerings and through those of its retail partners. Nike stock has seen multiple dips and rises over its past year journey. In addition to it, the company is always in the news due to its innovative product. Volatile nature and trending stock make Nike one of the best day trading stocks for 2022.
NIO is a Chinese multinational automobile manufacturer, specializing in designing and developing electric vehicles. The company has gained a huge market share in its local market due to huge support from the government. Moreover, the low price of NIO cars makes it an even more attractive buy in comparison to competitors like Tesla.
In its recent Q2 report, the company reported:
⦁ Vehicle sales were RMB7,911.8 million (US$1,225.4 million), an increase of 127% from the second quarter of 2020
⦁ Total Revenues of RMB8,448.0 million (US$1,308.4 million), an increase of 127% from the second quarter of 2020
⦁ Deliveries of the ES8, the ES6, and the EC6 were 21,896 vehicles
The company is unable to generate profits but with government support and a highly developed EV industry within China, attracts investor attention.
Nio has a market valuation of around $60 billion. Its share is trading at $34. The share price has skyrocketed as compared to last year’s trading price. From a price of $3.8 at the start of 2020, the share of Nio has shown an astounding 700% increase in less than two years.
NIO is working closely with its partners to improve the overall supply chain production capacity. Moreover, the growing user demand increases the commitment of the company to expand the power network, increase service and sales coverage, and more importantly, accelerating product and technology development. The company plans to launch new vehicles next year. With the EV industry reaching its peaking, NIO is speeding up its production to cope up with the demand and is one of the trending stocks today. This makes it one of the best day trading stocks.
Tesla is accelerating the world’s transition to sustainable energy with electric cars, solar and integrated renewable energy solutions for homes. Tesla has made a huge name for itself in the electric vehicle industry. The recent statement from CEO Elon Musk that “the company could be selling between 5 million and 10 million vehicles a year by 2025” has further added value to the company and made this an attractive investment for investors.
In the recent Q2 report, Tesla logged its eighth straight quarter of profitability. The company reported:
⦁ Revenue of $11.96 billion, a nearly 100% increase from last year’s second quarter
⦁ Net income of $1.14 billion compared with the $104 million net income in the same period last year
⦁ The company produced 206,421 vehicles in the second quarter and delivered 201,250 vehicles
The stock of Tesla is on a bullish journey since last year. Its stock is currently trading at around $753. It has risen from a price of $95 at the start of 2020 exhibiting an astounding 700% increase in share price in less than two years.
With the government shifting its focus towards a greener environment, electric vehicles cars are increasing in demand. Tesla is a giant in the electric vehicle market. With the company increasing its investment and innovation within the electric vehicles industry, Tesla is one of the best day trading stocks to invest in today.
Netflix is a subscription-based streaming service that allows subscribers to watch a wide variety of award-winning TV shows and movies. Due to increased demand for streaming services due to lockdown during the pandemic, the stock of Netflix has soared.
By the end of the fiscal year 2020, the streaming service company added 36.6 million subscribers and has now crossed 200 million subscribers in total.
The following graph compares, for the five years ended December 31, 2020, the total cumulative stockholder return on the Company’s common stock with the total cumulative return of the NASDAQ Composite Index, the S&P 500 Index, and the RDG Internet Composite Index.
A $100 invested in Netflix at the start of the fiscal year 2016 grows up to $500 by the end of the fiscal year 2020.
According to the six months report published recently, Netflix reported:
⦁ Revenue of $14.5 billion, a 17% increase year-on-year
⦁ Net income of approximately $3 billion, 100% increase year-on-year
⦁ Total paid members around 209 million
The company’s market capitalization currently stands at $268 billion. The stock of Netflix has been on a rising streak way before the pandemic. But the pandemic gave a huge boost to the stock price. At the start of 2020, the stock of Netflix was trading around $329. Today it is trading at $606, exhibiting an 84% increase in less than two years.
Netflix is focusing on productions tailor-made to specific geography. Moreover, Netflix’s ability and willingness to produce high-quality, local-language content is propelling it in markets. After the excellent year 2020, in terms of increase in revenue and number of subscribers, the growth has slowed down. But the growth is expected to accelerate making Netflix an excellent day trading stock for 2022.
14. AMC Entertainment
AMC Networks is a global entertainment company known for its popular and critically-acclaimed content. It is often trending due to its memes. Infact it has been titled one of the best meme stock of 2022.
In its recengt quarterly report, the company published:
⦁ Revenue of $445 million, last year second quarter revenue totaled $18.9 million
⦁ Net loss was reported at $349
Currently at a market valuation of $24 billion, AMC share is trading at $47. The share performce of the meme stock is shocking. Trading at a price of $2 at the start of the year 2021, the stock has shown a staggering improvement of over 2000% in less than a year.
Its volatility and trending nature makes AMC Entertainent one of the best day trading stocks of 2022. No one can predict what the future holds for this meme stock but the current year has been full of positive surprises for the company and an excellent investment for investors.
Other Best Stocks to Look for Day Trading
15. Disney [NYSE : DIS]
16. Synergy Pharmaceuticals Inc. [NYSE : SGYP]
17. Bill Barrett Corp. [NYSE : BBG]
18. Basic Energy Services Inc. [NYSE : BAS]
19. Financial Select Sector SPDR Fund [NYSE : XLF]
20. Technology Sector ETF [NYSE : XLK]
21. Gold Miners ETF [NYSE : GDX]
So this was a list of best day trading opportunities. If you want to succeed as a day trader you will need to pay close attention to stock movements and news briefs. Once you have set all of your strategies, you can be successful as a day trader by investing in these stocks.
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