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.
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.
– 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.
– 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]
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.
Other Best Stocks to Look for Day Trading
8. Zoom [NYSE : ZM]
9. Twilio Inc. [NYSE : TWLO]
10. NIKE [NYSE : NKE
11. NIO [NYSE : NIO]
12. Disney [NYSE : DIS]
13. Synergy Pharmaceuticals Inc. [NYSE : SGYP]
14. Bill Barrett Corp. [NYSE : BBG]
15. Basic Energy Services Inc. [NYSE : BAS]
16. Financial Select Sector SPDR Fund [NYSE : XLF]
17. Technology Sector ETF [NYSE : XLK]
18. 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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