Best Stocks For Day Trading
Day trading is an exotic way to trade in the financial market, and the game became more exotic when it came to stock day trading. The biggest challenge that day traders face is in selecting the right stock. However, worry not; in this article, we will discuss the best stocks for day trading and tips for choosing the right stock accordingly.
Day trading is the opening and closing of the trade position within a day. Simply, traders buy and sell the stock within a day to earn profit from short-term price movement.
This strategy is used for trading in different financial markets. However, due to stock market dynamics, day-trading stocks are comparatively more complex than any other financial market.
Here's a quick look at what you'll read
Day trading is the opening and closing of the trade position within a day.
- Alphabet
- NVIDIA
- Bionomics Limited
- Amazon
- Transocean Ltd
- Occidental Petroleum
- Tesla INC
- Meta Platforms INC
- Goal Oriented
- Highly Liquid and volatility
- Beyond Your Geographical Boundary
- Consider Beta Value
- Performance Analysis
- Trading Volume
- Consider Risk Diversification
Best Stocks For Day Trading In 2024
Day trading is a short-term strategy, which means you will have a limited time to enter and exit a trade. Therefore, not all stocks are suitable for this purpose.
Here is a list of top-day trading stocks prepared after considering factors like time frame, risk, volatility, and market liquidity that suit the strategy.
Alphabet
Beta Value: 1.05
Market Price at the time of Writing: 1.47
Alphabet stocks are quite popular amongst traders and investors and are suitable for different trade strategies. It is a parent company of Google with an excellent history of price fluctuation and global demand.
Generally, one should go for stocks with a high beta value, usually more than 1.0 beta, while stock day trading. Alphabet stock has a beta value of 1.05, which makes it suitable for day trading. Also, it is highly volatile and offers great market conditions.
The Alphabet company has listed two share classes, Class A: GOOGL and Class C: GOOG. The prices of both the share classes are quite similar. However, class A is more suitable for day traders.
NVIDIA
Beta Value: 1.68
Market Price at the time of Writing: 721.8
Well, if you are interested in mobile gaming, electronics, or automotive, then the shares of NVIDIA can be an ideal choice for you. NVIDIA is a graphic processing unit among the top AI and gaming companies.
NVIDIA’s shares are quite popular amongst traders and saw massive growth in 2023. Also, due to the increasing popularity of AI technology, traders are putting their money into such companies. So, if you are interested in such technology, you must try these stocks to take your day trading to the next level.
Bionomics Limited
Beta Value: -0.23
Market Price at the time of Writing: 1.17 USD
Many people usually prefer to trade in health industry stocks due to consistent demand, irrespective of market conditions. For such traders, Bionomics stocks can be a good option.
It is a biopharmaceutical company that works for the development and discoveries related to nervous system disorders and cancer treatments. The weekly volatility of these shares is around 55%, making it suitable for day trading.
Amazon
Beta Value: 1.14
Market Price at the time of Writing: 168.84 USD
You may have heard of Amazon, the largest e-commerce and cloud services company globally. Currently, Amazon shares are quite popular and amongst the best stocks for day trading.
With a beta value of 1.14, Amazon shares are highly volatile and offer great volume daily, facilitating ease in buying and selling for traders. Also, Amazon regularly provides intraday traders with ample trading opportunities.
Transocean Ltd
Beta Value: 2.80
Market Price at the time of Writing: 5.17 USD
As the name suggests, transocean is an offshore drilling service engaged in oil and gas exploration and production. The company’s stocks have positioned among the popular choices for day traders.
The stocks are highly volatile, making them suitable for short-term trading opportunities. Also, these stocks are ideal for traders trading in commodities like oil and gas as the stock prices as they can use their knowledge to spot the right opportunities.
Occidental Petroleum
Market Price at the time of Writing: 1.65
It is America’s leading petroleum, oil and natural gas exploration and production company, with a high beta value of 1.98. In the last year, the company announcements and news significantly contribute to its popularity amongst traders.
The company’s stock is directly correlated to the movement of oil prices, making it suitable for traders trading in oil. The constant global demand for oil has also significantly contributed to its popularity amongst day traders.
Tesla INC
Beta Value: 2.43
Market Price at the time of Writing: 184 USD
Tesla INC’s stock is amongst the most popular stocks among traders due to the growth and expansion of the electric vehicle market. The stock has seen major growth and decline in the last year due to the controversies surrounding its CEO, Elon Musk.
The company is not limited to the EV industry; it has a vast empire. It owns thousands of charging stations in America. Advanced technology and automation have also significantly contributed to its growth. So, it is surely a best-day trading stock.
Meta Platforms INC
Beta Value: 1.15
Market Price at the time of Writing: 460.12
The popularity of social media platforms is increasing these days. Almost every person has an account on at least one of such platforms, and Meta Platform INC operates them.
Facebook, WhatsApp, Instagram, and Messenger are the top Meta platforms. Meta stocks offer traders high liquidity and trading volume, facilitating ease in buying and selling. Also, traders can take advantage of news while trading in these stocks.
How to choose the day trading stocks
We have discussed the best stocks for day trading for beginners above. However, it is also true that every trader is different, and their expectations are also different.
There are numerous options for day trading stocks available to traders. Selecting the right stock is a crucial task, so here are the factors that you should consider for identifying the right opportunities:
Goal-oriented
A trader should always know his goals before opening a trade position. Day traders aim for small and quick profits.
However, even after the profit expectations of each trader differ from the others, it is essential to consider your profit expectation per trade and select stocks accordingly.
Highly Liquid and Volatility
Stock volatility and liquidity are the two most crucial factors to consider while opting for this trading strategy.
Volatility is the degree of price fluctuation, and trading in highly volatile assets is quite risky. However, with the low volatile assets, you cannot make a profit in a short duration.
Also, high-liquid stocks ensure large numbers of traders in the market, ultimately resulting in ease of buying and selling. So, day traders should go for highly volatile and liquid stocks.
Beyond Your Geographical Boundary
One of the biggest mistakes traders make while selecting the right stock for day trading is to look for stock within the geographical boundary.
However, one can trade in the global giants and diversify their trading portfolio in top companies. Also, day traders need to understand that trading in stocks listed in other exchanges helps you spread your capital and manage the risk efficiently.
Consider Beta Value
Beta value is the most crucial thing you should consider while selecting day trading stocks. Beta value throws light on the market volatility of the stock.
A beta value of more than 1 indicates high volatility, while less than 1 indicates low volatility. For example, a stock with a beta value of 1.5 means the stock will fall or rise by 15% when the market moves by 10%.
Performance Analysis
Day trading stocks involves a significant amount of risk; therefore, the stock choice has an impact on the risk amount.
Also, you have to be quick while selecting a trading instrument, as it is a short-term strategy. So, it is better to select some stocks after proper research and performance analysis and trade in only them.
Trading Volume
Volume refers to the number of buyers and sellers in the market. In other fields, competition is considered bad; however, in trading, the higher the competition, the higher the opportunities.
The large number of buyers and sellers indicates the popularity of stocks amongst traders. Also, high liquidity makes opening and closing positions quick and smooth.
Risk Diversification
Risk diversification is another crucial point to consider while selecting stocks. We have discussed the best stocks, and these are from different sectors or industries.
Diversifying your capital into different stocks enables you to tackle this risk associated with day trading efficiently. So, even in the most unfavourable market conditions, you can manage to stay in a stable position.
Wrapping Up
Day trading is a profitable strategy for making money in stock CFDs. However, the effectiveness of any plan depends on different factors, including knowledge, experience, risk, time frame, leverage, analytical skills, etc.
Also, the best stocks for day trading vary depending on your requirements. Stock day trading may only be suitable for some sorts of traders, and it is comparatively more risky than other strategies.
However, the bigger the risk, the greater the trading outcome. So, if you want to start your day trading stocks, understand the market first.
