Day trading is a fast trading strategy where you buy and sell stocks in a single day. This guide picks the best day trading stocks and explains how to find them.
To day trade, find popular stocks that fluctuate in price regularly throughout the trading day. Our experts have reviewed the best stock options to pick the five best day trading stocks to get started.
What are the best day trading stocks to buy?
Here are the best stocks to day trade right now. Each of them has a lot of trading volume and regular price changes throughout the day. Read on to learn more about each one and why they’re on our list.
1. Advanced Micro Devices (NASDAQ: AMD)
AMD is a computer chip manufacturer that produces hardware such as graphics cards for your computer. The company has been around since the late 1960s, but has had its best years recently.
Semiconductor compression during the pandemic catapulted AMD into the jackpot. Likewise, for Nvidia, it has become an extremely popular pandemic trend, and the price has risen accordingly.
Like many tech stocks, it has the volatility and volume to attract day traders. The share price regularly experiences highs and lows of 5-10% over the course of a day or week, and with so many competitors in the semiconductor space, there are regular news and results publications to trade.
2. Etsy (NASDAQ: ETSY)
Etsy is an online marketplace where individuals can sell handmade or personalized products. Established in 2005, it has become the online store for vintage and unique items on the Internet.
This was another big winner from the pandemic as many people learned a new skill or started their own online store. Likewise, the large increase in e-commerce during shutdowns across the globe sent Etsy’s stock price soaring.
As with AMD, the stock is highly volatile. Price fluctuations of 5% on any given day are not uncommon, providing plenty of trading opportunities.
3. Tesla (NASDAQ: TSLA)
Tesla is one of the largest companies in the world. Owned by Elon Musk and founded in 2003, it manufactures electric vehicles, solar panels and many other products related to renewable energy.
The modern focus on clean energy has been a huge boost for Tesla, as has its role in leading the retail boom. There is a huge amount of discourse online about the company, which Musk facilitates with his Twitter persona and his confrontational approach to financial regulators.
The whole Tesla cat is perfect fodder for day traders. Tesla is the type of stock you can focus almost all of your trading energy on because it generates many different trading patterns and opportunities and there is never a liquidity problem.
4. Apple (NASDAQ: AAPL)
Apple needs little introduction as an iconic brand in the digital age. Created by Steve Jobs in the 1970s, it rose to global prominence after the release of the iMac computer in the early 1990s and then the iPod and iPhone in the 21st century.
Apple’s appeal as a day-trading stock is based on its trading volume. Over 50 million shares are traded every day. Another big part of its popularity is that stocks often fluctuate by a few dollars a day, meaning you can make a small profit without even having to use anything like leverage.
Because it is such a popular company, Apple also has a relatively high bottom line and significantly lower risk than many other stocks. Even in a bad period, the share price is unlikely to fall too far, which means you don’t have to worry so much about leaving a position open.
5. Nokia (NYSE: NOK)
Nokia is a telecommunications company that manufactures electronics and computer hardware. Based in Finland, Nokia was established in the 19th century, but is best known to most as one of the leading manufacturers of mobile phones.
Nokia is a relatively low-priced stock and can even sometimes be considered a penny stock, as a company valued at less than $5 per share. stock. It is far from its peak in the late 1990s, but has shifted away from phones to make 5G networks and infrastructure hardware.
Its role as a heritage brand that many traders have grown up with means that it often attracts the attention of retail or casual traders during periods of volatility. This was true during the meme stock saga of 2021 and means this is a stock you can choose to go long or short as a day trader.
Where to buy the best day trading stocks
The best place to trade these stocks is through an online broker. Platforms like eToro offer commission-free stock trading, which is a big plus when it comes to an active strategy like day trading. Sign up and start shopping via one of the links below.
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What to look for in a day trade with shares?
The most important characteristics to look for in a stock are volatility and volume. You want to find stocks that experience regular price fluctuations and where there are lots of people buying and selling.
Volume is important because day trading relies on the ability to open and close trades on the same day and ideally make money when you do. Other people buying and selling at the same time means there is always enough money to close a position and you are likely to find tighter spreads.
Other important things to watch are technical indicators and chart patterns, such as channels, trends, wedges and breakouts. You can use a platform like FinViz to find a list of stocks that show certain patterns on a given day.
Is day trading a good idea?
It takes time and effort to figure out, but it can be a good idea if you know what you’re doing. Day trading is a fast trading strategy that relies on technical analysis, so you need to be able to understand chart patterns and identify your own trends and indicators.
It is only suitable for people who can dedicate enough time to stock research every day. While the five actions on this page are good options to start with, you will constantly find new opportunities to succeed. Doing this around a full-time job can be difficult.
You should also be familiar with the stock market and its news cycles. Earnings reports, financial data and competitor results can all affect a stock’s price, and you need to be prepared when the news hits. Use the links below to help you.
Latest Stock Market News
More top performing stocks
Sources and references
Invezz is a place where people can find reliable and objective information about finance, trading and investing – but we do not offer financial advice and users should always do their own research. The assets covered by this website, including stocks, cryptocurrencies and commodities, can be very volatile and new investors often lose money. Success in the financial markets is not guaranteed and users should never invest more than they can afford to lose. You should consider your personal situation and take the time to research all your options before making an investment. Read our disclaimer >