Day Trading stocks shouldn’t be difficult. Feeling overwhelmed about the sheer number of stocks that are available for day trading? You’re not alone. Many day traders struggle with this very issue and how to pick the best day trading stocks. There are plenty of ways to go about selecting the best stocks to day trade. Sticking with popular day trading stocks like Google is one option; quickly buying and flipping stocks from IPOs is another. Regardless of how you go about it, however, significant amounts of research and work are required for day trading stocks.
Day Trading Stocks: 6 Tips
1. Stick with day trading High-Volume stocks
For the best odds of success, choose day trading stocks that have high trading volumes when compared with their usual performance. This means, for instance, to look for a stock that normally trades at around three million shares per day but has already traded six million shares or more before 10am. You might think you can just keep an eye on the “popular day trading stocks” feature on your brokerage platform, but many will slip through the cracks. Most platforms have a limit on how many day trading stocks will appear there. By checking for these stocks manually, you can find hidden gems that other traders will easily overlook.
2. Review Your Own Trading History
After you’ve been day trading stocks for a while, you will have a history that you can refer back to as needed. This is a great way to gain inspiration for your next day of trading. Which stocks do you seem to gravitate to the most? How well do they tend to play out for you? You’d be surprised by how quickly you can forget about day trading stock picks that have performed well for you in the past, so it definitely pays to look back on your own history on a regular basis.
3. Scan the Market before it Opens
There are a few rules of thumb when scanning the pre-market for day trading stocks . Look for stocks that are at least $5 or higher and that are on the rise. As mentioned before, stick with stocks that have high trading volumes. Review the 30-day history of a stock to get a feel for its overall performance in terms of volume. This will help you weed out thinly traded stocks. Don’t forget to review the overall market and values as well. Check out the major indices, including the Dow, the S&P and NASDAQ. Always go in the direction of the overall market when day trading, and choose your stocks accordingly.
After You Learn How To Pick Day Trading Stocks
Now that you have some great tips for choosing the best day trading stocks, put them to use! Some stocks appeal more to you than others, but try them all anyway. After all, you never know which strategies will work the best for you and for your particular style of day trading. Picking high-volume day trading stocks is a difficult and long process. Another thing to keep in mind is that you can’t work through all of this in a single day. Arriving at the best day trading stocks takes time, so be patient. You’ll know you’ve succeeded when your scan consistently results in trades that produce reliable earnings on a daily basis.