With the right strategy, Day-Trading offers investors the ability to short prices, trade on company news or events, and earn a profit while at it. Unlike long-term investing, Day-Trading provides opportunities in price movements where you can get in and out of those opportunities as quickly as possible.
In this article, we have compiled an in-depth list of the best stocks to trade in 2021 to make the start of your Day-Trading journey pleasant and rewarding. Let’s dive in!
Choosing the Best Stocks to Trade
One skill that you will need to learn is the ability to choose excellent Day-Trading stocks. Day-Trading is not only about buying and selling stock within the same day; it is about ensuring reward and liquidity in every trade.
Before you can start practicing Day-Trading, it is essential that you learn how to day-trade besides learning how to strategically pick stocks that can make money for you. Selecting stocks for day-trade differs greatly from selecting stocks for the long-term. You are focusing on short-term signals. Things that can help you get in and out quickly with a profit.
Some important ones include:
- News Catalysts: These are any kinds of stories that will bring investors and traders out of the woodwork and give particular stock attention within that day.
- Volume: This is the most important element in Day-Trading. Without it, it is hard for a specific stock to make any large movements within the market to help you earn profits.
- Volatility: Volatile moments are perfect for Day-Traders. They allow them to hit the same stock multiple times in one day. Volatility and volume are related. Without volatility, there is not a lot of buying and selling.
- Low Float: The term float here refers to the number of shares that are available to trade. When the float is low, it means that a few shares are available, thus liquidity is low.
- Pre-Market Trend: : If a particular stock is trending upwards in the pre-market, it represents an excellent opportunity for you to jump into the market before it opens to the public. As more and more traders push the stock price up, you can take profits and move on to other lucrative trades.
Best Stocks to Trade
- Advanced Micro Devices
For the past decade, Tesla has been defying odds and exceeding market expectations. Recently, the company made an impressive move when its revenue jumped by a staggering 40% to around $9 billion. Afterward, its daily volume shot up exponentially.
For this reason, Tesla became a trendy stock last year (2020). Trendy stocks are attractive as they attract more swing trading opportunities. In addition, since it was in the news a lot more often, any sudden speculation could easily move prices in any direction.
Etsy is a fast-growing e-commerce platform that appeals to customers with a unique taste in products. Most of their products are handmade or vintage. In 2020, the stock price of Etsy has shot up over 250%. With the Covid-19 pandemic forcing people into quarantine, many people have now turned to online shopping.
Thanks to this, the retailer has now been appearing more in the news thanks to skyrocketing demand from customers and an increase in sales. An increase in overall volume has made it an excellent target for Day-Traders.
Advanced Micro Devices
AMD has grown to become a household name when it comes to computer processors and related technologies. It offers a vast range of products that include motherboard chipsets, GPUs, microprocessors, etc. Since January last year (2020), AMD’s stock price has grown about 200%.
With many employees now working from home, the demand for laptops and PCs with faster processors is now greater than ever. For this reason, AMD has been in the news more often than not. A sharp increase in its prices has led to volatility within the market, making AMD an excellent stock to day-trade.
Roku is a U.S.-based digital streaming service and hardware. Over 2020, the service has seen a consistent increase in OTT viewership. It sells Roku streaming set-top boxes that deliver OTT content, live streams, and its free ad-supported channel.
Streaming platforms have been in the news lately since they have all seen a spike in viewership over the last year. The lockdown has been a growth catalyst for firms such as Roku, pushing their prices higher and increasing volatility in the market. For this reason, Roku is making it as one of the best stocks to trade right now.
The Bottom Line
The kinds of stocks offer excellent potential for day-trader to get into the market, make a trade, and exit with a profit. This is because they are highly liquid and the market experiences significant price movements daily. All you need to do is to have a solid trading strategy to help you succeed. If you do it right, Day-Trading is a lucrative way to earn income from the comfort of your computer.