There are thousands of stocks out there to day trade with. Choosing them is a matter of perseverance, research, and will. Day traders often find it daunting to identify the stocks to bet on. To make their work easier, they try to find liquid stocks with a large trading volume.
On the other hand, they avoid penny stocks like the plague. Some rely on specific industry sectors to trade in as they claim to understand the nuances of certain industries and what affects their stocks. All of that requires a lot of experience and knowledge.
However, there are a few easy ways to find the best stocks to day trade with.
how to find stocks to day trade
1. Examine Your Position
If you want to learn how to find stocks to day trade, you have to outline your financial goals. You need to examine which stocks fit in with your ambition and goals. If you trade on the stocks that everyone else is trading on, you can probably make a quick profit. However, you may never win big. Consider the capital that you have and what kind of investing you’re going to do. Don’t forget to do your research and also don’t forget to buy low and sell high.
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2. Consider High Liquidity Trading
As mentioned above, high liquidity stocks are low risk and frequently traded. It means that they can be easily sold, and their market caps are much higher than others. You can also go for high volatility stocks to make quick profits. However, this requires a little more knowhow of the market than beginners may have.
For more on this, you should check out financial service news on Google Finance or Yahoo Finance. The sites list high liquid and high volatility stocks. You can also get this information from online broker sites in real-time.
3. Look at the Trade Volume Index
The Trade Volume Index can be used to determine which stock to buy. Day traders frequently use it. It simply measures the amount of money that is flowing in and out of assets. The volume of stock traded is basically the measure of how many times it’s bought and sold. During a normal trading day, the more it’s bought, the more value it gains. Hence, this is a great technique for beginners wondering how to find stocks to day trade.
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4. Look toward Financial Services
Financial services stocks are some of the most dependable on the market. For example, Bank of America is a highly traded stock per shares traded per trading session. Despite the banking system being viewed with increased scrutiny, they still provide a lot of capital for trade.
You can say the same for banks like Citigroup, Morgan Stanley, JP Morgan & Chase and Wells Fargo; they all exhibit high trading volumes. Hence, once you find a financial service that is highly traded, go for it.
5. Keep an Eye on Social Media
Social media drives more of the world today than ever before. Certain events on Twitter, Facebook, Instagram, Snapchat, etc., can have an effect on the stock market. Specifically, some social networks are so powerful that they influence how news gets to the consumer.
Many online media companies like LinkedIn and Facebook have stocks that have been traded in high volume. The debate has ranged widely over the capability of the companies to transform their user base into paying customers. However, what can’t be disputed is the hold they have on their base.
With these tips, you’ll find the best stocks to day trade with.
How To Start Day Trading The Forex Market For A Living
The Truth About Trading Forex For A LivingHow To Start Day Trading The Forex Market For A Living
