How do I find the best stock to trade every day?
The best way to do that is to study the market, read up on company financials, consider what sectors best reflect your personal needs, personality, and values, and remember to start early. You'll need to get a head start on the trading day, so it's a good idea to time yourself according to market openings.
The way to find the best stocks for day trading is by having a scanner that sorts and filters stocks based on volatility and volume. Another way is to keep tabs on the most volatile stocks in the market on a regular basis and keep these on your watchlist.
When it comes to finding the most volatile stocks, Beta is one of the most important indicators to consider. It measures a stock's volatility in relation to the overall market. A Beta of more than 1 signifies that a stock is more volatile than the market. High-beta stocks are usually considered riskier.
Success in day trading requires a deep understanding of market dynamics, the ability to analyze and act on market data quickly, and strict discipline in risk management. The profitability of day trading depends on several factors, including the trader's skill, strategy, and the amount of capital they can invest.
Day traders commonly choose the forex market for its low barriers to entry as well as exchange-traded funds. Long-term investors are often attracted to the commodities market and the market for contracts for difference.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Infosys | 1508.85 |
| 2. | ITC | 428.60 |
| 3. | Bharat Electron | 197.50 |
| 4. | Power Grid Corpn | 275.75 |
With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].
The stock market tends to be most volatile during the first hour after the opening bell at 9:30 AM Eastern Time. This is because traders and investors are reacting to the overnight news, and institutional investors are making their opening trades.
| Symbol | Volatility | Price |
|---|---|---|
| VIRI D | 88.22% | 0.4574 USD |
| YCBD D | 85.34% | 0.9100 USD |
| OTRK D | 82.60% | 0.3921 USD |
| BCAN D | 77.09% | 2.51 USD |
Regular Trading Session
The regular session starts at 9:30 a.m. and lasts until 4:00 p.m. EST. The opening hours are considered a volatile period. It is the time when most investors rush to react to events that occurred since the previous trading session closed.
What is the easiest way to day trade?
Following the trend is probably the easiest trading strategy for a beginner, based on the premise that the trend is your friend. Contrarian investing refers to going against the market herd. You short a stock when the market is rising or buy it when the market is falling.
The opening period (9:30 a.m. to 10:30 a.m. Eastern Time) is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.
Successful day traders follow key principles of understanding the market, setting realistic goals, managing risk, having a trading plan, monitoring their performance, staying disciplined, and taking breaks. By following these rules, you can maximize your profits while minimizing losses in day trading.
The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.
| Best Day Trading Stocks | Avg. Daily Volume | Average Daily Movement (% or $) |
|---|---|---|
| CLSK | 37 million | 12.65% |
| MARA | 80 million | 10.78% |
| RIOT | 26 million | 8.66% |
| RUN | 15 million | 7.73% |
Which type of trading is best for beginners? Beginners should consider starting off with swing trading, which means holding an investment for more than one day and less than a couple of months. It's less time-consuming and stressful than day trading.
| Name | Last | Chg% Clear Save |
|---|---|---|
| Tata Steel Ltd | 151.80 | +1.13% |
| Axis Bank | 1,033.30 | -0.22% |
| Bharti Airtel | 1,237.00 | +1.33% |
| Indus Towers | 275.20 | +9.99% |
Tracking trading volume provides information on how a particular stock is performing, what is driving the stock price, and how strong or weak the move may be. For example, if a stock begins trending upwards and is accompanied by a high trading volume, it is a sign that the upward trend will stick and continue.
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
A common approach for new day traders is to start with a goal of $200 per day and work up to $800-$1000 over time. Small winners are better than home runs because it forces you to stay on your plan and use discipline. Sure, you'll hit a big winner every now and then, but consistency is the real key to day trading.
Can a day trader be a millionaire?
Many people have made millions just by day trading. Some examples are Ross Cameron, Brett N. Steenbarger, etc. But the important thing about day trading is that only a few can make money out of day trading and the rest end up losing their entire capital in day trading.
You're really probably going to need closer to 4,000 or $5,000 in order to make that $100 a day consistently. And ultimately it's going to be a couple of trades a week where you total $500 a week, so it's going to take a little bit more work. Want to learn more about trading?
What Is the 11am Rule in Trading? If a trending security makes a new high of day between 11:15-11:30 am EST, there's a 75% probability of closing within 1% of the HOD.
Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.
The easiest way to find pre-market gappers is to use a stock scanner. Simply search for stocks for which the current day's opening price is greater or less than the previous day's closing price. You can further refine your search by adding filters for the magnitude of the price gap.
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