What is the best stock for day trading?
Liquid stocks are more easily day-traded and tend to be more discounted than other stocks, making them cheaper. In addition, equity offered by corporations with higher market capitalizations is often more liquid than corporations with lower market caps.
Liquid stocks are more easily day-traded and tend to be more discounted than other stocks, making them cheaper. In addition, equity offered by corporations with higher market capitalizations is often more liquid than corporations with lower market caps.
Specific industry ETFs that are ideal for day traders include the VanEck Vectors Gold Miners ETF (GDX) and iPath S&P 500 VIX Short-Term Futures ETN (VXX). In the simplest form, look for high volume stocks with a high beta, such as Advanced Micro Devices (AMD).
Symbol | Vol * Price | Price |
---|---|---|
AMZN D | 9.779 B USD | 174.63 USD |
NFLX D | 9.13 B USD | 555.04 USD |
AVGO D | 5.397 B USD | 1204.71 USD |
MU D | 3.607 B USD | 106.77 USD |
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].
Investors can make trades in various markets, including the stock market, foreign exchange market, and options market. Many markets are available to anyone with a simple internet connection. Day traders commonly choose the forex market for its low barriers to entry as well as exchange-traded funds.
First, pattern day traders must maintain minimum equity of $25,000 in their margin account on any day that the customer day trades. This required minimum equity, which can be a combination of cash and eligible securities, must be in your account prior to engaging in any day-trading activities.
In summary, if you want to make a living from day trading, your odds are probably around 4% with adequate capital and investing multiple hours every day honing your method over six months or more (once you have a method to even work on).
Legend has it Takashi Kotegawa started with the equivalent of $13,600. He benefited from some luck and a lot of skill to rack up $153 million in about eight years. Sometimes he made millions per trade. While primarily a stock trader, Takashi has been known to trade in a variety of financial instruments.
Symbol | Name | % Change |
---|---|---|
DJTWW | Trump Media & Technology Group Corp. | +10.10% |
MARA | Marathon Digital Holdings, Inc. | +9.78% |
CNS | Cohen & Steers, Inc. | +9.50% |
BANF | BancFirst Corporation | +8.86% |
What are the hot stocks today?
- TSLA. 149.13. - 0.80. 0.53% 60M. 147.81299.29.
- AMD. 149.39. - 5.69. 3.67% 46M. 81.02227.30.
- NVDA. 803.36. - 43.35. 5.12% 43M. 262.25974.00.
- AAPL. 165.13. - 1.91. 1.15% 37M. 162.80199.62.
- MARA. 16.69. + 1.66. 11.07% 36M. 7.1634.09.
- PARA. 12.45. + 1.48. 13.49% 33M. 10.1224.00.
- BAC. 37.08. + 1.30. 3.65% 33M. ...
- CLSK. 17.66. + 1.43. 8.81% 33M.
Symbol | Volatility | Change % |
---|---|---|
TTWG D | 111.58% | +101.62% |
NKGN D | 94.20% | +28.60% |
SSBFM D | 91.91% | β46.84% |
ZCMD D | 75.44% | +33.79% |
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.
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.
How day trading impacts your taxes. A profitable trader must pay taxes on their earnings, further reducing any potential profit. Additionally, day trading doesn't qualify for favorable tax treatment compared with long-term buy-and-hold investing.
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. For example, if a stock closed at $40 the previous day, opened at $42 the next, and reached $43 by 10 a.m., this would indicate that the stock is likely to remain above $42 by market close.
High stress. Markets move quickly, and seeing your balance swing up and down can be very stressful, especially if your trades aren't working out. Day trading is a form of gambling and can become addictive, putting strain on your health and relationships. Time-consuming and challenging.
NYSE Composite Seasonal Patterns
Seasonal charts courtesy of StockCharts.com. The above chart looks at 20 years of data. If we only look at the last 10 years (below), things change a little bit. Worst Months: January, February, March, August, and September are weaker periods.
- UnitedHealth Group Incorporated (NYSE:UNH) Number of Hedge Fund Holders: 104. Quarterly Revenue Growth: 14.10% ...
- JPMorgan Chase & Co. (NYSE:JPM) Number of Hedge Fund Holders: 109. ...
- Advanced Micro Devices, Inc. (NASDAQ:AMD) ...
- Adobe Inc. (NASDAQ:ADBE) ...
- Salesforce, Inc. (NYSE:CRM)
To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return β and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.
How do you know if a stock will go up the next day?
Some of the common indicators that predict stock prices include Moving Averages, Relative Strength Index (RSI), Bollinger Bands, and MACD (Moving Average Convergence Divergence). These indicators help traders and investors gauge trends, momentum, and potential reversal points in stock prices.
The top billionaire day traders, like Jim Simmons, Ken Griffin, and George Soros, have different ways of trading, but they all use a mix of technical analysis, fundamental analysis, and risk management to make their choices.
The so-called first rule of day trading is never to hold onto a position when the market closes for the day. Win or lose, sell out. Most day traders make it a rule never to hold a losing position overnight in the hope that part or all of the losses can be recouped.
1. George Soros. George Soros, often referred to as the Β«Man Who Broke the Bank of EnglandΒ», is an iconic figure in the world of forex trading.
Most independent day traders have short days, working two to five hours per day. Often they will practice making simulated trades for several months before beginning to make live trades. They track their successes and failures versus the market, aiming to learn by experience.
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