Introduction
Day trading is a popular strategy for traders who want to make quick profits in the stock market. However, choosing the right stocks to trade can be challenging, especially for beginners. In this article, we will discuss the best day trading stocks of 2021 that are worth considering.
What is Day Trading?
Day trading is a trading strategy where traders open and close positions within the same trading day. The goal is to make profits by taking advantage of small price movements in the market. Day traders use technical analysis to identify stocks with high volatility and liquidity.
Factors to Consider when Choosing Day Trading Stocks
When choosing stocks for day trading, there are several factors to consider. First, the stock should have high liquidity to ensure that traders can easily enter and exit positions. Second, the stock should have high volatility to provide opportunities for profits. Third, the stock should have a low bid-ask spread to minimize trading costs.
Best Day Trading Stocks of 2021
1. Apple Inc. (AAPL) Apple Inc. is a technology company that designs, manufactures, and sells consumer electronics, computer software, and online services. AAPL has high liquidity and volatility, making it an ideal stock for day trading. Traders can take advantage of the stock’s price movements, especially during product launches and earnings announcements. 2. Tesla, Inc. (TSLA) Tesla, Inc. is an electric vehicle and clean energy company that designs, manufactures, and sells electric cars, solar panels, and energy storage systems. TSLA has been one of the most volatile stocks in 2021, making it a popular choice among day traders. Traders can take advantage of the stock’s price movements, especially during news announcements and earnings calls. 3. Amazon.com, Inc. (AMZN) Amazon.com, Inc. is an e-commerce company that sells a wide range of products and services online. AMZN has high liquidity and volatility, making it an ideal stock for day trading. Traders can take advantage of the stock’s price movements, especially during major shopping events like Black Friday and Cyber Monday. 4. Microsoft Corporation (MSFT) Microsoft Corporation is a technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers. MSFT has high liquidity and volatility, making it an attractive stock for day traders. Traders can take advantage of the stock’s price movements, especially during product launches and earnings announcements. 5. Advanced Micro Devices, Inc. (AMD) Advanced Micro Devices, Inc. is a semiconductor company that designs and manufactures microprocessors, graphics processors, and system-on-chip products. AMD has high liquidity and volatility, making it a popular choice among day traders. Traders can take advantage of the stock’s price movements, especially during product launches and earnings announcements.
Conclusion
Choosing the right stocks for day trading is critical for a trader’s success. The stocks listed above have high liquidity, volatility, and low bid-ask spreads, making them ideal for day trading. However, traders should always conduct their own research and analysis before entering any trades. Remember to always manage risk and trade with discipline. Good luck and happy trading!
