Finding the best stocks to trade as a day trader can be the key to making the most money. With the right picks, you can take advantage of short-term price changes and make quick gains. But there are so many stocks to choose from, how do you know which ones are the best for day trading? This guide will give you the information you need to succeed in the fast-paced world of day trading and introduce the best day trading stocks in 2023.
Is Day Trading Profitable?
Day trading can be profitable for traders who are skilled, disciplined, and know a lot about the markets and use good trading techniques. But it’s important to remember that day trading isn’t always a way to get rich. To be consistently profitable, you need to do a lot of study, analysis, and risk management.
Many day traders have trades that both make money and lose money. Day traders who are good at what they do usually focus on managing risk, making reasonable profit goals, and sticking to a disciplined trading plan. They also keep learning new things, adjust to changes in the market, and improve their trading methods.
When day trading, it’s important to be practical and think about the long term. For day dealing to be profitable, you have to be consistent and keep learning.
Best Stocks for Day Trading (2023 Updated)
To kick off our exploration of the best day trading stocks in 2023, let’s take a look at some top picks. These stocks have shown promising performance and volatility, making them attractive options for day traders. Here are some of the best stocks for day trading to think about in 2023.
Carvana Co (CVNA)
Carvana Co is a company based in Arizona that runs an online marketplace where people can buy and sell used cars. Carvana Co’s all-in-one rental service makes it easy for renters to find, inspect, finance, and set up a time to pick up or drop off their chosen car. In the past few months, the price has been very volatile, with a 52-week range from $3.55 to $163.18 and a beta of 2.83.
Meta Platforms Inc. (META)
The company that owns Facebook is called Meta and is one of the best day trading stocks out there. This stock won’t make as much money for day traders as it did in the beginning, but there may still be some upside. The beta of the company is 1.23. Out of the 2.58 billion shares that are out there, 23.77 million are traded on average. In the past 52 weeks, the price of the stock has been anywhere from $88.09 to $326.20.
Apple Inc. (AAPL)
Like Meta, Apple day traders probably won’t see the early gains they made. Still, this stock is worth keeping an eye on because of its recent instability. Apple trades an average of 56.25 million shares per day, and the company has 15.63 billion shares out in the market. The beta of the company is 1.27. The 52-week range, from $124.17 to $198.23 per share, is smaller than some of the others on this list.
Amazon.com, Inc. (AMZN)
This list concludes with Amazon, the third “big three” company. It shares version 1.24 with both Meta and Apple. On average, 53.28 million shares out of a total of 10.32 billion are exchanged. Prices for Amazon shares have fluctuated between $81.43 and $143.63 over the past 52 weeks.
Tesla Inc. (TSLA)
Tesla Inc. is a renowned electric vehicle manufacturer and clean energy company. With a market cap of $819.9 billion and an average trading volume of 132,976,642, Tesla Inc. remains a popular stock choice among day traders.
NVIDIA Corporation (NVDA)
NVIDIA Corporation is a renowned technology company specializing in graphics processing units (GPUs) and artificial intelligence (AI) computing. With a market cap of $1.013 trillion and an average trading volume of 47,705,385, NVIDIA Corporation offers day traders exposure to the rapidly evolving tech industry.
Xpeng Inc. (XPEV)
Xpeng Inc. is a leading Chinese electric vehicle manufacturer. With the increased global demand for electric vehicles, Xpeng Inc. has gained significant attention in the market. The stock has a market cap of $8.892 billion and an average trading volume of 13,143,498, making it an attractive option for day traders looking to capitalize on the growing electric vehicle industry.
Advanced Micro Devices, Inc. (AMD)
Advanced Micro Devices, Inc. is a leading semiconductor company known for its innovative processors and graphics cards. With a market cap of $200.538 billion and an average trading volume of 69,289,739, AMD presents day traders with an opportunity to capitalize on the ever-growing demand for technology products.
Palantir Technologies Inc. (PLTR)
Palantir Technologies Inc. is a software company specializing in data analysis and artificial intelligence. With a market cap of $18.701 billion and an average trading volume of 33,243,483, Palantir Technologies Inc. offers day traders exposure to the booming tech sector.
Transocean LTD (RIG)
Transocean LTD is a leading global provider of offshore contract drilling services for oil and gas wells. With a market cap of $4.4 billion and an average trading volume of 17,242,709, Transocean LTD offers day traders exposure to the energy sector.
To find the best day trading stocks in 2023, you need to do a lot of study and analysis. You can find chances for short-term gains by looking at things like price volatility, trading volume, and market trends. Day trading is a very risky thing to do, so it’s important to be disciplined, use risk management techniques, and keep learning. Day trading can be a rewarding and successful business if you know what you’re doing and have a good trading plan.
- Is day trading the same as investing?
There are two different ways to deal with the financial markets: day trading and investment. Day trading is a way to take advantage of short-term price changes by buying and selling securities within the same trade day. Investing, on the other hand, usually means buying and keeping securities for a long time, with the goal of long-term growth and income.
- What are the risks of day trading?
Day trading carries several risks, including market volatility, liquidity risks, and behavioral biases. The fast-paced nature of day trading can lead to significant financial losses if trades are not executed carefully. It’s important to understand and manage these risks through proper risk management techniques and adherence to trading strategies.
- Can I day trade with a small account?
Yes, it is possible to day trade with a small account. However, having a small account size can limit your trading options and increase the impact of trading costs on your overall returns. It’s crucial to focus on low-cost trading strategies, manage risk effectively, and gradually grow your account over time.