Best day trading stocks to buy in 2022
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To day trade you need to find popular stocks that regularly fluctuate in price throughout the trading day. Our experts have been through the best stock options to pick out five top day trading stocks to help you get started.
What are the top day trading stocks to buy?
These are the best stocks for day trading right now. Each of these has a lot of trading volume and changes in price regularly during the day. Read on to learn more about each one and why it makes our list.
|Rank||Stock symbol||Company name|
|1||AMD||Advanced Micro Devices|
1. Advanced Micro Devices (NASDAQ:AMD)
AMD is a computer chip manufacturer that produces hardware like graphics cards for your computer. The company has been around since the late 1960s but has had its best years more recently.
The semiconductor squeeze during the pandemic catapulted AMD into the big time. Along with Nvidia, it became an extremely popular pandemic play and its share price rose accordingly.
Like many tech stocks, it has the volatility and volume to appeal to day traders. The share price regularly sees peaks and troughs of 5-10% over the course of a day or a week, and with so many competitors in the semiconductor space there are regular news dumps and earnings releases to trade.
2. Etsy (NASDAQ: ETSY)
Etsy is an online marketplace where individuals can sell handmade or personalised goods. Formed in 2005, it has grown to be the online store for vintage and unique items online.
It was another big pandemic winner, as many people took up a new skill or set up their own online shop. Similarly, the big spike in ecommerce during lockdowns across the world sent Etsy’s stock price soaring.
Much like with AMD, the stock has plenty of volatility. 5% swings in price in a given day are not uncommon, which makes for plenty of trading opportunities.
3. Tesla (NASDAQ: TSLA)
Tesla is one of the biggest companies in the world. Owned by Elon Musk and founded in 2003, it makes electric vehicles, solar panels, and many other products related to renewable energy.
The modern focus on clean energy has been a huge boost for Tesla, as has its role as the leading edge of the retail trading boom. There is a huge amount of online discourse about the company, which Musk facilitates with his Twitter persona and confrontational approach to financial regulators.
All the Tesla chat makes for perfect fodder for day traders. Tesla is the sort of stock you can focus almost all of your trading energy on, as it throws up so many different trading patterns and opportunities, and there is never any problem with liquidity.
4. Apple (NASDAQ:AAPL)
Apple needs little introduction as an iconic brand in the digital age. Set up by Steve Jobs way back in the 1970s, it rose to global prominence after the release of the iMac computer in the early 1990s and then the iPod and iPhone in the 21st century.
Apple’s appeal as a day trading stock is based around its trading volume. More than 50 million shares are traded every day. Another important part of its popularity is that the shares often fluctuate a few dollars a day, which means you can make a small profit without even having to use something like leverage.
As it’s such a popular company, Apple also has a relatively high floor and significantly lower risk than many other stocks. Even during a bad spell, the share price is unlikely to fall too far, which means you don’t have to worry so much about leaving a position open.
5. Nokia (NYSE:NOK)
Nokia is a telecommunications company that makes computer electronics and hardware. Headquartered in Finland, Nokia was set up all the way back in the 19th century, but is best known to most people as a leading manufacturer of early mobile phones.
Nokia is a relatively low cost stock and sometimes even qualifies as a penny stock, as a company valued at less than $5 per share. It is a long way from its peak in the late 1990s, but has shifted away from phones towards manufacturing network hardware and 5G infrastructure.
Its role as a legacy brand and one that many traders grew up with means it often catches the attention of retail or casual traders during periods of volatility. This was true during the meme stock saga in 2021 and means it is a stock you can choose to be long or short as a day trader.
Where to buy the best day trading stocks
The best place to trade these stocks is through an online broker. Platforms like eToro offer zero commission stock trading, which is a huge benefit when it comes to an active strategy like day trading. Sign up and start trading through any of the links below.
What to look for in a day trading stock?
The most important characteristics to look for in a stock are volatility and volume. You want to find stocks that experience regular price fluctuations and where there are lots of people buying and selling.
Volume is important because day trading relies on being able to open and close trades on the same day, and ideally making a profit when you do. Other people buying and selling at the same time means that there is always enough liquidity to close a position and you are likely to find tighter spreads.
The other important things to look out for are technical indicators and chart patterns, like channels, trends, wedges, and breakouts. You can use a platform like FinViz to find a list of stocks displaying particular patterns on any given day.
Is day trading stocks a good idea?
It requires some time and effort to understand but it can be a good idea if you know what you’re doing. Day trading is a fast-paced trading strategy that relies on technical analysis, so you must be able to understand chart patterns and identify your own trends and indicators.
It’s only right for people who can dedicate enough time to researching stocks every day. While the five stocks on this page are good options to start with, you want to constantly find new opportunities to be successful. It can be difficult to do this around a full-time job.
You also have to be familiar with the stock market and its news cycles. Earnings reports, economic data, and competitor results can all affect a stock’s price and you must be prepared for when the news breaks. Use the links below to help you.
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