One of the first questions that come to the mind of a beginner day trader is probably “How do I find good stocks for day trading?”. And this if you want to make the things the right way. Usually, people approaching the financial market want to be rich overnight.
Furthermore, this one is a common question for traders that know how the market and life work. After you have deep down a bit more in the Day Trading market, after you have watched a ton of videos and learned “enough”. At this point, you will want to jump into the chart and blast some trades.
This is where this question pop-ups. Many of you have a vague idea of which stock to use, based on recommendation or purely favoritism. Whether is the scenario you, as a trader, should always do nice research.
The first thing you need to know is that you need to have your technical analysis ready for this. Let’s answer the question now
Finding stocks to trade is the first step needed to have a successful trade. You will be looking for volatile stocks for day trading. That’s where the money is, day traders take advantage of those movements.
When identifying stocks for day trading, you need to consider assets that have great liquidity and have mid to high volatility. Something that many people won’t tell you is that you should look for stocks that have at least 1M shares traded on a daily basis.
A quick tip: Research for assets that have a high volatile previous trading session or had an outstanding percent of gains or losses.
With this, you get an idea of which stock to choose for day trading, make a watch list and keep monitoring them.
It is always a good thing to know how things work. In this case, you learned what you should look for when choosing stock for day trading. But there are many ways to find and choose stocks.
It is well known that there are many pro traders in the industry. Many of them have a stock list ready to go every day for you to watch and trade the next day. With a simple Google search, you can see up to the date information about the financial market. This information is always very useful.
On YouTube, you can find a wide variation of videos in this area. Remember, not all financial YouTubers are pro traders. But many of them are making a living out of the market and can give you a lot of valuable information on the market.
This is a good way to get daily stocks for day trading. You should notice t many of those “services” are pay. This is why I always recommend doing your own research and selecting your own stocks.
There are popular stocks that are in many cases good choices among day traders. As far as today, one of the most popular stocks are Alphabet (GOOGL), Nvidia (NVDA), Goldman Sachs (GS), and Crocs (CROX). Those are fast-growing stocks right now and many people have them under their eyes. You can respect volatility in those stocks.
By now, you should not have any problem finding a good stock for you to trade. Let’s wrap everything up.
How do I find good stocks for day trading?
You have a better picture now. Practice, test, and learn a lot.