The best stocks for day trading are those that have a high level of volatility on intraday time frames. That said, there are plenty of risks involved with trading stocks on these low time frames — anyone who fancies themselves a day trader should make sure that they have the skills and knowledge to execute risky trades on a regular basis, otherwise they could lose money more often than they make it.
That said, skilled day traders seeking volatile stocks should be well served by this list. We’ve put together a selection of the best stocks for day trading with a special focus on intraday volatility, trading volume, and viral appeal. Read on to learn more.
How we chose the best stocks for day trading
The best stocks for day trading are typically those that are most volatile. While volatility can be a nightmare for investors who are positioned in the wrong direction, the ability to read market movements on intraday time frames can prove extremely profitable for a small number of skilled traders.
That said, here are some of the key reasons why we chose our 12 best stocks for day trading:
- Accessible trading
- Volatile price action
- Recognizable brand
- High trading volume
The 12 best stocks for day trading: Examining top market movers
1. Tesla Inc (TSLA)
Tesla, Inc. (TSLA) is known for several standout features that contribute to its unique position in the automotive and energy industries, including its autonomous driving technology and powerful batteries for electric vehicles (EVs).
Perhaps above all else, Tesla is known for being Elon Musk’s car company. Musk’s celebrity status gives TSLA stock consistent trading volume, and price action is naturally volatile as Tesla sits at the intersection between artificial intelligence technologies and automotives. Ultimately, the speculative nature of the EV market means that its incumbents are usually more volatile than alternative automotive investments.
Key highlights:
- Pioneer in EV market
- Enthusiastic customer base
- One of the fastest-growing tech stocks of recent years
2. GameStop Corporation (GME)
GameStop Corporation (GME) is a video game and consumer electronics retailer that has gained attention for various reasons, including a viral short squeeze that occurred after GME stock was promoted in the Wall Street Bets forum on Reddit. Since that moment in Q1 2021, GME has been what’s known as a ‘meme stock’ because its market value has decoupled from the company’s performance.
GameStop’s status as a meme stock means that it is highly volatile compared to alternative investments in stocks and shares. The viral appeal of GME stock and the popularity of the company’s story mean that it has a high trading volume among retail investors to this day, and the stock price is still significantly above its pre-Wall Street Bets price level.
Key highlights:
- Traditional brick-and-mortar video games retailer
- Recent shift to e-commerce
- Extreme volatility in stock price, a ‘meme stock’
3. Advanced Micro Devices, Inc. (AMD)
Advanced Micro Devices, Inc. (AMD) is a semiconductor company that has gained recognition for its contributions to the technology industry. AMD stock has been extremely volatile in recent years, as tech companies have continually made high after high and seen significant crashes during periods of consolidation. Ultimately, AMD stock represents a bet on the future of semiconductor manufacturing, but it can also provide some solid returns for intraday traders thanks to the market volatility.
Key highlights:
- Producer of highly competitive CPUs and GPUs
- Has successfully grown market share in recent years
- Significant volatility in stock price
4. Block, Inc (SQ)
Block, Inc (SQ) is a financial technology (fintech) company that provides a range of products and services, although it is primarily focused on payment processing for businesses and individuals alike. The company, formerly called Square, was the creator of Cash App, which is a peer-to-peer mobile payment service.
Square’s founder, Jack Dorsey, was also founder of Twitter and SQ stock has been a popular choice among traders thanks to its prominent products and well-known founder. SQ stock has high trading volume and significant volatility on the daily time frame, giving traders plenty of opportunity to generate profits.
Key highlights:
- Diverse product portfolio and ecosystem of interconnected services
- Cryptocurrency integration
- Volatile stock price
5. Zoom Video Communications, Inc. (ZM)
Zoom Video Communications, Inc. (ZM) is a technology company known for its video conferencing platform, which gained widespread popularity during the COVID-19 pandemic. Zoom was one of the fastest-growing apps during this period and the platform saw a 2,900% increase to its total user count.
Since then, ZM stock has been particularly volatile, with a multi-year downtrend following a rapid appreciation up to its all-time highs. Despite its poor performance on the yearly time frame, ZM regularly moves in increments of 5% on the daily timeframe. This has made it one of the best stocks for day trading in 2024.
Key highlights:
- Market leading video conference platform
- Gained market share during COVID-19
- Volatile price action
6. Palantir Technologies Inc. (PLTR)
Palantir Technologies Inc. (PLTR) was founded with the goal of supporting organizations in making sense of large and complex datasets. The company launched its IPO in 2020, and it has been volatile since. Not only does PLTR stock regularly move by ~6% on the daily time frame, but it also frequently rises by 2x or 3x on the weekly time frame.
Key highlights:
- Backed by governments and intelligence agencies
- Launched IPO as recently as 2020
- Significant recognition among traders and investors
7. Roku, Inc. (ROKU)
Roku, Inc. (ROKU) is a company that specializes in streaming platforms and devices for television. The ROKU stock price reached its all-time high in 2021 and then started a significant downtrend, but it now looks like it could begin to recover. For day traders, ROKU stock is known for moving by 10% or more over the course of a week, which can produce significant returns when traded consistently.
Key highlights:
- Focus on streaming devices
- Diverse product portfolio
- Significant volatility in stock price
8. Moderna, Inc. (MRNA)
Moderna, Inc. (MRNA) is a biotechnology company that gained significant attention for its role in developing and producing mRNA-based vaccines. MRNA stock regularly moves by ~9% on the inter-day time frame, which makes it a great pick for day traders. Ultimately, Moderna has become a globally recognized brand in the healthcare industry thanks to its COVID-19 vaccine, which could mean that its stock volume remains high among traders and investors alike.
Key highlights:
- Pioneer in mRNA technology
- Rapid vaccine development during COVID-19 pandemic
- Strong stock price performance in recent years
9. NIO Inc. (NIO)
NIO Inc. (NIO) is a Chinese electric vehicle (EV) manufacturer that has gained attention for its innovative approach. NIO has implemented a unique Battery-as-a-Service (BaaS) model that allows NIO users to purchase electric vehicles without the battery, reducing the initial cost.
NIO stock has been in a consistent downtrend since its IPO, but speculators remain positive on its long term prospects thanks to the growing EV market and technological improvements being made by the company. On balance, NIO is a favored choice among day traders thanks to the fresh market structure and innate volatility of the stock.
Key highlights:
- Specializes in the design and manufacturing of electric vehicles
- Diverse product portfolio, including Batteries as a Service (BaaS)
- Significant downside since IPO, known for volatility
10. Plug Power Inc. (PLUG)
Plug Power Inc. (PLUG) is a company specializing in hydrogen fuel cell technology. While the company performs well within its industry, the PLUG stock is a great pick for day traders thanks to the regularity and predictability of its price movements. Since 2021, PLUG has repeatedly skyrocketed and retraced within a macro downtrend, which may serve day traders well as long as they time their plays correctly.
Key highlights:
- Market leader for hydrogen fuel cell systems
- Expanding into commercial vehicle manufacturing
- PLUG stock is popular among speculators
11. Virgin Galactic Holdings, Inc. (SPCE)
Virgin Galactic Holdings, Inc. (SPCE) is a company in the aerospace industry that aims to provide commercial space tourism services. By commercializing space travel, Virgin Galactic has positioned itself at the forefront of a brand-new emerging industry. SPCE stock is inherently volatile due to the speculative nature of the business model, regularly moving by 5-10% on the daily time frame.
Key highlights:
- Specializes in commercial space tourism
- Global reach and tourist hub ambitions
- SPCE stock is popular among speculators
12. Beyond Meat, Inc. (BYND)
Beyond Meat, Inc. (BYND) is a company known for producing plant-based meat substitutes. BYND has become a highly volatile stock due to the speculative nature of the business model. BYND expanded rapidly during its early years, but demand has since dropped off and the stock price finds itself near all-time lows. On the daily time frame, BYND regularly moves in increments of 10% or more.
Key highlights:
- Specializes in plant-based meat substitutes
- Rapid global expansion
- Volatile stock price
The bottom line: What is the best stock for day trading right now?
There are some great stocks out there that could serve a skilled day trader well, but it’s important not to just ‘ape’ into any old stock, thinking that profits are inevitable. Traders should consider the time frame in which they’d like to trade, as well as common volatility increments in their chosen time frame.
To recap, here are 3 of the best stocks for day trading right now:
- Tesla Inc (TSLA)
- GameStop Corporation (GME)
- Advanced Micro Devices, Inc. (AMD)
Each of these stocks should present-day traders with regular opportunities in lower time frames. The top three are well-known companies with viral appeal, which makes for great trading thanks to stacked order books and high trading volume.
If you want to explore a more traditional approach to trading, we suggest you check out our list of the best stocks to buy, that’s updated every month.
If you are curious about diving into the work of cryptocurrencies, check out our selection of the best day-trading cryptos.
Source: https://coincodex.com/article/36823/12-best-stocks-for-day-trading-in-2024/