Best Day Trading Stocks: Traditional investors often look for companies that they believe will grow over several years but the best day trading stocks don’t necessarily have to keep moving upward. In fact, volatility creates unique opportunities for day traders to profit.
A volatile stock’s value can increase and decrease significantly over the course of a few days. When you purchase the stock at a low price, you can make money by selling it later when the value goes up. Savvy day traders can even take advantage of opportunities by betting against companies they believe will lose value.
Volatility isn’t the only thing to look for in the top stocks to day trade, of course. Holding on to the stock of a company with long-term growth may not generate quick profits, but it can lead to more substantial returns over time.
The following 17 stocks represent some of the best opportunities for day trading.
Zoom Is A Day Trader’s Dream
For the last few years, Zoom has been a popular videoconferencing tool for businesses. It’s value grew surged as more companies realized that they would have to commit to remote work. Not many companies benefited from Covid-19, but Zoom has.
Zoom’s share price may keep rising, which would make it an excellent opportunity for day traders and long-term investors. But even if doesn’t the day to day volatility will make for some great trading windows for shorter term traders.
Impressive qualities about Zoom include its early adoption of teleconferencing technology, appeal to enterprise clients, and positive response to client concerns about security.
Zoom has established itself as the leader in a growing niche, so it’s likely a solid bet in a post-corona world, particularly when the valuation becomes more attractive.
DocuSign Is The Future Of Contracts
As the importance of digital documents continues to grow, more organizations and individuals will need services from DocuSign.
DocuSign’s applications make it possible for people to negotiate and sign agreements electronically. Importantly, DocuSign has kept evolving its features to meet the needs of new clients without compromising their security.
DocuSign’s profits have grown over the last few years. The company’s focus on building solutions for a variety of industries – including life sciences, healthcare, government, insurance, and financial services – likely means that it will keep attracting new clients.
It’s an excellent stock for any trader’s portfolio but day traders in particular can benefit from its price swings.
Tesla Share Price Volatility Creates Opportunities
You probably think of Tesla as a car manufacturer. The company actually does much more than design and build electric cars. It has divisions devoted to pushing the boundaries of sustainable energy sources, batteries, and autopilot technology.
Tesla stock can perform erratically, especially when CEO Elon Musk sticks his foot in his mouth. Most companies don’t have a charismatic, media-obsessed leader like Musk.
Unfortunately for Tesla, a bad tweet from Musk can mean that it gets sued by the Securities and Exchange Commission (SEC).
The volatility scares away some investors. Day traders, however, should see momentary slips as opportunities to profit.
The company’s value might fall one day, but Tesla’s commitment to building amazing technology has historically led to fast rebounds in share price.
Teladoc Is The Future Of Doctor Visits
Teladoc Health provides virtual healthcare services through the internet and mobile apps. The company has been in business since 2002, but its mission has become more essential than anyone could have guessed.
Typically, Teladoc benefits from at least two things: the high cost of healthcare in the United States and the large number of rural communities that don’t have access to local doctors.
The company’s services provide HIPAA-compliant connections between patients and medical professionals, making it cheaper and easier for anyone to get expert health advice.
More recently, COVID-19 has made Teladoc’s value skyrocket. As more people prefer virtual doctor visits so they can avoid exposure to coronavirus, and add to Teladoc’s top line growth.
Netflix Is The Quintessential Day Trading Stock
Who could have predicted that Netflix would evolve from a mail-order DVD company to the world’s most popular online media-streaming platform?
Currently, Netflix faces more competition than ever as more companies release their own streaming platforms.
Netflix keeps attracting new viewers, though, by releasing series, movies, and documentaries only available to its subscribers.
As new companies enter the market, Netflix’s stock value will likely bounce up and down. If you can predict the high and low spots, then you can make a lot of money buying low and selling high.
Roku Wins When Cable Subscriptions Get Cut
Fewer and fewer people want to pay the high cost of cable subscriptions. Every year, more consumers gravitate to streaming platforms like Netflix, Hulu, and Disney+. All of those companies have positioned themselves to benefit. But they have to compete with each other.
Roku doesn’t face the same level of competition because it doesn’t focus on a specific platform. Consumers can use a Roku device to stream content from practically any platform.
Roku does have competitors in the smart device market, though. The company made a smart decision when it decided to venture further than small streaming devices that connect to televisions.
Now, it also makes smart TVs, smart speakers, and audio-visual accessories.
Twilio Stock Price Is A Rollercoaster Ride
Twilio is a communications company that develops software for cloud-based telephone, text messaging, and social media communications.
A lot of software companies rely on investors to keep them afloat. Without earning profits, those companies quickly become bad investments. Twilio, however, actually makes money.
That should be an obvious feature to look for, yet a lot of companies get investors even though they consistently lose money. Twilio stands out as an exception worth exploring.
And for day traders the rollercoaster share price offers abundant opportunities to enter and exit during any given year.
Stitch Fix Is Your Virtual Stylist
Stitch Fix is a service that helps consumers (including women, children, and men) find clothing that fits their personal styles.
As more brick-and-mortar retail stores struggle to stay in business, companies like Stitch Fix will likely continue attracting more customers. Plus, Stitch Fix’s ability to pinpoint individual styles adds value to the company.
Stitch Fix has also managed to increase its revenue-per-client over the last couple of years. In 2018, the company actually lost a little money with each sale. That changed by the end of the year. By the middle of 2020, Stitch Fix exceeded $500 in revenue per active client. That’s a good sign for long-term growth.
Nektar Therapeutics = BIG Price Swings
Nektar Therapeutics is a biopharmaceutical company that’s been operating since 1990.
Nektar Therapeutics made a smart decision to focus on services that support larger companies in the pharmaceutical industry.
The stock value for Nektar Therapeutics goes up and down pretty often. Day traders could make a profit from the company by paying close attention to major news announcements which produce high share price and options volatility.
The Popularity Of Gaming Is A Win For AMD
AMD makes sophisticated, high-performance hardware and software. Much of the company’s departments focus on building processors and graphics cards that make modern PC games look amazing.
The company also provides business solutions by building servers, desktop computers, and other devices.
Long-term investors got nervous about AMD’s viability at the beginning of the COVID-19 pandemic. As more people worried about losing the disposable income needed to buy video games and hardware, the stock’s value fell.
Those investors didn’t realize that the boredom of quarantine would encourage more people to buy video games. Now, AMD’s value has grown.
Twitter Stock Price Dips & Rips Are Golden
Twitter isn’t the world’s most popular social media platform. That honor goes to Facebook. Twitter stock, however, has a significantly lower price than most social media companies and that means more shares can be purchased and sold by ordinary investors than say Facebook – whose share price is almost an order of magnitude higher.
Perhaps more importantly, Twitter has shown considerable growth over the last few years. In 2014, the company had a revenue of about $250 million. By 2020, the revenue jumped to over $1 billion.
Twitter stock has a pattern of fast dips and rip roaring rallies. That makes it an excellent opportunity for day traders.
Nvidia Share Price Is Like A SpaceX Rocket
Nvidia makes high-performance graphics processing units (GPUs) needed for gaming systems and gaming PCs. It also helps other brands develop hardware and software.
Products developed in coordination with Nvidia include Shielf Android TV and Shield Tablet. The company also develops artificial intelligence and visualization technology.
Nvidia stock stumbled in 2019, but it reached its highest value in early 2020 just before the COVID-19 pandemic damaged the economy.
The stock didn’t recover immediately, but it recovered much of its value within a couple of months. Keep an eye on its current and future performance to determine the right times to buy and sell.
Sometimes it’s like a SpaceX rocket that launches successfully and every once in a while it will implode but either way there are entry and exit points for day traders.
Arconic Sells Metals To Corporations
Of all the companies on this list, Arconic probably has a name that you don’t recognize. That’s largely because it doesn’t sell products directly to consumers. Instead, it develops lightweight metals and other materials for corporations.
Lightweight materials matter a lot in today’s economy because it affects everything from aerospace to packaging.
Recently, the company hasn’t performed as well as it did in the recent past. The economic downturn has likely affected the number of products that it sells.
The low stock price creates an extraordinary opportunity for day traders. When more companies get back to work, they will likely turn to Arconic for supplies.
Beyond Meat Share Price Has BIG % Swings
Beyond Meat is revolutionizing the way that millions of people eat. As the company’s name suggests, it makes alternatives to traditional meat products. As of 2020, it had plant-based alternatives to chicken, beef, and pork sausage.
Beyond Meat is far from the only company taking advantage of the recent dietary trend toward consuming less meat. The company, however, has been able to function more successfully than most of its competitors.
For example, it has forged alliances with supermarkets and restaurants throughout the U.S., Europe, and Asia. It certainly helps that Beyond Meat now sells its beef alternative to McDonald’s restaurants in Canada. It’s also working on a deal with Yum! Brands, which would add plant-based chicken to KFC menus.
Devon Energy Hurt By Oil Prices
Devon Energy has been operating in the petroleum industry for nearly 50 years. It does most of its work exploring oil reserves throughout the United States.
Devon Energy has also acquired a long list of other energy companies, including Chief Oil and Gas, Kerr-McGee, and GeoSouthern Energy.
Not surprisingly, the stock price of Devon Energy fell dramatically along with oil prices around the world. At one point, a barrel of crude oil had a negative price.
The value of oil and petroleum products has recovered somewhat, but it still faces challenges while more people work from home instead of commuting to offices.
Eventually, though, oil prices will have a reason to rally. When that happens, owning Devon Energy stock could help you earn a tidy profit.
Need Vacuum Insulated Mugs? Check Out Yeti
Yeti makes outdoor lifestyle products. It’s best known for its vacuum-insulated mugs that can keep ice frozen for well over a day. The company also makes ice chests, coolers, and similar products for outdoor adventures.
Yeti products don’t come cheap. Consumers pay a premium for superior technology and manufacturing. The average person probably wouldn’t spend $20 on a 10-ounce Yeti lowball cup. Those with disposable income, however, see Yeti products as good buys that will last a lifetime.
The company hasn’t had any problems generating revenue. It nearly tripled its sales in recent years.
Yeti stock prices leap around quite a bit. Over the course of a day, the stock price will change by at least $1. That doesn’t sound like much, but it creates daily opportunities for traders to profit.
If you get to know Yeti stock well enough, you could potentially buy it at the day’s lowest price and sell at the day’s highest price. Even if you only make $1 per share, those profits could add up over time.
Boot Barn Makes Boots A Walk In The Park
Boot Barn does exactly what you expect. It sells a wide range of boots. It also has clothing for men, women, and children, but it always has focused on boots.
Over the years, the types of boots sold by Boot Barn has grown enormously. It doesn’t just have cowboy boots. Today, you can find everything from hiking boots to steel-toed boots used on construction sites.
Why is Boot Barn one of the best day trading stocks? Mostly because the stock is inexpensive and fairly reliable. The stock price tends to stay within the $10 to $50 range. That range should appeal to any day trader.
The stock is cheap enough that beginners can afford to buy it without taking on as much risk as say Berkshire Hathaway. And when you know the stock price’s history and tendencies, you can make educated guesses about when to buy and sell.
Best Day Trading Stocks: Conclusion
The best day trading stocks come from a variety of industries. That’s good news for all investors. The more variety you have, the more diversity you can add to your portfolio. If one industry stumbles, you can count on another to rally so spreading your bets is smart.
Unlike some investors, you don’t always want to choose reliable stocks. Make volatility work for you. Yes, it will take more work because making money as a day trader means that you will need to pay close attention to stock movements and news reports throughout the day. Once you hone your strategies, though, you can make quite a bit of money by investing in these stocks.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.