There might be no specific answers to the best stocks to trade because many people have their personal biases about this matter.
This article does not seek to impose any stock on traders as the best stocks to trade for intraday trading but seeks to explain why some stocks are more effective for intraday traders than others.
Traders have to understand that the best stocks for day trading provide opportunities in their price movements and have high volumes so that traders can get in and out of trades quickly and at multiple times.
This is to say that the best stocks for intraday trading have high market volatility and trading volume. When you consider the volatility and volume, you might still have to consider your choice according to your trading style and personality.
A consistently popular stock among day traders is the SPDR S&P 500; the trades of this ETF always hit 100 million shares per day. The huge volume allows traders to trade smaller and larger position sizes adapted to the volatility.
U.S. Stocks That Have Medium To High Volatility
Some of the most volatile U.S. stocks include
- Ikonics Corporation,
- ALFI Inc.,
- Osmotica Pharmaceuticals plc.,
- Marin Software Incorporated,
- Express Inc., Grove Inc.,
- Riley Exploration Permian Inc.,
- Grom Social Enterprises Inc.,
- Fuwei Films (Holdings) co.,
- LTD, Globus Maritime Limited.
U.S. Stocks That Have High Trading Volumes
Some intraday traders prefer stocks with a lot of volume with little volatility. In such stocks, the price moves one cent at a time, and day traders try to scalp in such movements.
Some of the highly traded U.S. stocks are:
- Virgin Galactic Holdings, Inc.,
- ContextLogic Inc.,
- Globalstar, Inc.
- Transocean Ltd.
- Nokia Corporation
- AMC Entertainment Holdings, Inc.
- Plug Power Inc.,
- Apple Inc.,
- Multiplan Corporation
- Pay safe Limited.
Volume and volatility in stocks change over time. Some events may also make a stock popular (have more traded volume and volatility), but such volatility and volume dry up when the event is over. The cycle repeats over and over again. For example, when the S&P 500 is moving higher in a bullish trend, the VXX is usually calm, but when the S&P 500 falls, VXX starts to move up with strong volatility and volume.
Indian Stocks That Have High Trading Volumes
Below are some of the highest trading volume stocks in BSE (formerly Bombay Stock Exchange) as of July 2020.
- Vodafone Idea
- Reliance Comm
- Yes Bank
- Reliance Power
- Hind Constr
- Rattan Power
- Zee Media
- GTL Infra
- Jaiprakash Pow
- Gammon Infra
- South Ind Bk
- UCO Bank
Stock Screener and Other Considerations
A trader could screen for stocks using some stock screening sites. Screening might help you to decide which stock is more volatile or is traded more at a particular time. Some traders regularly screen for new stock trading opportunities, while others like to trade the same stocks. Choosing the best stocks to trade is only a part of the puzzle; traders have to know the best way to trade the stocks selected.
Choosing the best stocks for intraday trading can also depend on your strategy. After you have a selected number of liquid shares you can trade, you have to enter trades based on your predetermined strategies and only trade those that fit into your edge.
Your personality might also dictate the type of stocks you trade.
Lastly, the best stocks for you also depend on the stock exchange you are dealing with. The stock exchange you deal with determines the companies you consider.
There are sixteen stock exchanges globally with a market capitalization of over 1tillion USD ($1 trillion club), and they average more than 80% of global stock market capitalization. There are other minor ones with low market capitalization.
The New York Stock Exchange (NYSE) and Nasdaq account for most monthly trade volumes, and traders may choose to look into them for trade opportunities.