X Best Day Trading Stocks To Buy In 2024

The fact is, that day trading is a highly risky and uncertain venture with huge potential financial hazards. In an average year, profitable day traders constitute only 1.6% of all traders. 

On the bright side, however, a keen understanding of key financial indicators and strategic stock selection can also give substantial returns. 

The viability of a stock is primarily grounded in its liquidity, volatility, and average daily trading volume. In this article, we’ll explain what these factors are, and how they tie into smart stock analysis.

Following the selection guide, you’ll find the 10 best day trading stocks of 2024 we believe you should invest in. 

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Criteria For Best Day Trading Stock Selection

Thanks to the internet, investors can access real-time financial data of any company with just a click. However, there are only a few important performance metrics you need to evaluate before investing.

Let’s break down the essential criteria for making informed decisions and picking the best day trading stocks:

Profitability Analysis

Profitability reflects a company’s ability to generate financial gain, and it therefore offers a clear picture of a stock’s potential. 

Here’s how investors analyze a company’s profitability:

Operating Margins – Operating margins represent the proportion of revenue a company retains after covering its operational expenses. examining operating margins to evaluate how quickly they turn revenue into profits. 

A higher operating margin naturally suggests better operational efficiency and potential for sustained growth. 

Cash Flow – This is the net amount of cash going in and out of business. It indicates a company’s ability to cover its operational costs, invest in growth, and meet debt obligations. 

Therefore, positive cash flow signifies a company’s financial stability, and potential to generate value for shareholders. Consistent positive cash flow is a key indicator of a healthy and stable financial position. 

Comparative Analysis – Comparative analysis involves comparing a company’s financial performance with industry competitors. It provides insight into a stock’s relative strength and reflects where it stands in the market.

This enables investors to identify best day trading stocks and make informed decisions.

Trend Analysis – Trend analysis involves evaluating the performance data of a company in different periods. 

This helps understand the stock’s historical price movements, assess its volatility, and make informed predictions about potential future trends. Ultimately, conducting trend analysis aids in strategic decision-making, ensuring optimal investment outcomes. 

Return on Investment (ROI) – ROI is a financial metric that calculates the percentage increase or decrease in a company’s profit value to its invested capital. 

Since ROI essentially quantifies the potential return, investors use it to gauge if a stock is a profitable venture, and can yield maximum returns. 

Intrinsic Value

In day trading, intrinsic value refers to the perceived actual worth of a stock based on its earnings, dividends, and growth rate. In other words, intrinsic value helps figure out if a stock is priced right.

Now why is this important? Because this is the classic approach day traders use to “buy low and sell high”. 

Imagine, there is a toy that everyone wants but people are currently only willing to pay $5 for it. However, since the toy is rare and valuable, its actual worth is $20. Taking advantage of the situation, you can buy the toy at a lower price now, and then resell it later at a much higher margin. 

Market mispricings present a favorable opportunity to invest, and day traders use intrinsic value to capitalize on it. 

Market Conditions

Market conditions refer to the prevailing economic and financial environment that influences the performance of stocks. 

Evaluating industry conditions and public perception is highly crucial for effective risk management. Here are the key components investors consider during market analysis:

Economic Indicators – Strong economic conditions generally favor stock market growth. GDP, inflation rates, and employment figures help investors gauge the overall health of the economy.

Interest Rates – Central bank policies, particularly changes in interest rates can impact borrowing costs and influence investor behavior. Higher interest rates may dampen stock market enthusiasts, while lower rates stimulate investments. 

Market Sentiment – Investor sentiment, reflected in factors like market trends, trading volumes, and the volatility index (VIX) provides insights into the psychological aspect of the market. This helps identify trend reversals and price movements and is therefore a critical element of smart stock analysis. 

Global Events – Global economic developments and geopolitical tensions can have a ripple effect on the stock market. Investors therefore need to consider both local and international factors that may impact market conditions. 

10 Best Day Trading Stocks You Should Consider Investing In

The following table provides a snapshot of the 10 best-day trading stocks, providing key insights into their prices, market capitalization (total value of company shares), and average trading volumes (shares traded in a particular period).

Let’s take a quick look at these companies:

Tesla Inc.

Tesla Inc., led by Elon Musk, is a pioneering EV company. It is a key player in the global shift towards sustainable and environmentally friendly technologies.

Given Musk’s popularity, the company enjoys an enthusiastic customer base, which is why it has been one of the fastest growing stocks in recent years. 

Block Inc.

Block, Inc. is a financial technology company that provides innovative solutions to the digital finance ecosystem. Their services encompass blockchain technology, cryptocurrency, and decentralized finance solutions. 

Elements like crypto integration have made the company a popular trading choice, and you can consider it to diversify your portfolio. 

Zoom Video Communications

Zoom Video Communications is a leading platform for virtual meetings and collaborations. It facilitates seamless video conferencing experiences globally. 

As the world transitioned to remote working, the company’s stock shares plunged during the pandemic. While the prices have markedly reduced since then, the company still fluctuates in 5% increments daily, which makes it a worthwhile investment. 

Virgin Galactic Holdings

Virgin Galactic Holdings is a company pioneering in commercial space travel. The company aims to revolutionize the space tourism industry.

Given the nature of the business, the stocks are highly volatile. However, space travel is an emerging industry, and the stock is still popular among people who share the passion and see a scope in the field.

GameStop Corporations

GameStop Corporation is a retail giant in video games. Known for its physical and digital products, it’s a key player in the gaming industry.

The shares plummeted in 2021 after it was promoted on Reddit, and is since then known as meme stock. However, given the nature of the appeal that led to its high trading volume, it is considered a risky and volatile investment. 

Carvana CO

Carvana Co. is reshaping the auto industry with its online platform for buying and selling cars. Streamlining the process emphasizes simplicity, transparency, and convenience for consumers.

While the company is at the forefront of its industry, its stocks have been volatile in the last couple of months. 

Advanced Micro Devices, Inc.

Advanced Micro Devices is a semiconductor company recognized for its high-end processors and graphic cards. Given this, the company is highly renowned in the innovation and tech industry.

The company has been seeing a wonderful year in stocks since the start of the year and is currently valued at 16.78 USD.

Xpeng, Inc.

Xpeng Inc. is a prominent EV manufacturer, known for high-performance EVs. Xpeng stocks currently rank higher than 62% of stocks in the EV industry.

Meta Platforms, Inc.

Meta Platforms, formerly known as Facebook, is a tech company focusing on social media products, including Facebook and Instagram. Additionally, they’ve also been testing the waters in VR and AI.

In 2023, Meta ranked second in S&P 500 Performance, delivering an impressive return of nearly 200%. Considering this, Meta makes for a good investment opportunity.

Palantir Technologies, Inc.

Palantir Technologies is a data analytics company specializing in software solutions for the intelligence, defense, and financial sectors. It’s renowned for advanced data integration and analysis capabilities.

Palantir makes for a great choice for AI investors. The company performed well in 2023, where its shares doubled in May.

Frequently Asked Questions

Which stock should I invest in?

When it comes to day trading, there’s no one size fits all. However, there are a couple of things you can consider to decide which stock works best for you:

• Investment goals – determine your financial objectives, like capital growth, income, etc.

• Risk tolerance – assess your comfort level with risk, as high-risk stocks hold potential for greater growth but come with increased volatility.

• Income needs – evaluate whether you prioritize dividend income or capital appreciation. 

• Time horizon – understand that short-term goals may warrant different stock choices than those for long-term objectives. 

How does a trading journal help?

Keeping a trading journal is crucial for investors.

• Enables a detailed review of past trades, identifying successful strategies and areas for improvement.
• Helps recognize emotional triggers during trading, fostering discipline and reducing impulsive decisions. 
• Facilitates evaluation of risk management practices, including position sizes, and risk-reward ratios.
• Assists in setting and tracking progress towards trading goals, ensuring alignment with long-term objectives. 

Conclusion

Day trading is risky, yet smart investment can help you end up with a fortune. 

Strategic analysis of factors like profitability, intrinsic value, and market conditions play a key role in shaping the outcome of your investment. Therefore, in this article, we comprehensively expanded on all three of these factors to help you make a smart and informed choice. 

If you are new to investment or are looking for some insight into the current developments, the 10 best day trading stocks in the post make for a great starting point. 

However, remember that the stock market constantly fluctuates, so you need to do your own research and exercise caution when investing.

All the information made available here is generally provided to serve as an example only, without obligation and without specific recommendations for action. It does not constitute and cannot replace investment advice. We therefore recommend that you contact your personal financial advisor before making a purchase decision.