Introduction
Day trading is a popular investment strategy that involves buying and selling stocks within the same trading day. It requires a lot of skill, knowledge, and experience to be successful in this field. One of the most important aspects of day trading is choosing the right stocks to trade. In this article, we will discuss the best day trading stocks of 2021 that can help you make profitable trades.
Factors to Consider When Choosing Day Trading Stocks
Before we dive into the best day trading stocks of 2021, it’s important to understand the factors that should be considered when choosing stocks for day trading. These factors include:
1. Volatility
Volatility is a measure of how much a stock’s price fluctuates. Stocks that have high volatility are ideal for day trading because they offer more opportunities for quick profits. However, they also come with higher risks.
2. Liquidity
Liquidity refers to how easily a stock can be bought or sold without affecting its price. Stocks that have high liquidity are more suitable for day trading because they allow traders to enter and exit positions quickly.
3. News and Events
News and events can have a significant impact on a stock’s price. Day traders should keep track of any relevant news or events that could affect the stocks they are trading.
Best Day Trading Stocks of 2021
Now that we’ve established the factors to consider when choosing day trading stocks, let’s take a look at the best day trading stocks of 2021.
1. Tesla Inc. (TSLA)
Tesla is a popular electric car company that has been making headlines in recent years. Its stock has experienced high volatility, making it a popular choice for day traders. Additionally, the company’s innovative products and services have attracted a lot of attention from investors.
2. Apple Inc. (AAPL)
Apple is one of the largest companies in the world, and its stock is highly liquid. It has a reputation for being a stable and reliable investment, making it a popular choice for day traders. Additionally, new product launches and events can create opportunities for day traders to make quick profits.
3. Amazon.com Inc. (AMZN)
Amazon is the world’s largest online retailer, and its stock has been on a steady upward trend for years. Its high liquidity and strong fundamentals make it a popular choice for day traders. Furthermore, the company’s expansion into new markets and industries can create opportunities for profitable trades.
4. Facebook Inc. (FB)
Facebook is the world’s largest social media platform, and its stock has been performing well in recent years. Its high liquidity and active user base make it an attractive option for day traders. Additionally, new product launches and events can provide opportunities for quick profits.
5. Microsoft Corporation (MSFT)
Microsoft is one of the largest software companies in the world, and its stock has been performing well in recent years. Its high liquidity and stable growth make it a popular choice for day traders. Additionally, new product launches and events can create opportunities for profitable trades.
Conclusion
Choosing the right stocks to trade is crucial for day traders who want to be successful. The best day trading stocks of 2021 are those that have high volatility, liquidity, and are influenced by relevant news and events. Tesla, Apple, Amazon, Facebook, and Microsoft are some of the best day trading stocks of 2021 that offer traders opportunities for profitable trades. However, it’s important to remember that day trading comes with high risks and requires a lot of skill and experience.
