The alluring trade of buying and selling shares of a company undoubtedly has a certain ring to it. The chance of gaining profit from some of the world’s most popular companies adds to the traction of the stock markets.
Not all stocks are lucky to have the best trader volumes on most days. Day Trading, which is simply buying and selling shares at the same trading session includes various factors that contribute to making a stock ‘the best buy’. Experts claim, a trading stock with the most day trader volume is one which provides ample opportunity for price movements, while also offering ample volume.
Volatility and volume, therefore, are the most crucial factors for picking lucrative trading stocks or ETFs. These, however, change over time. A cycle of specific events may make a stock or ETF popular, however at the end of it, the volume and volatility dry up. Such a cyclical trend is common in the world of stock markets.
Furthermore, the stocks also depend upon traders and investors and their trading style, while some may prefer large volume, and tight spread, others want volatility and heavy price movement.
Needless to say, the stock market keeps fluctuating, and the market is constantly changing, making in and out profit on stocks a common phenomenon.
1. Tesla Inc. (TSLA)
Tesla always manages to make headlines, be it for its electric vehicles, or for its clean energy projects, or for its CEO – Elon Musk. Needless to say, the California based company is a great choice for day traders and for retail investors.
Tesla has an average true range (ATR) of more than 10. The ATR is based on the past 14 sessions of the company’s stocks. As of May 26, Tesla shares rose by 0.2%, to $818.87 (Source: NASDAQ).
In April, Tesla shares jumped 49.2%, according to data from S&P Global Market Intelligence.
With the latest launch of SpaceX Falcon 9 rocket, things look bright for Tesla stocks, which are expected to skyrocket.
2. Facebook (FB)
Facebook is a great choice for those who prefer to trade trend lines. The California based social media and technology company provides a good starting stock due to its lower trend line.
Traders usually check the stock chart, especially focusing on the low points. With the low points lining up in a zigzag pattern, it makes it easy to draw a rough line across them to create a lower trend line. When the stock drops to that line, the trader knows it’s going to jump back up.
Facebook is a good choice for starting stock because the lower trend line is given to you; however, it’s important to make sure the stock chart is offering a 50-day moving average.
While trading, you will also create trend lines over the stock’s highs. This will allow you to see when Facebook’s stock hit the top trend line, indicating a possible drop. As a new trader, trend lines are especially helpful, as it helps to study the market and learn about the changes in the stock’s prices.
Facebook has a volume of roughly 13 million shares, providing a great liquid market.
On May 21, Facebook Inc. closed at 0.62% ($1.42), indicating an upward trend for the sixth day in a row. The change in price resulted from the side change in volume, which was down 4.75% from the previous day but rose 228.72% from Thursday, May 14.
3. Twilio Inc. (TWLO)
California based Twilio Inc. is a technology company providing cloud communication services to large companies. Twilio Inc. provides a lucrative opportunity for day traders, as its stocks trade at a volume of more than 4 million, thus offering a great liquid market.
Moreover, Twilio’s stock has a monthly volatility rating above 4%, providing plenty of opportunity for price movement.
Twilio’s consensus is presently at an Overweight while its average price target is $168.68. The price of the stock has risen by 206.54% from its 52-Week high price while it is 5.74% than its 52-Week low price, while the stock’s 14-day RSI now stands at 83.36.
Twilio Inc. generated 345.52 million in revenue during the last quarter, and in the second quarter last year, the firm recorded -$0.45 earnings per share. Compared to the same quarter last year, the firm’s revenue was down by -58.06%. Twilio Inc. has the potential to record -1.60 EPS for the current fiscal year. (Source: NASDAQ)
4. ZIOPHARM Oncology Inc. (ZIOP)
Ziopharm Oncology Inc. also belongs to one of the top day trading stocks in the US. Its stocks gained 8.00% on the trading session, reaching $2.97 price per share. Ziopharm Oncology Inc. has 199.82 million in outstanding shares, with a total market value of $628.16 million. ZIOP stock price has been found in the range of $2.79 to $3.06.
If compared to the average trading volume of 1.93M shares, ZIOP reached a trading volume of 1884349 in the most recent trading day. (Source: NASDAQ)
This makes the company’s stock active and lucrative. With the ongoing Corona pandemic, the stocks of pharmaceutical companies are bound to rise, thus providing a large amount of volume and movement, making the stocks more liquid and volatile.
5. Etsy Inc. (ETSY)
New York-based Etsy offers a wide range of consumer products from bags, clothing, home decor, furniture, toys, art, jewellery and tools to craft supplies. With its popular e-commerce retailing website, it offers the best chances for day trading stocks.
Presently, Etsy Inc. has a market cap of $9.15 billion, while its P/E ratio is at 131.32, while its P/E earnings growth remains at 3.36, with a beta of 1.64. Etsy Inc. debt-to-equity ratio currently closes at 2.10, while its quick ratio surges at 5.70 ETSY 52-week low price stands at $29.95 and its 52-week high price is $88.02. (Source: NASDAQ).
It is to be noted that the concepts and the guidelines for best day trading stocks and free stocks are not universal. As a trader, you are bound to have subjective views on the various trading and investing strategies. The more you trade, the more well-formed strategies, and principles you prefer to follow.