My Best Day Trading Stocks to Buy in 2024 – All You Need to Know

Day trading is a fast-paced, high-risk, high-reward form of stock trading that has gained popularity in recent years. It’s where traders — not investors — look for opportunities for short-term gains, while limiting their risk.

Trading success isn’t about the numbers you put up or the websites that give you stock tips — it’s something that most people aren’t able in the world aren’t able to sniff!

In my 20-plus years trading penny stocks, I’ve seen more than my share of poor day-trading results. I’m not just talking about others — I’m talking about myself too…

That’s why my analysis doesn’t just include big-name stocks here like Meta Platforms Inc. (NASDAQ: META) and Amazon.com, Inc. (NASDAQ: AMZN). I’m sharing the stocks that I’ve been watching myself — and why!

What are my best day trading stocks to buy in 2023? Let’s dive in and find out.

Understanding Day Trading Fundamentals

Day trading is a high-risk, high-reward trading strategy that involves buying and selling stocks within the same trading day. The goal is to profit from short-term price fluctuations in the stock market. Successful day trading requires a solid understanding of market trends, technical analysis, and the ability to make quick decisions under pressure.

It’s not for everyone, but for those who work at it, day trading can lead to profits.

While understanding the fundamentals of day trading is crucial, it’s equally important to stay updated with the latest market trends. One way to do this is by keeping an eye on hot stocks that are making waves in the market. This can provide you with insights into the stocks that are currently in demand and may offer profitable trading opportunities. Remember, staying informed is key to making successful trading decisions.

What Is Day Trading?

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Day trading is a form of stock trading where traders buy and sell stocks within the same trading day. The goal is to profit from short-term price fluctuations. Day traders typically use leverage to amplify their trading volume and potential profits.

Here’s a quick primer:

Benefits of Day Trading Stocks

Day trading stocks offer several benefits. These include the potential for significant profits, the ability to work from anywhere with an internet connection, and the thrill of speculating on stock price movements.

However, day trading also comes with high risk. If you don’t put thought into handling these risks, they can blow up your account pretty quickly…

Be disciplined and meticulous in your trading today/every day, lazy wannabes and gamblers always blow up in the end!

— Timothy Sykes (@timothysykes) March 22, 2022

Basic Stock Market Knowledge

To succeed in day trading, you need a solid understanding of the stock market. This includes knowledge of everything from stocks to ETFs, how to read stock charts, and how to analyze market trends.

It’s also crucial to stay updated on financial news that could impact stock prices.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner.

It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Understanding Stock Prices

Understanding stock prices is key to successful day trading. Stock prices are influenced by a range of factors, including the company’s financial situation, market trends, and investor sentiment. Day traders need to monitor these factors closely to predict price movements.

Navigating Different Types of Markets and Exchanges

Different markets and exchanges have their own unique characteristics and rules. For instance, the New York Stock Exchange (NYSE) and the Nasdaq are two of the largest and most well-known exchanges, known for their high volume and liquidity.

The OTC markets are where I look for the sketchy penny stocks I love to trade…

Understanding the nuances of these different markets can help day traders find the best opportunities and avoid potential pitfalls.

Recognizing Key Differences Between Markets

Different markets can offer different opportunities for day traders. For example, the NYSE and Nasdaq are known for their high volume and liquidity, making them popular choices for day traders. OTC stocks can have much lower liquidity — making it difficult to exit where you want to!

Analyzing Price Movements & Share Prices

Analyzing price movements and share prices is a crucial part of day trading. Day traders use tools like charts and technical analysis to predict future price movements. They also monitor financial news and company announcements that could impact share prices.

Comprehending Key Rules and Terminologies

Successful day trading requires a thorough understanding of key rules and terminologies. For instance, the Pattern Day Trader (PDT) rule is a crucial regulation that all day traders should be aware of.

Additionally, understanding terms like “leverage,” “margin,” and “short selling” is essential for navigating the day trading landscape.

Pattern Day Trader Rule Explained

The Pattern Day Trader (PDT) rule is a regulation set by the Financial Industry Regulatory Authority (FINRA). It states that traders who make four or more day trades within five business days in a margin account are considered pattern day traders.

These traders are required to maintain a minimum account balance of $25,000.

Leveraged Products & Risk Tolerances

Leveraged products, such as options and futures, allow traders to control large amounts of assets with a relatively small amount of capital. While they can amplify profits, they can also amplify losses, making them high-risk investments. It’s crucial to understand your risk tolerance before trading leveraged products.

Selecting the Right Stocks for Day Trading

Choosing the right stocks for day trading is a critical part of the process. Day traders typically look for stocks with high volume and volatility, as these characteristics can provide more trading opportunities. Additionally, understanding a company’s financial situation and staying updated on market news can help traders make informed decisions.

Selecting the right stocks for day trading involves more than just looking at volatility and financial situations. It also involves understanding the potential of different sectors. For instance, the tech sector has been a hotbed of activity, with many stocks offering lucrative trading opportunities. Check out my top tech stocks to trade for some inspiration.

Choosing Stocks Based on Volatility & Financial Situations

When choosing stocks for day trading, it’s important to consider both volatility and the company’s financial situation. Volatile stocks can offer more trading opportunities, but they also come with increased risk. Additionally, a company’s financial situation can impact its stock price, making it a crucial factor to consider.

Importance of Researching Your Investment Decisions

Research is a crucial part of day trading. This includes analyzing a company’s financials, staying updated on market news, and using technical analysis to predict price movements. Always do your due diligence before making a trade.

Tesla Inc.: An Example of a Good Day Trading Stock

Tesla Inc. [NASDAQ: TSLA] is a popular choice among day traders due to its high volatility and frequent news coverage. The company’s innovative products and strong market position also make it an attractive investment.

Identifying the Best Brokers for Day Trading

The right broker can make a significant difference in a day trader’s success. Day traders should look for brokers that offer low fees and commissions, robust trading platforms, and quality research tools. Additionally, the broker should be regulated by a reputable authority to ensure the safety of your investment.

Here’s an introduction to the subject:

Online Brokers vs Traditional Brokers: Weighing the Pros and Cons

Online brokers offer a convenient and cost-effective way to trade stocks. They typically offer lower fees and more advanced trading platforms than traditional brokers. However, they may not offer the same level of personalized service and advice.

What to Look for in a Brokerage Account

When choosing a brokerage account for day trading, consider factors like fees, trading platforms, customer service, and available research tools. It’s also important to ensure the broker is regulated by a reputable authority.

Highlighting the Best Stocks for Day Trading in 2023

Here are the stocks I’m watching in 2023:

• NASDAQ: AAOI — Applied Optoelectronics Inc. — The Microsoft Partnership Penny Stock
• NASDAQ: MGOL — MGO Global Inc. — The Lionel Messi Penny Stock
• OTCPK: GTII — Global Tech Industries Group Inc. — The Pump All-Star Penny Stock
• NASDAQ: NKLA — Nikola Corp — The Tesla Sympathy EV Penny Stock
• NASDAQ: SOUN — SoundHound AI Inc. — The Voice AI Penny Stock

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Subscribe to my NO-COST weekly stock watchlist here!

1. Applied Optoelectronics Inc. (NASDAQ: AAOI) — The Microsoft Partnership Penny Stock

My first penny stock pick is Applied Optoelectronics Inc. (NASDAQ: AAOI).

Tech stocks took a beating in 2022. But they’re back in a big way in 2023.

It’s partially due to extensive efforts at cutting costs (huge layoffs)…

It’s also attributable to the birth of the AI sector.

AI is the main catalyst pushing U.S. stocks higher. And tech companies benefit from that momentum. Especially small companies like AAOI that secure supply deals with other companies like Microsoft …

AAOI started its run in late May. We’re approaching the end of June and the price is still up after an impressive multi-week run.

It’s possible the price finds support and continues even higher.

It’s also possible the price falls back down, these penny stock spikes don’t last forever. Even with red-hot catalysts like the Microsoft deal.

Here’s the good news … there are opportunities to trade regardless of the outcome.

I’ve traded tickers on the way up and on the way down.

The key is to wait for the best setups.

I haven’t done that completely with AAOI. I’ve lost $385 in total trading this ticker (click the link to see my individual trades).

The chart has been choppy in the past week. But it’s up more than 100% over the past month.

2. MGO Global Inc. (NASDAQ: MGOL) — The Lionel Messi Penny Stock

My second penny stock pick is MGO Global Inc. (NASDAQ: MGOL).

In early June, it was announced Lionel Messi signed to play soccer in the U.S. with Inter Miami CF.

MGOL is the company that manages Messi’s clothing/lifestyle brand. And the shares launched over 160% after the news went public.

There’s already been a period of consolidation and a breakout to new highs. That’s a sign this stock can follow major support and resistance levels. That’s essential if we want to trade it.

I use StocksToTrade to scan for support levels — its algorithmic Oracle Support and Resistance Levels indicator helps me identify these levels in a flash! I helped design it to target the type of quick-changing data that traders rely on…

It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

I’ve already profited several times from MGOL’s move, $2,650 to be exact (click the link for individual trades).

And as I said … these plays can offer opportunities over several days and weeks. Since the price is still consolidating, it stays on my watchlist.

3. Global Tech Industries Group Inc. (OTCPK: GTII) — The Pump All-Star Penny Stock

My third penny stock pick is Global Tech Industries Group Inc. (OTCPK: GTII).

We’re old friends …

Since March of 2021, I’ve managed to profit $12,062 from this ticker (click the link for individual trades).

It’s the gift that keeps on giving.

And it is a perfect example of past spikers spiking again.

There have been two major moves between 2021 and now. One spike reached more than 4,000%, the other more than 1,500%.

On June 21 it gave us a quality first green day. The price is consolidating right now.

Let’s see if this former runner can build some momentum to push higher.

4. Nikola Corp (NASDAQ: NKLA) — The Tesla Sympathy EV Penny Stock

My fourth penny stock pick is Nikola Corp (NASDAQ: NKLA).

The EV sector is on a major comeback.

It’s been hot in the past, but things were quiet to end 2022. It was a tough year for the stock market in general.

But this year companies are bouncing back as the automobile industry shifts further toward EVs.

And that means we’ve got EV momentum to trade. Tesla Inc. (NASDAQ: TSLA) is leading the charge. But we’re more interested in low-priced spikers like NKLA.

The price launched over 800% in 2020. And in June 2023 the price spiked more than 250%.

Prices are consolidating below the breakout level right now. If there’s more bullish EV sentiment, this ticker could push through resistance.

It’s the top EV play on my watchlist.

5. SoundHound AI Inc. (NASDAQ: SOUN) — The Voice AI Penny Stock

My fifth penny stock pick is SoundHound AI Inc. (NASDAQ: SOUN).

This list wouldn’t be complete without a true AI spiker.

SOUN was one of the sector’s first runners. Between January and February, it launched over 400%.

Right now, it’s slowly making its way back toward those highs.

There’s a distinct possibility the price breaks out. Especially considering the strength of the AI sector.

The technology’s only been around for a few months. I think we’ve only seen the beginnings of a much larger market shift.

Embracing Day Trading Stocks: General Principles

Embracing day trading requires commitment, discipline, and a willingness to take on risk.

Successful day traders often start small, commit a significant amount of time to trading, and follow a consistent strategy. They also understand the importance of managing risk, staying informed about market trends, and being realistic with their trading goals.

Deciding How Much You Can Risk

Before you start day trading, it’s crucial to decide how much money you’re willing to risk. Never risk more than you can afford to lose, and always use stop-loss orders to limit potential losses.

Day trading can lead to substantial losses. A 2019 study called “Day Trading for a Living?” looked at the success rates of Brazilian traders over a 2-year window, and found that 97% of traders with more than 300 days of active trading lost money. Only 1.1% earned more than the Brazilian minimum wage — that’s only $16 per day!

Committing Your Time to Trading

Day trading requires a significant time commitment. You’ll need to monitor the markets closely throughout the trading day, analyze market trends, and execute trades at the right time.

Starting Small: The Key to Success

If you’re new to day trading, it’s a good idea to start small. Begin with a small amount of capital and a few stocks, and gradually increase your trading activity as you gain more experience and confidence.

Utilizing Limit Orders for Precision

Limit orders allow you to specify the maximum price you’re willing to pay for a stock or the minimum price you’re willing to sell it for. They can provide more control over your trades and help you achieve your target prices.

Timing: An Essential Factor in Day Trading

Timing is crucial in day trading. The best time to trade can depend on various factors, including market volatility, economic news, and the specific stocks you’re trading.

Being Realistic with Your Trading Goals

While day trading can be profitable, it’s also risky and requires a lot of skill. Be realistic with your trading goals, and don’t expect to make huge profits right away.

Following a Consistent Strategy

Successful day trading requires a consistent strategy. Whether you’re scalping, swing trading, or following another strategy, stick with it and make adjustments as needed based on your trading performance and market conditions.

It’s important to be flexible and adapt your strategy based on market conditions. One way to do this is by having a solid day trading strategy in place that you can tweak as needed. This can help you navigate the market more effectively and make more informed trading decisions.

Key Takeaways

Day trading is a high-risk, high-reward form of stock trading that requires a solid understanding of the stock market, careful analysis, and a well-planned trading strategy. Here’s the information you should be coming away from this article with:

• Day trading involves buying and sale of stocks within the same trading day, with the goal of profiting from short-term price fluctuations. Buy-and-hold this is not.
• Choosing the right stocks for day trading involves considering factors like volatility, what is speculation and what is the real underlying value of an equity, and market trends.
• Successful day trading requires a solid strategy, a significant time commitment, and a realistic understanding of the risks and the opportunity of realistic gains.
• It’s crucial to do your own research, stay informed about market trends, and build a solid trading plan before you purchase any positions.

Trading isn’t rocket science. It’s a skill you build and work on like any other. No matter the goals you have in mind, smart trading can help you get there. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge course to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

What stocks do you day trade? Let me know in the comments — I love hearing from my readers!