Top 10 Day Trading Stocks in 2019 As you would probably imagine, day traders and long-term savers will have significantly different things to think about when investing in a specific stock. Long-term traders will want to choose stocks that will predictably be worth more years, even decades, down the road. As a result, these investors will often choose blue chip stocks, such as those that can be found on the S&P 500 Index or the Dow Jones Industrial Average Index. Day traders, on the other hand, are not nearly as concerned about what these stocks will be worth in the year 2050. Instead, they focus on trying to identify which stocks are most likely to increase in value by the end of the day. Even if it seems that a company is doing poorly or has something wrong with its finances, the volatility that this creates can still produce many potentially profitable opportunities within a given trading period. In order to become a successful day trader, you will need to act quickly and consistently stay ahead of the market as a whole. Day trading strategies pose a much higher risk than investing in an index and holding that position over time (which, on average, will earn you an ROI of about 10% per year). However, day trading also presents a much higher potential for return—the yearly returns that are realized by some long-term savers are often achieved in a single day by the world’s best day traders. In this article, we will talk about the most important things for you to think about when selecting a stock for day trading. We will then discuss, based on the aforementioned criteria, ten of the top stocks for day trading so far in 2019. While many of these stocks may represent companies you’ve never heard of, they still may be prime options for increasing your daily ROI. Things to Look for when Selecting a Day Trading Stock If you are a day trader, then you will need to have a relatively high level of risk tolerance in order to be successful. Day trading is significantly different than long-term saving strategies, which typically revolve around minimizing risk through the principle of diversification. Instead, day traders will need to be active traders who believe they are capable of “outsmarting” the market as a whole. There are two primary things that all day traders should look for when comparing the different stocks available. The first thing they should pay attention to is daily trading volume. Stocks with high trading volumes are, by definition, among the most active stocks available. This means that there are likely to be many price increases and decreases within a given trading period.
The second thing that active traders should pay attention to is volatility. Contrary to long-term savers, day traders do not consider volatility to be a dirty word. In fact, volatility means that stocks can be expected to have the largest price increases (along with the largest price decreases) within a given trading period. In other words, volatility is necessary for anyone who is risk tolerant and seeking high returns. Volatility is measured using the “beta” coefficient. Higher beta levels indicate that a stock is typically more volatile. The Top Day Trading Stocks of 2019 Here are ten of the top day trading stocks of 2019. With each stock, we will list this year’s beta levels, trading volumes, and a brief overview of the underlying company or exchange traded fund (ETF). 1. SPDR S&P 500 ETF (SPY) Daily Trading Volume: 125,555,128 Beta: 1.02 The SPDR S&P 500 ETF is among the most liquid day trading stocks in the world, due to the fact that it experiences a daily trading volume well over 100 million. This unique exchange traded fund—an offshoot of the S&P 500 Index—is also among the most accessible large ETFs, due to the fact that a single share is typically below $300. Over the past year, it has experienced a price range extending from $233.76 to $293.94. 2. International Star Incorporated (ILST) Daily Trading Volume: 3,937097 Beta: 7.89 Traded over the counter (OTCMKTS), International Star is the ultimate stock for a risk-tolerant penny stock trader. While each share is valued far less than a penny, the stock frequently doubles and halves in value on a daily basis. The incredibly high beta of 7.89 is both a blessing and a curse for traders. 3. Advanced Micro Devices Incorporated (AMD) Daily Trading Volume: 104,472,738 Beta: 3.25 Over the past year, AMD stock has experienced a range of $9.56 to $34.14. This relatively wide range within a rapidly growing industry (micro tech) has made the stock
incredibly attractive to day traders. Additionally, having a trading volume above 100 million per day makes AMD among the most liquid day trading stocks available. 4. Reach Messaging Holding (RCMH) Daily Trading Volume: 4,198,276 Beta: 4.93 RCMH is another penny stock with a relatively low market cap. While this may be unappealing to some day traders, it is not unusual for the stock to experience a 100% fluctuation within a 15 minute period. To successfully trade RCMH, you will need to be an exceptionally active trader. 5. iShares China Large Cap ETF (FXI) Daily Trading Volume: 37,690,748 Beta: 1.12 FXI is a stock that makes it easy to have a stake in some of the largest Chinese companies available on the market. Considering China’s important role as the world’s second largest economy, the relatively high trading volume of FXI is somewhat unsurprising. 6. Invesco QQQ (QQQ) Daily Trading Volume: 63,950,017 Beta: 1.17 Invesco QQQ has a high trading volume with a low beta—perfect for traders who prefer a liquid asset. Throughout the course of the past year, the stock has been trading for as little as $143.46 and as high as $187.53. 7. Financial Select Sector SPDR Fund (XLF) Daily Trading Volume: 74,586,277 Beta: 1.14 XLF is a dynamic stock that, like Invesco QQQ, has a high trading volume and a notably manageable beta. The stock’s market cap of nearly $25 billion makes it much more attractive than some of the penny stocks alternatives. 8. iShares MSCI Emerging Markets ETF (EEM) Daily Trading Volume: 96,042,777
Beta: 0.93 Trading stocks that are tied to emerging markets is an excellent option for day traders interested in international politics. As stories begin to unfold—political, economic, and financial—in developing countries, EEM values will immediately begin to fluctuate. 9. Affinity Beverage (ABVG) Daily Trading Volume: 2,029,478 Beta: 2.81 ABVG is a pink sheet (over the counter) stock, but contrary to other penny stocks, the company has still been active and has been acquiring various beverage brands. This stock has a strong potential for long-term growth in addition to having a relatively high beta. 10. Alkame Holdings (ALKM) Daily Trading Volume: 29,753,128 Beta: 6.59 ALKM is the perfect stock for individuals who are not only beta-seeking, but are also looking for high levels of volatility throughout the course of a single day. Within any given trading period, the stock will typically experience five or more value swings that are 10 percent or greater. Consequently, this high level of daily action sets ALKM apart from many other penny stocks. Conclusion These are just a few of the hottest day trading stocks of 2019. By consistently paying attention to beta levels, trading volumes, and various technical indicators, you can succeed as a day trader and increase your daily ROI.