10 best stocks for day trading
In this article, we discuss the 10 best stocks for day trading. If you wish to ignore our detailed analysis of these stocks, go directly to the 5 best stocks for day trading.
The advent of stock trading apps like Robinhood and the onset of the pandemic have propelled a new generation of investors into the stock market over the past year, pitting them against professional fund managers like funds. speculative in a battle for market supremacy that dominated securities. Many of these retail investors are day traders who invest in companies for a short period of time, only looking to make a profit and get off the ship at the first sign of trouble. JP Morgan complaints these investors will pile up $ 1 trillion in stocks this year.
Investors who have been baffled by increased market volatility in recent weeks should consider some interesting statistics on day traders before organizing their portfolios around short-term price movements. For example, an academic expert in finance describe in a 2017 post, 80% of all day traders left the market completely in just two years. Terrance Odean, expert in behavioral finance, complaints that 40% of all day-traders leave within a month. Over longer periods, such as five years, this percentage drops to around 7%.
The two academics’ research underscores how unreal recent claims by retail investors are fundamentally changing market dynamics. Odean, in a separate study, also pointed out how perilous following the investment strategy of day traders could also be. In an article from 2000, the expert find On this day, traders underperform the market by almost 6.5% per year. This does not compare favorably to the average investor, who underperform benchmarks by 1.5% per year, according to Odean.
However, day traders remain an important market force. Over the past few months, these day traders have been instrumental in pushing volumes in the market to record highs. For some, this is good news. For others not. Companies like Robinhood have denied claims that most of their users are day traders. In response to a to study who documented the business patterns of Robinhood users, a company spokesperson Recount news platform CNBC which he considered most customers to buy and hold.
Investors keen to learn more about where day traders spend their dollars should check out some popular day trading stocks. Some of the best stocks for day trading currently include ON Semiconductor Corporation (NASDAQ:TO), New Oriental Education & Technology Group Inc. (NYSE:EDU) and FuelCell Energy, Inc. (NASDAQ:FCEL), among others discussed in detail below.
With that in mind, here is our list of the 10 best stocks for day trading. These were chosen taking into account the volatility of the share price. The 52-week price range for each stock is mentioned alongside other details for clarity.
The hedge sentiment around each stock was assessed using data from 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research has identified in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, the selections of actions in our monthly newsletter returned 186.1%, compared to 100.1% for ESPION. Our stock picks outperformed the market by over 86 percentage points (see details here). This is why we believe that hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can sign up for our free newsletter on our homepage to have our stories delivered to your inbox.
Best stocks for day trading
10. NextPlay Technologies, Inc. (NASDAQ:NXTP)
Number of hedge fund holders: N / A
52 week range: $ 1.26 to $ 4.99
NextPlay Technologies, Inc. (NASDAQ: NXTP) is a Florida-based company that markets advertising and monetization services in games and videos. As mobile gaming and streaming reach new heights, the stock has plenty of room to climb. NextPlay released its second quarter results on October 21, with record revenue of $ 2.6 million. The company’s share price jumped 20% in the wake of the earnings report.
NextPlay Technologies, Inc. (NASDAQ: NXTP) has already started investing to grow its business. In late August, the company agreed to buy Make It Games, a platform owned by video game developer AI Fighter Base Publishing.
On August 20, investment adviser HC Wainwright launched coverage of shares of NextPlay Technologies, Inc. (NASDAQ: NXTP) with a buy note and a price target of $ 3, noting that the company was building a digital ecosystem. unique with cross-selling opportunities.
Like ON Semiconductor Corporation (NASDAQ: ON), New Oriental Education & Technology Group Inc. (NYSE: EDU) and FuelCell Energy, Inc. (NASDAQ: FCEL), NextPlay Technologies, Inc. (NASDAQ: NXTP) is one risky investments that could pay off in the long run.
9. ABVC BioPharma, Inc. (NASDAQ:ABVC)
Number of hedge fund holders: N / A
52 week range: $ 1.90 to $ 11.60
Over the past month, shares of ABVC BioPharma, Inc. (NASDAQ: ABVC) have climbed in value by more than 173% following disclosures of new patent filings as well as a partnership with a company from private investment based in Tokyo. The partnership with Lucidam aims to invest in early stage opportunities in digital health, medical technology and drug development. The investments made within the framework of this partnership will be made on behalf of BioLite Japan, a subsidiary of ABVC in which Lucidam holds 51% of the capital.
ABVC BioPharma, Inc. (NASDAQ: ABVC) benefits from this agreement because BioLite Japan will be required to transfer the promising research rights to ABVC after licensing products and tools in Japan or elsewhere in the world.
Retail investors have shown interest in ABVC BioPharma, Inc. (NASDAQ: ABVC) due to a promising drug pipeline that includes six major disorder therapeutics as well as a new medical device called ABV-1701 / Vitargus.
8. Lucid Group, Inc. (NASDAQ:LCID)
Number of hedge fund holders: N / A
52 week range: $ 9.6 to $ 64.8
Lucid Group, Inc. (NASDAQ: LCID) has rallied in recent weeks following mentions of the stock on popular retail investor forums such as Reddit and Stocktwits. This positive momentum is supported by reports that the company is ready to deliver Lucid Air Dream Edition vehicles to customers. The cars are priced at $ 169,000 and offer a range of 520 miles. During the last two days of October, the company’s stock price has climbed more than 35%.
In September, Bank of America launched stock coverage of Lucid Group, Inc. (NASDAQ: LCID) with a buy rating and a price target of $ 30, calling the company “Tesla / Ferrari of the New Carmakers EV. “and a” legitimate “startup. .
Among the hedge funds tracked by Insider Monkey, a New York-based investment firm Mantle management is a major shareholder of Lucid Group, Inc. (NASDAQ: LCID) with 3.5 million shares worth over $ 101 million.
7. Farmmi, Inc. (NASDAQ:FAMI)
Number of hedge fund holders: 2
52 week range: $ 0.20 to $ 2.47
On September 29, Farmmi, Inc. (NASDAQ: FAMI), a company that manufactures and sells agricultural products, announced that it had acquired Jiangxi Xiangbo Agriculture and Forestry Development for RMB 70 million. Yefang Zhang, CEO of the company, said in a letter to shareholders that the purchase would be an important source of raw materials for the company’s products and allow it to meet the targets set for the coming years.
Farmmi, Inc. (NASDAQ: FAMI) has already grown internationally, having taken export orders to Israel, the United States, Canada and even Southwest Asia. As wellness trends develop, the business still has plenty of room to develop further.
At the end of the second quarter of 2021, 2 hedge funds in the Insider Monkey database had holdings worth $ 888,000 in Farmmi, Inc. (NASDAQ: FAMI), the same as in the previous quarter of ‘worth $ 507,000.
Among the hedge funds tracked by Insider Monkey, a New York-based investment firm Renaissance technologies is a major shareholder of Farmmi, Inc. (NASDAQ: FAMI) with 1.5 million shares worth over $ 707,000.
6. Artelo Biosciences, Inc. (NASDAQ:ARTL)
Number of hedge fund holders: 3
52 week range: $ 0.45 to $ 3.67
HC Wainwright analyst Vernon Bernardino recently launched stock coverage Artelo Biosciences, Inc. (NASDAQ: ARTL) with a buy rating and a price target of $ 4, noting that the drug pipeline of the company was showing promise when it came to cancer therapies. In March of this year, the company was also accepted into the Alderley Park Oncology Development Program, a program funded by the UK government for the development of innovative oncology projects.
Inclusion in the program is significant as Artelo Biosciences, Inc. (NASDAQ: ARTL) joins a club that includes large pharmaceutical companies like AstraZeneca, Johnson & Johnson, and GlaxoSmithKline, among others.
At the end of the second quarter of 2021, 3 hedge funds in Insider Monkey’s database had $ 1 million in holdings in Artelo Biosciences, Inc. (NASDAQ: ARTL), up from 1 in the previous quarter of ‘worth $ 295,000.
Among the hedge funds tracked by Insider Monkey, a New York-based investment firm Renaissance technologies is a major shareholder of Artelo Biosciences, Inc. (NASDAQ: ARTL) with 556,738 shares valued over $ 863,000.
Besides ON Semiconductor Corporation (NASDAQ: ON), New Oriental Education & Technology Group Inc. (NYSE: EDU) and FuelCell Energy, Inc. (NASDAQ: FCEL), Artelo Biosciences, Inc. (NASDAQ: ARTL) attracting stocks beware of day traders.
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Disclosure. Nothing. 10 best stocks for day trading was originally published on Insider Monkey.