Volatility and Volume
Some day traders like high volume with less volatility, and scalp the minor fluctuations in the price, which fluctuates one penny at a time. Others enjoy high volatility and volume, which means that the stocks or ETFs they trade see a lot of movement.
The price fluctuates rapidly, frequently by several percentage points or pennies in a day.
However, volume and volatility fluctuate over time. For a short time, a particular event may make a stock or ETF popular, but volume and volatility dry up after the event is done. This cycle may continue indefinitely. This is shown via the S&P 500 VIX ST Futures ETN (VXX).
When the S&P 500 is rising, VXX is relatively tranquil; but, when the S&P 500 is down, VXX comes to life, with a significant increase in volatility and volume. Although they all trade large volumes, their volatility differs.
The beta factor is used to determine volatility. It determines how much a stock moves in comparison to the S&P 500. A beta greater than one or less than one indicates that the stock is more volatile than the S&P 500. Stocks with betas between -1 and 1 are less volatile than the S&P 500. Keep in mind that, unless they're mainly structured to follow the S&P 500, ETFs monitor their indexes rather than the S&P 500. (such as SPY).
Range or Trend
Other factors to examine are the investing trend and range. There are range traders, trend traders, and traders who can successfully trade both. The difference between a stock's low and high values in a given trading period is known as the range, whereas the overall direction of a stock's price is trend. Prices may constantly go up or down, indicating an uptrend or decline.
Only trade equities that tend to range if you love trading ranges. If you're using a trending approach, only trade equities with a trending propensity.
A stock screener may help you separate trends or range stocks, so you always have a list of equities to use with your day trading strategy. Finding companies that fit your trading strategy will take some time since stock dynamics vary over time. However, it's time well spent since a technique used correctly is much more successful.
In light of this, we've compiled a list of the ten most excellent stocks for day trading. These were chosen with the share price volatility in mind. For further clarity, the 52-week price range of each stock is included with other information.
Insider Monkey's data on 873 hedge funds were used to evaluate hedge sentiment surrounding each firm.
Why should you care about hedge fund holdings? Since March 2017, Insider Monkey's analysis has uncovered a limited set of hedge fund holdings that have beaten the S&P 500 ETFs by more than 86 percentage points. Our monthly newsletter's stock choices returned 186.1 percent between March 2017 and July 2021, compared to 100.1 percent for the SPY.
NextPlay Technologies Inc. (NASDAQ:NXTP)
NextPlay Technologies, Inc. (NASDAQ: NXTP), located in Florida, offers advertising and monetization services in games and films. The stock has lots of potentials to rise as mobile gaming and streaming reach new highs. On October 21, NextPlay released its second-quarter profits, announcing a record revenue of $2.6 million. Following the results announcement, the company's stock price increased by 20%.
NextPlay Technologies, Inc. (NASDAQ: NXTP) has already begun investing in the company's expansion. In late August, the company decided to buy Make It Games, a platform owned by AI video game developer Fighter Base Publishing.
HC Wainwright commenced coverage of NextPlay Technologies, Inc. (NASDAQ: NXTP) shares with a Buy rating and a $3 price target on August 20, citing the company's efforts to establish a unique digital environment with cross-selling prospects.
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 a high-risk investment that might pay off in the long term.
ABVC Biopharmaceuticals Inc. (NASDAQ:ABVC)
The stock of ABVC BioPharma, Inc. (NASDAQ: ABVC) has increased by more than 173 percent in the last month due to new patent filings and cooperation with Tokyo-based private investment business. The Lucidam alliance aims to invest in early-stage digital health, medical technology, and drug development possibilities. The investments will be made on behalf of BioLite Japan, an ABVC affiliate in which Lucidam has a 51 percent ownership.
BioLite Japan will be obligated to surrender rights to promising research to ABVC after licensing goods and tools in Japan or anyplace else in the globe, which benefits ABVC BioPharma, Inc. (NASDAQ: ABVC).
Because of a promising medication pipeline that comprises six therapies for the treatment of various illnesses as well as a novel medical device dubbed ABV-1701/Vitargus, retail investors have shown interest in ABVC BioPharma, Inc. (NASDAQ: ABVC).
Lucid Group Inc. (NASDAQ: LCID)
The stock of Lucid Group, Inc. (NASDAQ: LCID) has risen in recent weeks due to mentions on prominent retail investor forums such as Reddit and Stocktwits. This upbeat mood is bolstered by rumors that the Lucid Air Dream Edition automobiles are about to be delivered to consumers. The automobiles cost $169,000 and have a range of 520 miles. The firm's stock price has increased by more than 35% in the past two days of October.
Lucid Group, Inc. (NASDAQ: LCID) was given a Buy rating and a $30 price target by Bank of America in September, describing the firm as a "Tesla/Ferrari of emerging EV manufacturers" and a "genuine" startup.
Coatue Management, a New York-based investment firm, is a major shareholder in Lucid Group, Inc., owning 3.5 million shares worth more than $101 million. (NASDAQ: LCID) among the hedge funds monitored by Insider Monkey.
Farmmi Inc. (NASDAQ:FAMI)
Farmmi, Inc. (NASDAQ: FAMI), a company that manufactures and distributes agricultural goods, stated on September 29 that it had paid RMB70 million for Jiangxi Xiangbo Agriculture and Forestry Development. In a letter to shareholders, the company's CEO, Yefang Zhang, said that the acquisition would provide an essential supply of raw materials for the company's goods and enable it to meet its long-term objectives.
Farmmi, Inc. (NASDAQ: FAMI) has already started to expand internationally, with export orders coming from Israel, the United States, Canada, and even Southwest Asia. With the rise of wellness trends, the company has plenty of space to develop.
Two hedge funds in Insider Monkey's database owned positions in Farmmi, Inc. (NASDAQ: FAMI) worth $888,000 at the end of the second quarter of 2021, the same as in the previous quarter at $507,000.
With 1.5 million shares worth over $707,500, New York-based investment company Renaissance Technologies is a big stakeholder in Farmmi, Inc. (NASDAQ: FAMI), according to Insider Monkey.
Artelo Biosciences Inc. (NASDAQ: ARTL)
Vernon Bernardino, an analyst at HC Wainwright, just begun coverage of Artelo Biosciences, Inc. (NASDAQ: ARTL) with a Buy rating and a $4 price target, citing the company's pharmacological pipeline as promising for cancer therapy. The firm was also approved into the Alderley Park Oncology Development Initiative, a government-funded program in the United Kingdom that supports the development of new oncology concepts, in March of this year.
Artelo Biosciences, Inc. (NASDAQ: ARTL) has been accepted into the program, joining a group that includes major pharmaceutical firms such as AstraZeneca, Johnson & Johnson, and GlaxoSmithKline, among others.
At the end of the second quarter of 2021, three hedge funds in Insider Monkey's database had stakes in Artelo Biosciences, Inc. (NASDAQ: ARTL), totalling $1 million, up from one for $295,000.
Renaissance Technologies, a New York-based investment company, is a major stakeholder in Artelo Biosciences, Inc. (NASDAQ: ARTL), with 556,738 shares worth more than $863,000.
Along with ON Semiconductor Corporation (NASDAQ: ON), New Oriental Education & Technology Group Inc. (NYSE: EDU), and FuelCell Energy, Inc., Artelo Biosciences, Inc. (NASDAQ: ARTL) is one of the stocks attracting day traders' attention (NASDAQ: FCEL).
Meten Holding Group Ltd. (NASDAQ: METX)
Meten Holding Group Ltd. (NASDAQ: METX) has shifted to the crypto market as education stocks in China face a government crackdown. The company's stock price soared more than 13% in late October when it revealed that it had secured a contract with AGM, a fintech startup, to speed up the former's blockchain and crypto mining operations. As part of the arrangement, Meten has purchased several crypto mining equipments from AGM.
Meten Holding Group Ltd. (NASDAQ: METX) priced a $60 million equity offering in early September. The company intended to sell 200 million ordinary shares for $0.30 each, with the profits going toward capital expenditures and other business objectives.
Three hedge funds in Insider Monkey's database owned positions in Meten Holding Group Ltd. (NASDAQ: METX), totaling $1 million at the end of the second quarter of 2021, up from two in the previous quarter at $772,000.
With 162,700 shares worth more than $158,000, New York-based investment company Renaissance Technologies is a prominent stakeholder in Meten Holding Group Ltd. (NASDAQ: METX) among the hedge funds monitored by Insider Monkey.
Corporation Zosano Pharma (NASDAQ: ZSAN)
Zosano Pharma Corporation (NASDAQ: ZSAN) is a clinical-stage biotech company with a strong foundation. In August, the company surpassed market forecasts for second-quarter profits per share and sales by $0.02 and $0.01 million, respectively. It also received a patent in July for the development of a medication for the treatment of migraines.
The stock of Zosano Pharma Corporation (NASDAQ: ZSAN) had risen 23 percent in May after research published in The Journal of Headache and Pain indicated that Qtrypta, a medicine being developed by the company, was safe and provided relief for migraines when taken over a year.
Three hedge funds in Insider Monkey's database owned positions in Zosano Pharma Corporation (NASDAQ: ZSAN) totaling $1.3 million at the end of the second quarter of 2021, up from one in the previous quarter at $199,000.
FuelCell Energy Inc. (NASDAQ:FCEL)
FuelCell Energy, Inc. (NASDAQ: FCEL) manufactures and distributes fuel cell power systems. Because the company is in the clean energy sector, the stock has risen after US legislators approved US President Biden's new $3.5 trillion spending plan, which raises tax incentives for clean energy companies and encourages the use of their goods. However, the plan's ultimate approval is being held up in the Senate, where there is more discussion than ever regarding the incentives granted to companies to transition to sustainable energy.
As a consequence, sustainable energy companies such as FuelCell Energy, Inc. (NASDAQ: FCEL) have been declining in recent weeks. B Riley has decreased the stock's price objective to $8 from $10 and maintained its Neutral rating.
With 5.8 million shares worth more than $52 million, New York-based investment company Renaissance Technologies is a big stakeholder in FuelCell Energy, Inc. (NASDAQ: FCEL), according to Insider Monkey.
New Oriental Education & Technology Group Inc. (NYSE: EDU)
A Chinese crackdown on dual-listed companies has harmed almost all Chinese equities traded in the US. However, new Chinese legislation prohibiting for-profit tutoring has hurt New Oriental Education & Technology Group Inc. (NYSE: EDU). To get around the restriction, the corporation has switched its major business to non-core issues. To aid with the income flow, a housekeeping services company has been established.
However, Morgan Stanley recently raised New Oriental Education & Technology Group Inc. (NYSE: EDU) shares to Overweight from Equal Weight, citing the firm's worldwide operations and development into new sectors as reasons for the increase.
In the second quarter of 2021, 39 hedge funds in Insider Monkey's database owned holdings in New Oriental Education & Technology Group Inc. (NYSE: EDU) worth $590 million, down from 45 in the previous quarter worth $2 billion.
"New Oriental Education's stock fell in the third quarter, owing to two major factors. First, Chinese online education is presently under governmental scrutiny, despite the fact that online tutoring is not New Oriental's core business. We continue to think that, as a significant participant in a highly fragmented sector, New Oriental is well-positioned to handle regulatory change and provides regulators with a more easily regulated and monitored touchpoint than small mom-and-pop operators.
We believe New Oriental, a key participant in brick-and-mortar after-school tutoring, will gain momentum when regulatory uncertainties strike the sector. We believe the long-term outlook for after-school tutoring is positive. With just around 5% market share, New Oriental has significant scale advantages and a high cash-generating business; we believe New Oriental has strong growth potential. In late March 2021, another investor's move to New Oriental caused indiscriminate selling of shares. We acted by adding to our investment after those sales left shares trading at an attractive price, in our view. We believe New Oriental will continue to expand its profits at a 25 percent annual pace in the next years."
ON Semiconductor Corporation (NASDAQ: ON)
Because of the uncertainty in chip pricing, semiconductor stocks have been very volatile recently. Chipmaker ON Semiconductor Corporation (NASDAQ: ON), situated in Arizona, has reaped the benefits of this, reporting market-beating profits in the third quarter as chip prices hit new highs. The firm announced $0.87 earnings per share for the third quarter on November 1, topping expectations by $0.13. The total revenue for the quarter was $1.7 billion, which was $30 million more than expected.
ON Semiconductor Corporation (NASDAQ: ON) gets a Buy rating and a $60 price target from Bank of America analyst Vivek Arya. The bright prognosis, according to Arya, is due to chipmakers' "newfound pricing strength and supply discipline."
In the second quarter of 2021, 44 hedge funds in Insider Monkey's database owned holdings in ON Semiconductor Corporation (NASDAQ: ON) worth $1 billion, up from 41 in the previous quarter worth $1.2 billion.
Conclusion on the Best Day Trading Stocks
The Best Day Trading Stocks are found in a wide range of sectors. This is excellent news for all investors. You may add more diversity to your portfolio by having greater variation. Spreading your bets is good because if one industry falters, you can bank on another to rebound.
You don't always want to buy safe stocks, unlike other investors. Make the most of unpredictability.
Yes, it will need more effort since generating money as a day trader requires constant monitoring of market movements and news updates throughout the day. However, if you've honed your tactics, you may earn a lot of money investing in these companies.
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