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(Forexsail)- Trading is all about winning or losing. If you are strategic and understand the market well, trading is for you. But if you are wanted to be a successful trader, remember that- "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder.
In all trading styles, intraday trading is one of the best ones to follow. Here we will talk about intraday trading and the 15 best stocks for intraday trading in 2022.
What is intraday trading?
Intraday trading and day trading is approximately similar thing. Day trading is defined as purchasing and selling financial products inside a single trading day, with all positions closed at the end of the day, and new ones opened the next.
The long-term trades that underpin buy hold and value investing strategies are in stark contrast to day trading. The day trading software will be simpler for you to operate.
It used to be solely the domain of financial firms. The average individual investor's participation has gotten easier with the emergence of electronic trading platforms.
What makes a good intraday trader?
A trader can’t be successful overnight. To be a good day trader, he/she need to be strategic and have to learn the basic of trading. Here are the qualities that make you a successful day trader:
1. Day trading experience
Those who attempt to day trade without first learning the fundamentals of the market frequently lose money. A day trader should be able to perform technical analysis and understand charts.
Charts, on the other hand, can be deceitful if you don't have a thorough understanding of the market you're in and the assets that exist within it.
2. Strategies
You require a competitive advantage over the competition. Swing trading, arbitrage, and trade news are just a few of the tactics available.
These tactics are fine-tuned until they consistently generate profits while effectively limiting losses.
3. Sufficient capital
A cliché that resonates with intraday traders is that it takes money to earn money.
Investing a significant sum of money in a series of little transactions raises the potential reward. You should only put your money in danger if you can afford to lose it.
This not only protects you from financial catastrophe but also allows you to trade without emotion.
4. Discipline
This is a necessary skill for any day trader. Because they can't make deals that satisfy their own requirements, many intraday traders lose a lot of money.
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What strategies should I learn for daily trading?
Here are some day trading tactics that you can use to make money:
1. Minimizing risk capital
Many effective intraday traders trade with less than 2% of their accounts at any given time.
2. Trend following
Trend following is a trading strategy that assumes that the prices of securities that are consistently growing will continue to climb and vice versa. It is employed in all time periods of trading.
You can benefit by purchasing a rising stock or shorting a falling one, assuming the trend will continue.
3. Trading range
Range trading is a type of trading in which a stock is observed rising or falling from a support or resistance price.
When a stock achieves a high point, it immediately drops to a low point, and vice versa.
As a result, you purchase a stock at or near a low price and sell it at a high price.
4. Scalping
Scalping is a common strategy in the forex market that aims to profit from price movements that occur quickly. He employs technical analysis, with quantity as the driving force.
Scalping is a strategy for taking advantage of market inefficiencies as volatility rises and the trading range widens. Scalpers also employ the "wither" strategy.
They sell securities that appear to be overvalued when the value of a stock rises rapidly.
5. Bonus trading
The purchase and selling of short stocks over an electronic communications network are known as bargain trading.
Clients who want their orders completed immediately at the best available prices pay a fee, while buyers and sellers who "add liquidity" pay a fee.
As a result, you trade more stocks in order to increase liquidity and profit.
6. Price trading
Price action is a day trading approach in which you use technical analysis to make trading choices based on price movement.
Although price action trading is used by many traders, it is not a universal approach that you should practice before trading with real money.
7. Trade independent of the market
Market-agnostic trading is a risk-reduction approach in which you go long one security while shorting another.
You can also consider the following strategies:
What do I need for intraday trading?
A Day trader generally requires the following things:
Trading table
This is often reserved for traders who work for larger companies. The dealing desk executes orders for these traders, which is critical when prices are volatile.
Research in news sources
The majority of day traders profit from the large opportunities that the news offers therefore it's critical to be the first to know when anything significant occurs.
Analytical software
For most intraday traders, trading software is an expensive need. Those that rely on technical indicators place a greater emphasis on software than on news. The following is a description of the software:
Genetic and Neural Applications: These are programs that employ neural networks and genetic algorithms to improve trading systems and anticipate future price patterns more accurately.
Automatic Pattern Recognition: Technical indicators or more complicated indicators, such as Elliott Wave patterns, are searched for by the trading computer.
Backtesting: This enables traders to examine how a strategy worked in the past in order to more correctly forecast how it will perform in the future.
Broker Integration: Some apps even communicate directly with brokers, allowing you to execute trades quickly and even automatically.
These tools provide you with an advantage over the competition. It's no surprise that so many inexperienced traders lose money without them. Litefinance.com is the best broker for beginners.
How can I start intraday trading?
The first thing you'll require is a trading strategy and plan. You'll need the following items once they're in place:
Open a trading account: It only takes a few minutes to give your name, email address, and any relevant identity documents to open a day trading account.
Select stocks: From the broker's list, select equities that are suitable for day trading. Then, when it comes to day trading, you'll use technical analysis (chart patterns) to determine the best moment to buy or sell.
Place a trade: You can either open a position at the current market price or use a limit order to have a trade automatically open when the stock price falls or increases to your specified entry point.
Should I consider intraday trading for earnings?
Individual day traders and those who work for larger businesses are the two primary types of professional day traders.
The majority of intraday traders who make a living do it in large corporations. Because they have a direct line, a trading table, large quantities of capital and leverage, sophisticated analytics tools, and so on, these traders have an advantage.
They are frequently aiming for quick profits from arbitrage possibilities and news events that can be found using these services. Individual traders frequently handle the money of others or simply trade their own.
Few of them have access to a trading desk, but they frequently have strong relationships with the brokerage (because of the high commissions they pay) and access to other resources.
However, due to a lack of resources, they are unable to compete directly with institutional day traders.
Individual traders profit from such minor price changes in highly liquid equities by day trading by employing technical analysis and swing trades along with some leverage. This is how they make a living.
When deciding if day trading is a viable source of income, balance your skills against the factors listed above to see where you have the best chance of succeeding.
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15 Best Stocks to Trade in 2022
Do you want to start but aren't sure where to begin? So here are 15 offers you won't want to miss in 2022!
No. 1. Etsy Inc.
Etsy Inc. is an e-commerce company based in the United States specializing in handcrafted, vintage, and artisan items. Jewelry, apparel and home furnishings, furniture, crafts, and tools are just a few of the areas in which these things can be found.
In just 250 days, Etsy Inc.'s stock has increased by more than 2020%. This indicates that the stock has a lot of price volatility, which means there are more successful swing trading chances.
Etsy Inc. is one of the best stocks to invest in because of its large price swings in a single rally. Etsy Inc. has become one of the top stocks for day trading due to rising demand in the e-commerce industry.
No. 2. NIO
NIO is worth roughly $60 billion, and its stock is now trading at $34. In comparison to last year's trading price, the share price has climbed dramatically.
With revenue of $1,308.4 million, NIO announced a 127% increase in revenue compared to the second quarter of 2020.
Because of the state's generous backing, the company has gained a significant part of the local market. Electric vehicles are the specialty of this Chinese multinational automobile company.
NIO is increasing manufacturing to fulfill demand as the electric vehicle sector hits its peak.
NIO is the finest alternative for intraday traders today, thanks to China's enormous market and government support!
No. 3. ZIOPHARM Oncology Inc.
ZIOPHARM Oncology Inc is a biotechnology firm focused on the acquisition and development of cancer medicines. In the fight against cancer, it focuses on the development of innovative technologies to improve the human body's own immune system.
ZIOPHARM Oncology Inc.'s stock has been moving recently as a result of recent occurrences involving board members. Prior to the volatility action, there was a significant price increase, with daily volatility patterns indicating strong daily volatility.
If you want to profit from strong speculation and price fluctuations, ZIOPHARM Oncology Inc is the company to buy.
No. 4. Advanced Micro Devices Inc.
Its product lines include microprocessors, motherboard chipsets, GPUs, PCs, and embedded system applications, and it has expanded into both business and consumer markets.
Following an increase in demand for its products, AMD has benefited from the pandemic. The demand for laptops and PCs with fast processors has surged as more people work from home.
As a result, AMD has earned a reputation as one of the greatest day trading stocks.
No. 5. Zoom Video Communications
Millions of people moved to a virtual means of contact for personal and corporate activity after the lockdown. The Zoom app has been downloaded by millions of people as the greatest solution.
When it attained a market capitalization of $162 billion, this boosted its expansion, boosting its value higher than IBM's.
The company recorded total sales of $2,651.4 million and $2.25 per share for the fiscal year ending in 2021. The exponential growth of customers is the cause of the astronomical revenue growth.
The company had 467,100 customers with more than ten employees at the end of the fiscal year 2021.
Zoom is well-positioned for higher gains in the future and is without a doubt one of the greatest day trading stocks.
No. 6. Tesla Inc.
Tesla Inc. is particularly appealing to intraday traders because it is one of the leading environmentalists.
Tesla Inc. recently increased its market capitalization by over 40% to $ 9 billion. For those intraday traders who invested, the 40% increase was a tremendous payout. Its stock is now trading at $753 per share.
It has increased 700% in less than two years, from $95 at the beginning of 2020. Tesla Inc. is undoubtedly one of those companies that will make you proud as day traders.
No. 7. Roku Inc.
Roku Inc. is a digital streaming services and equipment firm based in the United States. RInc. The continual increase in the number of OTT viewers has resulted in spectacular growth as a unique provider of OTT (Over the Top) equipment and services.
OTT services such as Amazon Prime, Netflix, and others have been in the spotlight recently due to their intriguing content and rapidly growing audiences. The recent blockade has strengthened the OTT industry, as major film releases are being distributed via OTT platforms rather than cinemas.
Roku Inc. has experienced tremendous trading activity on a daily basis over the last few months as traders assemble to profit from its high price movements.
No. 8. Amrep Corp
Amrep Corp is a well-known New Jersey-based firm that specializes in real estate and media services. Its subsidiaries, AMREP Southwest Inc. and Cable Media Services Inc. manage the company's operations.
Amrep Corp.'s stock has been trending recently due to unexpectedly favorable financial results for the first quarter of 2021, which ended in April 2021, with a net income of $739,200 or $0.95 per share, resulting in a substantial price increase due to volatility.
Amrep Corp has become an appealing option for intraday traders trying to profit from speculation and price action as a result of this.
No. 9. Aegon N.V.
Aegon NV is a reputable life insurance and asset management firm headquartered in The Netherlands. Under $5 per diluted share, this is one of the top day trading stocks.
Aegon NV's stock has recently gained popularity as a result of its efficient cost-cutting efforts, which include the sale of non-core volatile operations and a reduction in risk exposure.
Because there is more volatility at the start of the sessions, the price of the volatility action has increased.
Aegon NV gives a terrific opportunity for intraday traders hoping to profit from significant speculation and price swings with the finest day trading stocks under $5, with a 13% cost reduction target by 2023.
No. 10. Twilio Inc.
Twilio is a communications platform in the cloud. Using Web Services APIs, software developers may make and receive phone calls, send and receive text messages, and conduct other communication operations programmatically.
Twilio has evolved into a significant cloud computing startup, with over 221,000 active customers and a 55% growth in revenue by 2020. Twilio's stock has risen since the lockdown.
Twilio's stock has grown exponentially in value and volatility as a result of active client accounts, making it a good investment for day trading.
No. 11. Nike Inc.
Nike's market share is steadily increasing, having climbed by more than 100% since the COVID infection.
Despite the global recession and significant interruptions, multinational profitability and billion-dollar sales have remained robust. The company focuses on the design, development, and global distribution of footwear, clothes, and services.
The sports brand recently recorded a net income of $5.7 billion and revenue of $44.5 billion, up 19%.
NIKE stock is extremely volatile since their new releases are unrivaled, resulting in more earnings, making them one of the greatest investments for you.
No. 12. Curaleaf Holdings
As it appears that cannabis will be legalized worldwide, it is becoming a significant business. While its stock price is relatively stable in terms of volatility, it could skyrocket if the right marijuana regulatory framework is put in place.
Because it is difficult to predict when this will occur, it may be wiser to hold Curaleaf for a long time in case it rises, rather than buying and selling it in a single day.
While its share price appears to have been unchanged over the last decade, it has been extremely turbulent during a shorter span in the early months of 2021.
As a result, this stock may be appropriate for day trading.
No. 13. Netflix
Netflix's stock has soared as a result of increased demand for streaming services during the lockdown.
The streaming service provider boosted its member count by 36.6 million by the end of the fiscal year 2020, bringing the total number of subscribers to over 200 million.
Netflix just announced a 17% rise in revenue, bringing total revenue to $14.5 billion. Netflix's stock was soaring before the outbreak. However, the pandemic has resulted in a significant increase in stock values.
Netflix stock was valued at roughly $329 at the start of 2020.
It is now trading at $606, a rise of 84% in less than two years.
No. 14. AMC Entertainment
AMC Entertainment, one of the world's major entertainment firms, is now valued in the market at $24 billion, with AMC's share estimated at $47 billion.
AMC's ability to develop and inspire social media memes is as impressive as its award-winning programs. That's no surprise it was selected as the best meme of 2021.
The company reported revenue of $445 million in the second quarter, up from $18.9 million in the previous quarter and a net loss of $349 million.
Due to its volatility and moving nature, this is one of the top day trading stocks. Stocks have increased by more than 2,000% in less than a year.
No. 15. Apple
Even as a novice, you must have anticipated this. This time of year, the trillion-dollar company's stock is hot, as it presented the next Apple family during an Apple event.
The stock has retreated from its highs, but it has held the 50-day SMA and may be kept for the long term.
Bottom Line
This is already a vast post, so I have to stop here. I think this article is helpful to you. Following the description may bring your comfort zone with intraday trading, and this will help you to select your stocks to trade. I hope that intraday trading will be beneficial for you.
