3 ideas for day trading strategies
How to select best day trading stocks
for day trading strategy
Any good stock day trading system is based on several different intra-day trading strategies. The conditions on stock markets are not always friendly for single intra-day trading strategy. So it is good to have prepared more then one stock day trade strategy.The simplest version is to have two options. First is to use your single stock day trade strategy. Second option is to do nothing - it is for situations when you know that your strategy is not working. Example of this approach could be like this: Your single intra-day trading strategy is to daytrade index ETF shares of QQQ or SPY. But you have no idea for trading when stock markets open with huge gap up or gap down. So you close your stock day trading software and do not trade during this day.
How to select best day trading stocks
for day trading strategy ?
There are several options how to find best day trading stocks. Here I would like to mention 3 different intra-day trading strategies and what stocks are used for them.All of them I learned during my stock trading career. They all could offer a lot of profitable opportunities.
Index ETF day trading strategy
This intraday trading strategy uses only
index ETF shares
for day trading. The most popular and used Index ETF shares are QQQ as Nasdaq 100 Index ETF shares and SPY as SP500 index index ETF shares. Both Index ETF shares provide enough liquidity for stock intra-day trade strategy.Sometimes there is used also DIA, index ETF for Dow Jones Industrial Average, as third main index representative.
All three index ETF also offer quite good volatility and intraday trading ranges. So there are opportunities for profitable day trades.
Main sector stock day trade strategy
This intra-day trading strategy is based on monitoring of limited list of best day trading stocks. These stocks are found as representatives of three volatile sectors.
As I mentioned,
the most volatile stocks can be found on Nasdaq stock market and most volatile sectors are technology sectors.So the selection of three possible sectors for daytrading could be Semiconductors, Biotechnology and Internet. Now we have to find best day trading stock in these sectors. It is good to have two or three different stocks for each sector. When looking for stock in these sectors I found tickers like SNDK, SINA, BIDU, VRTX and BIIB. Any of them could be best day trading stock for any particular trading day.
Momentum - hot stock
day trading strategy
This intra-day trading strategy expects to use best day trading stocks based on actual "hot list". The most popular stocks often mentioned by media and by another daytraders or retail traders or investors could be best day trading stocks in some days.These popular tickers can be found on most online trading sites, in online stock trading forums. List of hot best day trading stocks could be also produced by some
stock screener
available in stock
day trading software
provided by
online stock broker.
These days the most popular stocks for intraday trading strategies are stocks like AAPL, GOOG, AMZN, GMCR and others.
You can see that all these stocks have parameters needed for best day trading stocks used in intraday trading strategies.
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