How to choose stocks for day Trading? by Coach Yoann
Choosing stocks for day trading can be a daunting task, especially for those new to the game. But with the right information and a bit of research, it doesn’t have to be so difficult.
First, it’s important to understand the different types of analysis available and which type is right for your trading strategy:
- Fundamental analysis is the most common and focuses on analyzing the financials of a company, such as its earnings, revenue, and financial statements. This can help you identify stocks that have potential to make big moves, such as when a stock is undervalued or when a company is about to launch a new product.
- Technical analysis is another type of analysis that focuses on charting and analyzing the stock’s price action in order to identify trends or patterns. This can help you identify stocks that may be poised to make a move in the near future.
It’s important to remember that both technical and fundamental analysis are important when choosing stocks for day trading. It’s also important to consider liquidity and volatility when selecting stocks. Liquid stocks are more easily traded and tend to be more discounted than other stocks, making them cheaper.
In addition, equity offered by corporations with higher market capitalizations is often more liquid than corporations with lower market caps. Stocks that exhibit more volatility lend themselves to day-trading strategies as well, so a stock may be volatile if its issuing corporation experiences more variance in its cash flows.
Lastly, consider the trade volume, more volume indicates higher interest in a stock—both positive or negative.
Be sure to do your research and consider your own position when selecting stocks and remember to diversify your portfolio. Good luck!
If you liked this article and want personalized Trading Mindset or Fitness Coaching, feel free to book your one-on-one session with me here:
https://calendly.com/coachyoann/free-consultation
Thank you for reading.
Coach Yoann
https://www.coachyoann.com
Disclaimer: This article is for informational and educational purposes only, not financial advice. This article does not constitute an offer or a solicitation or a recommendation to buy or sell any securities, financial product or services by nShape Capital (''Coach Yoann''). Furthermore, nothing in this article is intended to provide tax, legal, or investment advice. All readers should do their Due Diligence before making any financial decision. Click here for full disclaimer: https://www.coachyoann.com/disclaimers.
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