Trade Stocks in 2022 – Beginners Guide

If you are interested in knowing how to day trade stocks, you are in the right place! This method of stock trading has been popularized by many of today’s billionaire hedge fund managers, who began their careers day trading stocks.

With the rise of trading robots, which control much of the flow in the trading markets today, the game has changed quite a bit. But, with the right trading tools, platforms and knowledge, it is still possible to compete as a day trader; After all, this is the strategy used by many of the world’s leading proprietary trading centers.

In this beginner’s guide to day trading, we explain how to choose the best stock day trading options, five day trading strategies you can start today, and the safest platform to day trade stocks. better tools and rates.

Day Trading e Toro Stocks

Investing in crypto assets is not regulated, may not be suitable for retail investors and the entire amount invested may be lost.

How to Day Trade Stocks – 5 Easy Steps

If you’re looking forward to starting day trading stocks, follow this quick five-step guide to doing so.

Step 1. Choose a trading platform – To start day trading stocks you need a top-tier trading platform. There is nothing better than the FCA regulated broker, e Toro. You can open an account in minutes and start trading stocks with 0% commission.

Step 2. Deposit – To speculate on the direction of share prices, you need capital to do so. With eToro, you can deposit funds without fees using a variety of methods such as bank transfers, credit or debit cards, and wallets such as PayPal. You only need $50 to get started.

Step 3. Research the Market – When trying to find the best stocks to day trade, you need to have a broader understanding of what you are doing in the stock market in general. By researching the market, you can identify the best performing sectors (energy, retail, financials, etc.) and then select the best stocks. We’ll show you how to do this below (hint: it’s on the eToro platform).

Step 4. Choose stocks to trade – There are thousands of stocks on eToro that you can trade. To find stocks to day trade, you will need to focus on what you have learned about the market in general and then use a high probability trading strategy to identify entry and exit points. Five of these strategies are covered in more detail in this guide.

Step 5. Trade – When day trading volatile stocks, speed is of the essence. This is where the eToro trading ticket comes in handy. With just one click, you can buy stocks on eToro with additional security features, such as a stop loss and take profit level. This means that you can fully automate your daily operations.

Day Trading e Toro Stocks

Where to Day Trade Stocks

Choosing the right broker and trading platform is essential to survive in the world of day trading. The platform must not only be easy to use, fast, and responsive, but it must also be secure and cost-effective.

The best stock brokers should also provide you with additional tools and educational materials such as webinars and courses that can help you learn how to day trade stocks correctly and teach you how to trade stocks cheaply.

Fortunately, there is no need for you to spend hours trying to find the best day trading broker, as we have done the legwork for you and explain our conclusions below.

1. e Toro – The best broker for day trading stocks.

e Toro is by far one of the best brokers for day trading. It is licensed and regulated worldwide by the UK FCA, CySEC, ASIC and FINRA, providing a high level of security.

You can buy stocks on e Toro in real time, covering all sectors on all global stock markets in the US, UK, Europe and Asia. Plus, you can trade these stocks with 0% commission, so more of your profits end up in your pocket. e Toro also offers its users access to the best dividend stocks and the most undervalued stocks.

You can also trade forex, indices, commodities and buy essential with low commissions. You can also use the platform to find the best penny stocks to day trade or stick to blue chip stocks like Amazon or Microsoft.
The eToro stock platform and app are used by over 20 million traders worldwide. It is widely considered to be the largest social trading and copy trading platform in the world. This means you can share and discuss ideas with other traders – a great way to find stocks to day trade.

You can also view the performance of traders with custom filters based on your preferences and risk tolerance. If you like the performance of any of them, you can have your exact trades copied to your own account automatically.

This is a great way to build a passive income stream, but also to learn more about day trading stocks as you can see how other profitable traders do it.

eToro also offers a wide variety of educational materials through its trading academy. This includes articles, webinars, and courses. Additionally, you can access research from expert analysts from top investment banks through the research section, which can help you find good stocks to day trade .

Better yet, you can get started with eToro with just $10 and open an account in a few minutes. There is also a wide range of deposit options that are commission free .

What we like:

Regulated by the FCA, CySEC, ASIC and FINRA
Stock trading 100% commission free
User-friendly web platform and mobile app
Lots of features with a great copy trading service
Trade Stock CFDs on margin from just $50.

2. Skilling – unbeatable service for Day Trading.

Since its inception, this Scandinavian broker has tried to stand out from its competitors through perfect customer service and treatment.

In this way, Skilling has a reputation that cannot be bettered among its users due to its speed in solving problems.

It has its offices in Cyprus, Malta and Spain, and its platform has more than 800 different assets. Moreover, you can choose between up to three different trading platforms . It is also a broker regulated by the British FCA and the Cyprus CySEC.

Skilling can be used by traders of any level and, in addition, it often conducts courses and other training events. Skilling does not apply any commission for opening an account and neither for refunds or deposits.

What we like about Skilling

Good customer service.
Good selection of assets.
Three different platforms.
Seminars and training courses.
Visit Skilling

What is Day Trading

Day trading is a method of speculating on the price movement of an instrument in a single day. A day trader only trades during the day and rarely trades overnight as he or she often speculates on short-term price movements in the market.

The frequency of operations carried out during the day by a Day Trader is usually quite high. This is because they look for small profits throughout the day from rising or falling prices. Some of the best markets to day trade are stocks, forex, and cryptocurrencies.

How does day trading work?

There are a wide variety of methods for day trading. However, the most successful day traders use a strict methodology to analyze potential turning points in the market for entry and exit points.

Day Traders often use technical analysis to identify potential trading opportunities throughout the day. Technical analysis is the use of chart patterns and technical indicators to identify turning points in the market where buyers and sellers could appear.

Traders have different assets to trade in the market during the day. This includes the purchase of real shares or the use of leveraged products such as futures, options and CFDs. The simplest, easiest and most profitable way to trade the market is to use CFDs, or Contracts for Difference, offered by brokers like eToro.

This is because CFDs are products that allow you to speculate on the price direction of a market. This means that you could benefit from the ups and downs of the markets, which is essential for a Day Trader looking to profit from short-term market movements. After all, markets go up and down.

In addition, daily market trading using CFDs allows you to trade on margin. This means that you can buy a derivative of a stock without putting up the full value of the trade. On some stocks on eToro, you only need 20% of the total value of the trade to make it. This means that your capital can go much further, which is necessary when day trading.

Day Trading vs. Investment

There are several differences between day trading and investing. The main difference is the maintenance time of an operation or investment.

Day Traders hold their positions for one day and are left with nothing overnight. Investors hold their positions for many months or years, making a long-term investment.

Successful Day Traders can earn a much higher rate of return than an investor. This is because day trading involves actively trading each day to capitalize on short-term market movements. A Day Trader tries to get hold of the market time.

In contrast, investors do not attempt to time the market. What they are looking for is that the investments be worth more in 1 to 3 years. This means that they will have to go through the ups and downs of the market and see big price swings in terms of profits and losses along the way.

Another important difference is the time frame used to make trading and investment decisions. A trader usually looks at the higher timeframes such as monthly, weekly and daily charts. A Day Trader is more likely to use lower time frames such as 15, 30 or 60 minute charts. Good brokers like eToro will provide you with both.

Why day trade?

The global stock market is currently worth about $117 trillion. More than $49 trillion comes from the US stock markets, which represent the largest number of daily traders in the world. People from all walks of life enter the stock market full time to take advantage of the daily swings in prices.

With the advent of technology and increased competition between brokers and trading platforms, ordinary people can now trade the stock market during the day. It has never been easier to open a trading account and start speculating on the price evolution of stocks like Apple and Tesla.

Of course, while it’s easier than ever to start day trading stocks – as a disclaimer – it doesn’t mean you’ll find instant success. In order to be able to build a consistent income stream and future results, you need to follow a proper plan to make money day trading.

How to make money day trading

To make money day trading in the market it is essential to have a plan. Here is a quick guide to what you need to know to day trade successfully before we look at some of the best day trading actions.

1. Use a commission-free broker

The key to day trading is being able to make regular profits from short-term price movements in a single trading day. The last thing you want is for those profits to be subtracted through trading commissions.

Brokers like e Toro allow you to trade stocks during the day 100% commission-free.

2. Focus on a core stock pick

Each action has a certain character and moves in a certain way. The best stock to day trade is the one you are most familiar with. When you start day trading, limit yourself to a few stocks and trade them every day. This way, you’ll get a good feel for how that stock is moving and you’ll be more likely to see patterns develop that you can trade.

3. Learn about technical analysis

When trying to identify how to find stocks to day trade, most traders will rely heavily on technical analysis to make their trading decisions. This is how to study prices and chart patterns. There is a lot of information online about technical analysis.

You can also use your broker’s course options or even use the social trading feature on eToro, where you can see other traders’ technical analysis on different stock charts.

4. Trade with a strategy and focus on risk management

Having a day trading strategy is essential. After all, trading short-term price fluctuations means you have to analyze all the available information and make a decision on where you think the market can move next.

Your ability to process this information is important to get in at a good price. Having a strategy will serve as a checklist. This will help you analyze what you need in a short period of time while remaining objective.

Make sure you also do good risk management. Keep your trade size small so if a few trades go against you it doesn’t wipe out your account.

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Best Hours for Day Trading

When considering how to find stocks to day trade, it is important to know the best times to day trade. Most people who day trade the stock market focus on the US as it is the largest in the world.

Stocks traded on the New York Stock Exchange and NASDAQ open at 9:30 a.m. and close at 4:00 p.m. Eastern Time (ET). You can also trade on the UK and European stock markets, but the biggest price movements are on the US stock market, which is essential for a Day Trader.

Some Day Traders may also choose to focus on the largest market in the world, which is the Forex market. This market is open 24 hours a day, which offers even more opportunities for Day Traders.

Stock Price Movements

For day trading, price movement is essential. After all, you can only make a profit if the price of the security has moved from one price level to another. Therefore, it is best to try to stick to the times of the day when there is more price movement.

The chart below shows price action on a 15-minute chart of Apple’s stock price. The indicator below is the Average True Range (ATR). This tells us what the average price bar range has been for each 15-minute bar.
What you will notice is that there tends to be a spike in the ATR reading around the same time each day (a new day begins on each vertical line on the chart). Spikes tend to occur at the end and beginning of the trading day with lower readings throughout the day.

This means that there is more stock price movement during the last 30 minutes and the first 30 minutes of the day. Because of this, most day traders tend to focus on these times to try and capitalize on these larger price swings.

What are the best stocks to day trade?

If you want to know more about the best stocks for day trading, look no further. Here is a list of the top five stocks to day trade stocks to focus on right now.

We have focused on blue chip stocks for the list. While it may sound tempting to try to find the best stocks to day trade, this is very risky and not suitable for beginners.

1. Apple (AAPL) – The best stock to day trade because of the recent stock split.

Apple is one of the largest and most recognized companies in the world. It is one of the best stocks to day trade because of this and also the fact that it has gone through five stock splits.

A stock split is when a company issues more shares to reduce the total price of a share, while maintaining the same market value. This means that you can trade a trillion dollar company at a much lower price, making it easier to buy regular shares throughout the day when day trading.

Most people are familiar with Apple and will know when new products are released. This knowledge will come in handy when trading, as Apple’s share price may rise ahead of a new product launch as investors anticipate the hype it may bring.

2. Tesla (TSLA) – A firm favorite among the day trading cult.

The Day Traders are known as a cult group. After all, day trading is a specialized skill set that requires some commitment and passion to what you do. One of the favorites of this group is Elon Musk’s company, Tesla.

Many Day Traders like to trade and buy Tesla shares simply because they like Elon Musk. But the biggest reason is the increased demand for electric vehicles. It’s a new and booming sector with exponential growth leading to big moves in Tesla’s stock price, making it an ideal addition for Day Trade stocks to watch.

3. Amazon (AMZN) – Best for Day Trading Volatile Stocks.

If you are interested in day trading volatile stocks, then Amazon might be for you. Not only is it one of the largest companies in the world, but more than 7 million shares change hands every day.

Amazon shares are considered very volatile and often move large numbers in a trading day. In fact, stocks can move anywhere from $50 to $100 a day, making them a great option for day trading.

The world’s largest online retailer has also announced plans for a stock split that will make its share price even cheaper, attracting more day traders and increasing intraday volatility in its price.

4. NVIDIA (NVDA) – A high volume day trading stock.

NVIDIA is a well-known company whose chips and graphics processing units are widely used in electric vehicles, cryptocurrency mining equipment, game consoles, and most electronic items.

It is one of the best stocks to day trade due to its high trading volume. More than 62 million shares are traded every day, almost ten times more than Amazon shares! This trading volume generates large intraday moves that Day Traders can take advantage of.

Also, the stock is relatively cheap compared to other tech companies at the same level. So, if you have a small day trading account, then NVIDIA day trading stocks might be for you.

5. Microsoft – A favorite company among institutions.

Microsoft is another well-known company. While the stock’s price moves much less on an intraday basis than some of the other stocks listed above, it is stable. This can be useful when using ‘Swing Day Trading’ strategies that involve trying to trade a move within a single trading day.

Most of Microsoft’s daily moves occur in the first hour of the session, so it should be high on your day trading stock list. Having the right platform and trading with a commission-free broker like eToro will be important when considering how to choose stocks for day trading.

Day Trading e Toro Stocks

Day Trading Strategies

Having a trading strategy is essential to survive in the world of day trading. The best thing is that there are a wide variety of strategies available to use. When you start day trading, you can first trade all of them and then focus on one or two that really work for you and suit your personality type.

1. Trend trading strategies.

Day trading trend strategies are by far the most common among day traders. It’s about identifying an uptrend where there has been consistent buying historically and continuing to buy stocks as the trend continues.

Indicators such as moving averages are very useful to help identify the market trend and stick to it. For example, in the 15-minute chart of the NVIDIA stock below, you will see that when the price crossed above the red line (20-period exponential moving average), the trend continued to the upside.
When the price is above this moving average, it means that the trend is up and there are more buyers in the market. Also, as this indicator is widely used by algorithmic traders as well as day traders, you can see that the buyers pulled back in the market at the moving average.

This is because the indicator also provides support levels where day traders can think of buying more shares at the moving average line as an entry into the overall trend. The moving averages most used by day traders are the 20 and 50 exponential moving averages.

Some Day Traders will also add additional indicators showing overbought situations to filter out higher probability trading opportunities. Trend strategies can also be used for scalping small fluctuations in price.

2. Countercurrent trading strategies.

Counter-trend strategies are also popular with day traders and are particularly useful when the overall market is more range-based rather than trend-based. However, most counter-trend traders will follow the long-term trend on a higher time frame.

For example, Day Traders may choose to trade a 15-minute counter-trend move that is in the direction of the 1-hour chart’s trend. This is also a great way to find day trading stocks that provide a higher reward to risk ratio where you can make two, or three times what you risk.

A common indicator used for countertrend day trading strategies is the stochastic oscillator. This is because the indicator is used to find investment divergences in the market, as shown in the chart below.

When the price is above this moving average, it means that the trend is up and there are more buyers in the market. Also, as this indicator is widely used by algorithmic traders as well as day traders, you can see that the buyers pulled back in the market at the moving average.

3. Average investment strategies.

Mean reversion trading strategies are primarily used when a stock is in a trading range. While most traders and investors prefer to trade trending stocks, sometimes market sentiment is so low that price is contained in a sideways trading range.

As it is important for Day Traders to put their capital to work each day, it is essential to be able to trade in all the different market situations that may develop. If a stock is in a trading range, a popular indicator for mean reversion trading strategies is Bollinger Bands.

Bollinger bands help measure the volatility of a market. However, the upper and lower bands can also act as support and resistance levels where the market could turn.
In mean trading strategies, Day Traders will sell a stock when it reaches the top of the Bollinger band and trade it down to the midline, which is typically the 20-period moving average. If the price hits the lower Bollinger band, Day Traders will buy the stock and trade it back to the midline.

In essence, the traders are reversing the price back to the market average, which is considered to be the 20-period moving average.

4. ‘Gap Trading’ Strategies.

As stocks do not trade within 24 hours, there can often be price gaps from the close of the market to the open of the next day. These gaps are commonly traded by day traders as they occur when traders are struggling to get into or out of positions at the opening bell.

If you want to learn how to find a stock to day trade, gap trading is one of the easiest ways to get started. This is because gap identification does not require any kind of technical analysis or indicators.

gap trading
There are a variety of different gaps that Day Traders can exploit. These include:

Continuation gaps. They are gaps in the stock price that occur in the middle of a trend. They can act as confirmation that the overall trend is strong.
depletion gaps. They are gaps in the stock price that occur towards the end of a trend and signal that the market cannot continue in the previous direction.
rupture gaps. These are gaps that occur after the development of a trading range, confirming a breakout of the range-based pattern.

5. News trading strategies.

Another popular way to learn how to pick a stock for day trading stocks is to try following the news. Because the stock represents a public company, market-moving news announcements occur regularly. This may include details about product launches, management changes, sales figures, hedge fund manager holdings, etc.

There are several ways to access major news announcements for a stock you are trading. The most effective way is to use eToro ‘s new news feature . This also comes with a sentiment trends indicator so you can see how the news is affecting the share price and if it is moving up or down.
News trading strategies are also popular with swing traders and when learning how to day trade penny stocks. This is because ‘Penny Stocks’ are much smaller companies and can move big numbers in a news announcement.

Is day trading safe?

Day trading can be safe, but only if you use the right broker. After all, it is your broker that maintains your capital and executes your trades. It is essential to use a high-quality broker that is highly regulated and transparent in its operations.

For example, e Toro is considered a safe broker for day trading. This is because e Toro is authorized and regulated by the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC).

Not only is it regulated worldwide, but it is also registered with FinCEN and is a member of FINRA and SIPC, all regulations based in the United States. Day trading is also much safer when your broker allows you to use stop loss and take profit orders, like e Toro does.

How to Day Trade – e Toro Tutorial

If you want to learn how to find stocks to day trade and trade them 100% commission free, then look no further than e Toro. Follow the four-step process outlined below to get started.

1. Create an account.

You can open an e Toro account in just a few minutes. All you need is some personal information to fill in the application form.

2. Verify your identity.

Since e Toro is heavily regulated around the world, you will need to comply with AML and KYC regulations. This includes verification of your identity.

The two verification documents you will need are a valid passport or driver’s license and a utility bill or bank statement issued within the last three months.

3. Deposit funds.

Once you have learned how to find day trading stocks, you will need funds to be able to trade. With eToro, you can deposit funds free of charge using a variety of methods including bank transfer, debit and credit cards, and e-wallets such as Neteller, Skrill, and PayPal.

4. Start day trading stocks.

You can use the e Toro search box to find thousands of stocks to trade. Just click on the trade icon to open a trade ticket to complete your order.

The minimum bet is just $10 and you can start day trading stocks with just one click.
Now that you know how to find stocks to day trade, e Toro’s trade ticket not only helps you execute your trades easily, but you can also use additional risk management features such as stop loss and take profit orders. .

conclusion

If you want to find the best stocks to day trade, it is important to have access to the right broker, platform and tools. e Toro offers an excellent research and news section that can help you find a stock to day trade 100% commission free.