Are you a beginner in trading and don’t know what are the best stocks to trade? Or you generally want to know how to invest your money in day trading?
Well, we’ve got you.
In this post, we are going to take a look at the best stocks to trade for beginners or other people and give you valuable advice on how you can make the best out of those stocks.
Table of Contents
What Qualifications Good Stocks Have?
Before diving into the 10 best stocks to trade, let’s take a look at what features a stock has to have to be considered a good stock.
1. Strong Financial Performance:
Firstly, a good stock in day trading has to have a strong performance in the market such as companies that grow their revenue over time. Also having earning growth and higher profit margin show that the company is doing well in the market.
2. Health Balance Sheets:
Companies that have low debt levels are mostly more stable and less risky. Also, it is suggested to look for companies with ample cash reserves or easily convertible assets, which can reduce and stop economic downturns or unexpected expenses.
3. Competitive Advantage:
Companies that are more known than others, have a higher probability of being a good choice, especially tech companies that have been around more than others and are proven to be reliable in most cases.
4. Experienced Management Team:
A management team with a proven track record of success and sound decision-making sounds more reliable and raises the confidence in investors. Also, try to look for companies with transparent communication practices and a strong commitment to shareholder interests.
5. Industry Trends and Outlook:
It is advised to look for companies that are open to more changes and have potential in the years to come. Consider how the company’s products or services may perform in various economic conditions and market environments. Also, keep an eye on news, as they are the best source for any update that might affect the day trading market:
Here are the top news services day traders use are:
- TradeTheNews
- Briefing.com
- Bloomberg Terminal
- Benzinga Pro
- Yahoo Finance
- CNBC
- MarketWatch
- Finviz
- Reuters Eikon
6. Valuation:
You can start evaluating the company’s Price-to-Earnings (P/E) Ratio ( Comparing a company’s current stock price to its earnings per share (EPS). ) or their Price-to-Book (P/B) Ratio( Evaluating a company’s stock price relative to its book value (assets minus liabilities).) A lower P/E ratio relative to its peers may indicate an undervalued stock and A lower P/B ratio also suggests the stock may be underrated.
7. Dividend History:
If possible try to look for companies and their stocks with a consistent history of paying dividends and a healthy dividend yield relative to the stock price. Companies that often raise their dividends, show their financial strength and their confidence in future earnings.
8. Investor Sentiment and Market Dynamics:
Last but not least, start considering the market trends and other things that might have an effect on the market. Also, start paying attention to analyst and professionals ratings and estimates, although it’s essential to conduct your own research and not rely solely on analyst opinions.
Examples of the top technical indicators and analyst are:
- Moving Averages (MA)
- Relative Strength Index (RSI)
- Moving Average Convergence Divergence (MACD)
- Bollinger Bands
- Stochastic Oscillator
- Fibonacci Retracement
- Volume
- Average True Range (ATR)
If you are not sure where to start, you can book a Free Discovery call with Meta Trading Club, as our professionals will evaluate your goals and needs and give you the best advice in this matter.
The 10 Best Stocks to Trade
Now, let’s look at best day trading stocks:
$NVDA (Nvidia Corporation)
NVDA is one of the best stocks that you can choose to start your trading journey with. NVIDIA has long been a leader in the gaming GPU market, with its GeForce GPUs powering a significant portion of gaming PCs and Laptops worldwide. The company’s focus on delivering high-performance GPUs for gaming enthusiasts has contributed to its strong brand loyalty and market position. As of now in 2024, NVIDIA’s entrance into the AI market has changed everything in the trading market as this powerful company has made significant investments in AI and data center technologies, leveraging its GPU architecture to accelerate AI workloads. The company’s Tesla GPUs are widely used in data centers for AI training and inference tasks, providing substantial opportunities for revenue growth as AI adoption continues to expand across industries. NVDA also has the liquidity that is needed in a stock. All these combined, make NVDA one of the best stocks to trade as a beginner with high profitability and a bright future.
$AMD (Advanced Micro Devices, Inc.)
Similar to NVDA, AMD is another prominent player in the semiconductor industry, known for its CPUs, GPUs, and related technologies. AMD has gained recognition for its Ryzen CPUs and Radeon GPUs, which offer competitive performance and value compared to offerings from rivals such as Intel and NVIDIA, respectively. The company’s Zen architecture has received praise for its efficiency and performance in both consumer and enterprise applications.
Its powerful GPUs and them raising their powers make AMDs a risk proof choice that is bound to be good from the start. Also, considering the hype that is now around AI and the announcement of Microsoft’s financial backing of AMD’s foray into AI (artificial intelligence) processors makes their future even brighter as it is now.
$SE (Sea Limited)
SE from Sea limited is another stock that is liquid and has high performance in the market as of today. Seo Limited, based in Singapore is another gaming and gaming, e-commerce, and digital financial service. This company despite its hardships has been the center of attention in the asian markets and owns many popular names such as shopee and garena. Sea Limited (SE) recently announced exceptionally positive news in its earnings report, marking a significant shift in its underlying business dynamics. This development makes SE substantially more appealing. Also these changes pique the interest of big traders and big money investors.
$AI(C3.ai Inc)
C3.ai, Inc. is another prominent player in the field of enterprise AI software solutions. Its platforms help other companies make decision making with advanced analytical machines. Because of its strategic partnerships, its growth has been more throughout the years. Even though customer success stories showcase its effectiveness, as a young public company, its financial performance may show a bit of volatility. Overall, AI is high in liquidity and is one of the best stocks that you can trade.
$DUOL (Duolingo Inc)
Another great choice for beginners traders is DOUL. Duolingo, Inc. is a popular language-learning platform that offers courses in numerous languages. Its growth in daily users shows their strong performance on getting their foundation more solid.
Also, the popularity growth of its platforms indicates a bright future for its market. It is liquid and can be one of the leaders of its industry in the near future.
$MARA ( Marathon Digital Holdings Inc)
MARA is the ticker symbol for Marathon Digital Holdings, Inc., a cryptocurrency mining company. This company primarily focuses on Bitcoin mining and its future. As a mining company, MARA’s status highly depends on the changes in the cryptocurrency market. And because cryptocurrency is now the hot topic in many cases, many believe that MARA can be a good choice as the best stocks to trade, even for beginners, as it accompanies the hype of the Bitcoin more than anything.
$MU (Micron Technology Inc)
MU is another liquid stock. Micron Technology, Inc. (MU) is a leading American semiconductor company renowned for its memory and storage solutions. Micron has its focus on innovation and technology leadership. That is why, Micron plays a pivotal role in powering the digital transformation across various industries. Micron’s growth in this digital world, shows its potential for being a great choice for most traders. It is believed that MU will continue to present trading opportunities in 2023(-2024) because of its leadership in the memory chip market which rose after the adoption of AI. Also the memory chip market is expected to grow in the following years. In the end, Micron has a strong balance sheet and has shown a great history of innovation.
$FSLR (First Solar Inc)
First Solar, Inc. (FSLR) is one of the biggest solar energy companies specializing in the manufacturing of thin-film solar modules and the development of utility-scale solar projects. The focus on innovation has been the center for many industries and FSLR is among them. First Solar plays a significant role in the transition to a clean energy future. FSLR will grow its position in the trading market as the popularity of solar panels rises to the goal of having a Green Earth with renewable energy. First Solar has been profitable in recent quarters and has been expected to be in the future.
$SHOP (Shopify Inc)
Another great choice is SHOP from Shopify Inc. is a Canadian e-commerce company that provides a platform for businesses to set up and manage online stores. This platform has been the center of online shops for the past 5-6 years. It has shown the potential of having a significant financial future in the market and its popularity grows with each happy customer. Also, with the rise of online shopping throughout the world, SHOP is expected to have a brighter future than any other industry as the demands for it get higher and higher.
SHOP is a liquid stock and one of the best stocks to trade for beginners. It is well-positioned in the growing ecommerce market. Recently, SHOP shifted its focus by selling its logistics business to focus on its core e-commerce business.
This will be highly effective for its market and show the SHOP seriousness in becoming one of the topic markets in the future.
$IOT ( Samsara Inc)
IOT is another great liquid stock that you need to have an eye on.Samsara is a leading provider of industrial IoT solutions, offering a cloud-based platform that combines hardware devices with software applications to help businesses monitor, manage, and optimize their operations. It might not seem like it, but IoT’s growth is expected in the near future, as businesses head toward a more organized and well-shaped system for their companies. Also, Samsara has a growing customer base and the company has a growing customer line everyday.
Honorary mention: $U (Unity Software Inc)
For our honorary mention, we have U from Unity Software Inc. Unity is one of the biggest leaders in the RT3D market, which is growing fast. This indicates a good future for U in the market. Also, the unity’s partnership with other great companies, gives access to new markets for them.
Unity has shown strong financial performance and has a growing revenue which makes it one of the great stocks in this list.
Last Words
In this article, we took a look at what are the best stocks to trade for beginners or not and we listed them based on their popularity and growth in the trading market. Remember, all these analyses are based on current information. That is why it is advised to keep an eye on every possibility that might come as the market is very unpredictable at times.
If you liked this post, make sure to take a look at our other blog posts at Meta Trading Club Blog , especially if you are a beginner as we have been making more beginner-friendly content for new traders.
Frequently asked question
Well, for beginners it is always highly suggested to firstly enhance their knowledge as much as they can before doing any trades. At the end, Beginners should focus on well-established companies with strong fundamentals, clear business models, and a history of consistent growth.
Some popular trading strategies are: trend following, momentum trading, swing trading, and day trading. Each strategy has its own set of rules and risk management techniques that you can learn and use in your trading journey.
By conducting fundamental and technical analysis that they learned and practiced on before. Fundamental analysis mostly involves evaluating a company’s financial health, such as its revenue, earnings, and balance sheet. On the other hand, Technical analysis involves studying price charts and indicators to identify patterns and trends that may signal buying or selling opportunities.
This totally depends on your risk tolerance and the trading style that you choose. Large-cap stocks are often more stable but may offer lower returns, while small-cap stocks can be more volatile but potentially offer higher returns in future.
If you are a new trader, try to consider focusing on industries or sectors that you are familiar with or have an interest in. Also you can have an eye on strong growth industries, such as technology, healthcare, and renewable energy, which may present attractive trading opportunities.
Beginner traders can manage their trading risks by diversifying their portfolio, setting stop-loss orders to limit potential losses, and practicing proper position sizing. If you want to know more about how you can become a better trader, you can check out: Ultimate Beginner’s Guide to Day Trading.
Resources that you can use to have a better trading session are such as: financial websites, stock screeners, company reports, earnings calendars, and technical analysis tools to research and analyze stocks. It’s also suggested and helpful to stay informed about market news and trends.
Red flags that you need to keep an eye on are:
– Declining revenues or profits
– High debt levels
– Management issues
– Legal or regulatory problems
– Negative news coverage.
