Just like everything else in your financial life, the stocks you choose for your day trading strategy should be tailored to your goals and your personal situation. After all, there isn’t a one-size-fits-all approach.
Consider how much capital you have, what type of investing you’re going to take on, and your risk tolerance. And don’t forget to discount the research. The best way to do that is to study the market, read up on company financials, consider what sectors best reflect your personal needs, personality, and values, and remember to start early. You’ll need to get a head start on the trading day, so it’s a good idea to time yourself according to market openings.
A few things to keep in mind while you’re day trading: don’t get emotionally attached to any particular stock. Remember, day trading is all about looking at patterns to figure out when you can best enter and exit to make a profit or minimize your losses. And, keep up to date on the news.
You don’t need to be attached to your television or the news, but you should know when earnings season is and what the economic calendar looks like. This should help you identify the potential stocks for your trading day.