8 Great Stocks for Day Trading in 2024

When casual observers think of stock trading, they think of day trading. Movies and television glamorize the day trader lifestyle, portraying it as an occupation littered with genius investors who can read the stock market like a book.

In reality, most day traders lose money long-term, but this doesn’t dissuade investors aiming to find great stocks for day trading. 

So, how does anybody make it work? Finding the top stocks for day trading requires you to understand technical analysis indicators, chart patterns, and financial markets. The best time to learn is now.

We’ll explore how day trading works, discuss factors that distinguish good day trading stocks, review the eight best stocks for day trading, and examine how Composer can help elevate your day trading strategy. 

How does day trading work?

Day trading involves buying and selling assets during the same trading day. Popular day trading assets include stocks, ETFs, options, forex, and cryptocurrencies. Day trading strategies vary from scalping tiny profits off of price movements to employing sophisticated stock trading bots that leverage technical analysis indicators to automate order entry. 

Although you can day trade in a cash account, the Federal Reserve’s Regulation T (Reg T) makes it difficult. According to Reg T, investors with cash accounts cannot borrow funds to pay for purchased securities, meaning you cannot use unsettled funds to buy a security before you sell the same security. Most serious day traders apply for a margin trading account to avoid this rule before day trading. 

Pattern day trading is a regulatory classification given to traders who execute four or more day trades within five business days in a margin account. Traders who execute this many trades are labeled pattern day traders and must hold a $25,000 minimum balance in their margin account to continue day trading.

If a pattern day trader wants to day trade with an account balance below $25,000, they must do one of the following: 

1. Wait for their account value to rise above $25,000 

2. Deposit funds to raise their account value 

3. Ask their broker-dealer to remove the pattern day trading account classification (requires broker-dealer discretion)

What is a day trading stock? Factors to consider

So, is day trading worth it? That depends on whether you pick the right stocks. Finding great stock for day trading involves weighing several factors.

Beta

Beta measures an asset’s volatility compared to stock market indices, such as the S&P 500, Nasdaq, or Dow Jones. A beta below 1.0 indicates an asset is less volatile than the overall market, whereas a beta above 1.0 suggests greater volatility.

When choosing stocks for day trading, look for stocks with a beta above 1.0, as these investments may offer higher returns—and higher risk. 

Volume

Trading volume refers to an asset’s total shares traded during a specific period. Investors use volume to confirm uptrend or downtrend signals and design order entry and exit strategies.

Day traders favor actively traded securities, like blue chip stocks, over less liquid securities, like penny stocks. Higher volume stocks usually experience more significant intraday price swings, providing more opportunities for traders to profit. 

Price range

Day traders commonly review a stock’s high and low prices during the past 52 weeks, known as the price range. The higher the range, the greater the volatility. Some traders also look at the intraday stock price range, which can help identify short-term price volatility and trends.

8 great stocks for day trading in 2024

Let’s look at eight stocks you might want to include in your day trading strategy.

1. Advanced Micro Devices, Inc. (AMD)

Semiconductor producer Advanced Micro Devices, Inc. (AMD) is a top stock for day trading thanks to its high trading volume and beta. Over the past year, AMD averaged 53 million shares traded daily and recorded a beta of 1.67.

Although AMD reported year-over-year revenue increases from 2015 to 2022, its growth has slowed in 2023, making it a potential short-selling target for day traders. 

2. Airbnb, Inc. (ABNB)

The online vacation marketplace Airbnb (ABNB) shook up the vacation industry when it emerged in 2008. After its IPO in December 2020, ABNB’s stock price quickly climbed to $216.84 before falling in value during the vacation stall caused by the COVID-19 pandemic.

Year-to-date, ABNB is up nearly 51%, although reports about loss in rental revenue in key cities may spell trouble for the company. 

3. Amazon.com, Inc. (AMZN)

Amazon (AMZN) ranks as the second largest retailer in the world, recording $343.3 billion in revenue during 2022. AMZN's 52-week price range ($147.74 and $81.43) suggests sufficient volatility despite its relatively low beta (1.17) compared to other popular day trading stocks. With nearly 50 million AMZN shares traded daily on average, AMZN also possesses enough liquidity to attract day traders looking to profit from intraday price swings.  

4. Carvana Co. (CVNA)

Online used car retailer Carvana (CVNA) has achieved explosive growth since its founding in 2012. Although increased borrowing costs and used-car prices caused CVNA’s stock price to crash from $370.10 on August 10, 2021, to just $4.63 on January 3, 2023, its price is up 570% since January.

Its high 3.09 beta score—indicating substantial volatility—and 20 million shares average volume both contribute to CVNA’s popularity among day traders. 

5. Marathon Digital Holdings, Inc. (MARA)

Marathon Digital Holdings (MARA) mines digital cryptocurrencies, such as Bitcoin. MARA’s 52-week price range is $19.88 and $3.11, reflecting strong earnings that coincide with a Bitcoin price surge during 2023. With its incredibly high beta score (5.09) and average volume of 32 million shares (and rising), MARA belongs in every day trader’s watchlist. 

6. Meta Platforms, Inc. (META)

Day traders may not generate the same profits trading Meta Platforms (META) as they did in the past, but META remains an established day trading stock. Its beta is 1.21, and its average volume is 20 million shares. Despite its comparatively low volume and volatility, META’s 52-week price range is between $342.92 and $108.38, representing significant potential for day traders.¹

7. Peloton Interactive, Inc. (PTON)

Founded in 2012, Peloton (PTON) manufactures exercise equipment and fitness content. Although COVID-19-fueled demand caused PTON’s price to soar by 644% in 2020 to $167.42 on January 13, 2021, successive poor earnings and layoff reports crashed its price to just $5.31 on November 11, 2023.

PTON’s average volume of 12 million shares and beta score of 2.02 continue to entice day traders, particularly those seeking to short the stock. 

8. Tesla, Inc. (TSLA)

Electric vehicle manufacturer Tesla (TSLA) frequently tops day trading stocks lists. With its 2.28 beta score and 120 million shares average volume, TSLA ranks among the most volatile stocks on the market. This volatility partially explains TSLA’s 52-week price range ($299.29 and $101.81), making TSLA a common choice for inexperienced and experienced day traders. 

Discover the power of automated trading with Composer

If you want to day trade but lack the time, Composer has you covered. While you can’t day trade with Composer, its no-code trading platform lets you automate your trades, saving you time to perfect your strategy or spend on non-investing activities. The secret lies in our AI-powered strategy builder, which allows you to compose a symphony of tailored automations using natural language thanks to ChatGPT-4 integration.

Set your symphony to daily trading to automatically execute trades at 3:50 pm EST, before market close. Backtest your strategy to see what works, or visit the Discover page to learn about day trading strategies created by other Composer members. 

Sign up with Composer today and learn how our no-code solution can revolutionize your day trading scheme.