How to pick stocks for day trading

stock marketDay trading is an approach where investors open and close numerous transactions in the course of a single day. In the beginning, day trading was a domain of big financial organisations because they had possibilities to use leverage. This way they were able to get the most out of one trading day. But nowadays, day trading is available also for individuals. Olymp Trade creates such opportunities. On the Olymp Trade platform, you can trade stocks using Fixed Time Trades, Forex mode or using Stock Price Trades.

Key Takeaways🔑

Olymp Trade is a platform that allows individuals to engage in day trading.
Choosing the best stocks for day trading involves considering factors such as volatility, liquidity, and personal preference.
The Olymp Trade demo account is a useful tool for practicing strategies and observing performance before transitioning to a real account.



The best stocks for day trading on Olymp Trade

There are many kinds of financial instruments you can choose from on the Olymp Trade platform. How to pick the right stock for day trading? You should take a few factors into consideration.

There is huge selection of stocks on Olymp Trade
There is a huge selection of stocks on Olymp Trade

Own preferences

Trading is basically opening and closing transactions, yet, it can be done in various ways. Traders choose different instruments, charts, and they have different styles. It is essential to be in harmony with your own preferences. The only proper solution does not exist.

Think about what kind of trader you are. What is your strategy? How much money do you hold in the trading account and how much can you put on a single trade? Also, how much money you are prepared to lose.

Choose stocks according to your preferences
Choose stocks according to your preferences

Start your trading day at the opening of the market, so you will have more opportunities to trade. Try different stocks and observe your results. Keep a trading journal where you note all your actions. After some time, you can view your notes and pick the best stocks for yourself.

Volatility and liquidity

The volatility of the stocks is higher when the company issuing them is subject to larger movements in capital flows. The liquidity is greater together with the speed at which the instrument might be purchased or sold in the markets. More liquid stocks are characterised by bigger capitalization and more beneficial discounts.

More volatile and liquid stocks are usually better choices for day trading.

Market volatility is important when picking a stock for daytrading
Market volatility is important when picking a stock for day trading


The volume gives information about interest in a particular stock. And it does not matter whether the interest is positive or negative. The assets that can be purchased and sold multiple times during a certain time period offer more opportunities.

Types of industries

Some types of industries may be better choices because of their liquidity, high volatility and trading volume. A very popular industry is social media. Likewise, Bank of America and other financial services enterprises might be a good option.

Remember that you do not have to pick the industries in your neighbourhood. Widen your search to the stock further from you geographically.

There are different industries to choose from
There are different industries to choose from

Pros and Cons of Day Trading on Olymp Trade 📊


  • Accessible for individual traders. 🙋‍♂️
  • Offers a variety of financial instruments. 🔁
  • Provides a demo account for practice and strategy development. 🎯


  • Requires significant time commitment and attention. ⌚
  • Can involve considerable financial risk. 💰
  • Potential for substantial losses in a short period. ⬇️

Choosing Stocks for Day Trading: Key Factors to Consider 🤔

Factor Explanation
Volatility Stocks with high volatility are subject to larger price movements, providing more opportunities for day traders.
Liquidity Liquid stocks can be bought and sold quickly and easily, making them suitable for the fast-paced nature of day trading.
Volume High volume stocks are popular in the market and offer more chances for transactions.

Final words

Traders have to think carefully about the strategy and risk management if they want to begin day trading. They need to know their own preferences. Try different kinds of stocks and observe how you perform trading them. It is recommended to focus on more volatile, liquid and high volume assets.

Whatever your choice is, test it in the Olymp Trade demo account. It is supplied with virtual cash that can be replenished any time you want. All the features that are in the real account are also available there. So go and see how you accomplish with a particular instrument. After some practice, you will be able to choose the right one for yourself and you will move to the real account.

Best of luck!

Frequently Asked Questions (FAQs) about Day Trading on Olymp Trade ❓

  • Q: What is the ideal strategy for day trading?
    A: There isn’t a one-size-fits-all strategy for day trading. It’s best to use a combination of strategies, test them, and fine-tune based on results.
  • Q: Is day trading on Olymp Trade suitable for beginners?
    A: Yes, with careful strategy and risk management. It’s advisable to start with the demo account before moving to the real account.
  • Q: How can I minimize losses in day trading?
    A: Always implement risk management strategies such as setting stop-loss orders, and never risk more than you’re willing to lose.
  • Q: How much can I earn from day trading on Olymp Trade?
    A: Earnings from day trading can vary greatly and are dependent on numerous factors including market conditions, skill level, and the strategies used.
  • Q: Do I need a large amount of money to start day trading on Olymp Trade?
    A: No, you don’t necessarily need a large capital to start day trading. However, a larger capital can provide more flexibility in terms of the trades you can make.

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Bart Bregman

Full time day trading, and helping out with Olymp Trade wiki in my spare time to create an awesome platform for beginners. I'm a digital nomad that travels the world while working from everywhere!

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