Best Day Trading Stocks in 2025: High Volume & Volatility

For many traders, the allure of day trading lies in the ability to enter and exit positions within a single trading day. The benefits are clear: no worrying about overnight gaps, earnings surprises after hours, or geopolitical events that swing futures before dawn. Instead, each morning is a clean slate—a fresh opportunity to generate consistent profits and end the day in the green.

But day trading isn’t just about adrenaline or screen time. It’s a strategy built on precision, discipline, and selecting the right stocks. When done right, day trading can produce daily gains and become a significant income stream. In this article, we’ll explore the best stocks for day trading, how to find them, and what separates a promising setup from a bad bet.

We’ll answer some of the most common questions new and experienced traders have:

Is it profitable to day trade stocks?
Can you make $1,000 a day trading stocks?
Can I day trade with $100?
What is the 1% rule for day trading?
What is the 3-5-7 rule in trading?
What is the 7% rule in stocks?

We’ll also identify five stocks currently considered top candidates for day trading and discuss how to find similar setups going forward. For those seeking a structured path, we’ll also touch on how to develop a reliable strategy to ensure consistency and risk management.

Is It Profitable to Day Trade the Best Stocks?

Yes, day trading can be profitable, but it takes much more than simply buying low and selling high. It requires a refined strategy, strict discipline, and consistent risk management. While there are many stories of traders making thousands in a single day, the reality is that sustained profitability comes from preparation, patience, and precision.

At its core, day trading is about taking advantage of intraday price movements. Traders look for volatility—sharp rises and drops in price—to open and close positions within the same day. This means you don’t hold trades overnight, which eliminates the risk of surprise moves due to earnings reports, political developments, or economic data released outside of regular market hours.

Profitability depends on several key factors:

Stock selection: High-volume stocks like Tesla (TSLA), Nvidia (NVDA), and Amazon (AMZN) tend to offer better trading opportunities. These stocks have tight bid-ask spreads, predictable patterns, and strong price movements. Additionally, the speculative nature of meme stocks can impact day trading, as these stocks often experience significant price swings driven by social media trends rather than financial fundamentals.
Volatility: Price movement is what creates opportunity. Stocks that fluctuate several percentage points throughout the day give traders a chance to capitalize on those swings.
Risk management: This is where many traders go wrong. Using stop-loss orders, setting proper position sizes, and avoiding emotional trades are essential for long-term success. Short sellers play a role here, as short selling can be a risky strategy that requires a strong understanding of market trends and price movements.
Market understanding: Profitable traders study charts, track news catalysts, and understand technical patterns. They also know when not to trade—sometimes, the best decision is to sit out.

While it’s absolutely possible to earn a few hundred or even a few thousand dollars a day trading, beginners should focus on small, consistent wins. Building a sustainable system matters more than chasing big trades.

In short: Day trading is profitable for those who approach it professionally. It’s not a guaranteed income stream—but with the right tools, mindset, and execution, it can be a powerful way to grow wealth and gain financial independence.

Introduction to Day Trading

Day trading involves buying and selling financial instruments, such as stocks, within a single trading day. This fast-paced trading style requires a thorough understanding of the stock market, trading strategies, and risk management techniques.

Day traders aim to profit from short-term price movements, often leveraging technical analysis and real-time data to make informed decisions. The allure of day trading lies in its potential for quick profits, but it also comes with significant risks, including market volatility and the potential for losing money. Successful day traders are those who can navigate the trading day with precision, using their skills and knowledge to capitalize on price movements while managing their risk effectively.

Can You Make $1,000 a Day Trading Stocks?

Yes, it is absolutely possible to make $1,000 a day trading stocks—but it isn’t typical for beginners and shouldn’t be treated as a guaranteed outcome. Hitting this kind of profit target consistently depends on a combination of several factors, including your account size, risk tolerance, trading strategy, experience level, and the current market environment. Many successful traders from Warrior Trading emphasize building consistency with $100–$300 days before scaling up.

Let’s break this down:

1. Capital Requirements:
To make $1,000 per day, you need sufficient capital. A trader with a $25,000 account would need to make 4% in a single session to hit that mark. While 4% is achievable on volatile days, expecting that every day isn’t realistic. Professional day traders aim for more modest, consistent returns—often around 1–2% daily—knowing that compounding smaller gains leads to more sustainable growth.

2. Trading Strategy:
Your strategy plays a critical role. Scalping, momentum trading, and breakout strategies are popular among day traders who target quick profits. However, each of these requires precise timing and a deep understanding of price action. Traders who stick to a proven system with clear entry and exit rules are more likely to reach their daily goals.

3. Market Conditions:
Bullish markets with strong volume and volatility create ideal conditions for day trading. On quieter or range-bound days, reaching a $1,000 profit may be more difficult or riskier. Traders must adjust expectations based on what the market gives. Significant volatility, often driven by strong catalysts like earnings reports or new product launches, creates favorable conditions for day traders looking to capitalize on price fluctuations. Traders must adjust expectations based on what the market gives.

4. Risk Management:
The higher your profit target, the more risk you usually need to take. But risking too much can quickly wipe out gains or your entire account. A solid risk-to-reward ratio—such as risking $200 to make $600—allows traders to pursue $1,000 days while staying within safe limits.

5. Experience and Psychology:
New traders often focus too much on the dollar amount and not enough on process. Emotional decision-making, revenge trading, and lack of discipline all reduce the odds of success. Experienced traders build toward larger goals by mastering consistency first.

Overall:
Making $1,000 in a day is possible, especially during strong market moves, but it’s rarely sustainable for traders who are just starting out. It’s smarter to aim for smaller, repeatable gains while building skills, confidence, and a track record. As your consistency and account size grow, so will your potential daily profits.

Can I Day Trade With $100?

Technically, yes—you can start day trading with $100, especially on platforms that offer fractional shares or zero-commission trading. Apps like Robinhood, Webull, and Moomoo allow users to buy partial shares of high-priced stocks, making it possible to enter trades with a small account. However, while it’s possible, it’s not ideal.

With just $100 in starting capital, your trading flexibility is extremely limited. You won’t have much room to diversify, absorb losses, or position size effectively. A single losing trade—even a small one—can represent a significant percentage of your entire account. That kind of pressure often leads to poor decision-making, emotional trades, and impulsive risk-taking. Prioritizing stocks with high trading volumes is crucial to ensure liquidity, as trading low-volume stocks may result in difficulties selling shares quickly.

Another hurdle is the Pattern Day Trader (PDT) rule in the United States. If you’re trading a margin account and make more than three day trades in five business days with under $25,000, you could be flagged as a PDT and restricted from further trades. That means most traders starting with $100 will be confined to cash accounts, which reset only after trades settle—typically 1–2 days later.

Even if you avoid PDT limitations, a $100 account severely restricts your ability to follow the 1% rule of risk management. If you’re only risking $1 per trade (1% of $100), the potential reward is small and won’t justify the time or energy needed to research and monitor trades. And let’s not forget that some brokers charge small fees or spreads, which can further eat into already thin profits.

Realistic Starting Point?
While $100 can be used to learn market mechanics and practice chart reading in real-time, most traders recommend starting with at least $1,000 to $2,000 for more realistic day trading. This allows you to use proper risk management, absorb small losses, and trade setups with real profit potential—without the emotional stress of watching every dollar matter. Additionally, US stocks generally have higher average volumes compared to Canadian stocks, making them more suitable for active trading.

Day trading with $100 is possible but comes with significant limitations. Instead of trying to grow such a small account quickly, consider using demo accounts or trading simulators to refine your strategy first. When you’re ready to fund a larger account, you’ll be better prepared to trade with confidence and discipline.

What Is the 1% Rule for Day Trading?

The 1% rule is one of the most widely recommended principles in day trading. It simply means you should never risk more than 1% of your total account balance on a single trade. This approach helps protect your capital, minimizes emotional decision-making, and gives you more opportunities to recover from losing trades. Traders can also filter stocks based on their volatility in dollar terms to better align with the 1% rule.

Let’s break it down with an example. If you have a $10,000 trading account, the 1% rule suggests your maximum risk per trade should be $100. That doesn’t mean your position size is $100—it means that after setting a stop-loss, your potential loss if the trade goes against you should not exceed $100.

Why is this important? Because even the most skilled traders experience losses. Markets are unpredictable, and even high-probability setups can fail due to sudden news, unexpected earnings results, or shifts in broader market sentiment. Risking small amounts on each trade gives you the psychological cushion and financial flexibility to keep trading even after a string of losses.

Using the 1% rule in combination with a favorable risk-to-reward ratio is where the power really lies. For instance, if you aim for trades where you risk $100 to potentially make $300 (a 1:3 ratio), you only need to win a third of your trades to break even.

Key advantages of the 1% rule:

Limits account drawdown: A string of bad trades won’t wipe out your account.
Improves decision-making: Lower emotional stress often leads to better execution.
Encourages consistency: You build habits rooted in strategy, not luck or chasing losses. Analyzing past performance is crucial to refine trading strategies and make informed decisions.

In contrast, traders who risk 5%, 10%, or more on a single trade often find themselves in a cycle of big wins followed by devastating losses. It only takes a few poorly timed trades to lose half your account—making recovery extremely difficult.

For those trading with small accounts, sticking to the 1% rule can be a challenge because even minimal moves in the market may not offer enough profit to make trading worthwhile. In that case, consider trading fewer positions with tighter stops, or building up your account with part-time trades while continuing to practice.

The 1% rule is a foundation of sound risk management. It keeps your losses manageable, your capital intact, and your mindset focused on long-term success—not on quick wins that come with high risk.

What Is the 3-5-7 Rule in Trading?

The 3-5-7 rule is a trade management guideline that helps day traders determine how and when to exit trades based on profit targets. While not a hard-and-fast rule, it provides a framework for scaling out of trades to lock in profits while still giving your winning positions room to grow.

Let’s break down the rule:

3% Gain – Take initial profits. Many traders close part of their position when they reach a 3% gain. This allows them to lock in a portion of profit while keeping some skin in the game.
5% Gain – Consider scaling out further or moving your stop-loss to break-even or higher. If the trade continues in your favor, you’re now trading with house money, and the remaining shares can continue to grow.
7% Gain – This is often the point where traders will close out the rest of their position or trail their stop closely to protect gains. By this time, the stock has made a strong move, and momentum may begin to fade.

Why the 3-5-7 Rule Works

This approach reflects a key truth in trading: you rarely know exactly how far a stock will move. By scaling out at different milestones, you give yourself the opportunity to profit from smaller moves, while still leaving room to catch a breakout. It’s especially useful for:

Trend-based setups, like breakouts and VWAP holds
High-volatility stocks that can swing several percentage points intraday
Managing trades psychologically, avoiding the all-or-nothing mindset.

Using historical data to identify suitable stocks for day trading is crucial. Analyzing both current and historical data helps traders understand stock performance and volatility, enabling them to make informed decisions.

An Example

Let’s say you buy 300 shares of a stock at $10:

At $10.30 (3% gain), you sell 100 shares and lock in a $30 profit.
At $10.50 (5% gain), you sell another 100 shares for an additional $50.
At $10.70 (7% gain), you sell the last 100 shares and bank $70.

Your total profit: $150, with a gradual reduction in exposure.

Why It Helps Beginners

For newer traders, holding the entire position too long can cause hesitation and second-guessing. This rule gives structure, encourages partial wins, and helps maintain emotional discipline—all essential for long-term growth in trading.

What Is the 7% Rule in Stocks?

The 7% rule in stocks is a general guideline used to limit losses and protect your capital. It states that if a stock drops 7% below your purchase price, you should exit the trade to avoid further downside. This rule is especially useful for position sizing and risk management, helping traders and investors stay disciplined.

Origin of the Rule

The 7% rule was popularized by William O’Neil, founder of Investor’s Business Daily and creator of the CAN SLIM investing strategy. He found through years of research that stocks that fall more than 7–8% below the buy point are often headed lower. Rather than hoping for a rebound, O’Neil advocated taking the loss and preserving capital for better opportunities. Stocks can fluctuate several percent within a day, making it crucial to have a predefined exit strategy.

How It Applies to Day Trading

While the 7% rule is often applied to swing trading or longer-term trades, day traders can still adapt it. However, in a fast-paced trading environment, 7% is a wide stop, especially for large-cap stocks or ETFs. Day traders typically use tighter stops, often between 1–3%, depending on volatility and setup.

Still, the principle remains the same: define your maximum loss before entering a trade and honor it.

Why This Rule Matters

Protects Your Account: A 7% loss may seem small, but if you repeat it several times, it can quickly erode your capital.
Preserves Mental Capital: Large drawdowns are emotionally draining and can impact future decision-making.
Encourages Discipline: Following a rule-based system minimizes impulsive decisions.

Example

Let’s say you buy a stock at $50. With a 7% stop, you would exit if the stock hits $46.50. That $3.50 risk should represent no more than 1–2% of your total portfolio, based on your position size.

Adapting the Rule

Day traders might modify the 7% rule to something like:

2% max stop-loss for large caps
3–5% for mid-cap or volatile stocks
Tight trailing stops once a trade becomes profitable

The key is to quantify your risk and follow your plan.

Entry and Exit Strategies for Day Traders

Entry and exit strategies are crucial for day traders, as they determine the optimal points to buy or sell a particular stock. Day traders employ various techniques, such as moving averages, trendlines, and chart patterns, to identify these critical points.

For instance, a moving average crossover strategy might signal a long position when the short-term moving average crosses above the long-term moving average. Additionally, factors like trading volume, market trends, and news events play a significant role in making informed decisions. A well-defined entry and exit strategy helps day traders maximize their profits and minimize their losses, ensuring they stay ahead in the fast-paced world of day trading.

Risk Management for Day Trading

Risk management is essential for day traders, as it helps them limit potential losses and protect their capital. Effective risk management techniques include position sizing, stop-loss orders, and maintaining favorable risk-reward ratios.

For example, a day trader might set a stop-loss order at 5% below their entry price to cap their potential loss. Market volatility, trading volume, and liquidity are also critical factors in determining a trader’s risk tolerance. By implementing a robust risk management strategy, day traders can avoid significant losses and achieve long-term success in the stock market.

Psychology of a Day Trader

The psychology of a day trader plays a crucial role in their success. Day traders need to be disciplined, patient, and adept at managing their emotions, as they make rapid decisions in a high-pressure environment.

Handling stress and avoiding common pitfalls like overtrading and impulsive decisions are vital. A successful day trader stays focused, adapts to changing market conditions, and makes informed decisions based on analysis and experience. Managing expectations and avoiding the excitement of trading are also essential to maintaining a balanced and effective trading mindset.

Which Stocks to Buy Today for Day Trading?

Choosing the best stocks to buy for day trading involves more than just chasing headlines or price spikes. Smart day traders look for a blend of liquidity, volatility, and tradable patterns that offer clear risk-to-reward setups.Using tools like TradingView and Finviz to find stocks suitable for day trading is crucial, as they help identify stocks experiencing significant price movements and high trading activity. As of this week, several stocks have stood out due to market activity, earnings reports, and sector momentum.

Conducting thorough research when selecting stocks for day trading is essential. This process involves analyzing trade volume, price movement, and other relevant market factors. Traders should not only rely on compiled lists but also actively engage in monitoring performance and staying updated on market news to make informed decisions.

Here are five current favorites among top traders, based on scans from Trade That Swing and Benzinga:

1. Tesla (TSLA)

works: Tesla is a favorite among day traders due to its daily volume, high volatility, and wide intraday price ranges. TSLA often experiences $5–$15 swings in a single session, offering multiple opportunities for long and short trades. Tesla’s involvement in financial markets also contributes to its volatility, making it an attractive option for traders.

Catalyst: Ongoing news related to EV production, earnings, and macroeconomic factors consistently drive action.

Strategy tip: Watch for pre-market volume spikes and VWAP rejections for potential scalp opportunities. Additionally, news related to regulations and business performance can result in price fluctuations for Tesla, creating further trading opportunities.

2. Nvidia (NVDA)

Why it works: Nvidia’s strong position in AI and semiconductors keeps it on traders’ radars. NVDA is known for its momentum and trend continuation setups, especially around earnings and chip sector news. CapTrader lists it as a go-to for technical setups. The importance of trading volume and liquidity for stocks that are frequently traded cannot be overstated, as it ensures that day traders can capitalize on rapid price movements.

Catalyst: AI demand and industry upgrades continue to fuel daily moves of 2–4%.

Strategy tip: Look for breakout patterns or pullbacks to key moving averages for trend-following trades. It’s crucial to understand the distinction between range trading and trend trading for Nvidia, as successful traders often focus on one approach at a time depending on market conditions.

3. Amazon (AMZN)

Why it works: With its reliable liquidity and institutional volume, AMZN provides smooth order flow, tight spreads, and clear support/resistance levels.

Catalyst: E-commerce news and macro data (like consumer spending) often cause measurable intraday movement. Additionally, a positive earnings report can serve as a significant catalyst for substantial movement in Amazon’s stock price.

Strategy tip: Favor breakout-pullback strategies and use VWAP as a guidepost for directional bias.

4. Advanced Micro Devices (AMD)

Why it works: AMD offers a more affordable tech play with similar volatility to its higher-priced peers. It’s a go-to for day traders who prefer mid-range priced stocks.

Catalyst: Semiconductor industry rotation, product launches, and technical setups create strong trading opportunities. Additionally, hedge funds can significantly influence AMD’s stock price, adding to the volatility and trading opportunities.

Strategy tip: Use pre-market highs/lows as levels to plan reversals or continuation plays.

5. Meta Platforms (META)

Why it works: META frequently trends during the day thanks to a steady stream of news from tech, AI, and regulatory fronts. Daily price ranges and clear volume pockets make it ideal for momentum trading. Adapting trading strategies to intraday trends is crucial for maximizing opportunities with META.

Catalyst: AI integration updates and advertising revenue reports are key drivers. Additionally, Meta can be considered a meme stock due to its popularity and volatility.

Strategy tip: Watch for consolidation breakouts or early morning reversals, especially after news gaps.

These stocks aren’t guaranteed winners every day, but they check the boxes for volume, volatility, and news catalysts. When you learn how to analyze these elements—especially by combining them with a well-tested strategy—you’ll be in a better position to spot setups and capitalize on them quickly.

Which Stock Is Best for Daily Profit?

Stocks with:

High average true range (ATR)
Tight spreads
Strong volume (5M+ daily)
Daily news drivers

Selecting the right stocks with characteristics such as liquidity and volatility is crucial for successful intraday trading. Identifying market trends and applying effective entry and exit strategies can significantly enhance trading outcomes.

While technology stocks are popular for day trading, financial companies also present significant opportunities for traders. Diversifying into different sectors, including financial entities, can enhance trading strategies and mitigate risks.

Best Day Trading Stocks in 2025: High Volume & Volatility