Over past several years, rise of new gen of stock traders which like to participate in risky bets, and introduction of stock trading mobile apps, gave popularity to a forgotten market phenomenon which is called as day trading. This means buying and selling shares of the high-beta or risky companies several times during the business day. to exploit volatility and book maximum advantage from that particular scrip. Earlier, day trading was called an institution-only domain. However, it has now become more popular and profitable for a range of retail traders in the current scenario. Best day trading stocks are chosen by the traders to exploit volatility and book maximum advantage from those scrips.
Two main factors which investors should be cautious about before they initiate day trading include liquidity and volatility of the stocks which a trader is planning to buy and sell. Liquidity means how quickly an asset can be purchased or sold, volatility means the short-term fluctuation in a particular share price. Importantly, if the stock is highly liquid, it doesn’t mean it is highly volatile. Younger generation of traders are more focused on buying best day trading stocks in comparison to some of the older stock pickers. As per the research done at University of California, ~80% of day traders are likely to quit in the just 2 years, starting from the day they started trading. Among day traders, ~40% of the people trade for 1 month only. After 3 years, merely ~13% are active. However, by the end of 5 years, this number decreases to 7%.
Now, we will have a look at the best day trading stocks as markets turn volatile.
1. Spectral AI, Inc.
The company carries out operations as an artificial intelligence company, and it targets to specialize in medical diagnostics for quicker and accurate treatment decisions in the areas of wound care.
It is slated to announce its financial results for 3Q ended September 30, 2023 on November 13, 2023 after the markets get closed.
The company gave annual revenue guidance for financial years ending December 31, 2023 and 2024 apart from highlighting plans and opportunities related to ongoing development and commercialization of AI-Driven DeepView® Wound Imaging Technology for diabetic foot ulcers, burn and other indications.
It has won its largest contract in the history, an award from the U.S. Government of the value of more than $149.0 million. With this, the total US Government awards to the company since 2019 has reached to more than $246.0 million. With this contract, it now has far greater visibility in the research and development revenues for 2023 and 2024.
The company expects its R&D revenue for FY23 of ~$17.4 million, and revenue for FY24 should approximate to $28.0 million.
Talking about the outlook, the company plans to submit applications for FDA, UKCA, and CE mark approval for DeepView® DFU indication and for 3D wound measurement capabilities in FY24, if the ongoing studies are completed.
2. MMTec, Inc.
The company gives internet-based technology services and solutions to Chinese language-speaking hedge funds, MFs, registered investment advisors who are engaged in securities market transactions and settlements globally.
It announced its unaudited financial results for 6 months ended June 30, 2022, with its revenues increasing by ~44.64% from $507,048 to $733,400. This growth stemmed from rise in software sales revenue during 6 months ended June 30, 2022. Gross profit of the company went up by ~41.53% to $622,910 against $440,140 for same period in 2021, with gross profit margin coming at ~84.93%, in comparison to ~86.80% for similar period in 2021.
Loss from operations came in at $2,927,617 for 6 months to June 30, 2022 against $1,835,262 for the similar period of 2021. This was because of higher operating expenses. There was an increase in size of and level of spending on support team for the company’s investment banking business, fund management services business and software sales business.
As of June 30, 2022, it had cash of $7,023,053 against $11,206,220 as of December 31, 2021. Total working capital came in at $9,708,668 as at June 30, 2022 versus working capital of $12,720,191 as of December 31, 2021.
3. Outlook Therapeutics, Inc.
The company is a clinical-stage biopharmaceutical company, which is focused on developing and commercializing ONS-5010, a monoclonal antibody, or mAb, for numerous ophthalmic indications.
Talking about its financial results for 3Q ended June 30, 2023, it saw research and development expenses of $11.1 million in comparison to $11.25 million in the same period of the previous year. For 3Q, the company saw net loss attributable to common stockholders of $20.7 million, or $0.08 per basic and diluted share.
Apart from the clinical development program evaluating ONS-5010 for wet AMD, the company received agreements from FDA on 3 Special Protocol Assessments (SPAs) for 3 additional registration clinical trials.
4. Matinas Biopharma Holdings, Inc.
The company is a clinical-stage biopharmaceutical company, which is focused on discovery and development of product candidates derived from lipid-crystal nano-particle, or cochleate, delivery technology platform.
It has released financial results for 3 and 9 months ended September 30, 2023. Total costs and expenses for 3Q23 came in at $6.1 million in comparison to $6.5 million for 3Q22. This was because of decreases in costs for the manufacturing of clinical trial materials, and decline in clinical trial consulting and headcount costs.
The revenue for the first 9 months of 2023 came in at $1.1 million in comparison to $2.1 million for the first 9 months of 2022.
Best day trading stocks which have been explained above were selected on the basis of high liquidity, which was measured through trading volumes. The above stocks are highly volatile too, and volatility was measured by analysing the share price fluctuations over the past few weeks.
Best day trading stocks are considered as fine entry-points for the traders who want to learn about connection between the fundamentals of the company and news, and how they can impact the company’s share price.