In this article, we discuss the 10 best day trading stocks to invest in now.
Over the past few years, retail traders have penetrated the stock markets across the world, challenging the dominance of institutional investors in this domain. These traders often engage in day trading, the practice of buying and selling financial instruments within the same trading day to capitalize on short-term market fluctuations. However, despite the self-proclaimed success of these day traders, latest data shows that the reality may actually be quite different. For example, a recent report by financial news platform Unbiased notes that the majority of day traders face significant hurdles in achieving consistent profitability. A study quoted in the report claims that almost 40% of day traders abandon their pursuits within the first month, and only about 13% continue trading after three years. Moreover, a mere 1% manage to sustain long-term success over a five-year period.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Data from the Financial Industry Regulatory Authority (FINRA) from 2023 reveals that 72% of day traders experience financial losses within a single year. Even among proprietary traders—those trading with a firm’s capital—only 16% report profitability, and a scant 3% earn profits exceeding $50,000 annually. Such numbers do not inspire a lot of confidence, and day traders thus employ a variety of different strategies to navigate the stock market. One of these is called breakout trading, the practice of identifying key price levels where significant movements are likely to occur. Per a study conducted by the brokerage firm Tradeciety, this strategy has a success rate of around 30%, indicating that while there are opportunities to capture short-term momentum, the majority of trades may not yield the desired outcome.
Another popular day trading strategy is trend-following. This generally refers to the practice of capitalizing on established market directions. The Tradeciety study claims that the success rate of this stands at about 20%. Despite the application of these strategic approaches, achieving consistent profitability is a challenging task for day traders. In this context, effective risk management is crucial for these traders to mitigate potential losses. The traders, around 88% of them, thus use stop-loss orders, which automatically trigger a sell when a predetermined price level is reached, thereby limiting downside risk. Nearly 62% of traders also employ position sizing strategies, determining the appropriate amount of capital to allocate for each trade based on risk tolerance and account size. These practices are geared towards preserving capital and managing exposure in a volatile market.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we made a list of stocks with a beta of greater than 2.5 and over 15% movement in the share price over the past month. The list was shortened and the ten firms with the highest number of hedge fund investors were selected. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Day Trading Stocks To Invest In Now
10. MicroCloud Hologram Inc. (NASDAQ:HOLO)
Number of Hedge Fund Holders: N/A
Beta as of February 25: 3.58
Share Price Decrease Over Last Month as of February 25: 21%
MicroCloud Hologram Inc. (NASDAQ:HOLO) provides holographic technology services worldwide. The services include holographic light detection and ranging (LiDAR) solutions based on holographic technology. The interest around the stock has skyrocketed since the company announced earlier this month a program to call upon up to $200 million to purchase bitcoin or other digital currencies and their related securities derivatives and incorporate these assets into its capital reserve strategy. The firm has cash reserves of about $257 million. According to the announcement, the planned call of $200 million will be used to help enhance the diversity and risk tolerance of the company’s overall asset portfolio.
9. Exodus Movement, Inc. (NYSE:EXOD)
Number of Hedge Fund Holders: N/A
Beta as of February 25: 3.49
Share Price Decrease Over Last Month as of February 25: 44%
Exodus Movement, Inc. (NYSE:EXOD) is a financial technology leader empowering individuals and businesses with secure, user-friendly crypto software solutions. In the third quarter of 2024, digital assets and cash totaled $194.7 million, including $120.8 million in Bitcoin and Ethereum and $69.8 million in cash, cash equivalents, USDC, and treasury bills as of September 2024. On February 20, the firm announced the integration of Venmo as a payment option through its partnership with MoonPay. Users in the US can now buy Bitcoin and other cryptocurrencies via their Venmo accounts in the Exodus Mobile app using MoonPay’s secure checkout. This integration enhances payment flexibility, making crypto ownership more accessible.
8. Prestige Wealth Inc. (NASDAQ:PWM)
Number of Hedge Fund Holders: N/A
Beta as of February 25: 3.04
Share Price Decrease Over Last Month as of February 25: 49%
Prestige Wealth Inc. (NASDAQ:PWM) provides wealth management and asset management services in Hong Kong. The company assists its clients in identifying and purchasing wealth and asset management products. A variety of catalysts have led to increased interest in the stock over the past few months. In August last year, the firm purchased AI driven wealth management company Wealth AI for $4.5 million. In late December, the firm announced that it had regained compliance with Nasdaq’s minimum bid price requirement of $1 per share for continued listing. In earnings for the first half of the fiscal year, the firm recently posted $0.5 million in revenue, up over 60% year-on-year.
7. Alpha Technology Group Limited (NASDAQ:ATGL)
Number of Hedge Fund Holders: 1
Beta as of February 25: 7.28
Share Price Increase Over Last Month as of February 25: 120%
Alpha Technology Group Limited (NASDAQ:ATGL) provides cloud-based information technology services in Hong Kong. The stock has surged more than 1,450% in the last few months, outperforming major tech stocks. The rally is linked to the rise of DeepSeek, a Chinese AI model rivaling ChatGPT, driving investor interest in AI-related stocks. This interest is not limited to equities in the US anymore, but spreading to emerging AI-based tech companies in other markets, especially in Hong Kong and China. Alpha Technology markets artificial intelligence powered optical character recognition services.
6. Firefly Neuroscience, Inc. (NASDAQ:AIFF)
Number of Hedge Fund Holders: 2
Beta as of February 25: 3.05
Share Price Increase Over Last Month as of February 25: 97%
Firefly Neuroscience, Inc. (NASDAQ:AIFF) operates as a medical technology and AI company. On February 11, the company announced its acceptance into the NVIDIA Connect program. This partnership will support Firefly’s initiative to develop a proprietary foundation model of the human brain using its FDA-cleared Brain Network Analytics (BNA) technology, which leverages Resting EEG and Cognitive EEG (ERP) data. NVIDIA Connect brings together NVIDIA’s advanced software development resources, industry-leading frameworks and software development kits, and global ecosystem to help fuel the growth of member companies and expand the capabilities of their software development teams.
5. Digihost Technology Inc. (NASDAQ:DGHI)
Number of Hedge Fund Holders: 2
Beta as of February 25: 5.54
Share Price Decrease Over Last Month as of February 25: 31%
Digihost Technology Inc. (NASDAQ:DGHI) is an innovative energy infrastructure company that develops cutting-edge data centers to drive the expansion of sustainable energy assets. For the third quarter of 2024, the revenue for the company rose 71% to $9.2 million, up from $5.4 million in the same period in the previous year, driven by diversified revenue streams through colocation agreements and energy sales. On February 11, the firm announced the launch of US Data Centers Inc, a wholly-owned subsidiary focused on developing high-performance computing (HPC) and AI-driven data centers. The new firm will focus on a data center project that will be completed in two phases, with a total planned capacity of 55 MW. Phase one will add 22 MW of HPC capacity by Q2 2026, requiring $176 million in capital. Phase two will add 33 MW by Q1 2027, with an investment of $264 million.
4. Cardio Diagnostics Holdings, Inc. (NASDAQ:CDIO)
Number of Hedge Fund Holders: 4
Beta as of February 25: 3.54
Share Price Increase Over Last Month as of February 25: 15%
Cardio Diagnostics Holdings, Inc. (NASDAQ:CDIO) develops and commercializes epigenetics-based clinical tests for cardiovascular disease. In the third quarter of 2024, the net loss narrowed by 27% year-over-year to $1.41 million. On February 4, the company partnered with seven new provider organizations. This expansion reflects the increasing adoption of its advanced blood tests, Epi+Gen CHD and PrecisionCHD, aimed at improving coronary heart disease prevention, detection, and management. The addition of these new provider partners underscores the growing adoption of Cardio Diagnostics’ solutions across a wide variety of clinical settings.
3. Able View Global Inc. (NASDAQ:ABLV)
Number of Hedge Fund Holders: 4
Beta as of February 25: 2.88
Share Price Decrease Over Last Month as of February 25: 28%
Able View Global Inc. (NASDAQ:ABLV) operates as a brand management partner for beauty and personal care brands in China. The firm’s offerings include strategy development, branding, digital and social marketing, omnichannel sales, customer service, overseas logistics, and warehouse and fulfillment. The company is trending on social networking platforms like Reddit. These platforms are often used by retail traders for day trading ideas. Latest reports indicate that the firm is planning a mixed shelf offering. Through this, the firm may offer up to $200 million in Class B shares, preferred shares, debt securities, warrants, rights, or units in one or more offerings. The public warrants are exercisable to purchase one Class B share at $11.50/share.
2. Quantum Corporation (NASDAQ:QMCO)
Number of Hedge Fund Holders: 6
Beta as of February 25: 3.04
Share Price Decrease Over Last Month as of February 25: 55%
Quantum Corporation (NASDAQ:QMCO) engages in the manufacture of computer storage devices. In the third fiscal quarter of 2025, revenue rose to $72.6 million. Secondary storage revenue increased 15% year-over-year, driven by the success of the new DXi data protection appliances. A multimillion-dollar deal with a top European retailer and a significant US federal deal were highlighted as key wins in the earnings report. Full-year fiscal 2025 revenue guidance was reiterated at $280 million, plus or minus $5 million, with fourth-quarter revenue expected at approximately $66 million, plus or minus $2 million.
1. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 13
Beta as of February 25: 2.84
Share Price Increase Over Last Month as of February 25: 61%
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a provider of artificial intelligence (AI)-powered decision intelligence solutions for national security, supply chain management and digital identity. In the third quarter of 2024, revenue grew 22.1% to $41.5 million, up from $34 million in the previous year. On February 20, the firm announced that its Trueface facial biometric solutions will be used for consumer payments across SoftPoint’s retail network through SoftPointPay. BigBear.ai’s Trueface is the biometric matching solution powering the verification process for SoftPointPay’s point-of-sale platforms, transforming how businesses authenticate customer payments. This integration enhances security, streamlines operations, and improves customer payment experiences.
While we acknowledge the potential of BigBear.ai Holdings, Inc. (NYSE:BBAI) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a stock that is more promising than BBAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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