Best US Stocks to Speculate 2023
We definitely live in the golden age of day trading and speculation. Here are the best US stocks for speculation the most traded in the US stock market, if you decide to start your career in speculation in US stocks.
Many traders are attracted to US speculative stocks due to their higher volatility relative to blue-chip stocks, which creates an opportunity to generate greater returns from price volatility. Although most speculative stocks tend to be early-stage companies, blue-chip stocks can sometimes become speculative stocks if they have fallen on hard times and their future prospects are rapidly declining.
Daily speculation comes with a lot of risks, as this trading strategy tries to achieve quick and short-term profits from the rapid price movements known by the selected stocks. Meem stocks are very suitable for this type of trading, and these stocks are very popular with day traders. These stocks also tend to be very volatile so their movements depend largely on investor sentiment and technical analysis, rather than fundamentals.
3 US stocks for daily speculation
SundialGrowers stock
Over the past three months, no stock has had a higher trading volume than Canadian marijuana grower Sundial Growers (NASDAQ:SNDL). More than 500 million shares of this company are traded every day, nearly a third of its fleet of 1.65 billion shares. This means that the average investor holds his shares for only three days.
This huge volume of trading helped make the stock become extremely volatile for an income-generating one. The fact that it is trading in such a cheap stock has made it popular with traders on Reddit’s WallStreetBets platform. However, you would be better off avoiding Sundial if you are a long-term investor. Management has benefited from the recent rally which has weakened shareholders several fold in recent months. This makes it unlikely that the company will be able to deliver meaningful shareholder value in the future. Last year, the company had lost C$240m on net revenues of just C$60m.
NakedBrand Group stock
Naked Brand Group (NASDAQ: NAKD), a New Zealand maker of swimwear and lingerie, was a little-known stock before it soared earlier this year. It has been tucked into the backcountry among other cheap stocks and has gained huge popularity on Reddit.
The reason why this stock has become one of the best US stocks for daily speculation is due to the rise in the value of Naked Brand shares from $0.20 at the end of last year to a peak of $3.40 at the end of January before fading away ever since, thanks to the great influence of day traders. . Over the past three months, an average of 178 million shares have changed hands per day, nearly half of the 424 million share fleet. This explains why the stock has fluctuated and fluctuated so much over the past few months. As with Sundial Growers, Naked Brand has used that interest to sell more shares, sapping investors about 100 times more than last year. The company sold shares to weather the pandemic and then capitalize on daily speculator demand.
Naked does not issue quarterly earnings reports but it was reported in the most recent financial year that ended on January 31, 2020. The company lost NZ$52.2m on revenue of NZD90.1m at the time. Its revenues also declined for the second year in a row. Given the challenges of the pandemic, it is likely that their results were worse last year.
AMCEntertainment
AMC Entertainment (NYSE:AMC) has been a favorite among Reddit traders since January, as the stock soared along with GameStop during an initial boom earlier in the year. The movie theaters stock has attracted attention because it is a popular brand with consumers and it trades in a cheap stock range, and is also a popular stock among speculators and day traders. In addition, management’s announcement at the time that bankruptcy was effectively “off the table” after a massive capital raise helped fuel the cheerleader sentiment. Nearly three-quarters of AMC’s fleet has changed hands daily over the past three months – approximately 175 million out of 233 million shares. This indicates that the stock is very popular among day traders. Based on these numbers, it can be considered AMC shares are one of the best American stocks for speculation, as the average trader keeps his share of these shares for no more than a day and a half.
AMC will benefit from an economic reopening as moviegoers will return to theaters as soon as it is safe to do so, but like the other stocks mentioned above, shareholders have been diluted significantly so that the company can avoid bankruptcy. Outstanding shares rose from 100 million last year to 450 million at the start of March. Depending on the fundamentals, it is difficult to justify AMC’s current share price especially given this dilution, but the ongoing interest of speculators will continue to make these stocks volatile as long as the high volume continues.
Long-term investors will want to avoid stocks that speculators love because they tend to be volatile and disconnected from the fundamentals, but there is another lesson here. As an investor, it helps to know why other shareholders own the same stocks you do. Speculative traders who may own some popular meme stocks like the ones mentioned above, in addition to cryptocurrencies, are looking for big gains in a short time, which leads to volatile movements. Dividend investors, on the other hand, rely on quarterly checks which means that any change in the dividend, especially a cut, will affect the stock. Growth investors are often less risk averse than value investors, so growth stocks will also be riskier or more volatile.
How do I pick the best US stocks to speculate in 2023?
If you want to become a successful speculator in US stocks, you must acquire a set of basic skills, of which the ability to choose the right stocks to trade is one of the most important. As trading is not only about buying and selling stocks on the same day, it is also about ensuring liquidity and studying the chances of achieving high-risk rewards for each trade.
Before you start your journey as a day trader, it is necessary to have a wide knowledge and familiarity with the basics of day trading and the way in which the process of choosing the best American stocks for speculation that can return you profits should be done.
The following are what you should consider when choosing the best suitable US stocks for daily speculation:
Trend shares
Trending stocks mean those stocks that command the most attention in the stock market. The increase in interest causes more traders to participate in trading these stocks which in turn leads to higher trading volume and volatility which in turn leads to higher price movements. Investing in technology stocks has a set of pros and cons that you as an investor should take into consideration before you decide to actually invest in them.
Volatility analysis
It is well known that volatility is the source of profit for day traders. No day trader can make money from day trading if stock prices are only moving sideways. Bollinger Bands are one of the best technical tools that you can use to analyze price action and volatility.
John Bollinger Bollinger Bands is a useful tool that provides insight into market trends and their estimated volatility.
Track the news
As mentioned earlier, it is very likely that trending stocks will have a higher volume of liquidity and more traders. However, staying abreast of recent developments helps traders understand market sentiment.
Positive news that is perceived positively by the market causes stocks to go up while news that is perceived negatively by the market causes stocks to go down.
The best part of being a speculative day trader is that a skilled day trader can make money in both markets and situations. Check out our free weekly forecasts to get an update on stocks and trends in the stock markets.
Trading volumes
Most people focus only on the increase in total volume when buying speculative stocks, however, the secret of success lies in choosing the best US speculative stocks that know an increase in trading volume.
The total volume is divided into two parts, the trading volume and the delivery volume. Turnover is the volume that shows how many participating traders have squared their positions by the end of the day and turnover volume is the number of deliveries that have been made in the cash market.
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