Day trading entails trading a stock several times over a day in an effort to profit on its price movements. It’s a risky strategy, but many try it and some are successful. The following factors can help day traders choose their investments.First, look for high liquidity and volatility. Stocks that are liquid, meaning they’re easier to obtain, are better suited for day trading. Liquid stocks are usually less expensive. Opportunistic day traders can profit from volatile stocks. For example, a stock may be volatile if its issuing corporation experiences variances in its cash flow. Day traders capitalize on a mispriced asset when they can recognize it before others. A stock’s volume measures how often it’s bought and sold, usually within a day. Higher volumes means there’s interest – either positive or negative – in the stock. An increase in a stock’s volume shows its price is about to move. Day traders use the Trade Volume Index, which measures the amount of money flowing in and out of an asset, to guide them. Financial services corporations provide excellent day-trading stocks. They have high volumes and uncertain conditions. Many day traders like social media stocks. LinkedIn and Facebook saw their trading volumes soar after their stocks debuted. Many wonder if they’ll be able to turn their extensive user bases into sustainable revenue, and some analysts argue their stock valuations are higher than their fundamentals support. Uncertainty draws the interest of day traders.