The Most Popular Assets for Day Trading: The Essential List

Stocks are perhaps the most commonly traded assets by day traders. Stocks that are large-cap (at least $10 billion) and have a lot of volume (at least 1 million shares traded daily) are great candidates for day trading because they have high liquidity, meaning you can quickly enter and exit a position.

 Why Day Traders Choose Stocks

•  These stocks usually have a high level of liquidity.
•  There are usually clear technical patterns associated with the stock price movements.
•  There is a great deal of news surrounding the price movement of the stock.
•  Regulated and transparent markets

Sectors like banking, IT, energy, and pharmaceuticals often show strong intraday volatility, making them ideal for day trading.

2.Foreign Exchange (Forex)

Forex is the biggest and most liquid financial markets, with large number of participants making day trading an attractive option for traders. With currency pairs like EUR/USD, GBP/USD, or USD/JPY, traders will find consistent price changes at all hours of each day.

Advantages to Day Trading Forex:

• Trade around the clock
• Tight spreads and high liquidity
• Low minimum capital investment required
• Profit opportunity on both rising and falling prices

NXT Institutions is a leading institute for beginners on learning about Forex, as we have made it our focus.

3.Commodities

Commodities such as Gold, Crude Oil, Silver and Natural Gas are very popular with day traders due to their very high volatility driven by global conditions and many times they react to different factors such as Supply Demand and Economic Events.

Reasons Commodities Are Popular:

• Highly Volatile
• Will react quickly to Global Events
• Use of strong Technical Analysis Patterns
• Hedge Against Inflation

Crude Oil and Gold are particularly popular. They tend to be heavily traded using intraday strategies.

4.Indices

Market indices like Nifty 50, Bank Nifty, SENSEX, NASDAQ and S&P500 are heavily traded by day trading participants in Derivatives Markets.

Advantages for Trading Indices:

• Lower level of risk compared to Individual Stocks
• Exposure to a wider range of commodities in one trade
• Index Futures and Options have High Liquidity
• Tend to move Price Consistently During Market Hours

As a result of the advantages listed above, Trading Indices is one of the most sought after Trading Strategies for traders today.

5.Cryptocurrency Trades.

As a result of their massive rise in the last few years, cryptocurrencies have become one of the most popular forms of investment. The extremely volatile nature of these assets, such as Bitcoin (BTC) and Ethereum (ETH), makes them very appealing to the skilled day trader.

Key Features:

• 24/7 Trading.
• A High Level of Volatility.
• Global Access to Markets.
• Advanced Chart Patterns.

However, due to the nature of the cryptocurrency markets, you will need to have a strong risk management strategy to protect your investment against sudden price increases or decreases.

How to Choose an Asset for Day Trading.

When determining which asset is best for day trading, you should first consider:

• How Much Capital You Have to Invest.
• Your Risk Tolerance Level.
• Your Knowledge of the Market.
• Your Personal Trading Strategy.
• The Hours in Which You Are Able to Trade.

Before you begin trading any type of asset class, you must have a proper education and a significant amount of practice.

Learn Day Trading with Expert Instructors at NXT Institutions.

At NXT Institutions, we offer a structured educational program, along with real-time analysis of the markets and the opportunity to develop your own practical trading strategy with the guidance of professional instructors. If you are new to the day trading industry, or an experienced trader who wants to take your trading skills to the next level, NXT Institutions is THE best educational facility to start your training.