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 Day trading involves buying and selling securities within the same trading day, capitalizing on short-term price movements. In Canada, day trading has gained traction in recent years, thanks to:

However remember, that day trading is risky and can lead to significant losses. Successful day trading requires in-depth market knowledge, technical analysis skills, and a well-defined trading strategy.Choosing the right stock for day trading is crucial for day trading success. Here is what you should look for:

Understanding these characteristics will help you identify potential day trading opportunities in the Canadian market.
 
3 scanning methods to identify the best day trading stocks
 

Pre-market and after-hours movers are a great way to identify potential day trading opportunities. Here’s how you can use this method:1. Leverage Screening Tools: Many online brokers and financial websites offer stock scanners that allow you to filter based on pre-market and after-hours activity. You can set parameters for:

2. Analyze the Reason for Movement: Don’t just chase price changes blindly. Look for news or events that might explain the pre-market/after-hours movement. This could be anything from company announcements to industry-wide news. Understanding the catalyst can help you predict if the momentum will continue during regular trading hours.3. Combine with Other Techniques: Pre-market and after-hours movement is just one piece of the puzzle. For a more comprehensive view, consider using this method alongside other scanning techniques, like:

Day traders thrive on price movement, and high volatility stocks offer the potential for quick profits (or losses). Here’s a scanning method to identify potential day trades using high beta and recent price swings:1. Scanning by Beta

Minimum Beta: Set a minimum beta threshold (e.g., 1.2 or higher) to focus on stocks with potentially amplified movements.2. Include Recent Price SwingsWhile beta offers a general idea of volatility, it’s also valuable to identify stocks experiencing significant price changes recently.

3. Combining FiltersUse your chosen scanning platform to combine these filters. This will narrow down the list to high beta stocks that have also exhibited recent volatility.Liquidity: Ensure the stocks have sufficient trading volume (liquidity) to enter and exit positions quickly.Technical Analysis: Apply technical indicators on the filtered stocks’ charts to identify potential entry and exit points for your trades.News and Events: Stay informed about relevant news or upcoming events that might affect the stock price.
 

Gappers, stocks that open significantly higher or lower than their previous day’s closing price, can signal strong momentum and present potential day trading opportunities. Here are 3 scanning methods to identify gappers for your day trading strategy:1. Basic Gap ScanThis is the simplest method and identifies all gappers, regardless of direction or size of the gap.

2. Gap Size and Direction ScanRefine your search by focusing on gaps of a specific size and direction that align with your trading strategy.

3. Volume Filter with GappersCombine the gap scan with a volume filter to identify gappers with increased trading activity, which can indicate stronger momentum.

Also Look For 

Best Canadian Day Trading Stocks This YearIt’s hard to recommend specific day trading stocks as it’s inherently risky and success depends on individual decisions and market conditions. However, I can provide some information to help you with your search for suitable Canadian day trading stocks in 2024. There are certain types of stocks tend to be more favorable due to their liquidity, volatility and opportunities. While any stock can be day traded, some characteristics tend to be more favorable for this type of active trading strategy:

Here are some sectors that generally house these characteristics:

Canopy Growth (WEED.TO) (CGC)Canopy Growth is a world-leading cannabis and consumer packaged goods (CPG) company. They focus on producing and selling high-quality cannabis products for both medical and recreational use under various brands including Doja, 7ACRES, Tweed, and Deep Space. Their CPG portfolio also includes wellness products by Martha Stewart CBD and vaporizer technology.Canopy Growth is headquartered in Smiths Falls, Ontario, Canada. They primarily focus on the Canadian cannabis market, with both medical and recreational offerings. However, with their recent acquisition approval by shareholders, they are looking to expand into the US market in the near future.Market Position

Latest Important NewsCanopy Growth recently reported mixed financial results, with some revenue growth but overall decline. Importantly, shareholders approved the creation of a new class of shares to facilitate their entry into the US THC market, a potentially massive opportunity.They are also finalizing the acquisition of Acreage Holdings, a US-based cannabis company, which will be a key part of their US expansion plans.
 First Quantum Minerals (FM.TO)First Quantum Minerals is a Canadian-based mining and metals company. Their primary focus is on exploration, development, and production of mineral properties, with copper being their main product (accounting for 80% of revenue as of 2016). They also explore and produce other metals like nickel, pyrite, gold, and zinc.First Quantum has a geographically diverse portfolio with operating mines in Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritani. They also have development projects in Zambia and exploration projects in Argentina and Peru.Market PositionFirst Quantum is considered one of the world’s top 10 copper producers. They has a strong portfolio of high-quality, low-cost copper mines, particularly Kansanshi in Africa and Cobre Panama in Latin America.As of June, 2024, the latest news appears to be their positive stock performance. The share price rose 3.09% to $16.69 CAD.
 Shopify Inc. (SHOP.TO) (SHOP)Shopify is a leading global commerce platform designed for businesses of all sizes. They offer merchants a subscription-based software service that allows them to:

Shopify is a global company with operations in over 175 countries. Their platform is available in multiple languages and currencies, catering to a wide international audience.Market PositionShopify is considered a leader in the e-commerce space, particularly for small and medium-sized businesses (SMBs). They hold a significant market share and continue to grow as online commerce expands.Latest Important NewsRecently, Shopify’s stock price experienced a slight decline. However, analyst firm Evercore ISI upgraded their rating on Shopify to “Outperform,” citing an attractive entry point for investors. This upgrade suggests confidence in Shopify’s future growth potential. Additionally, Shopify is benefiting from the overall increase in e-commerce activity.
 Veren Inc. (VRN.TO)Veren Inc. is an oil and gas exploration and production company. They focus on finding, developing, and extracting crude oil, tight oil, natural gas liquids, shale gas, and natural gas reserves. Their operations are spread across Canada and the United States, with properties in Saskatchewan, Alberta, British Columbia, Manitoba (Canada), and North Dakota (USA).Market PositionVeren Inc. is a mid-sized player in the North American oil and gas exploration and production sector. They recently rebranded from Crescent Point Energy to Veren Inc., signaling a shift towards a more sustainable future, but details are still emerging. Bullish analyst ratings suggest potential for future growth.Latest Important NewsThe most significant recent news is Veren Inc.’s name change from Crescent Point Energy in May 2024. This rebranding suggests a potential strategic shift, but the company hasn’t released many details yet.
 Lundin Mining (LUN.TO)Lundin Mining is a diversified base metals mining company, meaning they extract and process various essential metals. Their primary focus is on copper, zinc, gold, and nickel, but they also produce molybdenum, lead, and silver. They are involved in the entire mining life cycle, from exploration and development to extraction and processing.Lundin Mining is a Canadian company headquartered in Toronto, Ontario. Their mining operations and projects are geographically spread across several countries, including:

Market PositionLundin Mining is considered a mid-tier base metals producer with a strong focus on operational excellence and cost control. While not the largest mining company, they have high-quality mines with competitive margins.Lundin Mining’s next earnings report is expected between July 31st and August 5th, 2024. This report will provide insights into their financial performance and future outlook.Curious about the companies driving the Toronto Stock Exchange (TSX)? Look no further! IFC Markets, a popular Canadian broker, can help you explore  TSX most active stocks
 ConclusionChoosing the right stocks is the cornerstone of successful day trading. By carefully selecting your targets, you increase your chances of capitalizing on short-term market movements.When selecting stocks for day trade always pay attention to 

Utilize them to conduct your research and build a strong foundation for your trading strategy. Final Tips for Day Trading Success

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