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Stocks Day Trading in the Netherlands 2020 – Tutorial and Brokers

Day trading in stocks is an exciting market to get involved in.

Stocks Day Trading in the Netherlands 2020 – Tutorial and Brokers

Stocks are essentially capital raised by a company through the issuing and subscription of shares. While stocks and equities are thought of as long-term investments, stock trading can offer exciting opportunities for day traders.

The ability to short prices, or trade on company news and events, mean short-term trades can still be profitable.

This page will advise you on which stocks to look for when aiming for short-term positions. It will also offer you some invaluable rules for day trading stocks to follow. You’ll learn the how to pick stocks and when to trade them, as well as some intelligent strategies that could help you turn a profit.

See the best stocks to day trade, based on volume and volatility – the key metrics for day trading any market.

Stock Trading Brokers in the Netherlands

Access 40 major stocks from around the world via Binary options trades.

Finq.com offer a great all round service with trading on 2100+ assets and immediate bonus offers.

Just2Trade offer hitech trading on stocks and options with some of the lowest prices in the industry

Invest.com offer trading on over 100 assets across the globe. Margin requirements are generally 5% on US and UK stocks.

Trade 2000+ stocks with 1:5 leverage. Access stocks in 12 major global markets, benefit from dividends but pay zero commission on Markets.com MT4 platform

CFDs carry risk.

64% of traders lose.

Plus500 offer traders CFD trading.

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They provide tight spreads and competitive leverage and margin levels.

76.4% of retail accounts lose money.

Forex.com offer access to over 220 US and UK stocks, with spreads of just 1 point.

See why Forex.com are about more than just Forex...

69% of retail accounts lose money with this provider.

Avatrade offer leverage of up to 1:20 on stock trades, and access multiple markets from the US and across Europe

71% of retail accounts lose money with this provider.

XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.

68.15% of retail accounts lose money.

Trade nearly 200+ global stocks at 24Option via CFDs. Spreads are competitive and stop loss and take profit orders are available. Even trade new cannabis firms in Canada!

86.24%% of retail accounts lose money with this provider.

eToro offer access to nearly 1000 stocks from all over Europe and the US.

75% of retail investor accounts lose money when trading CFDs with this provider.

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You should consider whether you can afford to take the high risk of losing your money.

LSE listed IG Group offer stock trading via CFDs, Spread betting (in the UK) and digital 100s trades.

Margin requirements vary.

76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

UFX offer 150+ assets from around the world. Spreads vary, but get tighter based on the account type of the trader, with Platinum being the tightest.

73.2% of retail accounts lose money with this provider.

BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs.

With spreads from 1 pip and an award winning app, they offer a great package.

78.3% of accounts lose money when trading CFDs.

Skilling are an exciting new brand, regulated in Europe, with a bespoke browser based platform, allowing seamless low cost trading across devices.

73% of retail CFD accounts lose money.

FXTM Are leading forex and CFD brokers.

Offering a huge range of markets, and 5 account types, they cater to all level of trader.

83% of retail accounts lose money.

A regulated bank, Saxobank offer CFD, Stocks and Forex trading on 35,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms

72% of retail accounts lose money.

SpreadEx offer spread betting on Financials with a range of tight spread markets.

Popular award winning, UK regulated broker.

68% of retail spread betting accounts lose money with this provider.

Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.

77.2% of retail accounts lose money with this provider.

XTB are an FCA regulated brand offering CFD and Forex trades.

They offer 3 levels of account, Including Professional.

77% of retail accounts lose money.

Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment.

80% of retail accounts lose money.

FXPro offer 150+ assets in their shares portfolio.

Stocks from the US, Uk, France and Germany are all traded on the their MT4 platform on tight spreads.

77% of retail accounts lose money with this provider.

Capital.com offer a staggering 1600+ stocks to trade from around the globe.

They also offer exceedingly tight spreads, ideal for frequent trades.

76.2% of retail accounts lose money.

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Why Day Trade Stocks?

Day trading stocks today is dynamic and exhilarating. On top of that, they are easy to buy and sell. With the world of technology, the market is readily accessible.

The liquidity in markets means speculating on prices going up or down in the short term is absolutely viable.

Also, stocks are relatively straightforward to understand and follow. Whilst day trading in the complex technical world of cryptocurrencies or forex may leave you scratching your head, you can get to grips with the triumphs and potential pitfalls of Google and Facebook far easier.

This means identifying which stocks to trade intraday hopefully won’t be as challenging as it is in other markets.

Day Trading vs Stock Trading

Before you start day trading stocks, you should consider whether it definitely suits your circumstances.

For example, intraday trading usually requires at least a couple of hours each day.

Top 3 Stocks for Novice Swing Traders

One of those hours will often have to be early in the morning when the market opens. Longer term stock investing, however, normally takes up less time. This is because you have more flexibility as to when you do your research and analysis.

In addition, intraday  stock trading returns can exceed those of long-term investing.

This in part is due to leverage.

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This allows you to borrow money to capitalise on opportunities (trade on margin). However, with increased profit potential also comes a greater risk of losses. On top of that, you will also invest more time into day trading for those returns.

You could also argue short-term trading is harder unless you focus on day trading one stock only. This is because interpreting the stock ticker and spotting gaps over the long term are far easier. You also don’t have to rush to make decisions. However, this also means intraday trading can provide a more exciting environment to work in.

One major advantage of CFDs and spread betting over traditional equity investment is the ability to “go short“.

There is no easy way to make money in a falling market using traditional methods. Day traders, however, can trade regardless of whether they think the value will rise or fall.

Overall, there is no right answer in terms of day trading vs long-term stocks.

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Spotting trends and growth stocks in some ways may be more straightforward when long-term investing. Having said that, intraday trading may bring you greater returns.

How To Trade Stocks

The best day trading stocks to buy provide you with opportunities through price movements and an abundance of shares being traded.

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This will enable you to enter and exit those opportunities swiftly. These factors are known as volatility and volume. You may be thinking ‘I’ve heard of day trading volatile stocks and volume before, but what does that really mean?

Volume

Volume is concerned simply with the total number of shares traded in a security or market during a specific period. Each transaction contributes to the total volume. If just twenty transactions were made that day, the volume for that day would be twenty.

How is that used by a day trader making his stock picks?

Volume acts as an indicator giving weight to a market move. If there is a sudden spike, the strength of that movement is dependant on the volume during that time period.

Put simply, the greater the volume, the more significant the move.

Using volume

If you have a substantial capital behind you, you need stocks with significant volume.

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Whilst your brokerage account will likely provide you with a list of the top 20-25 stocks, one of the best day trading stocks tips is to broaden your search a little wider.

That way you can find opportunities that aren’t on every other trader’s radar.

Look for stocks with a spike in volume.

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If a stock usually trades 2.5 million shares daily, but you notice it has traded 6 million shares by 10 am, then this could be worth exploring. If your chosen platform fails to offer a rigorous screener for high volume stocks, utilise these alternatives:

  • Bar Chart
  • TheStreet
  • Yahoo Finance Unusual Volume

Volatility

Volatility is concerned with the amount of risk/unpredictability in the size of changes in a security’s value.

If it has a high volatility the value could be spread over a large range of values. This would mean the price of the security could change drastically in a short space of time, making it ideal for the fast-moving day trader.

Whereas if it has a low volatility, the security’s value will remain relatively steady, offering less opportunity for a quick profit.

Beta

One way to establish the volatility of a particular stock is to use beta.

The beta predicts the total volatility of a security’s returns against the returns of an appropriate benchmark (normally the S&P 500).

A stock with a beta value of 1.2 has moved approximately 120% for every 100% in the benchmark, contingent on the price level.

Why Day Trade Stocks?

On the flip side, a stock with a beta of just .8 has moved 80% for every 100% in the comparative index.

How To Find Stocks To Day Trade

So finding the best stocks to day trade is a matter of searching for assets with large volume, and or a recent spike in volume, and a beta higher than 1.0 (The higher the better). Stocks lacking in these things will prove very difficult to trade successfully.

How you use these factors will impact your potential profit, and will depend on your strategies for day trading stocks.

Profiting from a price that does not change is impossible. Buyers and sellers create price movement, a lack of volume shows a lack of buyers and sellers.

Defensive stocks, while normally associated with lower volatility, may suddenly be in demand if a market panic causes a flight to safer investments, so volume and volatility may not always spring up in the obvious places.

Best Day Trading Stocks 2020

Now you have an idea of what to look for in a stock and where to find them.

Below is a breakdown of some of the most popular day trading stock picks. The most popular exchange-traded fund (ETF) is the S&P 500 (SPY).

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Regularly trading in excess of 100 million shares a day, the huge volume allows you to trade both small and large positions, depending on volatility.

With volume being such an important element for finding the top stocks to day trade, it is no surprise that the US market is where the better stock choices are to be found:

US Stocks

In the UK, the stocks boasting highest volume offer the best day trading opportunities

UK Stocks

The UK can often see a high beta (volatility) across a whole sector.

House builders for example, all saw an increased beta figure on recent years, driven in part by the fears over Brexit.

Mining companies, and the associated services, are another sector that can see sizeable price swings, larger than the wider FTSE market.

Alternatives

However, apart from the popular options above, there are also a number of other popular exchanges worth considering, including the Toronto Stock Exchange, Karachi Stock Exchange, Philippine Stock Exchange, Tokyo Stock Exchange, and the London Stock Exchange.

You could also start day trading Australian stocks, Chinese stocks, Japanese stocks, Canadian stocks, Indian stocks, plus a range of European stocks.

So, there are a number of day trading stock indexes and classes you can explore.

Furthermore, you can find everything from cheap foreign stocks to expensive picks. All of the strategies and tips below can be utilised regardless of where you choose to day trade stocks.

Penny Stocks

Which penny stocks are best for day trading?” is a popular question we face.

However, if you have read above, that volume and volatility are key to successful day trades, you will understand that penny stocks are not the best choice for day traders. They are low volume (very little buying and selling) and this leads to a lack of volatility in the short term.

Volatility in penny stocks is often misleading as a small price change is large in percentage terms, but the fact is that most penny stocks end the day exactly where they started with no movement at all.

It is impossible to profit from that.

Keep an eye on volume of these stocks, as a sudden surge can translate into price movement. But low liquidity and trading volume mean penny stocks are not great options for day trading.

Utilising leverage is one way to make trading stocks ‘cheaper’ but ensure you understand the increased risk that leverage brings before using it.

Stocks To Trade Today

Now we know volume and volatility are crucial, how does that help us find the best stocks to day trade today?

Well, ‘Risers and Fallers’ tables are a good short cut to find active markets. It means something is happening, and that creates opportunity.

Most brokers will show a table of active shares, whether they call it ‘Risers/Fallers’ or ‘Most Traded Shares’, they should all point you to the most suitable opportunities for stock day trades.

When To Day Trade Stocks

Timing is everything in the day trading game.

If you don’t know the best times to trade, you may struggle with day trading stocks for a living. With that in mind:

  • Start early – If you want to begin your trading after a generous lie in, don’t be surprised when you struggle to make a profit.

    The increase in trading volume is seeing the market only get faster. You need to be up at 8 am, prepping for the day ahead. This will allow you time to undertake research and configure your monitors with the stocks you will be actively tracking that day.

  • Keep it short – Whilst yes you will make more money if you trade all day, day traders see the best returns when they trade for just 1-3 hours.

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    You might make £750 in 2 hours and £1000 when you trade for 5 hours. So if you’re looking at day trading stocks for a living, you might get the best return per hour if you trade in short bursts.

Patterns

Pennant

The pennant is often the first thing you see when you open up a pdf of chart patterns.

It’s created simply by significant stock movement and then consolidation.

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The converging lines bring the pennant shape to life. You should see a breakout movement taking place alongside the large stock shift.

You will then see substantial volume when the stock initially starts to move. Finally, the volume in the pennant section will decrease and then the volume at the breakout will spike.

Ascending Triangle

You will normally find the triangle appears during an upward trend and is regarded as a continuation pattern.

Less often it is created in response to a reversal at the end of a downward trend. Whenever they do occur, ascending triangles are bullish patterns (when the small black candlestick is followed by a big white candlestick that totally engulfs the previous candlestick).

Descending Triangle

Although often a bearish pattern, the descending triangle is a continuation of a downtrend.

Less frequently it can be observed as a reversal during an upward trend.

Cup & Handle

Just a quick glance at the chart and you can gauge how this pattern got its name.

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The cup is a nice curved ‘U’ shape and the handle angles slightly down. Usually, the right-hand side of the chart shows low trading volume which can last for a significant length of time.

Head & Shoulders Top

Straightforward to spot, the shape comes to life as both trendlines converge.

They come together at the peaks and troughs. The lines create a clear barrier. If the price breaks through you know to anticipate a sudden price movement.

You’ll find different stock patterns for day trading in every pdf you open. Rather than using everyone you find, get excellent at a few.

Strategy

The patterns above and strategies below can be applied to everything from small and microcap stocks to Microsoft and Tesla stocks.

Heikin-Ashi

If you like candlestick trading strategies you should like this twist.

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A candlestick chart tells you four numbers, open, close, high and low. But you use information from the previous candles to create your Heikin-Ashi chart.

  • Close price – The Heikin-Ashi candle calculates an average across the open, close, low and high price.
  • Open price – The candle will be the average of both the open and close of the preceding candle.
  • High price – The high price you see in your Heikin-Ashi candle is selected from the highest value of either the high, open and close price.
  • Low price – This time the high price in the candle is selected from either the high, open and close price, but this time of the lowest value.

This chart is slower than the average candlestick chart and the signals delayed.

This is part of its popularity as it comes in handy when volatile price action strikes.

The strategy also employs the use of momentum indicators.

A simple stochastic oscillator with settings (14,7,3) should do the trick. If you see that two candles, either bearish or bullish have fully completed on your daily chart, then you know the pattern is valid.

  • Short setup – If after a number of green candles, the price creates two consecutive red candles, the uptrend has exhausted and a reversal is on the cards.

    Short positions should be used.

  • Long setup – If after a series of red candles, the price creates two consecutive green candles, the downtrend is exhausted and a reversal again is likely. You should consider long positions.
  • Filters – You also need to use other filters to prevent false signals and to enhance performance.

These charts, patterns and strategies may all prove useful when buying and selling traditional stocks.

However, they may also come in handy if you are interested in the less well-known form of stock trading discussed below.

Penny Stocks

Every day thousands of people turn on their computers in the hope of day trading penny stocks online for a living.

But what exactly are they? The Securities and Exchange Commissions’ (SEC) define penny stocks as those stocks priced at $5 or under.

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However, the majority of the trading community agree ‘penny stocks’ are any stocks that are traded on over-the-counter bulletin board (OTCBB) or pink sheets.

Benefits & Drawbacks

Benefits

To help you decide whether day trading on penny stocks is for you, consider the benefits and drawbacks listed below.

  • Excitement – There is no denying day trading with penny stocks can be exciting.

    The possibility of large wins and big losses make for an appealing market.

  • Speed – Whilst many on your penny stock list may remain relatively steady, some prices will shift significantly in a short space of time.

    This can result in substantial profit potential for switched on day traders.

  • Initial capital – Less than a thousand dollars may only allow you to buy several shares of large companies. However, you can buy thousands of shares of the penny stocks you are interested in.

Drawbacks