Best Swing Trade Stocks

Looking for swing trading stocks? Benzinga is here to inspire you with a few stocks that are perfect for swing trading. The markets are constantly fluctuating, and these stocks regularly change to help you make informed decisions. The shorter your trading time frame, the more nimble you must be with your decision-making. Swing trading is much riskier than buying and holding, so get out of bad trades quickly and set profit-taking targets on your winners.

Contributor, Benzinga

Microsoft (NASDAQ: MSFT)

273.24 7.34 (2.76%)
26.91M
2,043.57B
267.56 - 273.34
243 - 349.67

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

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Caterpillar (NYSE: CAT)

217.07 4.0769 (1.91%)
2.02M
115.78B
214.16 - 217.63
179.67 - 246.69

Caterpillar Inc. is the world’s largest manufacturer of construction and mining equipment. This equipment includes diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar operates under 4 business segments — construction industries, resource industries, energy and transportation and financial products.

The construction stock has a market cap of $87 billion and an EPS of $7.45. It has an annual dividend yield of $4.12 per share. Caterpillar has high liquidity and trades more than 2.1 million shares per day and generated revenue $53 billion in 2019.

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Kellogg (NYSE: K)

69.84 -0.04 (-0.06%)
2.51M
23.60B
69.22 - 70.08
59.54 - 75.56

Founded in 1906, Kellogg is a leading global manufacturer and marketer of cereal, cookies, crackers, and other packaged foods. Its offerings are manufactured in 21 countries and marketed in more than 180 countries. Its product mix includes well-known brands such as Special K, Frosted Flakes, Froot Loops, Rice Krispies, Pop-Tarts, Eggo, Kashi, and Morningstar Farms. The firm added the Pringles brand to its mix in 2012. Sales outside its home turf account for around 40% of Kellogg’s consolidated sales base.

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Kellogg (NYSE: K)

69.84 -0.04 (-0.06%)
2.51M
23.60B
69.22 - 70.08
59.54 - 75.56

Founded in 1906, Kellogg is a leading global manufacturer and marketer of cereal, cookies, crackers, and other packaged foods. Its offerings are manufactured in 21 countries and marketed in more than 180 countries. Its product mix includes well-known brands such as Special K, Frosted Flakes, Froot Loops, Rice Krispies, Pop-Tarts, Eggo, Kashi, and Morningstar Farms. The firm added the Pringles brand to its mix in 2012. Sales outside its home turf account for around 40% of Kellogg’s consolidated sales base.

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Kohl's (NYSE: KSS)

41.92 -1.27 (-2.94%)
7.08M
5.39B
40.2 - 43.87
34.64 - 64.3792

Kohl’s is a department store retailer with over 1,000 locations in the U.S., but like most retailers, they’ve taken in on the chin during the coronavirus lockdowns. While not on ground as shaky as department stores like Macy’s and Neiman Marcus, Kohl’s stock is down nearly 60% in the last 3 months.

Kohl’s has all the features needed for a terrific swing trade — high beta, over 15% short interest and approximately 14 million shares traded daily on average. Kohl’s also has an upcoming catalyst — an earnings call on May 19.

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Swing Trade Stock Movers of the Day

Check out where the swing trade stocks are headed with the premarket, regular and after market movers.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

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Premarket Swing Trade Stocks
Symbol Last Price Change % Change Trade
ROKU 96.42 7.88 8.89% Trade
NVDA 187.83 9.32 5.22% Trade
GOOG 2253.28 87.36 4.03% Trade
MIDD 150.29 5.31 3.66% Trade
AMZN 2299.875 78.325 3.52% Trade
NTAP 72.965 2.475 3.51% Trade
AMD 102.1591 3.409 3.45% Trade
BA 132.0999 4.37 3.42% Trade
WDC 62.175 1.495 2.46% Trade
GOOS 20.42 0.47 2.35% Trade
Symbol Last Price Change % Change Trade
KSS 41.82 -1.37 -3.18% Trade
BABA 93.39 -1.09 -1.16% Trade
Market Swing Trade Stocks
Symbol Last Price Change % Change Trade
ROKU 92.48 3.94 4.44% Trade
AMZN 2269 47.45 2.13% Trade
NTAP 71.85 1.36 1.92% Trade
NVDA 181.55 3.04 1.7% Trade
WDC 61.59 0.91 1.49% Trade
AMD 100.16 1.41 1.42% Trade
GOOG 2196 30.08 1.38% Trade
MAR 172 1.83 1.07% Trade
NFLX 193.21 1.81 0.94% Trade
TXN 175.51 1.38 0.79% Trade
Symbol Last Price Change % Change Trade
BABA 93.2 -1.28 -1.36% Trade
FB 191.11 -0.52 -0.28% Trade
CVX 176.25 -0.34 -0.2% Trade
After Hours Swing Trade Stocks
Symbol Last Price Change % Change Trade
NVDA 189.45 1.34 0.71% Trade
NFLX 196.5 1.31 0.67% Trade
AMD 102.8 0.54 0.52% Trade
AMZN 2314 11.07 0.48% Trade
BABA 93.86 0.45 0.48% Trade
FB 195.65 0.52 0.26% Trade
BA 132.5 0.27 0.2% Trade
MAR 172.83 0.27 0.15% Trade
TGT 167.35 0.21 0.12% Trade
ROKU 96.5 0.03 0.03% Trade
Symbol Last Price Change % Change Trade
WDC 62.2 -0.05 -0.09% Trade
KSS 41.85 -0.02 -0.05% Trade
TXN 177.97 -0.01 -0.01% Trade

Want to jump straight to the best? Most of our users prefer Interactive Brokers for stock trading.

Day trading might sound like a fun way to make a living, but it’s a hard game for new traders to break into. Not only do day traders need high-tech stock scanners to locate stocks with potential, but the Financial Industry Regulatory Authority (FINRA) has strict rules in place limiting who can day trade. 

Unless you have an account balance of $25,000, you’ll be limited to 3 day trades in a rolling 5-day period. That means if you complete 3 day trades on Monday and open a new position on Tuesday, you’ll need to hold that position overnight to avoid getting flagged with a pattern day trader (PDT) violation. But most brokers won’t even let a 4th day trade execute — and you could be stuck holding the bag.

To avoid these FINRA restrictions, many investors use swing trading. Swing trading is still a short-term trading strategy but stocks are held overnight to avoid the PDT rules. Swing traders hold stocks for 24 hours to 2 days hoping to profit off high volume swings like short squeezes or earnings beats (misses). 

Overview: Swing Trade Stocks

Swing traders expose themselves to the most volatile moves by holding overnight, however the profits can be exponentially higher, especially if using options. The best stocks for swing trading are ones with known catalysts, high volume and enough volatility to make short-term trading profitable.

Sectors matter little when swing trading, nor do fundamentals. This is not investing for the long-term, so technical signals matter more than price ratios and debt loads. A company with a mountain of long-term debt and dry cash flow can still be a perfectly profitable swing trade. 

Successful swing traders have to be nimble with their convictions — a stock with accumulating volume ahead of earnings might be one to sell short instead of buy. Swing traders use a variety of different strategies to enhance profits, but the stocks they look for all share a few common characteristics. 

You can find options online to help you get started swing trading. Mindful Trader provides stock picks and options picks, but it can also teach you the trading strategy behind them. The Mindful Trader approach is based on data and statistics. Sign on for support from Mindful Trader for just a flat $47 per month.

Best Online Brokers for Swing Trade Stocks

Swing trading and long-term investing are completely different animals, so you’ll need a broker that fits your needs. Swing traders should look for brokers with $0 commission or discounts on high-volume trading. 

You don’t need a $25,000 account balance to swing trade, but you’ll likely need a margin account if you want to sell short or swing trade with options. And since the best swing trading stocks are often thinly-traded small caps with only a handful of shares available, make sure your broker has a wide assortment of stocks to trade.

get started securely through Webull’s website
Best For
Intermediate Traders and Investors
N/A
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks
get started securely through SoFi’s website
Best For
IPO Investing
N/A
1 Minute Review

SoFi’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing

The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners and one-on-one advising with professional career coaches. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.

Best For
  • IPO Investing
  • Mobile Investing
Pros
  • U.S.-based customer service
  • Highly-rated mobile app for iPhone and Android
Cons
  • Only available in the U.S.
get started securely through Moomoo’s website
Best For
Active Traders
N/A
1 Minute Review

Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.

Get started right away by downloading Moomoo to your phone, tablet or another mobile device.

Best For
  • Cost-conscious traders
  • Active and Advanced traders
Pros
  • Over 8,000 different stocks that can be sold short
  • Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
  • No minimum deposit to open an account.
Cons
  • No chat support
get started securely through Interactive Broker’s website
Best For
GlobalAnalyst Product
N/A
1 Minute Review

This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.

Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.

Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.

Best For
  • Price earnings growth valuations
Pros
  • Easily evaluate investment opportunities
Cons
get started securely through eToro’s website
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Best For
Copy Trading
N/A
1 Minute Review

eToro is a broker that offers access to over 25 of the world’s most popular cryptocurrencies, forex and over 1600 stocks. They have a few unique education and useability tools. Traders can begin buying and selling in as little as 10 minutes.

eToro’s unique CopyTrader feature allows new investors to “copy” the buy and sell orders of professional investors, while the company’s eToro Club feature provides investors with a range of additional education tools and resources. 

Best For
  • Traders looking for an easy-to-use platform
  • Traders who want to practice their trades using a virtual account before entering the market
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • High non-trading fees
get started securely through eTrade’s website
Best For
Desktop Trading
N/A
1 Minute Review

E*TRADE is an online discount trading house that offers brokerage and banking services to individuals and businesses. One of the first brokers to embrace online trading, E*TRADE not only survived both the dot-com bubble and Recession — it thrived. You can choose from two different platforms (one basic, one advanced). E*TRADE is a suitable broker for traders of most skill levels, whether you want to buy mutual funds and hold them for decades or dabble in options swing trading. E*TRADE offers a library of research and education materials to help you out.

Best For
  • Active traders
  • Derivatives traders
  • Retirement savers
Pros
  • Sophisticated trading platforms
  • Wide range of tradable assets
  • Exceptional customer service
Cons
  • Limited currency trading
  • Higher margin rates than competitors
  • No paper trading on its standard platform

Features to Look for in Swing Trade Stocks

When searching for swing trading stocks, don’t look at debt levels or price-earnings ratios. Those stats might matter for a company’s long-term prospects, but swing traders care about where a stock will be a couple of days, not a couple of years or decades. 

Here’s what to look for if you want to get into swing trading.

  1. Catalyst: Most swing trades begin by locating a catalyst that could trigger a powerful move in a stock. This could be a clinical trial in a pharmaceutical company, an unexpected earnings miss or beat, or even the removal of an executive or CEO. 
  1. Volume: Big moves in short time frames are impossible without significant volume in the stock. Sure, lightly-traded stocks can be coerced into big moves without much volume. But in the majority of your swing trades look for stocks with more volume than usual.
  1. Volatility: With great volume comes great volatility. Volatile stocks are good swing trading stocks because swing traders profit from large, short-term moves. A stock trading in a tight weekly range likely won’t produce a ton of opportunities for profit. But if 5% moves are occurring daily, you’ll find plenty of chances for swing trades.

Swing Trading for Short-Term Profits

Swing trading is not a long-term investing strategy. In fact, it’s not even really investing at all. The stock market is an accounting system for long-term financial prospects and investors use it to get a piece of those (eventual) profits. But swing traders look at the market differently. By using technical trading signals in volatile markets, swing traders can make great profits in short time periods. Swing trading requires precision and quickness, but you also need a short memory. You will have a trade blow up when swing trading; how you react determines how successful you can be as a swing trader in the long run. 

Want to learn more? Check out Benzinga’s guides to the best swing trading coursesbest online brokeragesfree stock trading and best stocks under $5.

Frequently Asked Questions

Q

Can you become wealthy swing trading?

1
Can you become wealthy swing trading?
asked
A
1

Swing trading can produce higher returns than the averages, but you must have a good strategy and be alert for changes.

answered
Q

How much do you need to start swing trading?

1
How much do you need to start swing trading?
asked
A
1

The best amount is between $5,000 and $10,000.

answered