What are good "trending" stocks for day trading? What I mean is stocks with: good volume, tight spread, and has a lot of sustainable intraday trends?
1) The larger-cap, higher volume, tech stocks. 2) You could merely just trade the eMini S&P and not waste your time "hunting" for stocks to trade.
I have spent the last several years trading the E-minis. Then while testing out my strategy on plain stocks to see how robust it was I discovered something. Some individual stocks had very strong tendencies.. such as some would trend intraday very well.. some would chop back and forth all day... etc... Trying to fit my trending strategy to a market such as S&P emini that on some days trends well others chops.. and some chops and trends... seems like a wasted effort... When i can just find stocks that fit the PROFILE that my strategy excels at. Why fit a square peg in a round hole when there are tons of stocks with round holes or mostly round holes out there..
1) Fair enough. 2) Ultimately, whatever you trade will "trend" and "chop". 3) Will your strategy really identify a higher than normal percentage of "trendy" days AND will you earn more money trading those stocks compared to just trading the same instrument day after day? 4) Is it really worth it to engage in that "hunt"? 5) Larger-cap stocks that are components of the S&P-500 are more likely to correlate to the index because of indexation buying. 6) You may find "better" stocks to trade among non-indexed issues.