Mastering Deriv Trading: Strategies and Insights for Successful Deriv Traders

Top stocks to day trade

There are many different ways to approach day trading, but commonly the best day-trading stocks are those that have big investor action behind them – which naturally can result in big one-day moves. Sometimes that involves a cult stock that day traders are clamoring to buy, and sometimes it's a troubled firm that a large number of short-sellers are betting against. But whatever the reason or the direction, there has to be the potential for volatility and high volume for any short-term investment to pay off.

With that in mind, the following three companies represent the best day-trading stocks by virtue of their massive daily trading volume:

Nvidia Corp. (NVDA)

90-Day average volume: 335 million shares daily

Market value: $3.3 trillion

After an already impressive 2024, semiconductor standout Nvidia remains one of the most liquid and popular investments on Wall Street to close out the year. This chipmaker is currently trading near all-time highs, and briefly surpassed Microsoft Corp. (MSFT) as the largest U.S. stock by market capitalization. Volume in both stock as well as options is red hot, and NVDA has posted amazing returns of more than 165% year to date and more than 2,700% over the last five years. With high expectations for AI, crypto mining and other applications that are heavily reliant on Nvidia hardware, this tech titan will remain a popular day-trading stock for the foreseeable future.

Palantir Technologies Inc. (PLTR)

90-Day average volume: 55 million shares daily

Market value: $97 billion

Palantir went public through a “direct listing” in 2020 that sidestepped the traditional IPO path, and has been a fixture of day traders ever since. Born out of a data analytics platform created in response to the terrorist attacks of 9/11, its “big data” platform has been widely used by the U.S. government as well as the private sector as a problem-solving tool for the modern age. And like NVDA, Palantir is one of the trendiest names when it comes to artificial intelligence as it uses AI to provide actionable recommendations based on client databases. With a great growth story and strong share momentum that includes a more than 150% appreciation over the last 12 months, PLTR will remain a day-trading stock to watch in 2025.

Nio Inc. (NIO)

90-Day average volume: 56 million shares daily

Market value: $13 billion

Though still operating deeply in the red, Nio is one of the hottest names on Wall Street thanks to continued interest in EV stocks – particularly the growth potential in China. Its output is currently much smaller than other leaders, as NIO delivered just over 20,000 vehicles for the month of August. But the reason it's so popular is that stat was up more than 130% over the prior year, showing the tremendous path to growth. Volume is incredibly strong, providing one of the most popular and liquid stocks for investors to get a direct play on the Chinese EV marketplace. Shares have declined since Jan. 1, but big interest hints that investors are closely watching Nio nevertheless.

Best options traders

Edward Thorp

While it‘s hard to make a ranking, it is possible that our top choice for the most successful options traders would be Edward Thorp. Known for revolutionizing gambling with his card-counting techniques (if you’re a blackjack fan, youre probably familiar with his strategy), Thorp also mastered the options trading market, achieving an astounding 20% annual return over 30 years. This feat places him among the most successful option traders in the world, if not the best option trader in the world.

Thorps secret to consistent profits in options trading is in his mathematical skills and understanding of probabilities. Thorp mentioned that the application of similar analytical rigor to the financial markets helped him identify mispriced assets where the odds were in his favor. He utilized the Kelly criterion to balance the trade-off between risk and return, ensuring that his investments were always optimized for the best possible outcome without overexposing himself to risk.

His approach to betting—whether at the blackjack table or on Wall Street—was always informed by hard data and mathematical models. This methodical approach set him apart from other traders and investors who often rely on gut feelings or market trends. Thorps discipline in sticking to his quantitative strategies, regardless of market conditions, underpins his success and longevity in the highly volatile arena of options trading.

For readers looking to understand what it takes to be among the most successful options traders in the world, Thorp‘s career often relied on the power of mathematics, rigorous analysis, and strategic risk management. His story emphasizes that, with the right approach, it’s possible to beat the market and consistently achieve remarkable returns over time.

Warren Buffett

While most people generally associate Warren Buffett with traditional investments in stocks and real estate, few are aware that he is also among the most successful options traders. Yes, the Oracle of Omaha applies strategies in the options market that many wouldnt expect from a man of his investment philosophy. A prime example of this is his use of cash-secured puts to lower the cost of stock purchases.

If you‘re eyeing a stock at a favorable price, the usual strategy would involve analyzing trends and setting a limit order based on your findings. However, Buffett’s approach often relies on cash-secured puts. This technique basically requires selling put options (such as those that you may find on our options screener) at a desired bottom price and collecting premiums upfront. If the option gets exercised, the acquisition cost for the stock then becomes the strike price minus the option premium.

Let us give you an example of how Warren Buffetts used options to earn a profit in the past with Coca-Cola back in 1993. In this deal, Buffett, having been a significant shareholder since 1988, sold 5 million put options at a strike price reflecting his target purchase price, netting him $7.5 million in premiums. The stock never dipped to trigger a purchase, and the strategy allowed him to profit from the premiums.

He did something similar in 2008, during the financial crisis. While most investors were facing massive losses, Buffetts use of cash-secured puts gave him a premium income of $4.9 billion.

Synthetic Indices

Synthetic indices are a type of financial instrument that simulates real market conditions but without being influenced by actual economic events. They are often used by traders to practice strategies and trade on price movements without the unpredictability of real-world market factors. These indices are ideal for testing trading techniques due to their 24/7 availability and stable volatility patterns, providing consistency that can be attractive to both novice and seasoned traders.

Merrill Lynch Trading Platform

The Merrill Lynch trading platform, now part of Bank of America, offers a comprehensive suite of tools for both beginner and advanced traders. With robust research capabilities, portfolio management tools, and integration with banking services, Merrill Lynch provides a well-rounded platform for investors. Its platform includes advanced charting, customizable dashboards, and access to professional-grade market data, having it suitable for various trading and investing strategies.

Trig Derivatives List

The trig derivatives list refers to financial products derived from trigonometric functions. These derivatives are used in complex financial models to value options and other instruments. They help in understanding the sensitivity of the options price to changes in market conditions. Traders and quants use trig-based models to assess risk and predict price movements in derivative markets, particularly in fields like quantitative finance.

TD Ameritrade Brokerage Services

TD Ameritrade brokerage services are well-known for providing a range of products and features to cater to both beginners and advanced traders. TD Ameritrade offers commission-free trading on stocks and ETFs, a user-friendly platform, and access to powerful research tools. It also supports options trading, futures, and forex, with education resources and professional guidance, having it a go-to choice for many investors.

Best Stocks for Beginners with Little Money

For those new to investing with limited funds, focusing on best stocks for beginners with little money can help build a strong foundation. Look for companies with consistent growth, low volatility, and strong fundamentals. Stocks such as blue-chip companies or those offering fractional shares allow new investors to start small and gradually build their portfolios. Dividend-paying stocks are also good options, as they provide regular income even in small amounts.

Trading Securities

Trading securities refers to the buying and selling of financial instruments like stocks, bonds, and options with the intent of having short-term gains. These securities are typically held for shorter periods and are subject to market fluctuations. Active traders monitor price changes and market news closely to capitalize on volatility. Trading securities requires a good understanding of market dynamics and risk management strategies.

What to Look for When Investing in Stocks

When it comes to what to look for when investing in stocks, investors should evaluate several factors:

1. Company fundamentals: Look at earnings, revenue growth, and balance sheets.

2. Valuation: Compare a stocks price-to-earnings (P/E) ratio with its peers to assess if it's overpriced or undervalued.

3. Industry trends: Understanding the broader industry and how the company fits within that context can provide insights into future performance.

4. Management: Strong, experienced leadership can be a key driver of company success.

5. Dividends and payouts: For long-term investors, companies that consistently pay dividends can offer added stability.

Share Price Tips

When evaluating share price tips, consider technical analysis tools like moving averages, price-to-earnings ratios, and volume trends. Be aware of the market‘s reaction to news events and earnings reports. It’s also important to avoid emotional trading based on hype, instead focusing on longer-term value and potential growth. Setting price targets and using stop-loss orders can help protect your investments from excessive losses.

How Can I Trade Online？

Trading online has become more accessible than ever, allowing individuals to buy and sell stocks, options, and other financial instruments through brokerage platforms. To start, you need to open a brokerage account, deposit funds, and access a trading platform. Most online brokers provide easy-to-use interfaces for placing orders and conducting research. Additionally, you can trade various assets, including stocks, forex, and cryptocurrencies, depending on the broker you choose. Some popular brokers offer educational resources and demo accounts, allowing beginners to learn without risking real money.

There are several trading programs free of charge that provide valuable tools for both beginner and experienced traders. Platforms like MetaTrader, ThinkorSwim (from TD Ameritrade), and TradingView offer free charting, technical analysis tools, and market data. These programs can be used to develop strategies, backtest ideas, and monitor market trends in real time. Free trading programs help reduce costs while still offering robust functionality for having informed trading decisions.

A mobile trading platform allows traders to monitor the market and place trades from their smartphones or tablets. Platforms such as TD Ameritrade's ThinkorSwim, Robinhood, and TRADE have user-friendly mobile applications that offer full functionality, from chart analysis to live news feeds. The convenience of mobile trading means you can react quickly to market changes and manage your portfolio from anywhere at any time.

For options traders, live options recommendations can be valuable in having timely decisions. Many brokerage platforms provide real-time option alerts, analysis, and expert recommendations. Platforms like TRADE and ThinkorSwim feature options scanners and strategy analysis tools that help identify potential trades, such as covered calls, straddles, or credit spreads, based on current market conditions.

Choosing the best brokerage accounts for beginners is key to starting on the right foot. Look for brokers that offer low fees, user-friendly platforms, and educational resources. Some of the top options include Robinhood, TD Ameritrade, and Charles Schwab. These brokers often offer commission-free trades on stocks and ETFs, and some provide robust educational materials to help beginners build their knowledge and confidence.

Trading for beginners requires a solid understanding of basic market principles and strategies. Start by learning the fundamentals, such as how the stock market works, different types of orders (market, limit, stop-loss), and risk management techniques. Beginner traders should focus on easy strategies and avoid high-risk trades like leveraged products. Many brokers offer paper trading or demo accounts where beginners can practice without risking real money, which is an excellent way to build confidence.

Stock day trading strategies involve buying and selling stocks within the same trading day to capitalize on short-term price movements. Common strategies include scalping, where traders make small profits from many quick trades, and momentum trading, which involves buying stocks that are moving strongly in one direction. Successful day traders rely on technical analysis, volume indicators, and real-time news to make split-second decisions. It's important to have a clear plan and to set entry and exit points before placing trades.

The fastest brokerage is essential for day traders, as speed and execution time can significantly impact profitability. Brokers like Interactive Brokers, TD Ameritrade, and Charles Schwab are known for their fast execution times and low-latency platforms. For day trading, where milliseconds can make a difference, selecting a brokerage with robust infrastructure is crucial for minimizing slippage and maximizing profits.

Day trading is highly competitive and requires discipline, preparation, and a solid strategy. Here are some essential day trading tips:

Start small: Trade with smaller amounts until youre confident with your strategy.

Use stop-loss orders: Protect your trades by setting automatic exits to minimize losses.

Stay informed: Follow news and market trends that could affect stock prices.

Manage risk: Never risk more than you can afford to lose, and only trade with a small percentage of your total capital.

Keep emotions in check: Avoid emotional decision-having by sticking to your trading plan.

The best trading platform for day traders offers fast execution, low fees, and advanced tools for technical analysis. Platforms like ThinkorSwim, Interactive Brokers, and Lightspeed Trading are highly recommended for day traders. These platforms provide real-time data, advanced charting tools, and the ability to execute trades quickly, which is critical for short-term trading success.

For new traders, best stock trading software for beginners should be easy to navigate and offer educational resources. Robinhood is a popular choice because of its simplicity and commission-free trading. Other platforms like TD Ameritrades ThinkorSwim or E*TRADE provide more advanced tools while also offering educational features, having them excellent choices for beginners who want to grow into more sophisticated trading strategies.

Top American Forex Brokers

Foreign exchange (forex) traders have access to the largest and most liquid market in the world, 24 hours a day, five days a week. The best forex brokers operate under strict regulatory supervision, offer robust research and analytical tools, provide access to a wide range of assets, deliver strong customer support, and more—all while maintaining competitive, transparent pricing.

After hundreds of hours of comprehensive research, data analysis, and hands-on platform evaluations, we rate IG as our best overall forex brokerage platform for investors due to its numerous regulatory licenses across the globe, expansive product offering, superb trading experience, and exceptional educational resources. IG is just one of 18 forex brokers that we evaluated based on 73 criteria crucial to the success of forex traders.

Forex Trading

Forex trading involves buying and selling currency pairs on the global currency market. It is the largest financial market in the world, with trillions of dollars exchanged daily. For U.S.-based traders, the most important factor is ensuring they choose a broker that is compliant with U.S. regulations. Forex trading can be highly profitable, but it comes with risks, and picking a broker with reliable service and solid security is the first step to managing those risks.

Forex Trading TD Ameritrade

One of the leading names in the American financial landscape, TD Ameritrade, offers an extensive forex trading platform tailored for both beginners and seasoned traders. TD Ameritrades trading platform, thinkorswim, provides robust tools for forex traders. It includes access to 70+ currency pairs, advanced charting capabilities, and a wide range of educational resources, having it an ideal choice for those looking to dive into forex trading. The broker is also regulated by top-tier U.S. authorities, adding an extra layer of security for traders.

MetaTrader 4 Brokers

MetaTrader 4 (MT4) is one of the most popular trading platforms worldwide, known for its advanced charting features, automated trading via Expert Advisors (EAs), and a customizable interface. While some American brokers offer proprietary platforms, many also provide access to MT4 due to its global recognition and ease of use. Brokers like OANDA and IG provide MT4 support for U.S. clients, combining the platform's versatility with their brokerage services. MT4's popularity is largely due to its user-friendly nature, which caters to both beginner and experienced traders.

Forex Brokers Accepting U.S. Clients

Finding forex brokers accepting U.S. clients can be tricky due to stringent regulations from bodies like the Commodity Futures Trading Commission (CFTC) and the **National Futures Association (NFA)**. These regulatory authorities impose strict requirements on brokers offering services to U.S.-based traders. However, top forex brokers like Forex.com, OANDA, and IG are regulated and accept U.S. clients. These brokers offer tight spreads, competitive fees, and a wide range of forex pairs, ensuring a safe and transparent trading experience.

Currency Options Brokers

Currency options give traders the right, but not the obligation, to buy or sell a currency pair at a predetermined price. Brokers like Nadex (North American Derivatives Exchange) and IG are among the best in offering forex options trading. Nadex is particularly well-known for its range of short-term, low-risk options contracts, having it a popular choice for U.S.-based options traders.

Forex Trading Platform for Beginners

For those new to forex trading, choosing a platform that offers ease of use, educational resources, and a straightforward interface is vital. Forex.com and TD Ameritrades thinkorswim platform are often recommended for beginners due to their comprehensive support, educational tools, and demo accounts that allow traders to practice without risking real money. OANDA is also beginner-friendly, offering an intuitive platform and plenty of learning materials to help new traders get started with confidence.

Forex Brokers with High Leverage

While U.S. regulations limit the maximum leverage for forex trading to 50:1 on major currency pairs and 20:1 on minor pairs, some offshore brokers may offer much higher leverage. However, for U.S. traders, staying with regulated brokers like Forex.com, OANDA, or IG is advisable, as they adhere to the safe leverage limits set by U.S. regulators. High leverage can amplify profits, but it also increases risks, having it essential for traders to use it cautiously.

Forex Currency Trading Software

Forex brokers often provide proprietary or third-party trading software to enhance the trading experience. Platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader are widely used by forex traders globally for their robust features, including automated trading and advanced technical analysis tools. For U.S.-based traders, TD Ameritrade's thinkorswim, OANDA‘s proprietary platform, and IG’s web-based platform are also excellent options, combining powerful analytics with a user-friendly interface.

List of Regulated Forex Brokers

U.S. regulations for forex brokers are some of the strictest globally, ensuring that only reliable and trustworthy brokers can offer their services. Here is a list of some of the most reputable and regulated forex brokers in the United States:

These brokers provide transparency, competitive spreads, and access to a broad range of currency pairs, having them ideal choices for U.S. traders.

Forex Account

Opening a forex account in the U.S. requires selecting a regulated broker, completing the necessary paperwork, and verifying identity as per Know Your Customer (KYC) regulations. Forex brokers like Forex.com, OANDA, and TD Ameritrade offer seamless account opening processes, allowing traders to start trading forex within a short time. Traders can choose between different types of accounts, including standard, mini, and demo accounts, depending on their trading goals and experience level.