10 Best Day Trading Stocks in Canada for May 2024

Are you looking to day trade but don’t know which equities in Canada to consider as suitable stocks?

Day trading is a tough undertaking. Across all day traders:

  • Almost 40% trade for only a month
  • 13% continue to trade for three years
  • 7% continue trading after five years

Characteristics of great day trading stocks include having high volatility, a low price per share, and good liquidity.

We will cover the best day trading stocks in Canada and outline some of their features below.

Tips on How to Start Day Trading

Day trading requires completing several steps in order to boost your chances of generating a profit.

These steps include:

  1. Planning your approach
  2. Opening an account
  3. Establishing a strategy
  4. Trading your stocks
  5. Reviewing your trades

Make sure to check out our in-depth guide on how to day trade in Canada.

Day Trading – Be Aware of the Risks

Investing is always best approached as a long-term endeavour. Attempting to day trade stocks involves several additional risks, on top of the risks involved with regular investing.

It is important to understand that most day traders are unsuccessful at generating a profit after all costs and fees are considered. Unless you have specialized trading skills or approaches to help increase your odds, the chance of successfully day trading long-term is very low.

Some risks to consider include:

  • High trading costs as a result of frequent trading. To access commission-free trading, we recommend Wealthsimple Trade.
  • Substantial time investment is needed for research, planning trades, and executing trades
  • Potentially high losses if trading aggressively
  • Stocks that are good candidates for day trading are also prone to market manipulation or schemes (i.e. penny stocks)

Long-term investing through a well-built portfolio carries fewer risks than short-term trading and is the approach we recommend taking.

Day Trading Strategies

Successful day trading is not just about selecting the right stocks or having a good platform; it’s also about having a well-thought-out strategy. Here are some popular day trading strategies that traders use:

  1. Momentum Trading: This involves buying stocks that are moving in a particular direction (usually up) on high volume and trying to take advantage of the momentum before it slows down or reverses.
  2. Breakout Trading: Traders using this strategy will buy stocks that are breaking out from a previous trading range, hoping that the momentum continues.
  3. Pullback or Retracement: This strategy involves waiting for a stock that has been trending in one direction to reverse briefly before rejoining the original trend. The trader takes a position during the pullback.
  4. Scalping: A strategy where the trader makes many small trades throughout the day, aiming to capitalize on tiny price gaps that are usually created by bid-ask spreads or order flows.
  5. News-based Trading: This entails trading based on news releases. Stocks can be volatile after certain news, like earnings reports or regulatory changes, and traders try to capitalize on the predictable movements following such news.
  6. Technical Analysis: Many day traders rely on technical indicators like moving averages, RSI, and MACD to make trading decisions. Patterns in these indicators can suggest potential stock movements.

Remember, no matter which strategy you choose, it’s crucial to manage your risks. This can involve setting stop-loss orders, only risking a small percentage of your portfolio on any single trade, and constantly educating yourself on both the market and the strategy you’re using. The key is consistency and discipline in your approach.

The Best Day Trading Stocks in Canada

  • Canopy Growth Corporation (WEED.TO)
  • Athabasca Oil Corporation (ATH.TO)
  • Aurora Cannabis Inc. (ACB.TO)
  • Hut 8 Mining Corp (HUT.TO)
  • Ensign Energy Services Inc. (ESI.TO)
  • Bitfarms Ltd. (BITF.TO)
  • Baytex Energy Corp. (BTE.TO)
  • Crescent Point Energy Corp. (CPG.TO)
  • Whitecap Resources Inc. (WCP.TO)
  • Exro Technologies Inc. (EXRO.TO)

1. Canopy Growth Corporation

  • Ticker: WEED.TO
  • Size: Small Cap 
  • Valuation: Value
  • Forward Dividend Yield: 4.80%
  • Market Cap: $430.06 Million
  • Forward P/E Ratio: -3.75

Canopy Growth was once a Canadian cannabis darling, reaching a share price of just under $70 back in 2018. In April 2019, it was the world’s largest cannabis company based on market capitalization.

Canopy is focused on promoting its brand and focusing on a more premium-quality product.

The company is also focused on expanding its medical cannabis offering, especially here in Canada and in Israel, Australia, and Germany.

With very high volatility and low share price, Canopy Growth is a good choice as a Canadian day trading candidate.

2. Athabasca Oil Corporation

Athabasca Logo
  • Ticker: ATH.TO
  • Size: Small Cap
  • Valuation: Value
  • Forward Dividend Yield: 8.10%
  • Market Cap: $2.49 Billion
  • Forward P/E Ratio: 9.26

Athabasca is a Canadian oil company involved in some of the most active resource plays in the country. These include Montney, Duvernay, and Oil Sands.

The company focuses, in particular, on thermal oil and light oil. It has low levels of net debt and is focusing 100% of its free cash flow on reducing debt in the short term.

ATH currently trades at a low share price and is more than twice as volatile as the broad Canadian market. The stock is a good option to consider for day trading.

3. Aurora Cannabis Inc.

Aurora Cannabis Stock
  • Ticker: ACB.TO
  • Size: Small Cap
  • Valuation: Value
  • Forward Dividend Yield: N/A
  • Market Cap: $289.06 Million
  • Forward P/E Ratio: -17.67

Aurora Cannabis is a relatively large cannabinoid company headquartered in Edmonton, Alberta.

The company is involved in both medical and consumer markets. Aurora’s three key market segments are:

  1. Canadian, EU, and select global medical cannabis markets
  2. Canadian recreational Cannabis market
  3. US hemp-derived CBD market

Aurora has done a great job of vertically integrating the company from cultivation to wholesale distribution.

ACB stock is very volatile – almost three times as volatile as the broad Canadian market. Combined with its low share price, it is a great stock to consider for day trading.

4. Hut 8 Mining Corp

  • Ticker: HUT.TO
  • Size: Small Cap
  • Valuation: Growth
  • Forward Dividend Yield: N/A
  • Market Cap: $1.03 Billion
  • Forward P/E Ratio: -9.11

Hut 8 is a Canadian company focused on digital asset mining with two mining sites in Southern Alberta and one in North Bay, Ontario.

Within the digital asset industry, Hut 8 has one of the highest capacity rates and inventories of self-mined Bitcoin. Hut 8 was the first blockchain company that was added to the S&P/TSX Composite Index.

The company’s share price is closely tied to the price of Bitcoin.

HUT shares trade at a low price and are more than three times as volatile as the broad Canadian market. This makes them a good choice to consider for day trading.

5. Ensign Energy Services Inc.

Ensign Energy Services Inc Logo
  • Ticker: ESI.TO
  • Size: Small Cap
  • Valuation: Value
  • Forward Dividend Yield: 42.86%
  • Market Cap: $390.96 Million
  • Forward P/E Ratio: 6.45

Ensign Energy is a natural gas company focused on providing oilfield services. Over time, the company has grown to be one of the largest and most technologically advanced oilfield service providers.

Ensign’s services include:

  • Contract drilling
  • Directional drilling
  • Underbalanced and managed pressure drilling
  • Rental equipment
  • Well servicing

The company operates in Canada, the US, Latin America, Australia, and the Middle East. Ensign currently has a low share price and is almost three times as volatile as the Canadian market.

Ensign’s stock features make it attractive from a day trading perspective.

6. Bitfarms Ltd.

  • Ticker: BITF.TO
  • Size: Small Cap
  • Valuation: Core
  • Forward Dividend Yield: N/A
  • Market Cap: $1.31 Billion
  • Forward P/E Ratio: 18.5

Bitfarms is a global company whose operations focus on mining Bitcoin. Founded in 2017, the company currently has approximately 44,000 miners across 10 farms in 4 countries.

Operations span across Canada, the US, Argentina, and Paraguay. Bitfarms focuses on using hydroelectricity and locally-sourced natural gas to keep its costs and environmental impact low.

Bitfarms LTD
Source: www.bitfarms.com

The company currently holds over 2000 Bitcoin and mines roughly 17 Bitcoin per day. The cost of mining one Bitcoin is roughly $9,900, well below the current market price.

Bitfarms’ share price and volatility make it attractive for day trading purposes.

7. Baytex Energy Corp.

Baytex Stock Logo
  • Ticker: BTE.TO
  • Size: Mid Cap
  • Valuation: Value
  • Forward Dividend Yield: 1.49%
  • Market Cap: $3.59 Billion
  • Forward P/E Ratio: 4.72

Baytex Energy is an energy company based in Calgary, Alberta. The company focuses on acquiring, producing, and producing crude oil and natural gas and has been in operation since 1993.

The company’s current operations, or key oil plays, are very high rate-of-return projects. These projects can be found in Saskatchewan, Texas, and Alberta.

Light oil is one of the key focuses for Baytex. More recently, the company has aggressively focused on retiring or extending debt.

With more than three times the volatility of the broad Canadian market and a low share price, Baytex may be a good stock to consider day trading.

8. Crescent Point Energy Corp.

Crescent Point Energy Corp. Logo
  • Ticker: CPG.TO
  • Size: Mid Cap
  • Valuation: Value
  • Forward Dividend Yield: 3.52%
  • Dividend Payout Ratio: 47.37%
  • Dividend Yield (12-Month Trailing): 4.35%
  • Upcoming Dividend Date: Jan 02, 2024
  • Market Cap: $5.41 Billion
  • Forward P/E Ratio: 6.35

Based in Calgary, Alberta, Crescent Point Energy is an oil and gas company. Crescent focuses mainly on producing light oil in parts of Alberta and Saskatchewan.

Crescent estimates 2022 production to be around:

  • 20% Medium Oil
  • 60% Light Oil
  • 20% Condensate

Since oil and energy prices have been trending upwards recently, the company is aiming to begin reducing its hedging in the future.

Crescent places a strong emphasis on ESG, which is a part of its decision-making process.

The company’s shares trade at a low price and are very volatile, making Crescent a good stock to consider for day trading.

9. Whitecap Resources Inc.

Whitecap Resources Inc
  • Ticker: WCP.TO
  • Size: Mid Cap
  • Valuation: Value
  • Forward Dividend Yield: 6.58%
  • Dividend Payout Ratio: 28.81%
  • Dividend Yield (12-Month Trailing): 6.21%
  • Upcoming Dividend Date: Feb 15, 2024
  • Market Cap: $5.21 Billion
  • Forward P/E Ratio: 6.83

Whitecap Resources is an energy company with operations in BC, Alberta, and Saskatchewan. The company has a light oil resource base and positions itself as a clean energy company.

One of Whitecap’s important objectives is to store more carbon dioxide than it emits corporately.

The company pays dividends to investors on a monthly basis which showcases that it has fairly stable cash flows.

Despite its cash flow stability, the company is highly impacted by changes in oil prices. Whitecap’s share price volatility and low price per share make it an attractive choice for day traders.

10. Exro Technologies Inc.

Exro Technologies Inc Logo
  • Ticker: EXRO.TO
  • Size: Small Cap
  • Valuation: Growth
  • Forward Dividend Yield: N/A
  • Market Cap: $144.52 Million
  • Forward P/E Ratio: -4.72

Exro Technologies offers software solutions that aid and expand the operations of electric motors and batteries. The company aims to minimize energy consumption and maximize results through its technology.

The core technology for the company includes:

  • Motor control
  • Battery control
  • Powertrain optimization
Exro Technologies Inc. Image 1
Source: www.files.exro.com

Given positive tailwinds from electrical vehicle and renewable energy adoption, Exro’s technology may have a widespread application going forward.

Currently, the company has a very low stock price and is more than twice as volatile as the Canadian market. This makes Exro a great candidate to consider for day trading.

Pros and Cons of Day Trading Stocks

Day trading stocks usually have three key criteria, as mentioned above.

  1. They are volatile, usually shown by a high beta or standard deviation
  2. They have a low price per share and low market capitalizations, making them easy to trade and accessible
  3. They are liquid, typically trading at a tight bid-ask spread
  • Potential high short-term returns if future price movements are guessed correctly
  • Investors in small-cap companies with low share prices are usually retail and they are more likely to be emotionally-driven
  • Less money is lost to the bid-ask spread when trading frequently
  • Can be potentially manipulated by large investors or traders
  • Likely excluded from a lot of funds and institutional portfolios due to riskiness
  • High volatility may be difficult to emotionally withstand

High volatility does not necessarily mean that a stock will outperform over the long term – a stock’s future growth usually depends on its growth prospects and future cash flows.

How to be a Better Day Trader

We recommend following three key tips in order to improve your day trading.

Master Technical Indicators

Technical indicators can help to guide your trading, especially in terms of determining entry and exit points. The ability to spot opportunities before others help to increase your chances of profitability.

Use Limit Orders

Limit orders are an important element in controlling your downside risk. If a trade begins to go against you, it is extremely important to have a pre-established exit point in order to prevent large losses.

Other helpful orders also exist – make sure to check the below video:

Review your Past Trades

Keeping a trade journal and learning from your past mistakes can help you to improve your day trading. Try to learn from both successful trades and unsuccessful trades and track how successful your trading is over time.

How To Buy Best Day Trading Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

Readers Choice
  • 105 commission-free ETFs to buy and sell
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  • Top-notch market research tools
  • Easy-to-use and stable platform 
Wealthsimple Trade
Low Fees
  • Stock and ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable fintech company
  • Fractional shares available
  • ETF buys have $0 trading fees
  • Excellent market research tools
  • Most types of registered accounts available

To learn more, check out my full breakdown of the best trading platforms in Canada here.


Best Day Trading Stocks in Canada

Some stocks are more suitable than others when it comes to trading them on a daily basis.

Ideal stocks to consider are volatile, have a tight bid-ask spread (good liquidity), and are small in market cap and share price. Before beginning to trade, make sure to take a look at our in-depth review of the best trading platforms in Canada.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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