Top 10 Best Canadian Dividend Stocks To Buy

Top 10 Best Canadian Dividend Stocks - Very Diverse across multiple industries and sectors

If you are looking to invest in high dividend paying Canadian stocks, then you are in the right place.

This article will bring your out Top 10 Best Canadian Dividend stocks from the perspective of an investor looking to diversify their geographical exposure.

Is It Worth Investing in Canadian Dividend Stocks

If you are hailing from Ontario, British Columbia, Quebec or Alberta provinces you may be browsing online financial publication in search of Canadian investment opportunities.

I know this because I have had the questions live on this very blog Successfultradings.com from such readers north of the border.

I take this opportunity to greet the other regions as well as the readership of this blog is not limited to just the ones above.

So, Saskatchewan, Manitoba, Nova Scotia, Newfoundland and Labrador as well as New Brunswick residents, I appreciate all your support.

Top 10 Best Canadian Dividend Stocks - Successfultradings.com readership in Canada by province
Ontario, British Columbia, Quebec and Alberta account for 95% of Successfultradings.com readership in Canada

Or simply, you are seeking for geographical diversification into your already existing portfolio.

Whatever circumstances led you to this article, I will try to provide enough insights into the Top 10 Best Canadian Dividend stocks.

Where Do you Buy Canadian Dividend Stocks ?

I know first hand how difficult it may be for Canadian based traders to get access to reliable brokers without paying for hefty fees.

I have helped many traders in trying to create US based investing accounts with the leading platforms but some restrictions still make it diffucult or near impossible.

Therefore, if at all possible, it may be best to evaluate your frequency of trade to determine if it will be best to access the New York stock Excahnge or the local Toronto one.

The one good thing about modern investing is that company have listing globally so the best opportunities can be accessed by all investors regardless of their location.

Best Canadian Dividend Stocks To Buy in 2021

Given the above observation, I compiled all available dividend stocks on the US stock market.

As of this writing, there exactly 66.

To answer the question about the value of these Canadian dividend stock, let us scrutinize the following statistics.

The sectors distribution is the first noticeable fact in this list of best Canadian stocks to buy and hold forever.

Financials account for the majority at 40%.

Then comes the Energy sector at 18% while basic materials (13.45) and Industrials (12.6%) complete the Top 4.

Top 10 Best Canadian Dividend Stocks - Summary by Sectors, Market Cap and Industries
Large Caps are Top of the List for Best Canadian Dividend Stocks

The main takeaway is the diversity across a wide range of industries.

This means that depending on your personal investment goals and preferences, you can easily find suitable assets to buy your portfolio on.

Even more important is the fact that these companies are mostly large Caps thus they are very reliable with a proven record of financial results.

Highest Paying Dividend Stocks in Canada

Typically, investors tend to contrast growth stocks with dividend stocks.

However, in the case of these leading stocks from Canada, we can see that it is possible to get the best of both worlds.

Meaning, they provide both value and growth as depicted in the view below.

Top 10 Best Canadian Dividend Stocks - Performance Comparison with SPY over recent year put these Canadian stocks ahead
Top Canadian Dividend Stocks outperformed SPY over Last year

The chart above is comparing the basket of all top Canadian Dividend stocks to the S&P 500 or its Exchange Traded Fund SPY.

While the average dividend comes in at 3.18%, the performance over the one year period of 38.6% is quite attractive.

Even better, the PEG (Price to Earning Growth ) flashes a nice 1.65.

We know well that past performance alone is not indicative of future performance thus the EPS over the next year of 11.54% or even further over the next % years at 11% is worth your attention.

It is from this pool of stocks that we are going to pick the Top 10 Best Canadian Dividend stocks.

Our hope is that we will be updating this information over the years to include better opportunities.

In the meantime, no matter when you are reading this article, you be able to enjoy the most recent quotes for each one of these stocks.

The charts below are interactive s that you can change the timeframes to visualize them over any period of time you so elect.

Enbridge Inc | ENB.TOR

Starting with Enbridge In, our #1 Top Best Canadian Dividend stock, we will provide excerpt overview from Finviz.com describing the activities for each company.

ENQ Stock Sectors of Activity

Enbridge Inc. operates as an energy infrastructure company.

The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream,

Gas Distribution and Storage, Renewable Power Generation, and Energy Services.

The Liquids Pipelines segment operates pipelines and related terminals to transport various

grades of crude oil and other liquid hydrocarbons in Canada and the United States.

The Gas Transmission and Midstream segment invests in natural gas

and gathering and processing facilities in Canada and the United States.

The Gas Distribution and Storage segment is involved in natural gas utility

operations serving residential, commercial, and industrial customers in

as well as natural gas distribution and energy transportation activities in Quebec.

The Renewable Power Generation segment operates power generating assets, such as wind, solar,

 geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe.

The Energy Services segment provides energy marketing services to refiners, producers, and other

customers; and physical commodity marketing and logistical services in Canada and the United States.

ENQ Stock History

The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998.

Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

Summary on ENQ Dividend Yield

Current Dividend: 6.6%

What I like:

This stock has been very resilient even in recent pandemic era. It only breached below its 200 moving average once in early 2020.

What To Look For:

Return to increasing Sales growth at the cadence of 2016 to 2020 before the pandemic.

The number of outstanding shares has been ramping up over the last past 5 years.

Should this number stabilize, more investors may begin to come on-board.

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Finviz is a great tool for both fundamental and technical traders. In this tutorial, we will show you our step-by-step guide on How to Use Finviz for Penny Stocks analysis. How To Use Finviz for Penny Stocks | Finviz Overview Finviz is a web based platform for traders who want to leverage fundamental and technical analysis for help with their investing or trading. Elite Features It comes with a free version accessible to all and a paid version know as …

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Pembina Pipeline Corporation | PBA.TOR

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 3.1 millions of barrels of oil equivalent per day, ground storage of 11 millions of barrels, and rail terminalling capacity of approximately 145 thousands of barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousands of barrels per day of NGL fractionation capacity, 21 millions of barrels of cavern storage capacity, and associated pipeline and rail terminalling facilities. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.

Summary on PBA Dividend Yield

Current Dividend: 6.1%

What I Like:

The price of this stock is still very affordable in the low 30’s.

What To Look Forward to :

The next 5year EPS is projected to be be over 24%.

Plenty of room for growth for this small size company of less than 2700 employees.

BCE Inc. | BCE

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services. The Bell Wireline segment provides data, including Internet access and Internet protocol television; and local telephone, long distance, satellite TV service, and connectivity, as well as other communications services and products. This segment also buys and sells local telephone, long distance, data, and other services from or to resellers, and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, and streaming services; and digital media, radio broadcasting, out-of-home advertising services. It owns and operates approximately 35 conventional TV stations; 27 specialty and four Pay TV channels; 3 direct-to-consumer streaming services; 109 licensed radio stations; and websites. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

Current Dividend: 5.7%

What I Like:

For a company that has been around before the 1900’s, one can only infer the robustness of its business model.

What To Look Forward To:

The telecommunications industries is about to enter an era of growth with tons of innovations brought forth by the expansion of 5G Technologies.

Video Summary of the Article

Top 10 Best Canadian Dividend Stocks Video

TC Energy Corporation | TRP.TOR

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage segments. The company builds and operates 93,400 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. In addition, it has approximately 4,900 km liquids pipeline system that connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. Further, the company owns or has interests in seven power generation facilities with a combined capacity of approximately 4,200 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Quebec, and New Brunswick; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage capacity in Alberta. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.

Current Dividend : 5.5%

The Bank Of Nova Scotia | BNS

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Banking and Markets, and Global Wealth Management segments. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small businesses and commercial customers, including automotive financing solutions to dealers and their customers. It also provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds. In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers. Further, it provides Internet, mobile, and telephone banking services. The company operates a network of 952 branches and approximately 3,540 automated banking machines in Canada; and approximately 1,400 branches, 5,200 ATMs, and 22 contact centers internationally. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

Current Yearly Dividend: 4.7%

Manulife Financial Corporation | MFC

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; And Corporate and Other segments. The Wealth and Asset Management Businesses segment provides mutual funds and exchange-traded funds, group retirement and savings products, and institutional asset management services through agents and brokers affiliated with the company, securities brokerage firms, and financial advisors pension plan consultants and banks. The Insurance and Annuity Products segment offers deposit and credit products; individual life, and individual and group long-term care insurance; and guaranteed and partially guaranteed annuity products through insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in property and casualty insurance and reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. It also manages timberland and agricultural portfolios; and engages in insurance agency, portfolio and mutual fund management, mutual fund dealer, life and financial reinsurance, and fund management businesses. Additionally, the company holds and manages oil and gas properties; holds oil and gas royalties, and foreign bonds and equities; and provides investment management, counseling, advisory, and dealer services. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.

Algonquin Power & Utilities Corp. | AQN

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada, the United States, Chile, and Bermuda. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately 2.1 gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 306,000 electric connections; 371,000 natural gas connections; and 409,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, New York, Arizona, Texas, and the Province of New Brunswick. The company was incorporated in 1988 and is headquartered in Oakville, Canada.

Summary on AQN Dividend Stock

Current Dividend: 4.5%

What I Like the Most about AQN Stock:

It is very cheap at $16 despite doubling over the last past 5 years.

What to Look For:

As the price breaks above $20, more institutions will start adding this steady Dividend provider into their portfolios which then will trigger even further growth.

TELUS Corporation | TU

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Wireless and Wireline segments. The Wireless segment offers a range of telecommunications products and services. Its wireless products and services include network revenue comprising data and voice; and equipment sales from mobile technologies. The Wireline segment includes data services revenues, such as internet protocol; television; hosting, managed information technology, and cloud-based services; customer care and business services; healthcare solutions; and home and business security, agriculture, voice, and other telecommunications services. It has 16.0 million subscriber connections, which include 9.0 million mobile phone subscribers; 1.8 million mobile connected device subscribers; 2.1 million internet subscribers; 1.2 million residential voice subscribers; 1.2 million TV subscribers; and 707,000 security subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was founded in 1993 and is headquartered in Vancouver, Canada.

Current Dividend: 4.5%

What I Like about TU Stock:

Almost $1 of Dividend for holding a $22 stock is very lucrative in an industry that is full of innovations in the future.

What To Look For:

Further acceleration of the yearly revenues numbers as the pandemic did not stifle the recent 5 year trend.

Canadian Natural Resources Limited | CNQ

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, SCO, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, SCO, and NGLs reserves were 13,271 MMbbl; proved natural gas reserves were 9,465 billion cubic feet (Bcf); and total proved plus probable natural gas reserves were 15,922 Bcf. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

Canadian Imperial Bank Of Commerce | CM

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. The company offers chequing, savings, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and credit cards, as well as overdraft protection services. It also provides day-to-day banking, borrowing and credit, investing and wealth, specialty, and international services; correspondent banking and online foreign exchange services; and cash management services. The company serves its customers through its banking centers, as well as direct, mobile, and remote channels. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

Summary on CM Dividend Stock

Current Dividend: 4.1%

What I Like about CM Stock:

After several years of consolidation, the stock recently broke above $100 and signal a turning point.

This type of growth will surely attract new investors into this high paying Canadian Dividend stock.

What To Look Forward To:

Further growth ahead with the technical indicators flashing all Green signs.

CONCLUSION

We presented the Top 10 Best Canadian dividend stocks with average yearly yield over 5%.

For a complete view of other opportunities, Feel free to download our complete Canadian Dividend Stock list below.

How To Profit From Meme Stocks Trading Frenzy

Are you looking to profit from the next meme stock to mirror the recent run of AMC, GME or WEN ?

Before you do, allow you me to take your through the recent stock market meme trend.

Are meme stocks trading a real opportunity for investors or a big distraction from more serious catalysis ?

How To Profit From Meme Stocks Trading

The word “meme” has a French root that means same, similar or identical.

A common French phrase that uses this word is “Je voudrais la meme chose” which translates to “I would like the same thing”.

From this definition, we can extend the definition of meme stock to copy cat stock.

In recent years, social media “memes” have become a source of entertainment and distraction.

The concept is about re-editing an image or small video to poke fun at someone or something.

How To Profit From Meme Stocks Trading Frenzy - Illustration of Buy and Hold Strategy vs Panic Selling
Famous Stock Market Meme | Buy and Hold Strategy vs. Panic Selling

The above stock market meme illustrates two different approaches to investing.

On the top, the buy and hold investors end up with a more luxurious boat than those who could not sustain the sell off and thus sold in panic to preserve their investments.

What Is a Meme Stock

Meme stocks are stocks that have gone through hard times and then staged massive rally because of speculative positions by bears and bulls.

The value of a stock is often derived from the fundamental of its operation as well as forward looking metrics.

So when a stock goes down like GME, you can understand it as future prospects of revenue, customer growth and ultimately profits are not too rosy.

Quite often the reason for this could be because the technology that company uses is outdated or the competition is just too fierce.

More commonly if a company sells a product that is not is high demand well that does not bode well for that company long term prospects.

Such was the case for GME and AMC stocks.

How To Profit From Meme Stocks Trading Frenzy - AMC and GME Weekly charts depicting high volatility in 2021
Super Volatile AMC and GME Stocks weekly Charts

The first one sells video games in a digitalized era where everything is available online at the fingertips on everybody.

The other one was hit by the pandemic that brought lifestyle changes with social distancing and all that ensued.

Very few people would venture into movie theaters albeit we all could have used the distraction during these trying times.

How did Meme Stock Frenzy Start ?

The description above does not address other force at play in the stock market.

And that is high level of specualtion.

You may be familiar with the more common buying speculation.

However, there is the bearish equivalent of that :

It is called short selling.

Short Selling Gone Wrong

Short selling consists of borrowing a stock from someone who has it and selling it in the open market.

Typically your broker owns stocks to facilitate transaction liquidity.

Imagine you study a company and think that its future is not looking all that good.

Your conclusion may that be for the above mentioned reason or else.

Your plan is to buy back the shares you sold at a much cheaper price later.

Then you will return the borrowed shares to the original owner.

To make it plain here is an example on how Short Selling works:

  • You borrow XYZ stock at $100 and sell it at that price in the Open stock market
  • Some time passes by and XYZ stock is trading at $80
  • You then buy it at $80 and return it to the person you borrowed it from
  • Your profit is ($100 – $80) = $20 not counting the Interest you paid to the lender

In case you are wondering, Short selling is perfectly a legal activity or investment technique.

Of course it is highly speculative.

Because what is the stock you short never goes down and instead start going up ?

Short Answer: Your Losses can be infinite.

Here is how.

High Short Interest on GME

Because you need to buy the stock back in the open market at whatever the going price is.

With your short position, the higher the stock goes the more you loose.

In the case of GME, a group of retail traders in reddit called r/WallStreetBets noticed that the volume of shorts was unusually high.

You can find the short interest on any stock using the Webull Analysis tab on the Webull App for instance.

Here is what it looks like for NVDA stock.

The data is published every two weeks along with the accompanying days to cover chart.

How To Profit From Meme Stocks Trading Frenzy - Tracking Short Interest and Days to Cover on Webull Analysis Report
Short Interest and Days To Cover Report | Webull App Analysis Report

The reddit r/WallStreetbets group got organized very quickly.

They propagated this inform through social media so that more traders could join their movement.

Their objective was to take on the short seller and force the later to covering at very high price for the stocks.

What ensued was an extraordinary rally that took GME stock from $65 to $483 in just 5 days of trading .

Basically, that was the birth of meme stocks.

Why Are Meme stocks Growing ?

Galvanized by this great success, these traders set their eyes on other stocks to duplicate the same results as on GME stock.

Remember how I used the word copy cat earlier at the beginning of this discussion ?

Now, it all make sense what has been transpiring in the the stock market meme where any stock has the potential to rally big based on short selling volume and the number of retail traders interested in it.

More and more retail traders are attracted by the dream of becoming millionaires through meme stocks.

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Why ?

Well , I failed to mention that the 52-week low for GME was $3.77 prior to that spike to $483.

This means that if you had $1000 invested in GME stock from $4, you would have multiplied that by up to 120 thus turning it to $100000 in less than a year.

This is the new Wallstreet dream for many.

This is the reason why so many on social media are joining the movement on a wide range of stocks whose fundamentals doe not command such high price.

Everyone is aware of its but in the name of speculation, money is being poured into these meme stocks day in an day out.

How To Identify Meme Stocks

In case you are just now joining the band wagon or wondering how you can get started, the following sections will definitely bring those answers.

Are all Meme Stocks Equal ?

My observations have been that not all meme stocks are equal.

I have seen a number of stock spike briefly but failed to sustain the rally GME or AMC stocks have had.

Therefore, you ought to keep that in mind as you partake in this endeavor.

Where To Find the Next Meme Stock

In trying to identify stock meme, I have come up with a simple detailed video.

The video Tutorial leverages the Finviz Screener.

You will learn how to setup very simple filters to help you decipher stocks opportunity within the stock market meme niche.

Here is a Time Stamp of the video to help through its navigation:

00:00 Intro of the video

01:38 Finviz Screener for Day Trading

03:07 How to trade Gangsta Trade

07:28 Finviz Screener For Swing Trading

11:12 Finviz Screener For Meme Stocks Trading

15:05 #SAVA Stocks

Our List of Best Meme Stocks For Month To Come

You can start by creating a watchlist of Meme Stocks from the results of your screening using the above video.

Here are some of the stocks we have in our Short squeze meme stocks.

My suggestion is to create intraday alerts for them such that you ready to day trade them whenever one of them starts trending.

How To Profit From Meme stocks Trading Frenzy - Watchlist of 2021 and Beyond stocks
2021 and Beyond Meme Stocks Watchlist | #WEN #SOS #MARA #GME #AMC #SPCE

Given the large volatility in these meme stocks, my daily alerts are set at least for 3-4% moves intraday.

By doing so, you will avoid some of the fake moves these stocks are known for.

Have you noticed how new meme stocks keep popping each week recently ?

The latest one to gain momentum is Wendy’s (Ticker WEN).

Should You Buy Wendy’s as a Meme Stock ?

Wendy’s stock trades in the consumer cyclical sector.

Provided the world does not come to an end, sooner or later , consumers will resume the previous habits.

Investors may then realize this and start rotating money in other assets that the proverbial technologies stocks.

How To Profit from meme stocks Trading Frenzy - #WEN Stock chart  is breaking out
Is Wendy’s (#WEN) Stock the Next Big Meme Stock ?

WEN is still very cheap below $25 as of this writing.

The recent breakout may just signal the beginning of a bigger run .

Even with these high flying meme stocks, patience remain key.

From the above fundamentals, the short float is still below 4% though those numbers will always lag.

My current stand on Wendy’s stock is to remain bullish as long as it is able to recapture the EMA8 above $25.

If not Wendy’s as the next great short squeeze, how a bout SOS ?

IS SOS Stock Ready Join AMC and GME in Meme Stocks HOF ?

I just started the study of this very cheap stock currently trading below $4.

I will be adding constant analysis in the near future to help answer this question.

In the meantime, we are tracking it in our Watchlsit so should you.

Best Ways To Invest In Meme Stock Market

It is one thing to follow great trends in the stock market yet it is another one to divert from your main investment objective.

We can think of bitcoin or dogecoin recent rallies and the fortunes they created for some.

However, I can not help wondering if this meme stocks trading Frenzy will not end up as a distraction.

Are you Missing Out on Other Investment Opportunities ?

While you be busy searching for the next AMC or GME stocks, other investments are still present in the stock market.

How does one ensure that that there is a fine balance between the newest trends and the goals of ones portfolio ?

This is the risk many are willing to embrace just like the early adopters of crypocurrencies.

There is never a guarantee in any type of investment especially in some of these companies that are not fundamentally sound at all.

Should You Buy Meme Stocks ?

I was reading this past week on a thread of RIOT stock the story of a trader buying in highs $70’s.

The stock is currently trading around $31.

Could you imagine the emotional Rollo coaster so many are willing to submit themselves to through these meme stocks ?

How do you hold onto meme stocks that can fluctuate 50% in intraday trading ?

In the example of RIOT stock, that trader need to stock to appreciate over 140% just to salvage the initial investment.

How To Profit from Meme stocks Trading Frenzy - RIOT Blockchain daily chart
RIOT Blockchain Stock is struggling to sustain Bullish from early February 2021

An Alternative Way To Trade Meme Stocks

A less expensive strategy to get involved in meme stocks trading frency is through the use of options trading.

Most of these stocks offer weekly options that are usually very cheap before the market makers raise the Implied volatitlity.

while most traders are busy buying the stocks, you can benefit by waiting for the usual ralliees to take place.

Then realize that these rallies often fizzle.

Therefore, taking the opposite direction with cheap puts is how I have been able to day trade and scalp on GME and AMC stock recenlty.

The advantage of this strategy is that it does not ahve to take to much of your trading capital.

Also, there is not need to constantly spend time on stocks chat forums looking for catalysts to take the stock higher.

You will be surprise how much money one can leveraging volatility in options trading in this meme stock market.

CONCLUSION

We shared hw the recent meme stocks trading frenzy is sweeping the stock market.

As an investor, you will have to stay disciplined in order to avoid this recent trend and potential distraction from your main trading objectives.

As a result, we offer an alternative to this meme stock market through option trading.

In case you are a beginner trader, I strongly encourage you to consider our Option Trading Education System so that you can equip yourself with solid knowledge to help take your trading to the next level.

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Best Intraday Trading Tips To Grow Your Account

Beginner and advanced Traders alike seek to maximize their day to day profits.

These Best intraday trading Tips will help you increase your gains while minimizing losses.

You will be able to apply them successfully into your existing trading strategies.

What Is Intraday Trading

Intraday Trading designates the time between the open and the closing of the market.

For US equities markets, intraday trading takes place from 930AM Eastern to 4pm Eastern for stocks.

MAjor ETFs such as SPY, QQQ or IWM allow for an extra 15 minutes of trading up to 415PM Eastern time.

That could be considered intraday trading hours.

The concept of intraday trading can be used in lieu of day trading.

When used in this context, it refers to a trade that the trader intends to close before the end of the closing session.

Why Is Intraday Trading Appealing ?

Stocks generally do not close at the highs or low of the day.

This means that a bullish stock can reach a very high value in intraday trading yet close well below that high calue.

Conversely, a bearish stock can reach a very low value in intraday session and find buyers towards the end of the day.

What this creates in an opportunity for traders to reach high levels of profit intrady day.

That is not the only advantage.

The other advantage is that by taking profit intraday, traders can benefit from a lower entry price the next day.

This is particularly frequent in options trading because the Theta decay will reduce the price of the options for each day that passes by.

Intraday Trading Tips - Example of Intraday Price Fluctuation on FDX Stock on April 13
Example of Intraday Trading Price Volatility | $4 difference between the Intraday High and the Closing Price on FDX stock on 4/14/21

Who should Consider Intraday Trading ?

The previous chart depicts a good example of Intraday price movement.

There was a $4 difference between the Intraday High on FeDEx stock and its closing price.

In most stock report, the recorded price is the price at the end of the day.

Thus it does not always capture the intraday highs and lows.

These variations provides a great deal of opportunities to day traders to can take advantage through stock trading or options trading.

Therefore, Intraday trading is mostly for day traders who can maximize their gains

You should know that you may be limited in a number of day trades you can execute based on the size of your account.

How To Overcome Pattern Day Trader In Small Account

FINRA has a Day Trader Pattern rule that prohibit any account with less than $25000 form executing more than 3 day trades in a 5 day window.

This can become very restrictive for some samll account traders.

How so ?

Imagine you are making a great profit on a trade but unfortunately you ran out of day trades.

Remember, you are only entitled to 3 such trades in a 5 consecutive days.

Well, most traders will not be able to cose that position and record profit.

Just to come the next day and see the profits completely wiped out because the stock has moved in the opposite direction.

There is a fix for this problem.

Call you broker and transform your account from Margin account to Cash Only account.

How To Avoid Losses in Intraday Trading

It is a well known fact that the most successful traders have mastered the art of minimizing their losses.

Contrary to popular belief, great traders often take a lot of losses.

However, those losses are small enough so that they do not impact to stay in the game.

Half of the battle of retail traders with small account is having enough money to trade the next day, the next week or the next month.

This is the main reason reason why only a small percentage of traders make it to consistently genrating profit.

Let’s examine below some intraday trading tips to help you reduce the impact of your losses.

Intraday Trading Tip # 1 | Respect the Intraday Trading Clock

Intraday trading is full with misdirections.

This means that stocks often can “fake” going into one direction and then reverse to go the opporsite direction.

How can traders keep up with such violent moves ?

Solution # 1.

What follows so important for beginner traders.

Allow me to introduce the concept of the trading clock.

These are intraday trading windows during which the market as a whole provides opportunities to make and lose money.

Intraday Trading Tips To Grow your Account - US Market Trading Clock
US Market Trading Clock

I am not suggesting that every single one of the 7000+ stocks follows this intraday trading clock each day.

However, based on my observations, most stocks have the proclivity to move according to the above table.

From the opening bell in new York at 930AM Eastern time to 11AM-11:35 am EST is the best window of opportunities to make money.

Most stock will move in this first intraday window according to the momentum generated by the thug of war between the bulls and the bears.

Dax Closing In Germany is Bullish

The 11:35AM is not just a random time incase you may be wondering.

That is the exact closing time of the German market in Europe.

It has been my observation that the last 35 Intraday trading minutes of the DAX (German main index) is often bullish and thus SPY tends to trade bullishly as well during this span.

Sideways Intraday Trading window

You do not want to get caught in an option position while the underlying stock is moving sideways.

Such is often the case between 11:35am and 2:30PM.

Hence, you will need to be aware of this and reduce the amount of contracts you are holding or simply get out of the trade.

The last 90 mins of intraday trading is favorable to setup up overnight trades or some good scalping strategies for end of the day momentum.

Solution #2

Be patient before entering your position.

This means you have to wait for confirmation on the direction of the stock.

There is nothing more deflating in options trading (and stocks for that matter) than to rush in a position just to see it turn red immediately.

The best way to apply this intraday trading tip is to set up alert.

I use TradingView for my chart study in pre-market or overnight.

The outcome of your study should provide a price level above which your are going to take a bullish trade and below which you re going to trade a bearish position.

How To Maximize Gains In Intraday

After you have mastered how to minimize your losses, the next step is to apply yourself into maximizing your gains.

For that, the best practice you will adopt is the trailing stop .

In a few words, when you are making money on a position, the trailing stop enables you to track your profit and only allow a small percentage of it to go away once it is acquired.

That is where the word “trailing” comes from.

The video below explains step-by-step how to setup your trailing stop on E*TRADE platform.

Video On How TO Use the Trailing Stop Feature on Power E*TRADE

Scaled Exit Technique

You can make usage of the trailing stop to implement the scaled Exit technique.

This means that you do not close all your contracts (or shares) at once.

Rather, you can setup (in advance ) to take partial profit at a predefined profit level.

Below is a suggested setup I use in my Coaching sessions.

Example: “N” contracts @ 0.50 || N>=3

EXIT # 1. STC 30% of contracts @ $1.0 [100%] // Adjust these settings to your Risk Tolerance

EXIT # 2 STC 30% of contracts @ $1.50 [ 200-300%] // Adjust these settings to your Risk Tolerance

EXIT # 3 STC 30% contracts @ $2.0 [300% +] // Adjust these settings to your Risk Tolerance

10% {Whatever left} of contracts left as Runner Especially if Time Left before Expiration date

Stay Disciplined and Respect your Stop Loss

Above all, they key into intraday trading success is to prepare your trades with a plan.

Then stick to that plan.

Do not get distracted by the noise the market throws at you in the form of social media banter and/or pundit rhetoric on the television.

Stay disciplined by respecting your stop loss.

It is okay to get out of a trade quickly when it goes against you.

You can always re-assess if situation changes intraday later.

I cannot emphasize enough that beginner traders need to focus on saving their buying power.

Because Staying alive to fight another day is already a success by itself even though it does not immediately translate to monetary gain.

Bonus Tip

Learn How to Use the Option stock Chart to improve your entries.

During intraday consolidation, use the Lowest price of the consolidation range as your Limit Entry.

What Are Good Some Intraday Trading Strategies

The best intraday trading session is to scalp by riding a the short term trend of a stock.

Scalping can be very profitable intraday for options traders because the duration of the trade is short enough for time decay not to be a factor.

You can get in on a trade with the predefined objective to get X% profit and then immediately close your trade once your goal is reached.

In Options trading, X% can sometimes be a very big number, 50%, 100%, 200% or even more.

Some recent meme stocks are notorious for intraday rallies.

In case you may not have been following the recent short Squezze Saga, here are some of the most famous mem stocks:

  • #AMC stock gained 100% intraday recently the day after it sold off -30% intraday.
  • #GME stock started an extraordinary short squezze from $40’s to over $450’s then a fall back to the $40’s before breaking upward again
  • #BYND is currently in the middle of a bullish uptrend and provides plenty of intraday trading opportunities

Aside from those exceptional trending stocks, here are very reliable technical setups that you can use to take advantage of intraday trading strategies.

Stock setting Brand New High of the Day

The intraday new high of the day is a good entry for a bullish trade.

One reason for this is that such stock will attract new traders who want to buy it.

It is commonly known in the trading community as F.O.M.O or Fear of Missing Out.

In order to avoid false positive, I use the 15 minute chart to ensure confirmation on such breakout bullish setup.

Here is at he perfect illustration on NVDA recent chart where this strategies worked perfectly on multiple days.

Intraday Trading Tips To Grow Your Account - NVDA stock goes higher after Intraday New High of the Day on 3 Consecutive Days
Bullish Pattern on NVDA Following Intraday New Highs on 3 Consecutives Days

This example brings up a good Intraday trading Tips I often successfully use.

Stocks tends to repeat intraday patterns.

This means that if on Monday or Tuesday you identify an intraday pattern on a chart, look for it to repeat the next day.

This is the easiest way to forecast short term trends and profit from them.

Stock putting in New Low of the Day

Similar to the new high of the day, the intraday new low of the day is a good tip you can apply as well.

This time on the bearish side.

When a stock is going down, it often does it at a faster speed that when it is going up.

For options traders, time is of great importance .

Therefore, trading intraday on new low of the day can be even more lucrative for traders who can master this strategy.

I created a YouTube video to help traders identify this bearish setup using a very simple indicator.

From Upper Bolinger Band to Lower Bolinger Band

tbd

Crossover of EMA8 above EMA20

Crossover of EMA8 below EMA20

tbd

Which Are The Best Websites For Intraday Tips

If you are looking for Intraday trading tips, how about you start with the institutions that actually move the markets.

Follow The Smart Money

There are more and more services that provide insights on where the Smart money is going.

These come in the form of Live Intraday Options Flows you can easily follow to make money.

I have been using the very first one to offer such Intraday trading Tips since 2017.

It is called FlowAlgo.

The results tends to be very spectacular with very high profit as depicted in my FlowAlgo Playlist videos.

Live Intraday Option Flow Services

Since 2017, other competitors to FLowAlgo have surfaced.

My Top 10 FlowAlgo Alternatives article provide and in depth view on how to choose the most convenient service to meet your trading needs.

Top 10 Flow Algo Alternatives

CONCLUSION

These essential Intraday Trading Tips are sure to help you avoid some of the pitfalls many traders faced daily.

After you master them, you will once step closer to consistently grow your trading account.

Should you desire to further take your trading to the next level, may I suggest you check out our 10-Baggers Trading system that has been helping many traders in our Discord Channel.

It can help you too starting today.

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