Day Trading – Not For The Faint Of Heart. But for Those That Still Venture in Despite the Risks, Here is Some Additional Research

ByDylan Callaghan Published On:

Key takeaways

Volatility is Key – The best day trading stocks in Canada tend to be highly volatile, with rapid price movements driven by market trends, news catalysts, and sector developments.

Liquidity Matters – High trading volume is essential for day traders, as it allows for quick entries and exits without major price slippage. Stocks like crypto miners, tech firms, and resource companies often fit this profile.

External Factors Drive Price Action – Many top day trading stocks are heavily influenced by external events such as commodity prices, interest rate changes, regulatory shifts, and macroeconomic trends, creating opportunities for traders who stay informed.

3 stocks I like better than the ones on this list.

For many new investors or folks who prefer not to stick with the “buy-and-hold” approach, **”day trading”** ranks as the favorite stock market strategy.

Those who day trade stocks, an extremely speculative strategy, look to enter and exit positions using highly volatile stocks within the same day. Day traders never hold positions, at least the ones they are day trading, that is, overnight.

Predicting these short-term movements in a particular Canadian stocks or the stock market with any accuracy is something that most investors will not be successful at doing.

Around 90% of investors that attempt to day trade will fail. There is a 1 in 10 chance of either breaking even or being profitable over the long term.

It is often said that the only people who truly benefit from investors’ day trading are the trading platforms, as they rake in trading fees daily.

But, some people can scrape out solid profits day trading over the long term. Although it is difficult, it is possible.

In this article, we will go over some of the best day trading stocks in Canada.

The Best Day Trading Stocks in Canada

Bitcoin Mining Pure Play

Bitfarms (TSE:BITF)

Bitfarms is a cryptocurrency mining company focused on Bitcoin, operating large-scale mining facilities powered by renewable energy. The company benefits from Bitcoin’s price movements, making it a high-volatility stock that attracts day traders looking for quick gains.

P/E: –

5 Yr Revenue Growth: 42.9%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Highly correlated with Bitcoin prices, leading to large intraday swings.
  • Regular news catalysts from crypto regulations and halvings.
  • High trading volume, making it easy to enter and exit positions.
  • Significant short interest, fueling sharp price reversals.
  • Exposure to energy costs and hash rate fluctuations adds unpredictability.
  • Frequent updates on mining capacity expansions create speculation opportunities.
  • Bitcoin Price Volatility – A rising or falling Bitcoin price directly impacts Bitfarms’ stock.
  • Regulatory Changes – Government policies on crypto mining can influence investor sentiment.
  • Energy Costs – Electricity price swings impact mining profitability.
  • Mining Difficulty Adjustments – Changes in Bitcoin mining difficulty affect future earnings.
  • Crypto Market Crashes – A sudden Bitcoin drop can severely impact Bitfarms’ stock.
  • Government Crackdowns – Restrictions on mining operations could hurt profitability.
  • High Debt Load – Expanding operations require capital, adding financial risk.
  • Operational Disruptions – Power outages or equipment failures can halt mining.

Bitcoin Mining & AI Compute

Hut 8 Corp (TSE:HUT)

Hut 8 is another Bitcoin mining powerhouse, but with a twist—it has pivoted towards AI computing, leveraging its data center infrastructure for additional revenue streams.

P/E: 3.3

5 Yr Revenue Growth: -%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Moves in tandem with Bitcoin, leading to rapid price action.
  • AI and data center expansion add speculative upside.
  • Strong retail interest fuels large trading volume.
  • Known for major price spikes following crypto news.
  • Active in mergers and acquisitions, creating uncertainty.
  • High correlation with U.S. crypto stocks adds additional catalysts.
  • Bitcoin Halving Events – These impact mining profitability and drive speculation.
  • AI Expansion – Growth in AI services could stabilize revenue.
  • Mining Facility Expansions – More capacity means higher earnings potential.
  • Institutional Crypto Adoption – Big money moving into crypto could lift Hut 8.
  • Bitcoin Price Drops – A bear market in crypto spells trouble for Hut 8.
  • Unproven AI Strategy – It’s unclear if the AI push will pay off.
  • Energy Cost Inflation – Higher electricity costs squeeze margins.
  • Government Regulations – Crypto policies remain a wild card.

Cannabis & Consumer Goods Hybrid

Tilray Brands (TSE:TLRY)

Tilray is one of the largest cannabis companies in the world, with operations in both recreational and medical marijuana. It’s also expanding into beer and wellness products to diversify revenue.

P/E: –

5 Yr Revenue Growth: 34.5%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Cannabis legalization news creates sharp price swings.
  • Highly liquid stock with significant daily volume.
  • Heavy short interest makes it a short-squeeze candidate.
  • Volatile earnings reports drive wild price action.
  • Speculative retail traders love the cannabis sector.
  • Exposure to both U.S. and Canadian markets adds catalysts.
  • U.S. Legalization Progress – Any federal cannabis reform would send shares soaring.
  • Earnings Performance – Growth in cannabis and beer sales will impact sentiment.
  • M&A Activity – Tilray actively acquires brands to expand its market share.
  • International Expansion – Growth in Europe could provide new revenue streams.
  • Slowing Cannabis Sales – Overproduction and competition hurt margins.
  • Regulatory Delays – U.S. legalization remains uncertain.
  • Dilution from Share Issuances – Tilray has a history of raising capital through stock sales.
  • Debt Load – Acquisitions have increased financial risk.

E-Commerce & POS Solutions

Lightspeed Commerce (TSE:LSPD)

Lightspeed provides point-of-sale (POS) and e-commerce solutions for businesses, competing with Shopify and Square.

P/E: –

5 Yr Revenue Growth: 63.7%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Extreme volatility due to growth stock sentiment.
  • Strong reactions to earnings reports and guidance.
  • Heavy short interest leads to potential short squeezes.
  • Tied to economic trends in retail and hospitality.
  • Active acquisition strategy creates speculation.
  • Highly correlated with broader tech stock trends.
  • E-Commerce Growth – Demand for digital payments and POS solutions.
  • Macroeconomic Conditions – Higher interest rates impact tech stock valuations.
  • Competition from Shopify & Square – Market positioning matters.
  • Profitability Timeline – Investors want to see sustainable growth.
  • High Valuation Risk – Priced as a growth stock, vulnerable to corrections.
  • Customer Churn – If businesses leave the platform, revenue could shrink.
  • Interest Rate Sensitivity – Higher rates hurt tech company valuations.
  • Integration Issues – Acquisitions don’t always go smoothly.

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Cyclical Lumber Producer

Interfor Corp (TSE:IFP)

Interfor is one of the largest lumber producers in North America, operating sawmills across Canada and the U.S. Its stock is highly reactive to lumber prices, making it an attractive target for traders seeking short-term moves.

P/E: –

5 Yr Revenue Growth: 10.0%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Highly volatile due to fluctuating lumber prices.
  • Strong correlation with housing market trends.
  • Earnings are unpredictable, leading to sharp post-report swings.
  • Supply chain disruptions can cause sudden price jumps.
  • Active share buybacks provide additional trading opportunities.
  • Impacted by government policies on forestry and tariffs.
  • Lumber Price Movements – Prices drive Interfor’s profitability and stock performance.
  • Housing Market Strength – More home construction means higher lumber demand.
  • Tariff Changes – Trade disputes with the U.S. can impact margins.
  • Operational Expansions – New mills and acquisitions could boost earnings.
  • Lumber Price Collapses – If demand weakens, profitability takes a hit.
  • Economic Slowdowns – Rising rates can hurt construction activity.
  • Environmental Regulations – Government policies could limit production.
  • Supply Chain Disruptions – Logistical issues can hurt deliveries and sales.

Powersports Vehicle Manufacturer

BRP Inc (TSE:DOO)

BRP is a leading manufacturer of recreational vehicles, including snowmobiles, ATVs, and personal watercraft under brands like Ski-Doo and Sea-Doo.

P/E: –

5 Yr Revenue Growth: 5.3%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: 16.0%

Yield: 1.7%

  • Strong seasonal trends lead to predictable volatility.
  • Large price swings following earnings reports.
  • Tied to consumer spending and economic cycles.
  • High short interest can lead to explosive rallies.
  • Expanding into electric vehicles, adding speculative excitement.
  • Prone to sharp moves on supply chain and inventory news.
  • Consumer Spending Trends – Discretionary income affects sales of recreational vehicles.
  • Electric Vehicle Developments – New product launches could drive stock momentum.
  • Supply Chain Costs – Inflation and material costs impact profitability.
  • Seasonal Sales Cycles – Demand fluctuates based on weather and economic conditions.
  • Economic Downturns – Consumers cut back on luxury items in recessions.
  • High Inventory Levels – Excess stock can lead to heavy discounting.
  • Regulatory Changes – Emissions rules could impact manufacturing costs.
  • Competition from New Entrants – Other brands are entering the powersports market.

Digital Advertising Tech Firm

Illumin Holdings (TSE:ILLM)

Illumin Holdings provides programmatic advertising technology that helps businesses automate and optimize their digital ad campaigns.

P/E: 112.5

5 Yr Revenue Growth: 3.3%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Trades in the volatile ad tech sector.
  • Earnings surprises often lead to large price swings.
  • Highly sensitive to changes in online advertising trends.
  • Prone to news-driven volatility, including M&A speculation.
  • Low share price makes it attractive for retail traders.
  • Growth stock sentiment drives extreme intraday moves.
  • Digital Ad Spending Trends – Higher ad budgets benefit Illumin’s revenue.
  • Privacy Regulations – Changing rules on data collection could impact the business model.
  • Ad Tech Mergers – Consolidation in the space could present acquisition opportunities.
  • Artificial Intelligence in Marketing – AI-driven ad targeting could boost platform usage.
  • Declining Ad Budgets – Economic slowdowns hurt marketing spending.
  • Tech Sector Volatility – Rising interest rates impact high-growth stocks.
  • Competition from Giants – Google and Meta dominate digital ads.
  • Regulatory Uncertainty – Privacy laws could limit data tracking capabilities.

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Fintech Lending Platform

Propel Holdings (TSE:PRL)

Propel Holdings operates an online lending platform, offering personal loans to underserved borrowers.

P/E: 13.9

5 Yr Revenue Growth: 46.0%

5 Yr Earnings Growth: 83.9%

5 Yr Dividend Growth: -%

Yield: 2.5%

  • High growth potential attracts speculative trading.
  • Sensitive to interest rate changes and lending trends.
  • Prone to big earnings-related price moves.
  • Small-cap stock with significant intraday fluctuations.
  • Positive developments in fintech can spark rallies.
  • Expanding into new lending products, adding excitement.
  • Consumer Loan Demand – Economic conditions affect borrower needs.
  • Regulatory Environment – Lending laws impact profitability.
  • Fintech Adoption Rates – More users shifting online benefits Propel.
  • Interest Rate Policy – Higher rates affect loan affordability and margins.
  • Rising Default Rates – More loan losses hurt earnings.
  • Regulatory Crackdowns – Government policies could restrict lending practices.
  • Competitive Pressure – Larger banks moving into fintech could be a threat.
  • Liquidity Concerns – Access to funding is crucial for growth.

Mortgage Brokerage Network

Dominion Lending Centers (TSE:DLCG)

Dominion Lending Centers operates Canada’s largest mortgage brokerage network, connecting borrowers with lenders.

P/E: –

5 Yr Revenue Growth: 11.3%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: 1.6%

  • Highly correlated with Canadian housing market trends.
  • Interest rate changes drive large price swings.
  • Mortgage market volatility creates speculative opportunities.
  • Low market cap leads to outsized daily moves.
  • M&A activity in the real estate sector can impact its stock.
  • News on housing policies and regulations create trading catalysts.
  • Interest Rate Changes – Lower rates boost mortgage demand.
  • Housing Market Strength – More home sales mean higher brokerage revenue.
  • Government Housing Policies – New regulations could impact lending.
  • Market Share Growth – Expanding its brokerage network fuels business growth.
  • Rising Interest Rates – Higher borrowing costs slow mortgage demand.
  • Housing Market Declines – Falling home prices reduce mortgage activity.
  • Regulatory Uncertainty – New mortgage rules could impact business.
  • Competitive Pressures – Other mortgage brokers and banks pose threats.

Oil & Gas Exploration Firm

Whitecap Resources (TSE:WCP)

Whitecap Resources is a Canadian energy company focused on oil and natural gas production.

P/E: 6.8

5 Yr Revenue Growth: 22.0%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: 16.8%

Yield: 7.8%

  • Highly reactive to oil price fluctuations.
  • Large trading volume ensures liquidity.
  • Strong correlation with geopolitical energy events.
  • Dividend policy changes create stock movement.
  • Sector-wide volatility adds frequent trading setups.
  • Active in M&A, which fuels speculation.
  • Oil Price Movements – Directly impacts Whitecap’s profitability.
  • Production Expansion – More drilling leads to higher output.
  • Geopolitical Factors – Global supply disruptions affect prices.
  • ESG & Carbon Policies – Environmental regulations could impact operations.
  • Oil Price Crashes – Lower prices mean reduced profits.
  • Regulatory Challenges – Stricter policies could increase costs.
  • Operational Issues – Production disruptions impact revenue.
  • Debt Levels – High leverage could be problematic in downturns.

What Makes a Stock Suitable for Day Trading?

Because we want to profit off daily fluctuations in equity prices, for the most part, we need highly volatile equities to take advantage of swings in price, along with high-volume stocks. If the asset we are day trading doesn’t move much in a day, we will either need to invest larger sums of money or be willing to accept lower profits.

For example, day trading a regulated utility stock like Fortis, or a bond, would produce minimal swings in price. Whereas trading the most volatile stocks, like a high-beta tech stock or a penny stock, where you could see 5%+ swings in a single day, could lead to more significant profits.

A stock doesn’t necessarily need to be small to be a good candidate for day-trading, either. In fact, Tesla Inc, which trades under the ticker TSLA on the NASDAQ, has been a perfect candidate for day trading for years.

Keep in mind, you could also look to trade an exchange-traded fund. You’d simply look for ETFs that have volatile underlying holdings or are possibly leveraged to the index.

Understanding the Risks of Day Trading

Before we get into the top day trading stocks here in Canada, we first have to highlight the risks of day trading and some steps you can take to mitigate your potential losses.

As mentioned, most people will be unsuccessful at day trading. It is critical that you set aside only a small portion of your overall portfolio for this type of speculative investing, and you have the right equipment to succeed. Stick to strict guidelines as to what you’re willing to lose.

If you’re trading on margin or trading uncovered options contracts, you can lose more than what you’ve set aside. It is crucial to always understand the impacts of leverage on your portfolio.

Another risk to consider is one of the tax-man if you plan to day trade inside of your Tax-Free Savings Account (TFSA). Just know that this is not allowed, and if the CRA catches on, you may be forced to pay taxes on your earnings. As such, day traded items are unlikely to be the best stocks for your TFSA.

Taxes When it Comes to Day Trading

Many Canadians make the mistake of thinking that their taxes on day trading profits will come in the form of capital gains tax. However, if you’re day trading, the Canada Revenue Agency will likely deem your profits as business income.

Before you start day trading here in Canada, contact an accountant and figure out the best setup for you. If your day trading qualifies as a business, you may also be eligible to write off business expenses. This can include interest paid on borrowed money in margin accounts.

What are the Best Brokerages for Day Trading in Canada?

If you’re looking to start day trading, you need to find a way to reduce fees. Commissions paid on trading can eat into your overall profits. For this reason, we’d highly suggest utilizing a commission-free brokerage like Wealthsimple Trade.

The only difficulty with Wealthsimple is the platform is a simple, no-frills online brokerage and has a fairly simple mobile app.

With day trading, you may need an online broker that gives you access to charting platforms to execute technical analysis.

Suppose you’re looking for something with more advanced tools and relatively cheap commissions (although not free). In that case, Interactive Brokers is a great place to start. The brokerage has many more trading tools and is one of the best day trading platforms available.

That isn’t to say you can’t trade stocks with RBC Direct Investing, CIBC Investor’s Edge, Qtrade, Scotia iTrade, TD Direct Investing, Questrade, or any of the other major brokerages here in Canada. It’s important to weigh all options to find the best online broker for your specific trading needs.

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What are the Most Popular Day Trading Strategies?

  • Trading the news
  • Breakout trading
  • Momentum trading
  • Reverse momentum trading
  • Trading pairs
  • Pivot point trading

This is far from an extensive guidance on day trading strategies. If you want to learn more, your best bet is to research each strategy. This list is meant to help you save some time in identifying various methods.

How Much do Day Traders Make per day?

If you are going to be successful at day trading, the size of your account determines how much you can make.

Let’s assume a successful day trader can average 4-5% monthly returns on their money. In that case, a $100,000 account balance would net the trader around $60,000 a year. A $200,000 account balance? Around $120,000 a year.

Remember that these numbers are just estimates and before commissions, taxes, and other fees.

Despite what many gurus will try and tell you, the vast majority of day traders will make nowhere near 4-5% returns on their money in a month.

What Percentage of Day Traders are Successful?

Only around 10% of day traders avoid losing money over the long term. This produces around a 90% failure rate. It is essential to understand that financial gurus and day trading “experts” will often tell you the majority of their students earn money.

This is factually inaccurate, often disproven in a “results not typical” disclaimer. If you’re going to day trade, you must do so with a level head and the acceptance that you will likely fail.

Is Trading Penny Stocks Worth it?

Penny stocks often have low floats and smaller volumes. They can be manipulated much easier than a stock trading on the Toronto Stock Exchange. As such, they are perfect candidates for trading.

However, Canadian penny stocks do not have the same regulatory requirements as companies listed on larger exchanges such as the TSX. Due to this, penny stocks are prone to excessive scams and manipulation.

Is Day Trading Profitable Right Now?

Day trading can be profitable for those who take it seriously. Success will require 40+ hours a week of research, studying, and building knowledge. Be cautious of anyone who tells you they make a living trading a few hours per week. They are more than likely trying to sell you something.

Day trading is ultimately easier in “easy” markets like we witnessed in 2020 and 2021. During a bear market, a recession, or even normalized market conditions, profitability is still possible but certainly harder to achieve.

What are the Safest Stocks to Day Trade?

It is important to note that there is no “safe” option for day trading. Day trading poses significant risks to capital. It is vital that day trading is limited to only a tiny portion of your investment portfolio. However, there are “safer” options, and that would be large-cap companies with lower overall volatility.

If we compare a large-cap stock to a meme stock, penny stock, or small-cap stock with significant volatility, you are likely to see fewer swings in price. Although your upside is likely capped by trading larger stocks, you also have some degree of downside protection.

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