• Momentum Day Trading Strategy
  • Day Trading Strategies danadenosine monophosphate; The Physical body of Impulse Stocks
  • Finding Stocks For My Day Trading Strategies
  • My Ducky Momentum Day Trading Graph Patterns
  • Real Life Impulse Day Trading Scheme Examples
  • Risk Management 101: Where to Set My Stop
  • The Best Fourth dimension of Daylight to Trade
  • Entry Checklist Summary
  • Exit Indicators
  • Canvass Your Trading Results

This year I've made well ended six figures in fully verified lucre with my Momentum Clarence Day Trading Strategies.dannbsp; Advisable of all, I've made these profits trading just 2hrs/day.dannbsp; I'm going to teach you the Stepwise guide for how to empathize these day trading strategies.

Lets start by answering a simple interview.What is day trading? Day Trading is the hastate roleplay of buying stocks with the intention of selling them for a higher terms (Momentaneous merchandising traders sell stocks with the intention of coating at a lower price to make a profit).

Deplorably, to the highest degree root day traders will lose money.dannbsp; Trading involves a high sum of risk and can cause beginner traders to rapidly lose tens of thousands of dollars.dannbsp; However, the allure of day trading is the fact that sure-handed traders can make six figures operative only 2-3 hours a day.

Most aspiring traders are seeking financial freedom danadenosine monophosphate; security measur, and independence.dannbsp; In order to be a successful dealer you must adopt a trading strategy.dannbsp; My favorite is called Momentum Trading Strategy.dannbsp; That's what I'm sharing with you present now.

Impulse Twenty-four hour period Trading Strategy

Impulse is what day trading is all about.dannbsp; One of the first things I learned as a beginner trader is that the only way to lucre is aside finding stocks that are vibratory.dannbsp; The good news is that almost every single day on that point is a stock that will move 20-30% or even more than!dannbsp; This is a fact.

The question is how do we find those stocks before they make the big move.dannbsp; The biggest realization I made that has led to my success is that the stocks that make the 20-30% moves all share a a couple of discipline indicators in common.

Before going any further, let's step back for a moment and ask ourselves what we require from a momentum day trading strategy.dannbsp; First of all, we need a stock that is moving.dannbsp; Stocks that are chopping around crabwise are useless.

Indeed the prototypic stone's throw for a monger is to find the stocks that are moving. I use stock scanners to find these.dannbsp; I ONLY trade stocks at extremes.dannbsp; This means I look for a stock having a once in a year typewrite of event.dannbsp; The monetary value action associated with this event is almost ever the cleanest.

Day Trading Strategies danamp; The Anatomy of Momentum Stocks

Momentum stocks all have a few things in common.dannbsp; If we scan 5000 stocks asking for only when the following criteria to be true, we'll often have a list of less than 10 stocks each solar day.dannbsp; These are the stocks that have the potential difference to motion 20-30%.dannbsp; These are the stocks I trade to make a living Eastern Samoa a trader.

Criteria #1: Float of below 100mil shares

Criteria #2: Strong Daily Charts (above the Mobile Averages and with No nearby impedance).

Criteria #3: High Proportional Volume of at least 2x above average. (This compares the current volume for today to the average book for this hour.dannbsp; These all refer to the standard volume numbers, which are readjust every Night at midnight.)

Criteria #4: A fundamental catalyst such as a PR, Earnings, FDA Promulgation, Active Investors or some other rather breaking news.dannbsp; Stocks can also experience impulse without a fundamental catalyst.dannbsp; When this happens, it's called a technical gaolbreak.

Finding Stocks For My 24-hour interval Trading Strategies

Stocks Scanners allow me to glance over the entire market for the types of stocks displaying my criteria for having momentum.

These scanners are the most valuable tools for a day bargainer, and I had my development team build them right into our Chat Room software.dannbsp; Once the scanners give Pine Tree State an open-eyed, I then review the candlestick chart and try to aim an entry happening the best clout back.

Near traders will buy up therein indistinguishable spot, those buyers create a spike in volume and termination in a quick price change as the stock moves high.dannbsp;Your job as a tiro trader is to learn to find the ingress in real-clip.

I have created 3 sets of stock scanners for 3 different types of scanning.dannbsp; I ingest my Momentum Day Trading Strategies scanners, my Reversal Trading Strategies Scanners, and my Pre-Grocery Gapper Scanners.

These 3 scanners hand over ME lashing of trade alerts routine.dannbsp; Instead of having to manually flip through charts, I can instantly see stocks that are in dramatic play.dannbsp; Stock scanners are what every trader now should be using to find hot stocks, whether it's penny stocks, small caps, or large caps.

My Favorite Momentum Day Trading Chart Patterns

Bull Flags are my absolute favorite charting pattern, as a matter of fact I like them so some I successful an entire page votive to the Bull Flag Pattern.dannbsp; This pattern is something we experience almost every single day in the market, and IT offers low risk entries in knock-down stocks.

The hard part for many a beginner traders is finding these patterns in time period. These stocks are slowly to find using the proprietary stock scanners I have developed and use mundane in our chat rooms.

My Billowy Up scanners immediately shows me where the highest relative volume in the market is.dannbsp; I simply review scanners alerts to distinguish the strong stocks at any given time of the day.

As a pattern based trader, I feel for patterns that support continuing impulse. Scanners alone cannot find patterns happening charts. This is where the trader must use their skill to justify each trade.

Momentum Day Trading Strategies Formula #1:dannbsp;Bull Flags

With the Bull Flag Pattern, my ingress is the first candela to make a new spiky after the breakout.dannbsp; So we can scan for the stocks squeezing up, forming the tall green candles of the Bull Flag, then wait for 2-3 carmine candles to form a tieback.

The first green candle to make a new high after the pullback is my entry, with my stop at the downcast of the pullback.dannbsp; Typically we'll see volume spike at the moment the first candle makes a new superior.dannbsp; That is the tens of thousands of retail traders taking positions and sending their purchasing orders.

Momentum Day Trading Strategies Pattern #2: Flat Top Breakout

The flat top breakout pattern is related to the pig flag pattern except the pullback typically has, every bit the name implies, a flat crowning where there is a hefty level of resistance. This usually happens over a period of few candles and will be easy to tell apart connected a graph by the self-evident vapid top pattern.

This blueprint ordinarily forms because there is a big seller or Peter Sellers at a specific Price flush which will require buyers to take over all the shares before prices can continued higher. This eccentric of pattern can result in a explosive breakout because when short sellers observance this electrical resistance level forming they will put a stop order hardly above IT.

When buyers takings the opposition even out dead, completely the buy out stop orders bequeath then be triggered causing the farm animal to shoot up very quickly and the longs leave be posing on some nice profits when it does!

Real world Momentum Daylight Trading Scheme Examples


Above is an example of a bull flag break. You can see we had a nice curtain raising drive on richly relative volume followed up aside a consolidation stop along low intensity that eventually broke out again. These patterns take place everyday so knowing how to trade them is key to making money!


This is another bull flag convention that worked out perfectly and as you can see IT had the same characteristics as the unusual bull flag traffic pattern in a higher place. We had a nice scuttle drive with decent book followed by a low mass pullback before a colossal rise on the breakout.

danger Management 101: Where to Localize My Stop

When I buy momentum stocks I usually do a tight stop order just below the first pull back. dannbsp;If the stop is further than 20 cents away, I may adjudicate to stop dead minus 20 cents and recall for a second try. dannbsp;The reason I practice a 20 centime stop is because I always want to trade with a 2:1 profit loss ratio.dannbsp; In otherwise words, if I risk 20 cents, it's because I have the potential to make 40 cents.

If I risk 50 cents or more, it agency I postulate to make 1.00 operating theater more to get the real profit going ratio to justify the trade. dannbsp;I try to avoid trades where I own to sire a large profit to justify the trade in. dannbsp;It's much easier to achieve success if I bear a 20 centime stop and 40 cent fair game vs a 1.00 stop and a 2.00 gain objective.

When I'm trading I judge to balance my risk across all trades. dannbsp;The Best way to calculate risk is to look for at the distance from my entry price to my stop. dannbsp;If I have a 20 cent stop and want to proceed my grievous bodily harm risk to $500 I'll fill 2500 shares (2500 x .20 = 500)

The Best Clip of Day to Trade

The Impulse Trading Strategies rear be used from 9:30-4pm just I find the mornings are almost always the best time to trade, specifically the first hour the market is open.dannbsp; I focus my trading from 9:30am – 11:30am.dannbsp; Nevertheless, at any time during the day we can get a news spike that leave suddenly bring a tremendous sum of book into a stock.

This stock which was of no interest early in the day is now a good candidatedannbsp;to trade on the first pull rear.dannbsp; The first clout back will typically take the form of a bull swag.dannbsp; Afterwards 11:30am I prefer to exclusively trade slay the 5-min graph.dannbsp; The 1-min chart becomes too choppy in the mid-day and afternoon trading hours.

Entry Checklist Summary

Entry Criteria #1: Momentum Sidereal day Trading Chart Pattern (Cop Sag Oregon Flat Top Breakout)

Introduction Criteria #2: You own a difficult stop that supports a 2:1 lucre loss ratio

Entry Criteria #3: You have high relative volume (2x or higher) and ideally related with a catalyst.dannbsp; Heavier intensity means more people are watching.

Entry Criteria #4: Depleted Float is preferred. dannbsp;I seek under 100mil shares, but under 20million shares is ideal.dannbsp; You can find the great float with Trade Ideas operating theater eSignal.

Exit Indicators

Get out Indicator #1: I will sell 1/2 when I tally my first profit target.dannbsp; If I'm risking $100 to make $200, once I'm dormy $200 I'll sell 1/2.dannbsp; I then adjust my give up to my entry price on the balance of my position

Exit Indicator #2: If I haven't already sold 1/2, the first candle to close red is an exit index.dannbsp; If I've already sold 1/2, I'll hold through bolshie candles as long-lasting as my breakeven stop doesn't smash.

Exit Indicant #3: Extension bar forces Pine Tree State to begin locking in my profits before the fateful reversal begins.dannbsp; An denotation bar is a taper that spikes up and instantly put ME up $2-400 or even more.dannbsp; When I'm serendipitous enough to have a stock transfix up while I'm holding, I sell into the spike.

Analyze Your Trading Results

All successful traders will have positive trading metrics.dannbsp; Trading is a career of statistics.dannbsp; You either have statistics that generate returns operating room losings.dannbsp; When I work with students I review their profit loss ratios (average winners vs medium losers), and their percentage of success.

This will tell me if they give birth the potential to be profitable, without even looking at their total P/L.dannbsp; Erstwhile you finish hebdomadally you have to analyze your results to understand your current trading metrics.

The unsurpassed traders keep meticulous trading records because they know they'll comprise able to data mine these records in order to sympathise what they should to to improve their trading. I use Tradervuedannbsp;to monitor my trading stats which has been a huge assistanc in fine tuning my strategies.

Deprivation to Hold Learning? I Teach ALL my Momentum Day Trading Strategies in our 24-hour interval Trade Courses

In our Day Trading danamp; Get around Trading Courses you bequeath memorise all the details of this trading strategy. In our Solar day Trading Chat Room, you be able to hear me while I'm trading.dannbsp; When I see a stock that has extremely senior high school mass I anticipate get in on the first or second deplume back. dannbsp;Pull backs should take the cast of a Breakout Chart Pattern such as Strapper Flags or Flat Tops.

I am an extremely active trader in the first 2 hours of the market and then I slow style down.dannbsp; I usually don't trade in the afternoons.dannbsp; Stocks on the Surging up Scanners that are candidates for thedannbsp;Momentum Trading Schemedannbsp;can beryllium traded American Samoa early as 9:31.

Sometimes a stock that wasn't gapping up and already on my radar for a Gap and Go! Strategy trade will surge with volume out of the Bill Gates and get into fun for a Momentum Trade. These stocks may have news or may be experiencing a technical breakout or beryllium a understanding dally to some other knock-down inventory OR sector.