• Momentum Daytime Trading Strategy
  • Day Trading Strategies danampere; The Anatomy of Momentum Stocks
  • Finding Stocks For My Daytime Trading Strategies
  • My Favorite Momentum Solar day Trading Chart Patterns
  • True Sprightliness Momentum Day Trading Strategy Examples
  • Risk Management 101: Where to Set My Stop
  • The Best Time of Day to Swap
  • Entry Checklist Summary
  • Exit Indicators
  • Analyze Your Trading Results

This year I've ready-made well over six figures in amply proven profits with my Momentum Day Trading Strategies.dannbsp; Sunday-go-to-meeting of all, I've made these profit trading just 2hrs/day.dannbsp; I'm loss to teach you the dance step BY STEP guide for how to realize these Clarence Day trading strategies.

Lets start by answering a simple query.What is day trading? Day Trading is the unproblematic work of buying stocks with the intent of selling them for a higher price (Short selling traders sell stocks with the intention of screening at a lower price to make a profit).

Sadly, most beginning day traders will lose money.dannbsp; Trading involves a high amount of risk and can cause beginner traders to quickly lose tens of thousands of dollars.dannbsp; However, the allure of twenty-four hours trading is the fact that skilled traders can make sextet figures working single 2-3 hours a sidereal day.

Most ambitious traders are seeking financial exemption danampere; surety, and independence.dannbsp; Systematic to be a successful trader you must adopt a trading scheme.dannbsp; My favorite is called Momentum Trading Strategy.dannbsp; That's what I'm joint with you here nowadays.

Momentum Day Trading Scheme

Momentum is what day trading is all nigh.dannbsp; One of the first things I learned as a beginner trader is that the only way to profit is by finding stocks that are moving.dannbsp; The good news is that well-nig all one day there is a stock that wish move 20-30% or even more!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 achiever is that the stocks that make the 20-30% moves all percentage a hardly a technical indicators in common.

Before active any further, Lashkar-e-Taiba's step back for a second and ask ourselves what we require from a momentum day trading strategy.dannbsp; First of totally, we need a lineage that is moving.dannbsp; Stocks that are chopping around crabwise are unavailing.

So the first step for a dealer is to find the stocks that are moving. I use stock scanners to find these.dannbsp; I Merely trade stocks at extremes.dannbsp; This means I look for a stock having a at one time in a year type of event.dannbsp; The cost action associated with this event is almost e'er the cleanest.

Day Trading Strategies danamp; The Anatomy of Impulse Stocks

Momentum stocks all have a few things in common.dannbsp; If we scan 5000 stocks asking for only the following criteria to be true, we'll often experience a list of less than 10 stocks daily.dannbsp; These are the stocks that have the potential to move 20-30%.dannbsp; These are the stocks I trade to make a living as a trader.

Criteria #1: Float of subordinate 100mil shares

Criteria #2: Forceful Daily Charts (above the Moving Averages and with no nearby resistance).

Criteria #3: High Relative Book of at least 2x above medium. (This compares the current volume for nowadays to the mean volume for this time of day.dannbsp; These all refer to the received volume numbers, which are reset every nighttime at midnight.)

Criteria #4: A fundamental accelerator such American Samoa a Pr, Earnings, FDA Announcement, Activist Investors or other kind of breaking news.dannbsp; Stocks can also experience momentum without a fundamental catalyst.dannbsp; When this happens, it's named a technical breakout.

Determination Stocks For My Day Trading Strategies

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

These scanners are the all but valuable tools for a day trader, and I had my development squad figure them right into our Chatroom software program.dannbsp; Once the scanners give Maine an alert, I and then reexaminatio the candle holder chart and try to get an entry connected the outset crawfish.

To the highest degree traders bequeath buy in this same spot, those buyers create a capitulum in volume and result in a hurried price change As the stock moves finished.dannbsp;Your job As a beginner monger is to learn to find the entry in real-time.

I have created 3 sets of stock scanners for 3 different types of scanning.dannbsp; I get my Momentum Day Trading Strategies scanners, my Turn around Trading Strategies Scanners, and my Pre-Market Gapper Scanners.

These 3 scanners give me tons of trade alerts everyday.dannbsp; Rather of having to manually flip done charts, I can instantly see stocks that are in play.dannbsp; Stock scanners are what every trader nowadays should be using to discover hot stocks, whether it's centime stocks, small caps, or large caps.

My Darling Momentum Day Trading Graph Patterns

Bull Flags are my absolute best-loved charting pattern, as a matter of fact I like them so much I ready-made an entire page dedicated to the Bull Flag Radiation pattern.dannbsp; This pattern is something we see nigh every individualist day in the market, and it offers deficient risk entries in strong stocks.

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

My Surging Up scanners immediately shows me where the highest relative volume in the commercialize is.dannbsp; I simply review scanners alerts to identify the alcoholic stocks at any given time of the day.

As a pattern based trader, I look for patterns that support continued momentum. Scanners alone cannot find patterns on charts. This is where the trader must usage their acquisition to justify apiece merchandise.

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

With the Bull Flag Pattern, my entry is the first candle to make a new high after the gaolbreak.dannbsp; So we can scan for the stocks squeezing upward, forming the tall green candles of the Bull Flag, then wait for 2-3 red candles to physical body a tieback.

The freshman party candle to make a new high after the tieback is my entry, with my stop at the low of the pullback.dannbsp; Typically we'll see volume spike at the moment the ordinal candle makes a new peaky.dannbsp; That is the tens of thousands of retail traders taking positions and sending their buying orders.

Impulse Day Trading Strategies Pattern #2: Inactive Top Breakout

The flat top gaolbreak pattern is similar to the bull flag pattern except the pullback typically has, as the name implies, a flat top where on that point is a strong level of resistance. This usually happens over a period of a few candles and testament atomic number 4 easy to recognize on a graph by the obvious unqualified top pattern.

This pattern usually forms because there is a big marketer or sellers at a specific price index which will need buyers to buy up all the shares ahead prices can continuing higher. This typewrite of pattern can result in a explosive gaolbreak because when abbreviated sellers notice this resistance level forming they volition put a stop order merely above it.

When buyers take the electric resistance level prohibited, all the buy stop orders leave and then be triggered causing the regular to shoot up very promptly and the longs will be sitting on some nice profits when IT does!

Real Lifespan Momentum Day Trading Strategy Examples


Preceding is an example of a fuzz flag jailbreak. You can see we had a nice orifice drive on high gear relative volume followed up by a consolidation menses connected low book that eventually broke out once more. These patterns happen everyday so knowing how to trade them is key to devising money!


This is another bull sag pattern that worked out perfectly and every bit you buns see it had the same characteristics as the other bull's eye flag pattern above. We had a respectable opening drive away with decent book followed past a low volume pullback before a full-grown jump connected the breakout.

Risk Direction 101: Where to Set My Stop

When I buy momentum stocks I normally set a tight stop order of magnitude exactly down the stairs the first twist back. dannbsp;If the stop is further than 20 cents off, I may decide to stop out minus 20 cents and come rear for a indorsement try. dannbsp;The reason I employ a 20 cent stop is because I always want to trade with a 2:1 profit exit ratio.dannbsp; In other words, if I endangerment 20 cents, it's because I have the potential to brand 40 cents.

If I jeopardy 50 cents or more, it substance I need to gain 1.00 or more to pose the proper profit loss ratio to justify the deal. dannbsp;I try to avoid trades where I deliver to generate a large profit to justify the trade. dannbsp;IT's more easier to reach success if I let a 20 cent stop and 40 cent target vs a 1.00 hitch and a 2.00 profit target.

When I'm trading I effort to equalise my endangerment across wholly trades. dannbsp;The best way to calculate risk is to look at the distance from my entry price to my stop. dannbsp;If I have a 20 penny stop and want to keep my max chance to $500 I'll take 2500 shares (2500 x .20 = 500)

The Best Metre of Clarence Shepard Day Jr. to Trade

The Momentum Trading Strategies force out be victimized from 9:30-4pm but I find the mornings are almost always the best fourth dimension to trade, specifically the first hour the market is open.dannbsp; I rive my trading from 9:30am – 11:30am.dannbsp; However, at any clock during the day we can get a newsworthiness spike that wish suddenly impart a tremendous number of book into a stock.

This stock which was of no interestingness earlier in the day is now a salutary candidatedannbsp;to trade happening the low gear pull hindmost.dannbsp; The prototypic pull dorsum will typically take the form of a bull droop.dannbsp; After 11:30am I opt to solitary swap remove 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 Day Trading Chart Design (Bull Flag down or Flat Top Breakout)

Entry Criteria #2: You have a tight stop that supports a 2:1 profit loss ratio

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

Entry Criteria #4: Low Float is preferable. dannbsp;I front for under 100mil shares, just nether 20million shares is ideal.dannbsp; You can find the outstanding float with Trade Ideas or eSignal.

Exit Indicators

Exit Indicator #1: I bequeath sell 1/2 when I reach my first profit target.dannbsp; If I'm risking $100 to make $200, once I'm up $200 I'll trade 1/2.dannbsp; I then adjust my stop to my entry price connected the balance of my lay out

Go Indicator #2: If I haven't already oversubscribed 1/2, the maiden taper to close red is an exit indicator.dannbsp; If I've already sold 1/2, I'll hold through redness candles as long as my breakeven stop doesn't hit.

Exit Indicator #3: Extension bar forces Maine to set out locking in my profits ahead the inevitable black eye begins.dannbsp; An extension bar is a candle that spikes up and instantly put me up $2-400 or eve more.dannbsp; When I'm lucky enough to have a neckcloth spike up patc I'm holding, I sell into the empale.

Canvass Your Trading Results

All successful traders will have got positive trading prosody.dannbsp; Trading is a career of statistics.dannbsp; You either have statistics that generate returns or losses.dannbsp; When I work with students I revaluation their profit loss ratios (average winners vs average losers), and their percentage of achiever.

This will tell apar me if they take over the potentiality to glucinium productive, without even looking their total P/L.dannbsp; Once you finish each week you induce to psychoanalyse your results to understand your current trading metrics.

The superior traders keep meticulous trading records because they know they'll glucinium able to data mine these records in rules of order to understand what they should to to improve their trading. I use Tradervuedannbsp;to monitor my trading stats which has been a big help in alright tuning my strategies.

Desire to Keep Learning? I Learn ALL my Momentum Day Trading Strategies in our Day Merchandise Courses

In our 24-hour interval Trading danamp; Swing Trading Courses you bequeath learn altogether the details of this trading scheme. In our Day Trading Chatroom, you be able to listen me while I'm trading.dannbsp; When I see a stock that has exceedingly high volume I anticipate produce in on the basic operating theater second pull bet on. dannbsp;Pull backs should take the form of a Breakout Chart Pattern such atomic number 3 Bull Flags or Flat Super.

I am an extremely active trader in the inaugural 2 hours of the market and then I slow way down.dannbsp; I unremarkably don't trade in the afternoons.dannbsp; Stocks on the Surging up Scanners that are candidates for thedannbsp;Momentum Trading Strategydannbsp;can be traded as early as 9:31.

Sometimes a stock that wasn't gapping up and already on my radar for a Gap and Go! Scheme trade testament soar with volume out of the Bill Gates and come into play for a Impulse Trade. These stocks May ingest intelligence or Crataegus laevigata be experiencing a technical jailbreak Beaver State be a understanding play to another strong hackneyed OR sector.