A Real-Time Strategy Breakdown
Hey, Ross Cameron here! I’m excited to share a detailed breakdown of the strategy I used for my day trades today. My daily mission is pretty straightforward – find those stocks that are on the move! Trust me, buying a stock at $5 and selling it at the same price isn’t exactly my idea of a good time. But snagging a stock at $5 and flipping it for $5.50 or $6, especially if I can pull that off within a few minutes? Now, that’s what I’m looking for. Let’s dive into the best trade I made today, and I’ll walk you through my thought process, from finding the stock to making my exit.
Identifying Stocks to Trade
This morning, an alert on my stock scanners for AISP caught my attention at 8:31 AM. The first thing I noticed was it’s relatively low volume – only about 25,000 shares being traded at the time. But here’s the kicker: it was up by a whopping 26%. With an 18 million share float, AISP was suddenly one of the top percentage gainers in the market, making it a stock worth considering.
Catalyst Identification
The next step in my strategy is to identify the catalyst, a crucial step for any day trader. For AISP, the catalyst was a significant contract award with the Department of Justice, announced right at the same time I caught wind of it. This kind of fresh news is exactly what can propel a stock upward, setting up potentially lucrative trading opportunities.
Chart Analysis
Understanding the context of the stock is crucial, so I dived into chart analysis next. I noticed that AISP was a recent SPAC merger – SPACs typically trade at around $10 a share since they’re essentially blank-check companies formed to merge with other businesses. This knowledge is gold because post-merger stocks, much like recent IPOs, can experience significant volatility due to their lack of trading history and high anticipation – perfect for day trading.
Base Hits
With a deeper look into AISP’s price action and the order flow on the Level 2 screen, I planned my trade. The stock had made a quick jump from $1.70 to $2.50 and then slightly corrected itself. Seizing the opportunity, I entered my first trade at $2.19, setting a stop-loss at $2 to manage my risk. The stock then surged to about $2.70, allowing me to make a handsome profit. Ultimately, AISP contributed $3,167 to my total profit today. I also traded a few other stocks, including PHUN, LVTX, and BIAF. I wrapped up with a profit of $4,594, contributing to a decent week and an even better month. The essence of my strategy isn’t about hitting home runs; it’s about consistency and base hits. By focusing on making smart, measured trades, I’m able to maintain steady growth without risking it all on speculative bets.
Trading Approach
Embracing consistency over high-risk plays has been a cornerstone of my day trading approach. While it’s tempting to hold a stock for massive gains, I find it better to be disciplined with a proper trading strategy. By cashing in on smaller, more frequent wins, I’m able to build my portfolio steadily and securely.
In conclusion, day trading is not just about understanding the market but also about understanding oneself. It’s about finding that sweet spot between risk and reward, using real-time information to make informed decisions, and staying consistent in your strategy. So, whether you’re new to day trading or looking to refine your strategy, remember, it’s the small victories that pave the way for long-term success. Here’s to staying focused and continually learning from the market’s endless lessons. Happy trading, everyone!
Stay Connected
Warrior Trading was founded by Ross Cameron in 2012, and is now a thriving community of thousands of traders. You can learn more about joining the Warrior Trading community here.
Check out Ross’s newest book, How To Day Trade: The Plain Truth.
You can also hear Ross in audio form through his Apple Podcasts.
Make sure to follow my YouTube Channel
Check me out of Facebook
Watch behind the scenes on Instagram
Stay connected with me on X