Navigating the Volatility of Day Trading
What’s up everyone, it’s Ross Cameron! Today was another very interesting day in the markets. It’s mornings like these that remind me why I’m both exhilarated and on edge as a day trader pretty much all the time. Take this morning, for example. We had a leading gapper, a stock that was up by a whopping 150% at one point, and then, in what felt like the blink of an eye, it gave up all those gains and fell over 50% on the day. Sounds crazy, right? Well, welcome to the volatility of Chinese stocks. Now, let me dive into the details and take you through the rollercoaster that was my day.
The IFBD Adventure
My day started pretty early, scanning the markets around 6:00 AM. Came across IFBD, and man, it was making moves. Popped up to six, dropped back to four, and I was there scratching my head, unsure if it was going to be the play of the day. Fast forward to 7:00 AM, and this thing rockets from five bucks a share all the way up to $8.90. And guess what? I missed the whole rally. By the time I settled in at around 7:30, the action had passed me by, which was a real bummer.
But, not one to dwell on missed opportunities, I jumped in on the action. My first trade was a classic dip buy. Spotted IFBD dipping after five consecutive red candles and caught it at $6.87 for 3,000 shares. The bounce was better than I expected, pushing up to $7.50. That was a sweet 65-cent win per share. The stock had a bit more in it, touching $7.78 at one point, but I missed that boat; instead, I caught another small dip and made a decent exit at $7.50 again. Overall, IFBD netted me about $1,400. Not too shabby, but considering the early action, it felt like I’d just scraped by.
Venturing Into VKTX
Then came VKTX, a different beast altogether. This stock was on the more expensive side as it was trading around $40 before it made the big move today. It also had a higher float, which made me cautious but I couldn’t help but trade the incredible momentum it was showing. For someone cautious with higher float stocks, this was a daring move, but it paid off handsomely with a $3,000 addition to my day’s earnings. Trading is all about managing risk, and today, VKTX was a testament to stepping out of my comfort zone when it felt right.
A Cautious Approach with SPRC
SPRC was on my radar, but I approached it with a healthy dose of skepticism. Managed to snag a couple of profitable trades, buying dips and selling the rallies. Nothing groundbreaking, but a cool $300 in profit. Every bit counts in this game.
I took a chance on PHUN, a reverse split stock, hoping for a quick win. Got in at 10, it squeezed up to 10.50, then plummeted down to 9.41. Managed to cut my losses at $160. A minor setback, but it’s all part of the game.
WETH, on the other hand, was a lesson in market deception. Fell for a fake big bid, bought in, and then watched in dismay as $1,300 evaporated from my earnings. It was a hard pill to swallow, reminding me of the unpredictability and sometimes, the outright trickery in the market.
Reflecting on the Market
Despite the day’s ups and downs, it’s crucial to keep an eye on the broader market trends. The S&P 500 and the IWM (small-cap index) offer insights, but as a day trader, my focus is on the exceptional movers of the day. It’s about identifying those unique opportunities, regardless of the general market direction.
Managing Risks and Capturing Opportunities
In day trading, managing your risk is paramount. It’s not just about the wins but preserving those profits during slower periods or when the market turns against you. Today, I netted over $4,200, bringing my month’s total to a pretty solid number. It’s these green days that build the cushion for when the market cools off.
If you’re not in a position to weather a slow market, remember, the key is not to force trades or chase losses. The market ebbs and flows, and there will be periods of incredible opportunity followed by times of stagnation. The goal is to maximize those hot streaks and protect your capital during the downtrends.
Wrapping Up
Today was a testament to the rollercoaster that is day trading. From the missed opportunities to the lessons learned and the profits secured, every day offers a new set of challenges and rewards. As always, I hope my journey offers you insights and lessons that you can apply to your own trading strategy. Catch you in the next one!
$IFBD goes up 150% then drops 80%. WHAT in the world?!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.
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