Hey everyone, Ross Cameron here, and today, I’m going to dive deep into the trades I made this morning to give you a unique insight into what it takes to be an active trader. Unlike the slow grind of buying and holding, day trading is all about finding stocks in motion and capitalizing on their movements within a short time frame. Let’s jump into the action-packed day and unwrap the secrets behind successful day trading.
The Hunt for the Perfect Stock
My day begins with a mission: to find stocks ready to make significant moves. At 8:31 AM, my scanner lit up with a stock called AISP, showing a promising upward trend with a moderate 25,000 shares in volume and over 50% jump in price. This stock caught my attention not just because of its sudden uptick but because it was one of the top percentage gainers at the moment.
With AISP on my radar, the next step was to uncover the why behind its surge. I discovered that the company had just announced a major contract award with the Department of Justice for its Acropolis Enterprise video and data management platform. Fresh news like this acts as a catalyst, signaling potential further upward movement, exactly the kind of scenario day traders dream of.
Upon analyzing the daily chart, I realized AISP was a recent SPAC (Special Purpose Acquisition Company) merger. SPACs initially trade at around $10 a share, maintaining that level until they merge with a target company. This background gave AISP characteristics similar to a recent IPO, including limited trading history and fewer entrenched investors, both of which are attractive for day trading because they allow for more significant price movements with less resistance.
Making the First Move
With the context and potential understood, it was time to look at the Level Two data and plan my entry. AISP had just risen from $1.70 to $2.50 before dipping slightly, providing a perfect buying opportunity. I entered the trade at $2.19, ready to exit if it dropped to $2. My rationale was simple: buy on the dip and sell on the surge.
One of my core strategies as a day trader is to build a profit cushion early in the day. This approach involves making smaller, safer trades to accumulate a net positive balance, reducing the pressure and risk of subsequent trades. Not everyone adopts this method; some prefer the high-stakes gamble of larger, riskier bets. However, for me, maintaining control and actively managing each trade is crucial for consistent success.
The Highs and Lows
The trade on AISP offered some decent moves. However, it wasn’t without its challenges. The stock experienced a few sell-offs, causing some unexpected volatility. Despite this, I managed to navigate the fluctuations and added to my positions, capitalizing on the stock’s momentum to lock in a profit of $3160.
Aside from AISP, I also traded stocks like PHUN, LVTX, and BIAF, among others, each presenting their own set of opportunities and challenges. While some trades were small wins, others served as learning experiences, reinforcing the importance of staying nimble and taking profits when available.
Reviewing the Day’s Profits
At the end of the trading session, my earnings totaled $4594. While not a record-breaking sum, it signified a successful day, especially considering I focused on trading the most active and obvious stock in the market. This strategy, along with a disciplined approach to entering and exiting trades, continues to be the cornerstone of my day trading success.
My approach to day trading emphasizes consistency over hitting home runs. It’s about making smart, measured trades and knowing when to lock in profits. While some traders aim for massive paydays by holding onto stocks for longer periods, I’ve found that staying focused on short-term gains and minimizing losses is more aligned with my trading style and goals.
Looking Ahead
Day trading is as much about mental discipline and risk management as it is about understanding market movements. Today’s trading session reinforced the importance of being adaptive, staying informed, and, most importantly, knowing when to take profits. As I continue my day trading journey, my goal remains the same: to be consistently profitable, one trade at a time.
I hope sharing my day trading experience has given you valuable insights into day trading. Remember, success in day trading requires patience, research, and a cool head. Here’s to making informed decisions and capturing the opportunities that the market presents us every day. Happy trading!
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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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