Hey everyone, I’m Ross Cameron, and today I’m going to let you in on the method I use every single morning to pinpoint the absolute best stocks for day trading. If you stick with me, I’ll walk you through a system and strategy that’s worked wonders for me. This isn’t just theory; it’s the defined set of criteria that helped me transform my trading account from under $600 to over $10 million in verified profits. The journey hasn’t been easy, but it’s been rewarding, and I want to share the wealth of knowledge I’ve gained with you.
Hunting Volatility and Managing Risk
The essence of day trading boils down to two main roles – hunting for volatility and managing risk. Our goal is to profit from price movements within a single trading day. We’re not interested in stocks that sit still; we need movers. Imagine buying a stock at $5 and selling it at $5.50 within 15 minutes. That’s a quick and sweet 10% return, and it’s exactly what we aim for. However, these opportunities are rare amidst thousands of stocks. The trick lies in separating the stocks with potential to move from the ones that are likely to do nothing.
Avoid Common Pitfalls in Stock Selection
Early in my career, I learned some hard lessons about what not to trade. Penny stocks, for one, are a minefield of volatility and often part of pump-and-dump schemes. They’re tempting but incredibly risky. Likewise, trading big names like Apple or Tesla daily proved futile due to their minimal intraday percentage movements. These stocks are great for portfolios but not for day trading, especially when you’re working with a small account like I was.
The Power of Stock Scanners
This is where stock scanners come into play. They’re the tools I use to sift through the overwhelming sea of stocks each morning. By setting them to find stocks that are up more than 4%, I can usually narrow my focus to about 30 or 40 prospects. But even that’s too many, so I then zoom in on the ones leading the charge – the top gainers. It’s incredible how this process shifted my results dramatically.
The Role of Catalysts and the News
A crucial part of my strategy is identifying why a stock is moving. I look for real catalysts like earnings reports, FDA approvals, or positive trial results. These are the fuel behind a stock’s leap. On the other hand, I steer clear of stocks buoyed by buyouts or mergers, as their price becomes too fixed to offer any real intraday trading opportunities.
Navigating Through the Trading Day
My trading window is from 7:00 a.m. to about 10:30 a.m., catching the early market moves spurred by overnight or early morning news. It’s a sweet spot where volume and volatility align, creating perfect conditions for day trading. Throughout this time, I’m not just staring at charts. I’m actively watching how stocks respond to market conditions, news, and trader sentiment.
Patience is Key
I can’t stress enough the importance of patience in this game. It’s about waiting for the right move rather than jumping on every stock that twitches. Over the years, I’ve learned that success comes from discipline – waiting for those setups that meet all my criteria before making my move. This approach has saved me from countless risks and has consistently put me on the winning side.
Strategy and Execution
Once you’ve narrowed down your targets using scanners and identified potential catalysts, the next step is figuring out when to jump in and out. While I won’t dive into the specifics here, I rely heavily on technical analysis and chart patterns. The key is balancing this information with the fundamental news to make informed trading decisions.
Final Thoughts
I hope sharing my daily routine gives you a clearer path to finding those winning stocks for day trading. Remember, it’s about being a hunter – patient, keen, and ready to strike when the opportunity presents itself. For those looking to dive deeper, I’ve prepared a small account strategy worksheet that outlines my entry and exit strategies in more detail. It’s been a crucial part of my trading journey, turning a modest account into millions.
I appreciate you taking the time to read through this. The world of day trading is fast-paced and full of pitfalls, but with the right strategy and a bit of patience, it’s also incredibly rewarding. Here’s to learning how to improve your system for picking stocks. Happy trading!
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.
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