Warrior Trading Blog

Momentum Trading Strategies

March has been off to a strong start!  Two back to back huge green days with awesome accuracy.  Today I was 5/5 on my trades and walked away with over $1200 in 1hr of trading.  All three of the stocks I traded were really strong momentum names that I pulled off the Gap and Go scanner or the HOD Momentum Scanner.  I focus on ONLY trading setups I have 80-90% conviction in.  I don’t trade if I don’t think I’ll make money.  My level of confidence in a trade is extended to our students.  Each trade is an opportunity to study the momentum trading strategies we teach in the course because each trade exemplifies the techniques we teach.


Check out my P/L from Today




Charts from Today’s Big Momentum Runners


$LXU was one of those strong momentum stocks that just kept grinding higher and higher.  By far the easiest entry on this was the first pull back (circled in blue), which was my entry of $8.05.  The 2nd pullback also got bought up nicely.  Even though there were some red candles on the uptrend it didn’t break the 9ema until just before 12noon EST.  This showed real strength even during the mid morning when the overall market was pulling back.



$EYEG was the first trade I took as the market opened.  I jumped in at 4.76 for the break of the pre-market highs.  This is the Gap and Go Strategy that we teach in our trading courses and trade almost every single day.  Unfortunately, sometimes when stocks surge up pre-market and squeeze out of the gates they become parabolic so early in the day that they roll over hard.  This ended up selling off but not after I took profit on the squeeze through $5.00.  Remember that these stocks are traded by long biased AND short biased trader.  Often there is opportunities for both to provide as these are the types of stocks that experience wide ranges.  The wide range is what offers profit potential for traders of all strategies.



$BBG was another big MOMO name.  Unlike $EYEG, it wasn’t on my radar as a Gap and Go setup.  This one simply started squeezing out of the gates and I decided to jump in when I saw it hit my HOD Momentum Scanners.  I often trade right off the scanners in the first 30min.  Buying alerts that meet my criteria for high volume and rate of change.



The last big mover today that I traded was $WTI.  This was another stock like $BBG that just surged out of the gates.  Look at the amount of volume in the first 30minutes.  It’s just massive.  This is what brings all the trades in and it’s the reason I was able to get a quick profit.  This trade, like $BBG, was a scanner alert that I jumped into as it was squeezing out of the gates.  A very strong setup for us that we keep seeing again and again.