Hey everyone, Ross here! Today, the first day of May, marks the beginning of a new trading month, and I kicked it off by starting nicely in the green. Securing a successful first trade right out of the gate is always a great confidence boost, and I’m definitely pleased with today’s performance. Let’s dive into today’s recap and talk more about my trades!
How I Utilize Breaking News for Optimal Trading
In day trading, timing can be everything. My strategy heavily relies on keeping an eye out for breaking news which typically drops at the top and bottom of each hour during the pre-market. This means being ready at 7:00 AM, 7:30 AM, 8:00 AM, and especially 8:30 AM, as companies often release significant press announcements around these times.
To capitalize on these opportunities, I use real-time stock scanners. These tools are crucial as they scan the market for stocks that are experiencing sudden upticks. Today, for instance, right at 8:30 AM, PALI caught my attention as it hit my scanners and showcased a potential for a significant move.
My First Trade of the Month: A Closer Look at PALI
The stock that triggered the alert was PALI, which was trading at around $7. Two key attributes made PALI stand out to me immediately:
- Low float: Less than 1 million shares available.
- Ideal price range: Between $5 and $10, which historically has been my best performance range.
Upon receiving the scanner alert, I promptly pulled up the chart and the Level 2 data to gauge the depth of market. Initially, I entered with a starter position of 2,500 shares at $7.50 and then seized the opportunity to add another 2,000 shares at $7.80, bringing my total to 4,500 shares.
As the price hit $8, encountering heavy resistance, I decided to lock in profits. However, seeing another potential uptick, I re-entered on a dip and rode the price surge to about $8.80. After making a substantial gain and noticing a plateau forming under $9, I opted out, securing a nice profit from these moves.
Reflecting on Today’s Trades
I rounded up about $3,000 from the initial surge but gave back around $400-$500 on later attempts to capitalize on residual movements, finishing the day with a gain of $2574. Nevertheless, it was a robust start to the month, and I managed to avoid major pitfalls and overtrading.
For me, day trading isn’t about hitting home runs but rather about consistently meeting daily goals. Even though I’m not trading in a retirement account, I apply the same principle of consistent income generation. Today, I was intent on not giving back too much of my initial profits and adjusted my trading size downward to safeguard my earnings.
Currently, I’m riding a wave of 25 consecutive days of disciplined trading, following the rules of my strategy to the letter. It’s essential, especially in a field as volatile as day trading, to adhere to a set of principles that guide your trading decisions, keeping emotions at bay.
A Review of April’s Performance
April proved to be my second best month of the year. The graphical breakdown of my daily profits and losses shows a steady collection of green days and minimal red days, which were well-contained and didn’t spiral out of control. My gross profits for April summed up to $45,000, with net profits being slightly lower due to fees and commissions. As always, you can find my verified broker statements on my website.
Closing Thoughts
As I wrap up today’s trading session, the key takeaway for me is the importance of discipline and not succumbing to the fear of missing out (FOMO). As tempting as it may be to chase after every potential stock pop, recognizing and being grateful for the gains I have secured allows me to maintain a clear head and focus on my trading strategy.
Tomorrow, I’ll be back at the trading desk, ready to tackle another day with the aim of locking in more green trades. Remember, day trading is inherently risky, and while my results may seem encouraging, they are not typical. Always manage your risk and approach trading with a well-thought-out plan. Thanks for reading, and 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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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.