Hi folks, it’s Ross Cameron, and I’m back again with another trading recap! Today, I’m focusing on a recent case study that spotlights the volatility and rapid changes that make this practice so exhilarating—and, at times, pretty challenging. I’m going to break down the details of my trade on a particular stock, VVPR, which saw some serious action, and share the strategy that I follow on a daily basis. Whether you’re new to day trading or seeking to refine your approach, this blog aims to share insights on navigating the market successfully. Let’s dive in!
Spotting the Opportunity
So, here’s how it usually begins on any given day: finding the right stock to trade. In this case, VVPR caught my attention as it was the leading gainer in the stock market on that day, spiking over 109% at its peak. This was no quiet move; it had momentum, volume, and a solid catalyst—a merger agreement announcement that got the traders buzzing. Spotting such opportunities is crucial, and for me, it starts with scanning the market using a top gainers scanner. This tool filters out stocks over 50 cents a share that are up by at least 4%. VVPR met and exceeded these criteria, placing it squarely on my radar.
First Move: Entering the Trade
Understanding the catalyst behind a stock’s move is step two. With VVPR’s catalyst identified, it was time to analyze the charts. Unfortunately, the 200 moving average stood right at $3, signaling potential resistance. My initial approach was cautious due to this observation. The stock did pull back, but as it began to curl upwards, an entry point presented itself. Despite a minor loss in the first trade due to resistance at $3, persistence paid off. The stock eventually broke through, climbing higher and validating my decision to re-enter.
Maximizing Trades: Share Size Strategy
Here’s where strategy becomes key. I started the day by limiting my share size, intending not to overshoot before confirming the day’s potential. Initially, my maximum share size was 5,000 shares, with a goal to first cross a $1,000 profit. It’s a cautious step to ease into the market momentum without taking on excessive risk upfront. As VVPR climbed and profits began to materialize, I adjusted my share size in response, pushing it to 10,000 shares after surpassing my initial goal. This flexibility in share size is a cornerstone of my strategy, allowing me to scale up in response to the market’s movement while remaining mindful of the risk involved.
Navigating Volatility: The Ups and Downs
Day trading is not without its roller coaster moments. VVPR’s journey was a testament to this, with fluctuations that tested patience and strategy. The stock showed signs of choppy trading, with several pullbacks that challenged each advance. My approach was adaptive—I took profits where possible and re-entered when the setup seemed favorable. Even as the stock’s movement turned more unpredictable, culminating in a sharp rise followed by a sudden drop, the strategy of staying agile and adjusting share size accordingly helped in managing the volatility effectively.
A Solid Day and Lessons Learned
Ending the day with a profit is always the aim, and despite the challenges, I was able to accomplish that goal. VVPR’s case study illustrates the essence of day trading—quick moves, sharp analysis, and adaptation to market dynamics. The key takeaway is the importance of strategy, particularly in how one manages share size and responds to market dynamics. Remember: diligence, flexibility, and a well-considered plan are your best allies in day trading. As we continue navigating the markets, remember that every trade holds a lesson. I hope that sharing these insights helps you in your own trading journey. Happy trading, everyone!
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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.