Hey everyone, Ross Cameron here! Today, I’m excited to share with you a powerful day trading strategy that’s been a steady companion in my trading arsenal: the “Dip and Rip.” This strategy is ideal for those quick market moves on the one-minute timeframe, where opportunities can come and go in the blink of an eye. Let’s dive in and talk more about the strategy!

Understanding the “Dip and Rip” Strategy

The core idea of the “Dip and Rip” strategy is simple. You identify a strong stock, wait for an early dip, and aim to sell into the initial rip, preferably near the next half or whole dollar mark. I’ve found it to be a perfect fit for quick and decisive trades, especially when stocks are moving fast.

Market Landscape

Recently, we’ve seen some robust action in the biotech sector, with stocks like VRAX and GOVX showing impressive gains. These stocks, often driven by news, create the perfect environment for the Dip and Rip strategy. Even during uncertain market phases, there’s potential for gains (results not typical).

Morning Routine for Day Trading

Every morning, I start by pulling up my stock scans, even on my phone as early as 6:30 AM. This preparation is crucial for identifying potential movers. For example, today I noticed REVB was a significant gapper. Observing these early signals helps me adjust my strategies and manage risk efficiently, especially when deciding my share size based on the stock’s price and volatility.

First Trade Execution

One of my standout trades today was on REVB. When I noticed a volume surge around 7:00 AM, I was ready. Using the Dip and Rip strategy, I jumped in as the stock dipped, and I sold during the rip, locking in around +$2,223 (results not typical). It’s about finding those quick dips and being ready to act as the stock rebounds.

Challenges and Adjustments

Of course, not every trade goes perfectly. I encountered challenges with SMFL due to its choppiness, and not every trade was a homerun. Sometimes, it takes patience and a willingness to adjust tactics on the fly. Fortunately, I was still able to lock in +$2,309 on the stock. I also had to be cautious with GDC, a stock that I felt had a history of erratic movements. I decided not to trade it, knowing when to hold back is as crucial as knowing when to dive in.

A Few Learning Points

The day’s trading showed me the importance of flexibility and preparation. The S&P 500 was volatile, adding another layer of complexity. But by staying focused on the scanners and reacting to clear setups, I managed to keep my strategy intact. My routine helps me stay ahead—sitting down early and being ready to catch the wave of opportunities as they appear.

Closing Thoughts

As always, I can manage to pull off a satisfactory trading day by sticking to tried-and-true strategies. Remember, the journey in day trading is about consistent learning and adapting (results not typical). If you’re interested in further honing your trading abilities, there are numerous resources to explore, including Warrior Pro programs.

Trading carries risks, and my results aren’t typical. But with careful risk management and a keen eye for opportunities, day trading can offer exciting possibilities. I look forward to seeing what tomorrow brings and continuing to fine-tune my approach. Thanks for reading, and happy trading!

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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.