Hey everyone, Ross here, and I’m back with another recap. This week in day trading has certainly tested my patience, and it’s a prime example of why it’s so important to have a well-thought out plan and strategy. Today, I’m diving into the details of trading on a notoriously tricky day—Friday. Let’s break down the movements, the thought processes, and the disciplined decisions that characterized my trading day.

Leading Gappers Start the Day

The day kicked off with a close watch on the leading gappers: RWOD and ZCMD, both showing significant pre-market increases.

RWOD, a special purpose acquisition company, was catching eyes early on with a dramatic pre-market spike from $7 to $30, driven by merger news. However, the stock couldn’t maintain its climb, forming a perfect head and shoulders pattern before falling back to earlier lows. Its initial promise dissipated quickly, proving unreliable for a sustainable trade.

On the other hand, ZCMD started its day in the after-hours and had a substantial rise. Yet, it failed to revisit its after-hour highs and with its thick trading, it lacked the momentum needed to make a compelling day trade. Observing its resistance around $3, I decided it was not the right move to engage with.

Other Notable Movements

As the day progressed, several other stocks hit my radar but similarly failed to persuade me to open my trading platform. NVFY appeared on the scanners right at the market’s opening, showing a slight uptick. However, with no apparent catalyst and a quick surge based likely on speculative trading rather than solid fundamentals, it presented too much risk for too little reward.

WISA presented the most tempting trading opportunity. Having had a profitable Wednesday with this stock, I watched it closely. It started with a bounce in the pre-market session, which initially piqued my interest. The stock demonstrated a series of upward punches but was met with larger spreads and a hesitant trading environment. Despite the potential for profit, the low relative volume significantly hampered its attractiveness.

The decision to trade or not often boils down to discipline. Despite WISA’s tempting price action, I reminded myself of the importance of trading quality setups—those with high relative volume and clear upward momentum.

Considering Other Trades

Throughout the day, other stocks like INDO and BPTH also made appearances but none offered the confidence needed to warrant trading. Each carried significant risks, overshadowing their potential gains.

Today’s trading day was a poignant reminder that not every day will be fruitful or action-packed in the world of day trading. Managing expectations and acknowledging the reality of risk are critical. Trading involves careful analysis, patience, and occasionally, the wisdom to refrain from trading.

Fridays can be particularly tricky for traders hoping for big news cycles. Companies often release less favorable news at the end of the week, hoping for a cool-off period over the weekend. This pattern suggests a strategic approach to trading early in the week might yield more opportunities.

Final Thoughts

As the day wrapped up, my decision to refrain from trading was affirmed by the unfolding market conditions. Protecting my capital from uncertain trades meant I could end the week without new losses, setting a disciplined tone for the following week. Sometimes, the best trade is the one you don’t make.

This day, like many others, provided more lessons in the art of day trading—emphasizing risk management, the unpredictability of stock movements, and the continuous learning journey every trader undergoes. As we look forward to the challenges of next week, staying educated, vigilant, and disciplined remains our best strategy. Happy trading!

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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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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.