Hey everyone, Ross Cameron here! In today’s post, I’m diving deep into my day with the premarket break of VWAP setup. This trading strategy turned out to be quite profitable for me with stock MGOL, marking my biggest win of the day with a gain of +$2440.60, and helping me finish the day +$1772.49. (Results not typical) Let’s explore how MGOL, a low float stock, made its significant moves and how I managed my trades to come out on top.

Understanding MGOL’s Movement and Potential

MGOL is notorious for being a low float stock with only about 737,000 shares. These stocks tend to be volatile, and MGOL lived up to its reputation. After a strong squeeze yesterday, MGOL held its levels overnight and pre-market, showing potential for a continuation. Seeing MGOL hit new highs over the past two days was a welcome sight, as it clearly indicated potential in day trading terms.

Yesterday’s trading on MGOL was a rollercoaster. It made a dramatic move from $3 to $6 and then retraced sharply. Understanding these kinds of price actions is key when day trading. It’s always critical to observe whether a stock holds most of its range after a big move. MGOL’s retracement, which was about 70%, was a bit unsettling, but still, it offered a shot for a premarket trade today.

Trading Environment and Tools

I’ve been trading from my travel station off the coast of New England. While this temporary setup has been fun, I’m excited to return home soon. Despite the change of scenery, today’s successful trade on MGOL reinforced the effectiveness of my trading strategies and setups.

One tool that shaped my strategy today was a new scan called “Top of Trend.” This scan looks for stocks positioned in the top 80% of their range and meeting the volatility criteria. While MGOL was not a part of the high float stocks this scan identified, the tool directed my focus to stocks like MGOL that have historically shown good movement.

Capturing Opportunities with MGOL and Other Stocks

MGOL had already set some interesting levels early this morning. I drew descending resistance lines to help guide my trading decisions. But MGOL wasn’t the only stock on my radar. I also considered ITI, but dismissed it due to a buyout. KIT, another contender, ended up being a loss.

My first trade of the day was on KIT. Despite a seemingly promising VWAP setup, it ended up being a $668 loss. The experience reminded me of the importance of recognizing when a stock isn’t trustworthy and moving on without overtrading.

However, MGOL showed promise once again. As MGOL began to break VWAP, the momentum was clear. I saw this as a stronger opportunity and quickly capitalized on it. (Results not typical)

Lessons in Volume and Price Action

When trading, understanding volume patterns and price action is vital. MGOL’s price action yesterday and today illustrated crucial lessons. Despite the retracement, today’s break of VWAP showed weakness shifting to strength. This setup worked because MGOL had already demonstrated its capability to surge over a short span previously.

Trading aggressively requires managing risk effectively. Throughout the day, I kept a close eye on support and resistance levels. As MGOL moved through resistance, taking profits was essential, especially upon recognizing potential resistance near the $6 mark due to the 200 moving average.

Emphasizing Risk Management in Day Trading

This day with MGOL taught the importance of strategic risk management and trusting setups like the premarket break of VWAP. While trading can bring profitable opportunities, it’s paramount to stay defensive. My results are not typical, and maintaining my confidence hinges on carefully managing risk and being ready to adapt to changing market conditions.

For new traders, learning the ropes during slower markets can establish a strong foundation for when things pick up. It’s always about honing skills, practicing in a simulator, and ensuring that risk management is at the forefront of trading strategies. Aim to learn every day and keep refining your approach.

Final Thoughts

As always, thank you for following along and remember: manage your risk and don’t overstay your welcome. Practice diligently, and I’ll see you back here on Monday with more insights. Happy trading!

Stay Connected

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

4 Things You Need to Practice for Trading Success

Check out my articles on Business Insider and Entrepreneur

Make sure to follow my YouTube Channel

Check me out on Facebook

Watch behind the scenes on Instagram

Stay connected with me on X

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.