trading technique

Learn more about my trading strategy

My trading technique is known as day trade scalping. There are several different strategies you can take with regard to day trading, but I have found scalping to be consistently profitable, low risk, and less stressful.

The main differences with my trading technique compared to the typical scalper are as follows:

  • I only trade Options.
  • When initiating a position, I do so based on the percentage change in a stock’s price. Each stock has unique movements that are typically consistent on a daily basis. Depending on the stock, when it reaches a specific percentage change, I will execute the trade looking for a quick reversal in stock price. Once I have made a profit of any amount, I will sell.
  • I do not use chart indicators (i.e., RSI, resistance, support, etc). I rely solely on a simple 5 minute real-time chart that is provided by Robinhood. (I trade entirely using my cell phone).
  • I only hold one position at a time in order to ensure I have enough equity available to average down my position if needed. Also, holding one position is a lot less stressful and allows you to be more focused.
  • I have a specific watch list of 30 stocks that I cover every day, and on occasion I may look at other stocks during the day if I see a good trading opportunity. Most of the stocks on my watch list are blue chip and well known; plenty of volume each day.
  • I never trade penny stocks, stocks with low volume, or stocks with an Implied Volatility (IV) over 50%.

 

Below is a step-by-step breakdown of my trading technique from real trades that I completed.

Caution:
26 minute video, monotone voice, not exciting.

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