Hey everyone, Ross Cameron here! Today, I’m diving into an exciting day trading strategy I love, called the “Dip and Rip.” Gearing up on the one-minute chart has been my favorite due to the rapid moves we’re able to capture. When a stock catches fire and starts to spike, there’s often just a brief window to jump in, and this is where buying the dip comes into play. Then, I ride the wave to sell into that first rip near a key price level. Let’s dive into the strategy!
Overview of the Day Trading Strategy: Dip and Rip
The Dip and Rip method is a straightforward approach. When a strong stock makes a sharp pullback, I buy the dip. As the momentum returns, often reaching the next whole or half dollar level, I like to sell into the rip. This approach thrives on the one-minute timeframe because it allows me to swiftly react to price changes. The idea is to catch that first energetic move. If I wait too long, I might miss what could be the day’s best action.
Daily Market Analysis and Overview
Today, the market showed signs of being quite jumpy. Some stocks like VRAX exploded over 120%, and GOVX also made significant gains. These stocks are in the biotech sector, riding the recent news wave boosting virus stocks. It was a good reminder of the volatility we face, with Monday’s excitement being toned down by Tuesday’s choppiness. As the day progressed, we anticipated more movement, especially in after-hours trading, to set the stage for the next day.
Potential Risks and Challenges
Trading on days like these means dealing with unpredictability. The fear is missing a sweet trade if a stock pops and fizzles. My strategy leans on being extra cautious yet ready to pounce on the right setup. Some stocks reversed right after the initial move — so quickly that taking the first leg of the move was crucial. No second chances. This understanding of risk helps in adjusting strategies to better manage expectations.
First Trade of the Day: REVB Stock
My trading day kickstarted after spotting REVB as a big gapper on my morning scans on my phone. With a sudden volume surge around 7:00 a.m., I took action, hopping in during the run-up and securing gains of +$2,223.88 (results not typical). By analyzing the five-minute chart, it stood out with strong green candles, calling for a closer look on the one-minute and even the ten-second chart. Seeing this, I bought the dip, preparing for the rip, and managed a nice squeeze on the price — a satisfying start to the day.
Second Trade: BPTH Analysis
As BPTH hit my scanner, I remembered its past rollercoaster action with big red candles. This time, I stayed wary. However, when it started gaining traction around 7:00 a.m., I dipped in at multiple points. This trick helped me ride up to a satisfying profit (results not typical). Yet, when the momentum fizzled, it was clear that BPTH failed to hold its own, leaving me with lessons learned for future trades. All said and done, I locked in +$992.74 on the stock, and +$13,760.85 on the day between my other trades.
Planning for the Next Trading Day
With today’s experience fresh in mind, I have my game plan ready for tomorrow. I’ll stick to my early start, focusing on the most promising movers. It’s essential to remain patient, waiting for the right setup to show itself. Once this happens, I’ll be active and ready. Keeping an eye on the top gainer scanner helps me lock in those green days. Remember, while my day trading approach brings in results, they’re not typical, so managing risk is crucial. Look forward to sharing another exciting day of trading with you all!
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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.
