Hey everyone, Ross Cameron here! This week has been slow for day trading. It’s Tuesday, and both yesterday and today have been pretty uneventful. With the holiday week and summer season, it’s normal not to have high expectations. But for those of us who show up every day hoping for some action, it can be frustrating.
Retail Traders and the Summer Doldrums
We retail traders often swim in the wake of big money traders, much like small fish following whales. This week feels like the whales are on vacation. When the whales are absent, it’s harder to find good trading opportunities.
Market Scan Results: A Glimmer of Hope
Looking at the market scans, the biggest percentage gainer has been OPTT, which is up 98%. It’s a lower-priced stock at $55, though it had a nice move before pulling back. Then it did a late morning rally. More interestingly for me was SYT, which was my most profitable trade today at $420 (Results not typical).
SYT had a large sell order at $3, with someone unloading 130,000 shares. This sell wall created resistance, making it hard for the stock to break out. Even though it put up some gains, it was a tricky trade to navigate.
My Trades for the Day
Today, I made three trades: two winners and one loser. My best trade was on SYT. It squeezed and halted up, then opened higher. I dipped on the red candle, ripping back up. I went long at $2.82 and added to my position at $2.95, hoping for a break of $3. But then that big seller appeared, and we couldn’t break past $3. I ended up exiting at around $2.98.
The Strategy Behind Circuit Breaker Halts
I enjoy trading around circuit breaker halts because they indicate volatility. When a stock is halted, it shows significant movement, making it ripe for trading opportunities. Today, there were only a handful of halts, compared to busier days where you might see one stock get halted multiple times.
My strategy around halts involves buying into or out of a halt. The idea is to look for a momentary dip after the halt and then ride the wave back up. The first halt is the most promising; subsequent halts require more caution. After the first dip and rip, you can expect a more significant dip after the second and third halts. However, if a big buyer appears, it could signal another upward move.
Momentum Trading Examples
Momentum vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvis my go-to strategy. It involves buying high and selling higher. Today’s SYT trade at $2.82, selling at $2.98, is a perfect example. Another trade today was on ANVS, which had news and popped up in the morning. I entered at $6.04, seeing a big buyer at $6.00. But a doji candle formed, indicating indecision, and I exited with a $362 loss (Results not typical).
Similarly, VLCN showed some promise but didn’t deliver big gains. I entered at a new high but saw a big seller at $6.33. I exited with a $194 profit (Results not typical), putting me up $578 for the day.
Observations on Market Behavior
Tesla had a strong move today, up 9%, but it wasn’t easy to trade for scalpers looking for quick ins and outs. For those comfortable holding longer, it was better. Nvidia is in a consolidation phase, and we’re seeing interesting patterns in other stocks like Chewy. What’s fascinating is how Roaring Kitty’s tweets and disclosures impact these stocks. For instance, he announced a 6.6% stake in Chewy, but the stock went down 5%, which is puzzling.
Keeping Your Head in the Game
This short week due to the holiday means we have to be extra disciplined. Don’t overtrade, and stick to your strategy. If you’re interested in day trading, now is a great time to learn. We have Fourth of July sales going on for our training programs. It’s a perfect time to buckle down and study, especially in a slow market. Remember, learning during a cold market can prepare you for when things heat up again.
I’ll be live streaming for Warrior Pro members tomorrow morning. Remember, trading is risky, and my results aren’t typical. Manage your risk, take it slow, and practice in a simulator.
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
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