If you are a losing daytrader, do these two things:
1) total your P/L for trades entered the first 60 minutes of the trading day
2) total your P/L for trades entered after the first 60 minutes of the trading day
I think what many people will discover is they trade pretty well on first hour trades, but terrible after the first hour.
Why is that?
With volume, pattern traders can trade patterns. Volume is high the first 60 minutes of the day. After that, volume settles down. That’s when pattern traders get stopped out FREQUENTLY. Who wins after the first hour? Institutional traders who have big orders and know where the stock is going. If you don’t know the magnitude of the big orders, you will get stopped out by market maker games and high frequency trading algorithms…and see your first hour profits dwindle away.
At Daily Stock Plays, we know the probable first hour direction of every stock gapping up or down, based on its open position on the daily chart. We only trade gappers. After thousands of hours gap research and statistical accumulation, we combine the gap open position with these other factors:
1) Catalyst (i.e. an earnings release gap trades much differently than a upgrade or downgrade gap)
2) Open short interest
3) The average daily volume of the stock
4) Current Elliott wave on the daily AND hourly charts
5) The two most important pivot points on the daily chart based on open position
6) The day of the week (i.e gapping stocks trade much differently on Friday than other days of the week)
We offer a trading room that gives you the trade direction for the best two or three gappers before the market opens. Knowing which gappers to play is the key to being a profitable daytrader. This only comes with thousands of hours of gap/chart study and data accumulation.
After the open we wait for confirmation on the two minute chart. When confirmation is received, trade calls are made, with entries, targets and stops. Click here to take a free trial of our trading room.