The Simplest Day Trading Strategy 🚀 for Beginner Traders 🍏

[Music] what's up everyone ross here from warrior trading so in this episode i'm going to walk you through the simplest day trading strategy for beginner traders now as a beginner trader what's your goal hopefully your goal is to take one or maybe two trades a day where you're minimizing your risk while maximizing your potential for gain that way even if you're only right 50 of the time hopefully you can still walk away with a little bit of profit now we know that trading is risky and we know the statistics that most traders lose money and of course my results are not typical i have to say that but as a beginner trader i think you could do yourself a really big favor by focusing on keeping it simple so the simplest strategy is to focus on the leading percentage gainers each day and this is a big deal so the stock that i traded today and this is a great case study and i'll show you examples of it as we get into the video it went up 200 percent 200 is a huge move now i didn't capture the whole move but i captured small pieces of it and small pieces of 200 percent that's five percent here seven percent there three percent there ten percent there those are big pieces of profit if you're like most beginner traders and you're trading stocks that are in a relatively narrow range getting a small sliver of a five percent move you're not even getting enough profit to justify the risk and so you're going to have most likely an inverted profit loss ratio where your average losers are bigger than your winners your accuracy is going to be poor because those types of stocks are choppy and you're not going to do well so the best thing you can do is start by focusing on the right type of stocks to trade and those are percentage gainers and gappers so this is a gap strategy focusing on the leading gappers and gainers each day and as we get in the video i'm going to show you not just how to find those stocks each day and how to understand whether or not they have the potential to make a big move but also i'm going to talk a little bit about my entries now this is a short video i'm not going to have time to go through the entire strategy and all of its nuances i do that of course for students who are part of our curriculum over at warrior trading but if you're testing the water you want to just learn more about my strategy the way i trade i encourage you to hit the thumbs up and subscribe to the channel every morning i do a live audio video broadcast it's called the morning show and i share with you my watch list for the day and a couple of the stocks that i'm thinking about trading and sometimes i even take some live trades during the morning show it's a great opportunity for you to learn a little bit more about the way i trade and to see whether or not you want to learn from me in our classes so make sure you subscribe the channel hit the notifications button that way you'll get the alert when i go live each morning it's usually between sometime between 8 and 9 a.m that i go live all right so um with that let's jump in i'm going to get screen share going i'm going to show you my scanners i'm going to show you the tools i use to find these types of stocks i'm going to break them down in more detail and we're gonna go over this case study today of our 200 mover all right let's get into it all right so here we go we're going to jump in and this is a perfect case study today you can see that i'm up uh over 12 thousand dollars i'm up 13 700 on pik which is the stock that you can see on my charts right here and this is a perfect example of the strategy that i'm going to share with you today now i want to remind you as always that my results are not typical i have been doing this for a very long time i have over 10 million dollars in gross profit that stands behind me as a trader this is something that i'm really passionate about i love trading but i want to just remind you that most beginner traders do lose money so please take it slow trade a simulator before you put real money on the line and um as always don't try to blindly follow me or anyone else you have to learn to to hunt for yourself but i'm going to try to empower you i'm going to try to teach you this strategy and this is actually um something that i cover extensively as part of our warrior pro curriculum this is going to be a relatively short video so i'm going to give you the cliff notes of it if you want to learn more come over to warriortrading.com slash strategy check out that page and you can learn a little bit more about the way i trade and if you decide you'd like to join us we'd love to have you you'd be able to watch over my shoulder while i trade every single day and if you find that helpful then that'd be awesome so okay um so pik what's up with this stock it's up uh a staggering 180 percent there's not the percentage change on the day impressive right it is indeed impressive this stock uh there's something special about it now what is it well there is news stock is up 75 on partnership deal with walt disney okay so that's a pretty big deal and this news was out early this morning and i've been trading it since early this morning so this strategy i call it the gap and go strategy that's that's kind of um that's the name of the strategist the gap and go strategy and gap and go means the stock needs to be gapping up gapping up means it's opening higher than it closed the previous day why would a stock be opening higher today than it closed yesterday there's only a handful of reasons but generally it's because there's some type of breaking news so yesterday this stock was trading at approximately a dollar 84 and today it hit a high of over six dollars i mean that's remarkable that's an incredible percentage gain so if you're a beginner trader it's my opinion that these are the type of stocks that you want to be trading if a stock is going up 100 or 200 percent in a day even if you only get a sliver of that move that could still be a five percent or ten percent gain now if you trade something like facebook here's a day where facebook is going to be green let's see how much it's up uh facebook right now is up 2.2.4 you know i mean if you catch a sliver of 2.24 it's a a sliver of a sliver is nothing right you're eve sorry that's s fb 1.5 even worse so it's just not enough all right there's not enough meat on the bone to get good profit and to make money so as a beginner trader you want to be focusing in my opinion on volatile stocks now you're trading them you're not investing in them for the long haul you're buying them you're selling them you're buying them you're selling them you're a trader so if you're a trader you want to be trading things that are moving quickly what are stocks are going to be moving quickly typically stocks that have some type of fundamental news it can be an earnings announcement it can be a partnership deal it can be a clinical trial there's a million different types of catalysts that we can um go over and we do go over all of those as part of chapter four of the warrior pro courses when we're talking about fundamental analysis but for right now we'll sort of gloss over all the different types of catalysts and just say this is a stock that clearly had a catalyst okay great well how do you find it how do you find this stock in real time how do you find stocks moving like this did you hear that did you hear that little that little alert so that's this stock right here hitting my scanner this is like radar this is searching the entire market for stocks that are moving so we can pull up the stock hour and let's see what the chart looks like you'll see that this is just squeezed from 440 all the way up to just under five dollars so this is the type of stock that may be worth watching now it's a little later in the day i'm not going to take a trade on it tcat was also on the scanner right here and pik was on it as well so this is a tool that i'm using to help me find stocks to trade i programmed this tool i have a development team that built it out i specced it and they built it and i programmed it to look for stocks that are moving up quickly right now and i like to find stocks that have a catalyst but that's that's not exactly everything in order for stocks to make a big move there needs to be an imbalance between supply and demand all right so this is very very basic stuff but it's important to understand and so that imbalance comes from a couple places number one the demand let's talk about demand partnership with walt disney that creates demand right a stock that is under ten dollars or under twenty dollars a share inherently is going to have a higher level of demand among retail traders because it's affordable and there's an army of retail traders out there that are willing to buy up stocks up 25 30 percent in hopes that they go up another 15 20 30 percent and they can capture you know half of the 50 move and we see these types of moves again and again and again so just because the stock was extended at you know two dollars and fifty cents by no means meant that that was going to be the top you know it's probably not so much institutional traders at goldman sachs or whatever that are buying stocks like this for you know pension funds and things like that it's more going to be retail traders that are saying this is a stock moving quickly that has the potential to make a big move and every now and then you'll see a stock like this and you know a week later you'll see that they got they got bought out and they got bought out for a hundred percent premium so there's a lot of speculation in the small cap market and that speculation can fuel demand so news fuels demand the price being lower fuels demand the market cap also being lower fuels demand and that's represented by the float the number of shares available to trade so a stock like this has a particularly low float now we can go in here to the sec filings on pik and if we go in here we will see that um let's see as of the last filing december 22nd the float was 7.6 million shares now this is the type of research that i do in the morning every single day as i'm building my watch list so those you guys who already tuned into the morning show one of the things that's nice is you get my market commentary and you get it filtered with all of the knowledge that i have of trading and my ability to do quick research and figure out some of these important metrics so here 7.6 million share float all of a sudden this is a stock that has a very low level of supply the number of shares available is low the demand is high and that can create an explosive opportunity and that's exactly what we got today so the way i actually find these stocks is through the scanners so this stock right here pik it was gapping up 84 this morning and in the entire u.s market the entire u.s market this was the leading gapper it was the leading gainer in the entire market today and you know that's a pretty big deal and actually we can scan um top gainers it's it's up 177 right now which makes it officially and it's quarter of four the biggest gainer on wall street today and so i made 13 700 well it's the biggest gainer yeah you're darn right i did it's up 200 percent and you know what i only got a sliver but i got a sliver of a two hundred percent move and that was enough for me to pull about thirteen thousand dollars of profit out of the stock so your first step is understanding the right type of stock to trade and in my opinion it's gonna be a lower price stock generally between two dollars and twenty dollars it's going to have an outstanding number of shares or a float typically less than 20 million shares so you can use 2020 as sort of a rule 20 million share float 20 million dollar 20 price 2020. all right now again if there's a stock that's a little higher that's okay game stop was a little higher the float on gamestop is in uh oops gme 76 million shares that's a little higher but that was okay because it had a very unique very special catalyst and that was so strong that it was it was certainly fine but generally under 20 under 20 in price and in flow and i look at this scan each morning so when i log in over at warrior trading i log into my dashboard and i load the dashboard agree to the disclaimer and reminder that trading is risky and i can see right here as early as seven well you can log in as early as 4am pre-market starts at 4am but i usually sit down between 7 and 8 and so i'll sit down and i'll see that here we go pik leading gapper up 84 this is the stock that i want to be focusing on now i generally will look at the top five gappers so i'll look at the top five and see which of these do i think presents the best opportunity so which of these has the best combination of the imbalance between supply and demand and there is some consideration for the daily chart the daily chart tells me the history of the stock how high it's gone the all-time high how high it could potentially go where it might find some resistance so i look at the daily chart and i do that for the top gappers and then i start looking at the intraday opportunity and on this one right here there were several so you can see my time frame i've got a daily a five minute a one minute and then even a 10 second chart right here so when i'm ready to start trading that's when i'm going to start looking for the setup so my opinion is that one of the simplest strategies is to focus on the leading percentage gainer each day either the top two or three and you can look at which one thing you think is the most obvious now which one is also the most popular which one's trending on social media which one is the one that all the traders out there are saying this is the one that's going to go and so one of the things that's nice about being part of a community is you can get kind of a sense you can take the temperature of what other people are saying you know are people bullish on this or are they bearish what's that social sentiment on the stock so once you've decided on the stock then it's time to start looking for opportunities and you know you could i'm sure there's people that lost money on this today you know that bought it uh on one of these red candles up here and then you know sold as it broke down and you know they ended up being red on it and only to see it go all the way to six dollars at the end of the day so it's not enough just to find the right stock to trade you do have to dial in your entries as a beginner trader one of the safest entries is to find the first pullback so in this case this is a five minute pullback right here we have a five minute pullback and this is a pullback that is right at the volume weighted average price which is our dotted line and it's right at the nine moving average which is this grade line this is a nice moving average pullback that prevent presents a really good opportunity for the first five minute candle to make a new high now over in this area this is also the first pullback the first pullback following a fresh breakout right it pulls back down to that moving average first candle to make a new high as the entry and that went from four all the way up to six bucks this was the second pullback and it was it gave you a little continuation but it was a bit extended and this area here is now getting into sort of third pullback and it's getting uh pretty risky in that area uh similarly this was a second pullback right there but you got a topping tail on this candle that's a little bit risky to be along following a topping tail so there are some nuances here but if you're focusing on the leading percentage gainers each day you have done yourself a really big favor because you are focusing on the right type of stock to trade now it's about dialing in the exact entries you could trade on the five minute chart you could trade on the one minute chart i typically trade on the one minute and use the five minute for reference points i'll add on five minute setups this was obviously the five minute breakout right there these were one-minute trades in this area you had a pullback right here around 260. you had another one in this area another one in this area these are all opportunities and there are some traders who might trade a stock like this you know 50 times in a day just actively trading it getting in getting out getting in getting out and you could trade it all day long but one of the things that is important as a beginner trader is recognizing that less is more it's not a good idea to over trade it's not a good idea to take 100 trades a day it's a better idea to try to get one good trade a day because if you can get one trade a thousand shares in and out 20 cents a share that's 200 bucks you know if you could just build that track record of consistency getting in get green and get out and just do that for 10 15 20 30 days in a row start to build some confidence start to build a cushion then you can start trading more actively but until you've built that confidence and cushion you want to focus on trading less once a day maybe twice a day so and of course you should start in a simulator before you put real money on the line but this is a perfect example of a gap and go trade gap up go up and this one held up all day long and then gave that afternoon squeeze as it broke through the high of 4.30 which was right around here so again this is just a really quick summary of what i think is one of the simplest strategies it's not to say that it's easy it's not to say that trading is easy but as far as trading goes i think that focusing on the leading gainer every single day is going to point you in the direction of the right type of stock to trade and then the question is finding your exact entries so if you want to see what my entries are tune in for the morning show make sure you subscribe to the channel and you can always join us over at warriortrain.com if you want to be able to watch my live trading archives and tune in every day for my full trading session all right i hope you guys have enjoyed the video make sure you hit the thumbs up and i'll see you for the next one and that right there was an entire video with no ads i don't monetize my youtube channel with video ads which means you guys get to enjoy the content but do me a favor please hit that subscribe button and give me a thumbs up and let youtube know that this channel is the channel to watch if you want to learn about day trade [Music]

Channel: Warrior Trading

Views: 421,224

Keywords: day trading, day trading strategies, trading strategies, how to day trade, beginner trading strategies, momentum day trading, stocks, trading, how to trade, stock trading, penny stocks, pdt rule, shares, float, volume, candles, profits, Wall St, finance, brokers, Ross Cameron, warrior trading, day trade warrior

Id: 5X_ZcifasBg

Length: 18min 26sec (1106 seconds)

Published: Sun Mar 27 2022