Day Trading Strategy for Beginners

Introduction

• Presenter: Ross from Warrior Trading
• Focus: Simplest day trading strategy for beginners
• Goal: Minimize risk, maximize potential gain
  • Aim for one or two trades a day

Key Strategy: Leading Percentage Gainers

• Focus on: Leading percentage gainers each day
• Example discussed: Stock increased by 200%
  • Capturing small portions of the move like 5%, 7%, etc.
• Avoid stocks with narrow ranges as they lead to poor profit-loss ratios

Gap Strategy

• Strategy Name: Gap and Go
  • Focus on leading gappers each day
  • Look for stocks opening higher than previous day (gapping up)
  • Driven by breaking news or significant events

Tools and Resources

• Scanners:
  • Used to identify stocks with significant moves
  • Custom-built scanners to detect stocks with potential
• Daily Routine:
  • Daily live morning show sharing watchlist
  • Discuss potential stocks to trade
  • Opportunities to watch live trades

Case Study: Stock PIK

• Up over 180% due to a partnership with Walt Disney
  • News catalyzed the move
• Results from trading: $13,700 profit

Key Features of a Good Stock to Trade

• Gappers:
  • Stocks with significant price movements
  • Look for unique catalysts like partnerships, earnings announcements
• Supply and Demand Imbalance:
  • Low float (number of available shares)
  • High demand due to news or price
• Price and Float Criteria:
  • Price between $2-$20
  • Float less than 20 million shares

Trading Techniques

• Pullbacks and Entries:
  • Focus on first pullbacks for safer entries
  • Use Volume Weighted Average Price and moving averages for timing
  • Use 5-minute and 1-minute charts

Practical Tips

• Trade Less, Focus More:
  • Aim for quality, not quantity
  • Start with one good trade a day
• Importance of using simulators for practice

Conclusion

• Focus on leading gainers for the right stocks
• Tune into live shows for more insights
• Consider joining Warrior Trading for detailed learning

Additional Resources

• Warrior Trading Live Morning Show:
  • Provides watchlist and trading insights
• Warrior Trading Website:
  • Offers courses and further trading resources

Final Remarks

• The strategy is simple but requires practice and discipline
• Subscribe to Ross's channel for more free content and learning opportunities