Technical Notes on Day Trading Strategies – Part 1

Technical Notes on Day Trading Strategies – Part 1

Some Random Notes

The following are some key notes on the subject of intraday trading, or Day Trading.

Trading just a handful of stocks each week. I typically trade 6 stocks throughout the week. I’ve become very familiar with each stock’s patterns and peculiarities, to the point where I can easily predict the trends and price action.

Pick uptrending growth stocks. Typically, the stocks with the most potential for uptrending movements are growth stocks, those that don’t have dividends but having a potential to go up in price in dramatic fashion.

The magical time after the opening bell. I find that most of the stocks I’ve picked for day trading tend to have a nice, fast uptrend about 15 minutes after the opening bell (when all the dust settles). This magical time can extend for the next half an hour afterwards. And it’s best to exit before then.

Most of my best trades have durations of 1 minute to 10 minutes. If I have selected the entry point correctly, the stock will suddenly surge by at least 20 cents, and with the correction number of shares in relation to the stock’s price, we can easily reach $300 to $500 profit within a 10 minute time frame.

Be aware of Good Faith Violations! This is when you are day trading frequently and buying and selling a stock on funds that haven’t settled yet, which takes about 2-3 business days. I had a couple of good faith violations during the big Gamestop (GME) surge. So be careful, it’s easy to get excited. Keep track of your day trades and when the funds settle.

Creating a Day Trading Table is Essential. Below you’ll find my example of my standard day trading table, where you just input the entry price and how many shares you will invest. The possible profit scenarios will be presented from 1 cent to 50 cents.

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Portfolio Manager & Musician

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