Ross Cameron - Warrior Trading - WATCH LIST for MONDAY | Let's Start March Strong 💪
The speaker outlines a disciplined trading strategy that involves starting each day with a conservative approach to build a profit cushion before increasing trade sizes. This method helps manage risk, especially during the first trade of the day, which carries the highest risk. The speaker emphasizes the importance of consistency, starting each week and month slowly to secure initial profits and gradually increasing aggressiveness as confidence and market conditions allow. The speaker also highlights the significance of trading during specific times of the day, particularly between 7:00 a.m. and 10:00 a.m., when market activity is high. Additionally, the speaker discusses the importance of monitoring pre-market movers and using scanners to identify potential trades. The speaker encourages traders to join a community for support and learning, offering a trial to experience the trading environment firsthand.
Key Points:
- Start trading each day conservatively to build a profit cushion before increasing trade sizes.
- Focus on trading during high-activity times, particularly between 7:00 a.m. and 10:00 a.m.
- Use scanners to identify pre-market movers and potential trades.
- Join a trading community for support and learning opportunities.
- Set realistic monthly goals and adjust strategies based on market conditions.
Details:
1. 🗓️ Setting the Stage for March
1.1. February Highlights
1.2. March Goals
2. 📚 Trading Philosophy & Daily Routine
- Approach trading like a business with a clear business plan, ensuring every trade aligns with overall business objectives.
- Maintain consistency in daily routine by starting at the same time every day, which helps in building discipline and focus.
- Incorporate specific rituals or activities in the daily routine, such as reviewing market news or analyzing previous trades to improve strategy.
- Allocate time for reflection and learning to continuously improve trading skills and adapt to market changes.
- Use metrics such as daily profit targets or risk management thresholds to measure success and guide decision-making.
3. 📈 February Recap & March Goals
- Traders should avoid going in with a full 100% position on the first trade to minimize risk.
- The first trade of the day poses the biggest risk; starting with a smaller position can prevent significant losses if wrong.
- Building a cushion by starting conservatively and gradually sizing up once a cushion is established is crucial.
- If a cushion isn't achieved, it's better to remain conservative, resulting in a small green day rather than risking larger losses.
- Approaching each week with a similar strategy: start conservatively on Monday to build a cushion, then increase risk if Monday and Tuesday are successful.
- Ease off the throttle towards the end of the week to preserve gains.
- Applying the same strategy monthly and annually to ensure consistent gains and manage risk effectively.
4. 🔍 Stock Analysis & Watchlist Preparation
4.1. February Performance Metrics
4.2. March Goals
5. ⏰ Optimal Trading Times & Strategy
- In February, a strong performance was recorded with $181,000 gained in the first week, highlighting the effectiveness of the strategy, including a notable $66,000 gain on February 6th.
- For March, the strategy includes a daily goal of $20,000, with an emphasis on maintaining a consistent cushion to manage risks effectively.
- Trading is most aggressive between 7-10 a.m. EST, which aligns with historical performance trends, easing as it approaches noon, with a hard stop in the afternoon to avoid diminishing returns.
- The historical data shows a gross profit of $15.4 million, underscoring the long-term success of the strategy and validating the aggressive morning approach.
- The plan for the upcoming Monday involves an early start at 6:45 a.m., utilizing scanners to identify top pre-market gainers, ensuring readiness to capitalize on early opportunities.
6. 📊 Market Trends & Retail Influence
- Retail trading is at the second highest level ever, with Robin Hood, ER Trade, and Charles Schwab accounting for nearly 25% of total market volume, indicating a significant market influence.
- Including all brokers, retail trading volume may exceed 30-40%, suggesting its substantial role in market dynamics.
- Commission-free brokers profit through payment for order flow, which encourages frequent trading, potentially impacting market trends.
- The pre-market session begins at 7:00 a.m. EST, with major brokers allowing trading, emphasizing the strategic importance of early market activities.
- Traders are advised to focus on stocks with high volume, news, and low float to capitalize on early market movements.
- Push notifications from trading apps are strategically designed to increase trading activity by highlighting moving stocks, influencing retail traders' decisions.
7. 🚀 Volatility & Inspiration from the Market
- A single stock experienced 500 million shares of volume in one day, showcasing significant market activity and volatility.
- Traders leveraged this volatility to achieve substantial profits, with some making over $1 million in a single day by managing high-risk tolerance.
- Highlighted example: MLGO stock increased from $2 to $12, demonstrating the potential for significant gains if a trader can manage large volumes and associated risks.
- FOMO (Fear of Missing Out) is reframed into inspiration, encouraging traders to recognize and seize potential growth opportunities in the market.
- The speaker reflects on their personal growth potential, indicating that even successful traders can continuously improve their strategies.
- Trading is inherently risky, and while there are opportunities for significant gains, success is not guaranteed for everyone.
8. 💻 Pre-Market Setup & Streaming Details
- Trading begins at 7:00 a.m., with significant activity until the market opens at 9:30 a.m., when trading volume spikes.
- At the 9:30 a.m. market open, commission-free platforms like ThinkorSwim contribute to increased trading volume due to price improvements.
- The first two minutes post-market open are highly volatile, influencing decisions on continuing trades based on stock performance.
- Trading focus diminishes once the stock of interest is no longer viable, typically between 10:00 a.m. and 10:30 a.m.
- No trading occurs from 3:00 p.m. to 4:00 p.m., despite earnings releases, as it's less strategic.
- Preparation for trading starts at 6:45 a.m., including setting up a live stream for followers in the small cap room.
9. 🔄 After-Hours Insights & Stock Movements
- The leading stock in after-hours trading increased by 35%, but it was only a 70-cent stock, making it less exciting for larger investors.
- Aon experienced volatile trading behavior with significant price swings, including squeezing up, halts, and dips, but it ultimately didn't sustain its gains.
- Historical patterns for Aon show repeated price spikes and drops, suggesting potential future volatility but no immediate turnaround.
- LGVN trades with a higher float of 13 million shares, making it heavily traded and difficult to predict, described as a 'big tug-of-war.'
- TRNR shows potential for continuation, having experienced a significant price pop on its first day of trading.
- After-hours trading can be unpredictable due to lower volume and liquidity, often leading to exaggerated price movements.
10. 📝 Final Watchlist & Trading Resources
- TRNR is on the watchlist for Monday morning due to its current strength, but traders should be cautious of potential early sell-offs due to low liquidity at 4:00 a.m., which can allow significant shorting impact.
- TRNR displayed a pattern of holding above the previous resistance, suggesting shorts are less dominant; however, ascending support might attract early traders, especially from European and Asian markets.
- BBAI and BTAI are considered no-go due to high float and weak news, respectively, indicating no immediate trading opportunity.
- CJMB requires breaking news to provide a trading opportunity; current data from vendors lacks float information, impacting trading decisions.
- SPL shows potential as a turnaround story if volume increases, warranting placement on a side chart to monitor potential spikes.
- The S&P 500 showed a bounce on Friday but faces headwinds, causing investor caution due to high market pricing, leading to potential short positions or panic selling.
- Risk management is emphasized, reminding traders about the inherent risks and the need for caution in trading decisions.