Day Trading

[crockett]

As some may recall, I'm back at day trading since 2018. Every morning I spend between 30 min and 1 hour glued to 6 computer monitors, usually in pre market, trading high momentum on small cap gappers, aka anything that is between 2 and 20 bucks a share, up at least 50% on the day, is moving higher, with not too much float, and has a ton of volume / hype behind it. Average trade lasts between 1 and 10 seconds, sometimes up to maybe 2 minutes. Most of that trading happens on the matrix and the 10 sec chart.

Most of the days I watch a couple well known small cap traders in live streams, on separate monitors. Their decisions can have an immediate impact on my trades. For instance: if one of them sells his 250k position, there is a chance that many of his followers panic and also sell, in anticipation that the price will come down due to less demand. One big guy selling and 1000 smaller fish following will move the price on these small caps. That's the very obvious chain of reaction and nothing new. But I have been watching Ross for example for 3 years straight now. I know EXACTLY how he works, when he is about to go in, when he is about to screw up, etc.

Today was a prime example. He had a good start, was up 50k, and I could see how his mind started to feed off the dirty emotion called greed. He was also overtrading at that point. At that point he speculated on a HOD move (new high of day breakout pattern combined with a short seller squeeze), went in high on the break, but was played by those short sellers and victim to a bull trap. Instead of getting out in time with a smaller loss, he became stubborn and averaged down. By the time the shorts took over completely, he was in with over half a million bucks, panic covered, and lost over 50k on that position alone, within a few seconds, essentially giving back everything he had made in the AM.

I saw that coming, knowing him, watching him for 3 years, and making use of my intuition. I basically bought his shares from his panic cover at a low price and rode the dip back up for a 3% gain on my account. Was a 2 sec trade. That seems tiny on a stock that was up almost 100% on the day at some point, but waiting for those opportunities like a shark is the only way to be green in this game.

 

Here is his entire stream from this morning, the trade on that position starts at 1:37:04. Just in case any of you are bored tonight. This is more exciting than your average movie.

 

 

 

[crockett]

Good start into the week, got a 13% move in, within 1 minute in pre market. And that on my slow secondary broker TOS platform!

Typical buy high sell higher, HOD (High of Day) and ATH (All time High) outbreak play, combined with a massive short seller squeeze.

It only needs one of these trades each week.

 

 

[crockett]

Small cap gapper market is finally hot again! 23% play into the open, and into the halt! Same blue sky breakout pattern.

 

[crockett]

Well, the hotness didn't last. Hype is gone again. Bulls sell every little spike.

Longest seller wick ever. Was a first class red to green move through VWAP and SMA 9, and failed within the same 1 minute candle. Luckily I had a Limit order in place just below a long standing resistance and sold before the other toolbags chickend out.

Man do I miss last years small cap gapper market. This thing would have run several hundred percent. These days you can count yourself lucky when you get away green.