Nikit Shingari | A Passionate Day Trader
Day trading is the act of buying and selling of a security or instrument within the same day or even multiple times over the course of a day. It can be extremely tough if done incorrectly and not systematically. More importantly, there is no room for emotions in the day trading realm. I, Nikit Shingari, being a passionate day trader, sharing useful info & tips related to day trading that you should must know. Profitable Trade Setups: The Gap and Go trade. This would be a security that has a high relative volume, a premarket push that is in the direction of the catalyst, a market index such as SPX heading in the same direction. The key to this trade is the catalyst, and a premarket volume of above 15–45 percent of the average daily volume. Your entry is a buy stop over pre market consolidation and try to aim for one average trading range move. Many of these stocks that exhibit gap and go do dip and rips which are a small downward movement to gather onto premarket support before going up. You want try to find stocks in tight consolidation in pre-market because they have been storing energy and will rip hopefully to the upside, not just for gap and go stocks but for all opening breakout trades.
Pull Back Trade — Wait for a stock to consolidate onto a good support maybe even on top of a double bottom and then buy into the volume weighted average price indicator or VWAP. This is mostly for the first pull back or maybe second after that stocks lose stored energy too. On the other hand this can be done in short if there is heavy selling pressure then pull back to VWAP you can short the stock on the way down. A good place to cover is if price goes 1/2 atr away from VWAP in the opposite direction you are in position for. It is important to not on a short a higher low means caution and the trend may be over. A higher high is red lights and the trend most likely over Changing Fundamentals Trade — When a stock has a catalyst that changes fundamentals like full year guidance upgrade, or increased market share, or a new product etc. There is an opportunity for a high volume push. Some factors are if a stock Gaps up/down 3%, relative volume is above 3. The stock is also holding above WVAP and showing buying. It is clean and higher buying on the intraday chart and there is no long term resistance anywhere near. Always pay Attention to Premarket support and resistance as it is very important for intraday trades. With my vast experience, here, I suggest you important tips BEFORE YOU take a trade you have to know:
● What the Catalyst is. New product, government contract, new margins, raised guidance, something the market cannot put a cap on ● RVOL above 2.5–3 during market hours ● Average trading range ● Long term chart — KNOW ALL THE technical levels ● High short interest above 10–20 percent ● IS it above VWAP or below VWAP ● Check for institutional ownership — if like 95% then you will see maybe institutions buying the dips or other buyers keeping the stock afloat ● Gap % preferably +- 3 % ● Who is in control of the stock who is in control in the beginning and what about after that are there higher highs and lows that might mean buyers winning. These are the basic tips and tricks that one should know before taking step towards trading. For detailed info, visit our associated social links.