day trading strategy Archives | Bulls on Wall Street

How To Find Your OWN Trading Strategy to Find Consistency

Nick P — Fri, 15 Oct 2021 15:12:07 +0000

Whenever someone starts their trading journey, the temptation to join pump and alert rooms may be high. The intense attraction to them might stem from the ‘comfort’ you may think you have following someone who seems ‘reputable’ and is making money day after day.

In reality, you are just making your fear of losing on your own, and your lack of will to carve your own path and work hard to develop your own strategy.

When you rely on alerts to trade, you are not self-sustainable. If the alerts service goes down, you are screwed. Following alerts and signals does not make you an actual trader. In the long run, you will lose as you really don’t have a reliable edge to fall back on.

Today, we are going to cover why it is so important that you develop your own system and stick to it, and actually how you can start creating and piecing together a system and style of trading that suits you specifically.

Your Own Trading Strategy = Self-Sufficiency

If you are just trading alerts and they disappear, you are screwed.

We aim to create self-sufficient traders, who can sustain themselves on their own without spoonfed alerts or a mentor holding their hand while they trade. That is our end goal.

While it is nice to always trade with a mentor or a community, you have to be able to rely on your own instincts and abilities to be successful in the long run. Being able to trade solo and not rely on anyone else telling you plays and setups will allow you to have a safety net to fall back on and will give you a sense of real security. When you achieve that level of proficiency, it is a real job and a reliable source of income.

Natural Trading Instincts

Whenever you develop your own system and strategy, whether you realize it or not, you are piecing together a system that fits your natural instincts and personality traits.

Every human is different, and every mind thinks differently. As a trader, you want to play to your strengths. If you are super patient, then swing trading may be right for you, and as you learn you will naturally incorporate and gravitate towards longer swing trading strategies as a result. If you are a very impatient person, you will find yourself seeking out, trading better, and implementing scalping/day trading strategies.

If you take the time to create your own system as opposed to just following alerts, you will find that the strategies you incorporate will flow better with your natural abilities, meaning you will inherently trade those setups better since you aren’t forcing yourself to adapt to a different personality trait.

At Bulls on Wall Street, we teach traders a wide variety of strategies and help them incorporate the right ones that fit them into their system. That is what we do differently. Our student Kelsey adapted our strategies to her own trading style:

How Do I Develop My Own Strategy?

Developing your own strategy and system can seem daunting at first. But, that is what we are here for.

Before we dive in, save this graphic. It will come in handy soon.

To develop your own strategy, you have to break things down one by one. You have to realize that there are many different times of day to trade, types of stocks to trade, styles of trading, etc.

Let’s outline some of the key categories of trading and stock behavior you need to be aware of when making your decisions:

Times of Day To Trade:

At the Open (Morning)
Midday (Afternoon)
End of Day (Late Afternoon)

Styles of Trading:

Swing Trading
Day Trading
Scalping

Types of Stocks:

Small Caps
Mid Caps
Large Caps
Volatile Stocks
Non-Volatile Stocks

Types of Trading:

Short Biased
Long Biased
Mixed (No Bias)

Types of Stops:

Mental
Hard

These are just a few categories, aside from patterns, which we teach a bunch of.

Now, you really want to sit and look over that list, and think of what type of person you are.

Are you patient?

Are you impatient?

Can you sit through volatile price swings?

Does overnight risk make you anxious?

When you think about your end goal as a trader, how do you want to feel and what do you want to be doing? If you want to be as stress-free as possible and trade for only a few hours a week, then swing trading non-volatile large caps and using hard stops/entries is the way to go. If you want to be in front of the screen all day every day and are very impatient but can push size with no problems, then scalping/day trading volatile small caps and mid-caps may be your path.

Once you decide what type of trader you want to be, what stop methods you will use, and what types of stocks you want to trade, the next step is just learning pattern after pattern, which is where we come in. You’ll want to learn as many patterns as you can, backtest them, and test them in your system. Over time, you’ll find certain patterns that work best for you on the types stocks you look trade.

Live Trading Classes From Experienced Traders: Join Our Live Trading Boot Camp

Space fills up fast in our boot camps. Apply for your seat to see if you qualify!

Click Here to Save Your Seat

The post How To Find Your OWN Trading Strategy to Find Consistency appeared first on Bulls on Wall Street.

3 Day Trading Strategies to Use in the Current Market Environment

Kunal Desai — Wed, 20 May 2020 20:15:20 +0000

This market environment is like no other. We are seeing some of the worst economic conditions of all time. Record high unemployment numbers. Hundreds of thousands of businesses shut down.

But yet the stock market doesn’t care. The market has been on a non-stop, grinding uptrend for the past 2 months. It doesn’t make sense. But it doesn’t have to. The stock market is not always an accurate reflection of the current economic conditions. As momentum traders, all we care about is following the trend, and capitalizing on the momentum.

One of the most important lessons from this rally: Price action will always matter more than fundamentals. Supply and demand is the only thing you need to pay attention to as a trader. Be aware of fundamentals, but don’t let them make you get stubborn over a bias. Here are 3 day trading strategies that have been working well in the current market environment:

The Quick Pull Back Buy

A great set-up to use right near the market open. Many beaten-down stocks from March are seeing strong rallies. Many of them see strong upward momentum at the open.

The market open, the time of the trading day from 9:30AM-11 AM, is a period where stocks go on the strongest and cleanest trends. This setup is one of the best day trading strategies to capitalize on volatility at the open.

Learn how to use the Quick Pullback Buy in this video lesson:

The Rubberband Short Setup

This is one of the best setups to do in strong, uptrending markets. Many stocks get very overbought in these conditions, and become prime candidates for a short play, meaning you bet on the stock to go down.

This setup needs to be timed well. You are going countertrend, and it is always possible the stock can continue going up. Watch this video lesson to learn how to time the trade so you can catch the turn:

Day Trading the News

Understand this: The best traders don’t put on new trades as soon the news comes out. They wait for several minutes to let the trend settle and materialize. And then the find a low-risk entry to join it. Trading the news is not buying or shorting a peak volatility, guessing the stock’s reaction to the news. This video lesson will show you how to do it correctly with a recent trade I had on NCLH:

Learn Our Favorite Day Trading Strategies in Our Live Trading Boot Camp!

Learn all the day trading strategies we’ve been using for 2 decades in our Live Stock Trading Bootcamp. Only 14 seats are open for our next boot camp.

Click here to apply for our next trading boot camp!

The post 3 Day Trading Strategies to Use in the Current Market Environment appeared first on Bulls on Wall Street.

The Best Day Trading Strategy to Use in Overbought Markets

Kunal Desai — Thu, 23 Apr 2020 18:31:38 +0000

Overbought markets offer some of the best day trading opportunities. The best day trading strategy to use in overbought markets will involve short-selling, since this will allow us to capitalize on the stock when the stock declines in value.

The specific pattern is what I call the “Rubber Band Short”. This is one of the best strategies to get in a low-risk, high-reward trade.

Check out this video lesson for an overview of how to use the Rubberband short setup on trade earlier this week on $NVAX:

Overbought Signals To Look For

– Price Trading At/Near Upper Bollinger Bands on Daily Chart

– Overbought Stochastics

– Multiple Up Days

– Wide Range Previous Day

– Lower Highs Intraday

– Breaking Key Support Levels

None of these signals are black and white. However, when you have multiple indicators aligning, they add to the probability of the trade working out. At the end of the day, the most important trading indicator is PRICE. A trade thesis is only valid if price action confirms it.

Managing Risk

Counter-trend trading is one of the more difficult trading strategies. Risk management is essential in the scenario when you are wrong. Even when you have multiple signals aligning, there is still always the chance the trade might not work. You have to take the loss when it is small manageable. If the trend continues, especially when short-selling, you risk taking a massive loss if you don’t take the loss when it is obvious you’re on the wrong side of the trade.

Don’t be afraid to take a small loss, and then re-attack higher. Even the best day trading strategy in the world has a chance of failing. No strategy has a 100% win rate. The higher the overbought stock climbs, the bigger the fall will be. What you make when you do finally catch the trend change will more than makeup for the small loss you took earlier. Manage risk aggressively, live to fight another day!

Free Live Webinar This Weekend (Limited Seating)

Join us on Sunday for an Important Live Webinar:

What You Will Learn In Our Work Shop Sunday At 4PM:

– All of the Best COVID-19 Stocks to Trade

– Key Characteristics of COVID-19 Momentum Stocks

– How to Identify These Stocks in the Future

– How to Trade Them Long and Short

– How COVID-19 is Affecting Individual Stocks

– How to Become a Proactive vs Reactive Trader

LIMITED SEATING. Register before space fills up.

Click Here to Register for This Weekend’s Webinar

The post The Best Day Trading Strategy to Use in Overbought Markets appeared first on Bulls on Wall Street.

3 Day Trading Setups I Use Every Day

Kunal Desai — Sat, 21 Sep 2019 07:04:50 +0000

The stock market can seem random and chaotic. In order to consistently profit from day trading stocks, you MUST use day trading strategies that have an edge. Many traders fail because they trade strategies that don’t have positive expectancy.

This means that in the long run, they always lose money because their day trading setups have no edge. They are the suckers playing the slot machine. Successful traders have setups that make them the casino. They know in the long run, they will always make money.

Today I will talk about 3 of my favorite day trading setups. These are the go-to setups that I can rely on for consistent income. Every trader needs these, and for every trader they will be different. Before I give you these setups, it is important you understand exactly what a day trading setup is.

What are Day Trading Setups?

Day trading setups are another word for day trading strategies. A day trading setup is simply an entry strategy for getting into a stock. A setup defines a set of criteria that need to be met in order to enter a trade. Without a setup, you are just gambling at the casino when you enter the market.

Now that you understand exactly what a setup, let’s get into some of my favorite strategies. Here are 3-day trading setups that I use on a daily basis:

Short-Selling Breakdowns

Stocks that report negative news will often have large moves to the downside during pre-market and after hours. This momentum will often continue into the market open, and provide great short selling opportunities. I will look for these downtrending stocks during pre-market, and look at their charts to find a good entry point for an entry for a short sell.

The best breakdown plays gap down under nearby support on their daily chart and increases the probability that sellers will enter the market, causing the stock to depreciate in value. Here is an example of earnings breakdown play I took on $X:

Day Trading 2nd Day Continuations

A lot of traders get FOMO after missing a big move in a stock. What they don’t understand is that stock trends will typically last multiple days. The following day after a stock has made a strong move is often actually easier to capitalize on than day 1.

When trading a continuation play, I am looking for an entry to join the trend that is continuing from the prior day to the long or short side. Here is an example of how I day trade 2nd day plays:

VWAP Pullback

The VWAP (Volume Weighted Price Average) is a great indicator to gauge a stock’s trend. It is a great tool for managing your risk for day trades. It often acts as support and resistance for stocks intraday. One of the favorite strategies using the VWAP is the VWAP pullback.

This is a setup you use between 10:30-4 (not during the open) to buy shares on an uptrending stock after it has pulled back and retraced to its VWAP. Entries by VWAP can give you low risk, high probability trades.

It can also be used to short stocks downtrending stocks and is one of my favorite mid-day setups to day trade stocks. Here is a video lesson going over a trade I took using this strategy:

Learn All 32 of Our Trading Setups in Our Live Trading Boot Camp

We teach 32 day trading and swing trading setups in our Live Stock trading Boot Camp. Early-bird pricing ends on May 7th, and only the first 10 accepted applicants will get the discount!

Click Here to Get Early-Bird Pricing on Our Next Boot Camp

The post 3 Day Trading Setups I Use Every Day appeared first on Bulls on Wall Street.