Day Trading Stocks
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Day Trading Stocks

8 Modules 24 Lessons Intermediate

About this course

In this course, you will learn how to find the best stocks and assess for opportunities for quick day trading profits using gaps.

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Course Structure

Welcome

Welcome to the AntVestor Day Trading Program

Lesson 1 - Master Of The Universe

  • Creating a stock universe
  • INTRO
    • Not all stocks are created equally 
    • Penny stocks junk
      • Often Illiquid
      • Prone to halts
    • Looking for something that moves regularly
      • Or at least has the potential to move
    • Liquid.
      • Can get in and out at prices I want without slippage or stock halts
    • Easy to find something every day.
    • Filter out the worst stocks before you get started.
  • CONDITIONS
    • Do the stocks have options?
      • Get a list from Options exchange.
    • Are the stocks liquid?
      • >1 million shares traded on average.
    • Do the stocks move proportionally greater than the main S&P500 index?
      • The best kept secret that comes as standard
      • Beta weighting >1.5
    • Visually - clean chart / messy chart
      • Manually running through them all one time is beneficial if you have time.
      • Pull them off your list as you spot a donkey.
  •  

Lesson 2 - Download List

  • SUMMARY
    • This is now the Universe of stocks you are interested in.
    • This should be approximately 500 stocks 
      • You’ll not need to make it larger.
    • If you want to make it smaller.
      • Increase volume average

Lesson 1 - Intro to Gaps & Gaps conditions

  • INTRO
    • Now that you have your universe of stocks. This is the well striping you will draw from daily.
    • Next we look at a list of daily conditions which can be mechanically scanned for to find the best stocks.
  • CONDITIONS
  • The 3 times of day to find jumping jack stocks.
    • Pre market scan 
      • Gapping stocks
      • Filter with premarket volume >500k
    • Post market scan
      • After market activity in the same way finds tomorrows jumpers
    • Market open scan
      • Find the actual stocks gapping
  • Why look for gaps?
    • There has been a significant shift in supply and demand
    • Use trading pits analogy 
      • Find stock footage

Lesson 2 - Finding Gaps - step-by-step

  • CONDITIONS
  • The 3 times of day to find jumping jack stocks.
    • Pre market scan 
      • Gapping stocks
      • Filter with premarket volume >500k
    • Post market scan
      • After market activity in the same way finds tomorrows jumpers
    • Market open scan
      • Find the actual stocks gapping
  • Why look for gaps?
    • There has been a significant shift in supply and demand
    • Use trading pits analogy 
      • Find stock footage

Lesson 3 - Filtering The Gapping Stocks

Scanning the Gapping stocks for even more higher probability opportunities.

Lesson 4 - Pre-Market Scan

Scanning pre-market for fast moving stocks

  • Pre market scan 
    • Gapping stocks
    • Filter with premarket volume >500k
    • jumping past S/R levels

Lesson 5 – Tools to use for scanning

A list of tools that can be used to scan for stock from the low end online to the high end all singing and dancing software

Lesson 1 - The Process

  • INTRO
    • Lets get into the nitty gritty
    • This module covers the set up criteria.
  • Criteria
    • Gap Stock found from the previous scan.
    • Gap. >1.5% / 2%
      • Visual Inspection
      • Gap past previous days highs/lows
      • Gap past support/resistance.

Lesson 2 - Entry Patterns

  • The 3R’s which keeps you selecting the right set ups at the right time, every time.
    • 3R’s has nothing to do with pirates, although it will lead you to stock market treasures as if X did mark the spot.
    • Run - Retrace - Retest
      • Big spike. IB.
      • Big spike. Retrace (partially/fully into the gap). Continuation spike (retest)
      • Run. IB.
  • Times Frames
    • 10 min - 30 min - 60 min set ups.

Lesson 3 – Trade Examples

This lesson shows trade examples of before and after shorts for the trade so you can see exactly what I'm looking for on a daily basis.

I plan for this to be a trade repository and will be adding to these examples regularly.

Lesson 4 - Using pre-market price action

On this lesson, we will look at using pre-market trading to help evaluate good trading opportunities and gaps to potentially avoid.

Lesson 1 - The Trend Is Your Friend

  • The Trend Is Your Friend
    • Trade the gap or fade the gap?
  • The secrets of Trade it, Fade it, Evade it.
    • Gaps in trends - tend to run
    • Gaps in ranges - tend to reverse
    • Exceptions to every rule

Lesson 2 - Leg Into Multi-day Moves

  • Potential bag big multi day moves in trends
    • Determine trending conditions 
    • Gap ‘n Run opportunity to hold overnight and turn into a short term swing trade
    • Gap trades closing on or near their respective highs/low of the day are likely to continue onwards.
      • eg - gap down - trade on - close near low - potential to continue tomorrow.
      • eg - gap up - trade on - close near high - potential to continue tomorrow.

Lesson 3 - Shhh It's A Secret

  • A quick way to speed up or slow down 
    • Increase time frames
    • Decease time frames
    • Think of this like changing gears. 
      • The higher the time frame the slower the set ups develop.
      • The lower the time frame the faster the set ups develop.
    • It sounds obvious because it is obvious but most people do not realise this.
      • Especially when you are new
    • Which one is best?
      • Determine which is best for you and your circumstances.
      • If you continually miss set ups on a 10 minute chart, move up to a 30 min chart as your lowest entry  time frame
      • Shhhh Its a secret
        • If intraday trading is just not at all possible due to your current circumstances
        • The patterns here also work on daily charts.
        • This suit of patterns are also used in the swing trade stocks course and alert service.
        • The point here is to find a time frame that makes most sense for you based on your circumstances.

Lesson 1 – Intro & Best practices

  • INTRO
    • Never enter a trade half cocked.
      • Just like the origins of the saying it was to protect against a misfire. In trading, you will only ever pull the trigger when everything is primed and ready.
      • This is why there is a production line setup in place. It is only when you have everything in order checked off that the trade then goes on.
    • Kill your market order additiction.
      • Discover why a market order is the worst thing you can do practically and emotionally.
      • Place the trade the right way every time with stop entry orders.
      • Don’t worry about the extra penny you could have gotten with a market order.
      • This way price needs to move favourably BEFORE your position goes live.
      • It means you can set the order and go do something else.
    • Basically NEVER USE market orders to open a position.
      • Exception to the rule is IF and only IF price is at your entry trigger now.
        • This will be a rare occurrence.

Lesson 2 – Stocks – Options – Spreadbetting – CFD’s?

  • Stocks - Spreadbetting - CFD’s
    • The entry process is exactly the same for each of these “vehicles” which is the fancy way of say “way to place the trade”
    • Determine the entry price (explained during the pattern set ups. Phase)
    • Use a stop entry order type
      • Buy stop entry for long positions. This is a trade that will benefit if the stock rises in value.
      • Sell stop entry for short positions. This is a trade that will benefit from a downward movement in the stock price.
    • You can and should also attach a conditional order to the entry for risk management.
      • To confuse things this is commonly referred to as a stop loss order. Which also uses the stop order type.
      • This will allow the position to be closed if the trade idea doesn’t work out and exit the position when the stop loss level is reached.
      • Obviously, this means you don’t need to screen watch and simply “check in” on your positions.
      • I want to be managing profits and certainly not baby sitting underperforming positions. They will take care of themselves.

Lesson 3 – Stock Options

  • Stock Options
    • If they are new to you the best way to think of stock options is like a deposit. 
    • You are not buying or selling short stock. But reserve the right to buy or sell.
      • Just like a deposit in the real world.
    • My default options set up is to buy 1 strike out the money (OTM)
      • Whether you are bullish or bearish on your trade idea the way to place the trade will ALWAYS be to buy an option.
        • Buying call = bullish and benefits if the stock rises in price.
        • Buying puts = bearish and benefits if the stock falls in price.
    • Commonly I use a limit entry order and use the current mid price.
      • The spreads can be a lot wider than stock so this is important to do to ensure the best possible prices.
    • Advanced
      • Conditional if then orders can be used in the way as described with trading stocks although it does require a few more steps and it is not always a choice depending on the broker you use.
      • Using a condition of the stock price needs to trigger the option order.
      • Eg. Stock price to go through the entry price. THEN send option order.
      • If this is way too much for you then a simpler solution would require you to set an alert and then manually go back to the stock to place the option order.
        • As such this would require a little more available time to have the flexibility to use this more manual process.

Lesson 1 – Managing The Losses AND The Profits

  • INTRO
    • Finally we can look what to do now that a position has been place and is open.
    • Stop loss management is quite simple and often dealt with along side the entry order.
    • A stop loss typically goes past the event that got me in the position.
    • It is dictated by the entry pattern described previously.
  • Entry Trade management on loss (reminder)
    • Stock entry past the trigger bars
    • Options entry 1 strike ITM or OTM (personal preference)
  • Exit trade management on loss
    • Stock entry past the other side of the trigger bar
    • Options exit same
      • Options have the luxury of waiting.
      • Try to scratch same day or following day.
      • Often a scratch can be had
      • Or the dead sideways move can be turned into a winner as price puts in the expected movement the following day.

Lesson 2 – Stop to Profit

  • Stop to profit.
  • There are two types or trade management I like to use.
    • Trailing stops
    • Timed exits
    • Both have their places and uses and as always there is no single strategy that is perfect to milk the markets to perfection.
    • As I like to capture the main move of the morning. A timed exit is what I prefer 99% of the time
    • You can often find me in a coffee shop reading or dining out with family. I’m in the UK so the time difference helps for lunch being my dinner.
    • I would use a trailing stop loss if I were to pop the trade on and then walk away knowing that I could not likely check in after that. I’d like to say meetings. But I have few of those these days.
  • Trailing stop loss management.
  • Why Trailer Trash is full of Gold.
    • This method allows you to lock on profits on moves.
    • Best of all, you can automate this on entry.
    • Great for if you cant check in on your trades due to other commitments.
    • In simple terms I use ATR on the time frame of preference.
      • 10 min - 30 min - 60 min
    • 2x the average true range (ATR) your entr time frame.
      • 1x if you want tight trade management.
      • 3x if you want to losen it up.
      •  There is no single best setting. It always comes to preferences.
      • I prefer 2x when I use this.
    • Set the trailing stop loss to this amount
    • The order will auto adjust
    • Alternatively, trailing manually behind the 30 or 60 min bar highs/lows will achieve a similar result
      • similar to 1x auto trailing ATR
  • Timed Exits - higher time frames especially
  • The Traders “Naughty Step” Time Out.
    • Know when to exit your trades to maximise day trading profits.
    • Exit After 90-minutes - upto 3-hours
      • As I am only looking for the main move of the morning
      • The move is often done for the day at this time.
      • Helps around those pesky turn arounds which often come with big gaps.
      • Obviously missing out on further movements is a possibility but 95% of the time you will be out at the optimal time.
        • Combining the Trailing stop at the 90 minute exit is one way to attempt to get the best of both.
 
  • Portion Control - lower time frame especially
  • Aiming for smaller targets gives you higher rewards
    • Setting a target to aim for is often wise because it is easy to get greedy
    • 1:2 or 1:3 targets makes the most sense.
    • risking $1 to return $2 (or $3)
    • Adjusting stop loss to BE or better after a 1:1 move keeps the risk management aggressive but tight.
    • Most commonly I often end up with a $1 target or a $2 target

Lesson 3 – Swing When you’re Winning

  • Turn your daily winnings in to weekly profits.
  • WARNING - requires patience
  • Using stock options for stress free swings.
    • Another way to legally sidestep the PDT rule and potentially bag more profits.
    • This is a simple way to bag a runner which could last days or weeks.
    • Converting the day trade to jump start a swing trade.
    • How do you tell when...?
      • Looking for similar patterns on the daily chart.
      • Seeing price has broken a consolidation pattern and “broken out”.
      • Trading the gap in the direction of a well established trend.
      • Price closes on or near the high/low of the day can suggest further follow through movement
        • Especially when associated with exceptionally high daily volume.
    • Turn a loser into winner.
      • This can also turn a dead duck into a break even trade because you manage your non starters more effectively.
      • It does require patience but you will find out tomorrow if your dead duck can be turned into a goose that lays a golden egg.
      • Less stress than holding overnight with stock as things can go wrong quickly.
        • An option has a defined risk built in so no matter how wrong things get your risk is always limited to the price you paid for the option.
        • As such this helps “manage positions more effectively” holding over night.
        • Not for the freight hearted.

Lesson 4 – Trade Management Summary

  • SUMMARY
  • Exit Trade Management on profit
    • Close after 90 mins - 3hrs
    • Close at end of day.
    • Close the following morning (avoids PDT rule)
    • Trail stops behind 30 min or 60 min highs
 
  • Close on target
  • Step Trail after 1:1 

Lesson 1 – Account Management & per trade risks

  • INTRO
    • Next we focus on one of the single most important subject of all, money management...
    • ...avoid a catastrophic melt down in your trading account.
    • In an ironic twist it is also one of the subjects that if overlooked. Not this time. Here you are going to learn my unique approach to getting the best of both;
  1. Capital Growth
  2. Capital Preservation.
  • This simple money management technique will help you minimise your risk and preserve capital while balance that with the optimal way to maximise growth.
  • Avoid account churn like the plague.
    • This is when your equity growth looks like a sloppy ranging stock pattern.
  • NEVER reduce your position size
    • Why you should never reduce your position size.
      • Only ever increase position size. 
      • Never again should you have to reduce position size even when you have a drawdown period in your trading.
  • Accelerate out of a drawdown period 2x 3x or 5x time faster than you got into it.
    • Using this method is like driving in reverse during a drawdown phase. There is only one gear and a max speed to protect your capital.
    • During winning phases you will have 5 gears to accelerate your capital growth.
  • What everyone should know about “text book” position sizing and why it's killing your trading results.
 
  • Describe principal Growth & Preservation method
    • When to increase position size
 
  • A practical guide to position size
    • What’s your number?
    • Practical equity management
    • Emotional equity management 
      • position size is like a volume dial on the emotions
      • Reduce position size = minimise the emotions of trading
  • After this AND you have enough capital
    • Apply a percentage of account
    • I prefer 0.5% of risk per trade.
1 Lesson

Module 8 - Putting It All Together

Trade Examples

Lesson 1 – Daily routine strategy guide

In this lesson you will have access to w working document which outlines my daily steps to finding stocks to trade daily.

The entire process 

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