In yesterday’s Daily Accelerator, we discussed some prime swing-trade opportunities. Today, I thought we’d explore the other side of the coin: Highly profitable day trades.
Remember, swing trading and day trading are both viable setups.
It just depends on your preference. For some people, swing trading makes more sense. For others, day trading is the way to go.
That’s why these reports are so important. In the beginning, traders need to explore as many setups as possible to find the strategy that works best for them.
A quick recap: Day traders take advantage of intraday price action.
These day-trade stocks can spike 100%+ intraday.
For example, Collective Audience Inc. (NASDAQ: CAUD) spiked 120% on Monday after the company announced a strategic business partnership with Insticator. The news boasted about Insticator’s 350 million monthly consumers.
The chart below shows CAUD’s spike after the news came out. Every candle represents one minute:
CAUD chart intraday, 1-minute candles Source: StocksToTrade
We don’t want to trade the entire move.
I know that a 120% profit sounds nice. But it’s dangerous to try and time these plays perfectly.
Instead …
- We get in.
- We get out.
- We move to the next hot runner.
Profit Process
Our goal is to identify volatile stocks that can follow support and resistance levels. Then we take advantage of those key levels to profit from intraday momentum.
There’s more information about support and resistance in the video below:
(Join one of my trading LIVE streams to answer any lingering questions)
These stocks CAN spike for multiple days, but we need a watchlist to take advantage of the multi-day momentum.
We can’t just buy and hold shares for a random amount of time.
These are volatile penny stocks after all, the spike will eventually crash. For that reason, we have to exercise caution.
CAUD is still on my watchlist this week because the price could spike again. I’m waiting for the chart to confirm another move before I plan a trade.
And CAUD isn’t the only ticker eyeing new highs …
My Day-Trade Watchlist
Sometimes we see these plays spike and then consolidate for a few days before spiking again.
A watchlist helps me keep track of the hottest runners in the market. That’s how we can catch follow-up moves.
These are the day-trade stocks that I’m focused on right now:
- Collective Audience Inc. (NASDAQ: CAUD)
- Global Mofy Metaverse Limited (NASDAQ: GMM)
- AGBA Group Holding Limited (NASDAQ: AGBA)
All of these stocks started to spike with an obvious catalyst.
For example: CAUD announced a business partnership with Insticator.
We can track these catalysts. And when the news lines up with bullish volatility, that’s our signal to plan a trade.
Traders got an alert for each of the stocks above right when the price started to move.
Take a look at the corresponding charts below. All of the candles represent one trading minute:
Now we’re just waiting for the prices to push higher …
There will be more day-trade opportunities this week!
Add these stocks to your watchlist and pay attention to the past price action. That’s how we find key support and resistance levels.
And for the next big spiker:
>> This is where we get Breaking News alerts <<
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade