We’re in an insane market right now, and it’s awesome!
As I said in Friday’s blog post, “Welcome to the Golden Age of Trading Opportunity!”
But with a busy market comes a need to focus, focus, focus on only the best trades.
I can’t say that enough.
And that can be hard when you’re facing an endless list of trade setups. How the heck are you supposed to choose?
It’s like being a kid in a candy store!
To make things easier, I tell all my Daily Income Trader and StocksToTrade Advisory members to look for the “Box Checkers.”
It’s another great way to narrow down that list.
Today, let’s talk about what it means to check all the boxes.
So here it is: The ultimate trading checklist, all in one place.
This checklist is built on one simple but essential question you should be asking yourself before every trade:
“What’s the ‘why’?”
If you don’t have a solid reason for making a trade, you shouldn’t be doing it.
Successful trading isn’t about chasing the shiny object of the day. It’s about having a process and a plan.
That’s what this checklist is for…It helps me stay grounded and ensures I’ve got a solid reason to take the trade.
Not every trade will hit all the boxes, but the more it checks, the better the odds.
Enough of my lecturing…Let’s get to the checklist!
Table of Contents
My Trading Checklist
Remember, this checklist isn’t a magic formula—it’s a framework to help you make smarter decisions.
And trading smarter is always our goal.
Checklist Item #1: Is It in a Hot Sector?
Hot sectors create excitement, which drives volume, volatility, and momentum.
That’s exactly what short-term traders are looking for.
Some hot sectors last for months, even years.
And they don’t just fade forever—they often come back in waves…Do quantum computing stocks ring a bell?
So if a sector’s hot, it’s worth watching.
Checklist Item #2: Does It Have Unusually High Volume?
Because volume is like fuel…Without it, a stock can’t move.
Unusually high volume means something is happening.
But high volume alone isn’t enough. If the volume’s there but no catalyst backs it up, it could just be noise.
None of these factors work in isolation.
Checklist Item #3: Is It a Low-Float Stock?
These are some of my favorite types of stocks: low floaters.
Low-float stocks have fewer shares available to trade, which means they’re more sensitive to demand…and when demand spikes, they can explode.
I consider anything under 10 million shares as low float.
Checklist Item #4: Does It Have News?
“News” doesn’t always mean breaking headlines on CNBC.
For penny stocks, it can be something as basic as a press release loaded with buzzwords.
Sometimes, even the idea of future news or a juicy rumor can move a stock more than the actual news itself.
Checklist Item #5: Has It Run Before?
If a stock has a history of making big moves, I pay attention.
History never guarantees it’ll spike again, but it does give a more informed guess of what the stock is capable of.
A Real World Example of a Box Checker
Silexion Therapeutics Corp (NASDAQ: SLXN) was a box checker that showed up on my radar during my Premarket Prep last Wednesday.
Hot sector? Yes; it’s a biotech company and this sector’s been hot for a long time…
Unusually high volume? Yes; volume spiked that morning during premarket.
Low float? Yes; 2.1 million shares
News? Yes; SLXN had just announced news of positive preclinical trial data.
Former runner? Yes, the stock has run up several times over the last three months.
So here’s what happened with SLXN on Wednesday:
SLXN Intraday, 5-Minute Candles Chart; SteadyTrade
And unsurprisingly, Oracle caught it too…
After hitting the green entry signal of $2.36 per share, SLXN reached a high of $3.45, booking a return of 46.19%*.
SLXN is a textbook box-checker play!
How to Screen for Stocks That Meet Your Criteria
I use the StocksToTrade platform to screen for potential setups.
It has built-in scans, advanced charts, and customizable search tools that make it easy to find stocks that fit your needs.
Right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17!
My Final Thoughts…
We all know, I hope, that there are no guarantees in trading.
That’s why filtering potential trades through this checklist is so important.
It doesn’t take long, but it can save you from unnecessary losses and help you focus on high-potential setups.
And as I said before, using the checklist is the perfect way to pare down that endless list of choices in a busy market.
Your goal is to concentrate on a lean watchlist and keep and keep your trades calculated.
For more trading strategies and mentoring, subscribe to my StocksToTrade Advisory service today.
You’ll also get a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
In this crazy market, we’re not just seeing tons of day trade setups…
The swing trade opportunities are just as plentiful.
If you’re interested in swing trading, I’ve created a tool designed just for you.
Learn more about my IRIS Analytics system during several FREE live demonstrations running tomorrow at 10 am ET, 2 pm ET, and 7 pm ET.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade