I talk a lot about preparing yourself for day trading.
Yes, the setups are different for trading pre-market versus trading after that bell rings…
But when it comes to structure and process, the same basic rules apply no matter what time of the day you’re trading.
Do you ever find yourself going after every ticker that pops up in a chat room? Clicking random news alerts? Running after the next shiny object like it’s the holy grail?
You’re chasing and chasing barely ever works…
Instead, you need to ask yourself one simple question before every trade:
What’s the “why”?
Why this stock? And why now?
Wanna know my latest “why”?
I’ve just discovered a great new trade setup…It’s consistent and reliable, which is what we’re always looking for.
Did you know that Monday morning presents a unique window of opportunity that doesn’t exist at any other time during the week?
The Monday setup has brought 100%+ gains…in just one day!*
I’ve studied and perfected this trade, and now I want to share it with you.
Learn it for yourself in my video tutorial below:
If you don’t have a real reason for buying, you shouldn’t be in the trade. It’s that simple.
Does your trade check all the boxes?
Today, I’m breaking down the checklist I use every single day…
It filters out the garbage and zero in on real, tradable setups.
No, not every stock will check every box. But the more it lines up? The better I feel about pulling the trigger.
Table of Contents
My Trading Checklist
Before we dive in, remember that this checklist serves as a framework, not a gospel.
I’m not handing you a blueprint for perfection here. I’m teaching you a system to help think like a trader, not react like a gambler.
You still need to do the work, manage your risk, and have a trade plan.
And remember, none of these criteria can be used in isolation. It’s about the total picture.
Box #1: Is It in a Hot Sector?
Hot sectors attract volume, attention, headlines, and chat room hype, and that’s exactly what short-term traders feed on.
Every sector goes through waves. Remember quantum computing, anyone?
When a sector heats up, you ride the wave.
And when it slows down, all it needs is a solid catalyst and a little media frenzy to come back to life.
The key is to pay attention and be ready for those rotations.
Box #2: Does It Have Unusual Volume?
If you’ve ever watched Pre-Market Prep, you know I’m obsessed with volume. Volume is everything.
It confirms interest. Traders are putting their money in that stock.
For example, if a stock normally trades 1 million shares, and it’s already done 5 million before the open? That’s attention, and attention creates volatility.
Box #3: Is It a Low-Float Stock?
Low float equals low supply.
And when demand hits a low floater, it’s like taking a lighter to gasoline.
I like stocks with under 10 million shares in the float, but if it’s under 15 million, it could still be in play.
If you get one decent press release, some chat room hype, a low-float stock can rip massively in minutes.
Box #4: Is There News (or Some Sort of Catalyst)?
“News” is a loose term in penny stock land. Sometimes it’s just a buzzword-laced press release. Doesn’t matter.
Read my recent blog post to learn more about which press releases you should pay attention to and which ones should be ignored.
What matters is that something is sparking attention.
Why?
Because in the penny stock world, hype moves price. Rumors often hit harder than real numbers.
Box #5: Has It Run Before?
I love former runners.
If a stock has spiked before, it can spike again. It shows the potential is there.
Former runners are great confirmation that the odds are in our favor. Repeatable moves are like gold in trading.
Bonus Box: Do You Have the Right Tools?
If you want to check for everything I listed above, you need a robust trading platform.
It should feature real-time data, charting, technical indicators, scanning capabilities, and more…
My top pick and the one I use every single day is StocksToTrade.
It has everything you need to stay ahead of the game.
And 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…
There are no guarantees in trading…only odds and preparation.
This checklist keeps me focused, keeps me disciplined, and helps me avoid chasing junk.
If a trade doesn’t check enough boxes, it’s off the list.
Simple as that.
Don’t just trade because something’s moving. Trade because the setup makes sense.
What’s the why?
Ask that every time, and you’re playing the long game like a pro.
For more trading advice and mentorship like this, sign up for StocksToTrade Advisory.
As a member, you’ll get a monthly newsletter with my top picks, three weekly videos, bonus reports, and more.
Sign up for StocksToTrade Advisory today!
Have a great weekend, everyone. See you back here on Monday.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
- To learn more about penny stock trading, check out my blog post.
- Read this to understand how the time of day can affect the risk level of your trading.
- If you’re interested in swing trading, learn all about it here.