Yesterday, long-term stockholders got smoked…
At their daily lows, the Dow dropped over 1,200 points, the Nasdaq lost over 650 and the S&P 500 sank 170 points.
But the great thing about day trading is that you don’t have to expose yourself to those kinds of losses…
You get to pick and choose your trades, selecting only the top setups.
And yesterday my number one watch gave traders the chance to bank over 13%! All on a day when most traders got annihilated…
Here’s how sticking to bread and butter setups can get you through even the darkest days…
Don’t miss my next big alert — subscribe to my Daily Market Profit alerts here!
How to Select the Best Setups
My number one watch yesterday morning was Better Therapeutics, Inc. (NASDAQ: BTTX).
I talked about it on Pre-Market Prep and in the SteadyTrade Team…
If it surprised you when it popped up on your scanner — you need to pay more attention.
Everyone should’ve had alerts set right around $2.40…
That was a key resistance level.
BTTX chart: 5-day, 1-minute candle — courtesy of StocksToTrade.com
But why was BTTX my number one watch compared to Hycroft Mining Holding Corporation (NASDAQ: HYMC)? Both were gapping up in premarket…
The deciding factor for me was float size.
BTTX only has roughly nine million shares in the float. HYMC has 125 million.
I’ll always choose a low float stock over one with a 125 million float…
BTTX is also a recent runner. Plus, it’s a sketchy biotech stock, so I know it’s heavily shorted.
But despite that, BTTX continued to hang around, creating a perfect recipe for one of my textbook plays.
I told SteadyTrade Team members to watch for a dip-and-rip move over $2.81 (with a risk level around $2.60 and a price target in the high $3s or $4).
Once BTTX was through the $2.81 Oracle level, it chopped up to the mid $3s in the afternoon. That gave traders the chance to catch a 13%+ move.
Not bad for a nasty market day when most traders lost money.
Just look at what happened to anyone who chose HYMC as their top play…
HYMC chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
But what’s the best part about my BTTX trade idea?
You didn’t have to be in the SteadyTrade Team to get it…
I emailed Daily Market Profit subscribers my trade alert before the market opened!
Here’s what it looked like…
If you want my next Daily Market Profit alert — subscribe here!
See you back here tomorrow! Have a great day everyone.
Tim Bohen
Lead Trainer, StocksToTrade