One of my top goals as a trading mentor is to prepare you the best way I can so you can survive the trading battlefield and come back the next day.
This way, you can slowly grow your account to eventually take advantage of bigger opportunities down the road.
Speaking of opportunities, we’ve got lots of ‘em…
Have you heard about the latest one I’ve discovered, the Monday setup?
These trades only show up on that day and can move fast!
We’re talking about moves that can deliver more in one morning than most people see in a month!
And right now we’re offering the Monday setup for just $7!
That’s an 85% discount off the regular price.
But this special offer is only available for a limited time…
So, check out the Monday setup ASAP in my video tutorial below.
With so many daily setups, what’s the best way to manage them?
I have a very simple method…
If you’ve ever tuned into one of my webinars, you’ve heard me use the term “box checker.”
I use a list, and I’m looking for setups that check all the boxes on that list.
What’s this list all about? Simple.
Before every single trade, you’ve gotta stop and ask yourself one key question:
What’s the why behind this trade?
Far too many traders chase stocks just because they saw them hyped in a chat room, or trending on Twitter…
That’s not a strategy. That’s chasing shiny objects.
And while trading doesn’t need to be overly complicated, you do need a system. That’s why I’ve built a checklist — a set of core criteria that I like to see before I pull the trigger on a trade.
Does every stock have to check every box in my system?
Nope, but the more boxes it checks, the higher my conviction this will be a successful trade.
My Ultimate Trading Checklist
Remember, trading comes with zero guarantees. A stock could check every box and still flop.
Use my list as a tool to help shape your own strategy. I want you to make smart, independent decisions.
Let’s get to it…
Checklist Item #1: Is it in a hot sector?
Hot sectors are like magnets. They attract volume, media hype, chat room chatter…all the stuff short-term traders love.
Remember, though, that hot sectors move in waves. They’re going crazy today, and then they’re gone next week or next month.
Checklist Item #2: Is the volume unusually high?
If you know me, you know I’m obsessed with volume.
It shows you who’s paying attention.
If a stock typically trades 1 million shares a day, but it’s already done 8 million before the open, that’s a sign that something’s going on.
However, volume alone isn’t enough…
A chat pump stock can have big premarket volume and still fizzle at the open. That’s why this is just one check on the list.
Checklist Item #3: Is it a low float stock?
Low float means limited supply…
And when demand kicks in? Here come the wild moves.
Generally, I consider anything under 10 million shares a low float, but that’s not a hard and fast rule.
The key is understanding that a smaller float can lead to bigger swings, both up and down.
Checklist Item #4: Does it have a catalyst or news?
In penny stock land, “news” can be a stretch. A lot of times it’s a buzzword-loaded press release designed to generate hype.
But hype moves stocks, especially in the short term.
NVIDIA (NASDAQ: NVDA) is about to see the effects of its own game-changing catalyst.
As if last week’s earnings beat wasn’t enough, CEO Jensen Huang’s imminent announcement will trigger an event that could change everything…
Fortunately, my colleague and legendary trader, Tim Sykes, has a handle on it and knows exactly what you need to do BEFORE this happens.
Find out in his video below…
Checklist Item #5: Has it run before?
Like the multi-day or former runner, a stock that has made big moves in the past tells you something. It gives you a read on what it’s capable of doing again.
If a stock shows a consistent pattern like that, pay attention.
A Recent Winning Box-Checker
Basel Medical Group (NASDAQ: BMGL) ran big on Friday…
I had high hopes that it would.
Why?
It checked most of the boxes…
Unusually high volume? Yup. See the chart below.
News or catalyst? Yes.
Low float stock? Perfect, 5.7 million shares.
Has it run before? Yup, it’s a former runner.
Take a look at BMGL’s action from Friday:
BMGL Intraday, 5-Minute Candles Chart; SteadyTrade
My Final Thoughts…
As I said before, this checklist isn’t some magic formula. It doesn’t guarantee success.
But it’s a system that helps you filter out the noise and focus on what matters.
Ask yourself:
- Does this stock have a compelling why?
- Am I chasing… or am I trading with purpose?
- How many boxes does it check?
Stick to the process, trade smart, and keep your emotions out of it.
The box checker method does just that.
Because in this game, consistency wins.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
- Wanna start trading like a pro and winning like one? Read this.
- Learn the smart way to build a great stock watchlist.
- Here’s how to trade ahead of the curve.