So many new traders screw up the timing of when to get aggressive…
If you’ve had a terrible week, nothing is working, you’re frustrated and ready to quit — that’s the time to trade conservatively…
But nobody wants to do it.
Most traders do the exact opposite … they get more aggressive.
They swing for home runs, overtrade, trade more set-ups, and more chart patterns.
They trade at 4 am, 7 am, and 7:30 pm … They start trading options, crypto, and futures, and they go long and short…
I’ve been there — I did it myself.
But that’s not how you find consistency or grow your account — it’s a fast track to blowing up.
So instead, try my number one pattern to focus on to help you build consistency and confidence.
Once you have those two things, you can start to swing for the fences…
My #1 Pattern For New or Struggling Traders
If you’re a new or struggling trader you should do the absolute minimum. Don’t try too many things at once…
Focus on one pattern and setup you can master.
The sports analogy I use is baseball…
If you’re in a slump and can’t get a hit to save your life … What’s the coach gonna tell you to do?
Choke up on the bat and just try to get a base hit to the shortstop and run it out. Just put it in play and try to get on base.
Then you break the slump, you’re back on base, then you can start swinging for the fences.
So to help you break a trading slump or to start building consistency, I say focus on afternoon VWAP holds.
Look for the same move we saw in Lyft, Inc. (NASDAQ: LYFT) last Thursday.
If nothing is working, look for a repeatable pattern in a safe slow mover to get your confidence back.
Let’s break down what the pattern looks like so you can start focusing on winning setups and stop feeling like you’re ready to quit…
Afternoon VWAP Hold
The afternoon VWAP hold is a pattern you can look for daily in big gainers that have held up since their morning spikes.
Ideally, we see the high of day break around 2 pm Eastern.
But LYFT made the move a little earlier in the day…
LYFT chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
Around noon it broke the high of the day after it pulled back and held VWAP. It also held that crucial Oracle support level.
From there it had a nice $1 per share move in a real stock that’s an earnings winner.
You don’t have to worry about a sketchy low float having a rug pull or a midday offering that can put you down a few dollars per share in seconds…
Just a slow steady grind.
That’s how you can focus on growing consistency and your account.
Use this scan to find stocks that could have an afternoon VWAP hold.
Here are more chart examples of the VWAP hold high of day break to study…
CDIO chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
PSQH chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
VERB chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
Once you master one pattern and things start clicking — that’s when you can get aggressive.
And remember, comparison is the thief of joy.
Don’t compare yourself to others, just use their success as inspiration. You can get there too one day with enough education and determination.
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Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade