Politics aside, I truly believe Trump’s election win on Tuesday will bring us TONS of trading opportunities.
In fact, I think the price action over the next year will exceed what we saw during the COVID era.
I see swing trades and day trades galore!!
This is me talking about it during Premarket Prep yesterday…Can’t you feel the excitement?
Getting excited during Premarket Prep
Today, the broad market is up, and leading the way are stocks poised to benefit from some aspect of the Trump victory.
Bitcoin, Tesla Inc. (NASDAQ: TSLA), JP Morgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), 3M Company (NYSE: MMM), and Caterpillar (NYSE: CAT) were just some of the big movers.
I realize those aren’t the typical names we’re watching and trading, but I think this is just a preview of what’s to come for all stocks…
Of course, Trump Media & Technology Corp (NASDAQ: DJT) was up 25% in premarket.
And DJT is a stock that I have been watching. Read my recent blog post about it here.
In the near future, traders won’t be asking, “How do I find a trade?” Instead, the question will be, “How do I choose?”
Having more trade ideas in front of you than you count sounds like a great thing, and it is, but managing it can be more complicated than you might think…
Let’s discuss how to choose the right day trades when you’re faced with a sea of opportunities and trying to determine what’s truly worth your time, capital, and focus.
The trick is knowing how to zero in on the best ones—the setups with the highest potential for a profitable move and manageable risk.
Here’s how I would approach it:
Table of Contents
Start with Your Ideal Setup Criteria
First, it’s critical to know your setup criteria when choosing trades from a lot of options.
Many traders make the mistake of being vague about what they’re looking for and then wonder why they end up in random, underwhelming trades.
So, ask yourself: what’s your favorite setup? What’s that ideal chart pattern, or that perfect combination of volume and catalyst, that works best for you?
It could be a morning fader pattern, a multi-day runner, a VWAP hold, or an RCT…there are tons out there.
Figure out which ones have the best risk-to-reward potential and start to narrow down your choices.
Be crystal clear on your ideal setup so you’re not getting distracted by everything else.
Check the Catalyst
Catalysts are a big deal when choosing day trades.
Without a solid catalyst, like company news, a stock might pop in the morning but fizzle out by lunch.
If there’s no meaningful reason for a stock to move, you’re basically guessing, and day trading doesn’t need any more guesswork than it already has.
Volume is crucial, but that volume needs to have a reason behind it. A stock that’s spiking on high volume with no news? Sure, it could be a runner, but that’s not something you can count on.
Being on top of all the financial news all the time can be a real headache.
Lucky for you, we have a service that does all that heavy lifting for you.
Breaking News Chat is a financial news chatroom led by veteran Wall Street traders, each with over 20 years of experience. They filter out all the noise and give you only the information you need.
My blog post highlights some of the big price action BNC has nailed before the rest of the market had a clue.
Get ahead of the market with the Breaking News Chat!
Filter Based on Volume and Volatility
When you’ve got a bunch of tickers to choose from, use volume and volatility as filters.
The best day trades often have high relative volume, meaning they’re trading at multiples of their average volume. This means there’s interest and liquidity, which is critical for any intraday trading.
Remember though, volume alone isn’t enough. You must have enough volatility to create swings that make your trade worthwhile. So avoid stocks that might be moving, but only in small increments.
Look at the Daily Chart
A quick scan of the daily chart can tell you a lot about a stock’s potential to make a serious move. You need to know if the stock has a history of failing at certain resistance levels.
Maybe it’s a stock that consistently tops out around $5. If you’re day trading it at $4.75, that’s a warning sign.
Even if it’s ripping up intraday, it might hit that $5 resistance and reverse quickly.
On the other hand, if you see on the daily chart that the stock’s got room to run, it might mean you’ve found a trade with some legs.
Focus on One or Two Stocks Max
Day trading requires precision and timing, and if you’re splitting your attention across three or four plays, you’ll miss things.
Instead, narrow it down to one or two high-quality setups. Believe me, by focusing on fewer trades, you’ll have a better shot at capturing the full potential of each.
You’ll be much better off having a clear plan for one or two stocks than to be unprepared on five or six.
Use the Right Tools
You won’t be able to do any of the things I’ve described above without a great trading platform, one with stock screening capabilities, technical indicators, charting, and more.
My top pick is StocksToTrade. It has all of the above, and I use it every day. It also offers a selection of add-on alert services to stay ahead of the curve.
Grab your 14-day StocksToTrade trial today — it’s only $7!
And to make paring down a long list of trade ideas even easier, check out our proprietary trading algorithm, Oracle.
Oracle scans the market every morning to gather critical data. It then generates a list of 15 to 20 stocks based on criteria such as price range, volatility and premarket volume.
Along with that list, you get an entry signal (green for long, red for short), and an entry price so you know exactly when to trade the stock.
See Oracle in action for yourself!
We offer live demos every day. These demos are completely free and run all day long.
Click here, drop your info, and join a session.
Get Oracle, the tool I can’t trade without!
My Final Thoughts…
When you’ve got a ton of trade options, narrowing it down is all about discipline and sticking to your core criteria.
Remember, you’re not trying to catch every move. You’re looking for the highest-probability setups that align with your strengths and keep your risk under control.
In a market full of possibilities, the best traders stand out not because they trade the most stocks but because they trade the right stocks.
Focus on quality over quantity, and refine your strategy with every trade.
If you’re looking for more trading mentorship and help choosing the right setups, subscribe to my StocksToTrade Advisory service.
Every STT Advisory member gets 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!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
My colleague and fellow trader, Tim Sykes, is currently prepping for his Winter Blitz.
With the Winter Blitz strategy, he aims to make more gains in the next six months than he’s made in the last two years…
He’s done it before, and he’s ready to do it again!
Tim’s going live on November 11th and 12th to share his trading plan.
But seats are limited…You don’t want to miss this opportunity.