It seemed like every day trader had their eyes on Pasithea Therapeutics Corp. (NASDAQ: KTTA) in premarket yesterday…
But I didn’t pick it as my number one watch.
It checked a lot of boxes … But it ended up failing.
So it’s a good thing I had another trade idea I liked…
It was a little unconventional, but I had my reasons.
Here’s why I didn’t choose KTTA as my number one and the three reasons I chose a real stock…
But before I jump in…
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Why I Picked A Real Stock As A Day Trade Idea
KTTA checked a lot of boxes in premarket yesterday.
I liked it as a number one idea for a while … But then I looked up how much locates were for short sellers.
It turned out that nobody could get locates for the stock. This means short sellers couldn’t borrow shares to short.
And if they can’t borrow shares, they can’t take a position. I didn’t think it had any juice to squeeze after the open without short sellers.
So I had to come up with another number one day trade idea for my subscribers…
And what has been working the best right now?
Larger cap names.
We’ve talked about them more so as swing trade ideas but you can day trade them too. As long as you have realistic expectations and you’re trading the right stocks.
It drives me batty when traders with small accounts think they can’t trade real stocks — get that fallacy out of your head.
If you know how to look for earnings plays and interpret charts, you can swing trade.
It’s also the best way to get around the PDT rule.
And if you still think you can’t trade these real stocks with a small account — look into options trading.
I’ve had options trader, Jeff Z., on my Monday morning Pre-Market Prep sessions giving out free ideas…
And he and I are going live on Wednesday to go over how the Fed announcement could impact markets. Sign up for that free event here.
Anyway, back to my large cap day trade idea…
I liked Macy’s, Inc. (NYSE: M) because it had buy-out rumors, it’s a retail stock and we’re heading into Christmas, and it was on Oracle.
So as the premarket session went on, there still weren’t any low-float big gainers jumping out at me. And like I said I didn’t love KTTA…
Turns out I was right about that one anyway…
KTTA chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
So I went with Macy’s as my number one. I waited for a few minutes after the market opened to get the Oracle signal and I made my plan with a three-to-one risk/reward:
Today’s Daily Market Profit Alerts is $M:
Signal Price: $20.13
Target Price: $22
Stop Loss Price: $19.70
Whether it’s a sketchy penny stock or a real stock — the process is always the same.
Focus on trading the right stocks and have a plan for every trade.
I can help you with day trade ideas every morning in the Daily Income Trader system.
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The price goes up in the new year, so don’t wait. See you on the inside.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade