Identify how much capital you are willing to risk for any trade.
% of your trading capital
“Risk units” are standardized amounts of capital that traders use to make their plans. So then you automatically know how much capital you will use at 1R, 2R, 0.5R, etc.
Find premarket gainers in the Movers tool.
Make a Watchlist for Movers that day (Include date in name of watchlist)
Map support and resistance levels in the Details tool on the Chart tab.
Use the horizontal line tool in the upper left corner of the chart
Premarket highs and lows
Consolidation areas - where the price stays about the same for long periods of time
Use the 1min candle aggregation for entering and exiting day trades, but you can use the 5min or 30 min to get a general feel for the price action so far.
Look at the daily candle chart as well
Add 9EMA by clicking on the “Indicators” button at the top of the chart and search for EMA. The result will be Moving Average Exponential
Check the News tab in the Details tool to get a better feel for why the stock is moving, or if it is purely a technical play.
Determine your risk/reward ratio, and whether you think that is reasonable with what you see on the chart. Note: check the daily chart for longer-term support and resistance levels.
For example: if you want a risk/reward of 1:3, then set a stop $1 below the entry. You would need an expected gain of $3. Or a stop of $0.50 and a gain of $1.50
Use your risk/reward and support/resistance levels to determine your entry, stop, and price target.
After drawing support and resistance areas add the ticker to your Daily Movers Watchlist.
Leave a note in the watchlist with the premarket high, stop loss, and price target, so you can compare it to the current price
Entry and Exit real-time, not end of candle period (for this simple strategy).
Exit when the candle crosses below the 9EMA, or when you see volume taper off with a reversal candle pattern. - difference between a quick scalp and letting it run a little more.
You can also exit and reenter!
A hard stop is your insurance. Your first stop is your best stop.
Hot Keys
? - Indicators
Alt+H - Horizontal line