Guide to Day Trading Strategies

Momentum and Gap and Go Entry Requirements
All Gap and Go setups should meet the following entry requirements:
1. 100k in volume in the 
À
rst one minute of trading when the market opens (Gap and Go trades)
2. 1mil in volume (Momentum Trading Strategy trades)
3. We can reasonably achieve 2:1 pro
À
t loss ratio
4. The stock should have high relative volume of at least 2
5. The pattern must be obvious and clear. We know even the best patterns do not always work
6. Ideally, the entry point will be close the 9 EMA or 20 EMA support level
7. Ideally, the 
Á
oat is under 50 million shares, with under 10 million having the most potential. 
The exception is that VWAP trading strategies can be used on heavier 
Á
oat stocks
8. Ideally, the stock will have a good catalyst
9. Ideally, the stock will have a clean daily chart with windows and triggers

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R O S S C A M E R O N
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Entering a Momentum Trade
When I am preparing to enter a momentum trade, I pull up the Level2 and 
À
rst look at the 
spreads and the amount of volume. I typically want to see tight spreads of 
À
ve cents or less. A 
stock with wide spreads will be more dif
À
cult to manage because they can quickly pop or drop 
without giving us time to get out.
One Minute Entries
Many of my Momentum Trading Strategies require buying based on one minute chart patterns. 
In order to take a one minute setup, we need extremely high relative volume. We need so much 
volume that the 
À
ve minute candles are too big to use for risk management. When I enter a 
trade, I always have an exact price in mind that I want to buy at. The price is usually the apex of 
the pattern, in the case of a one minute Gap and Go ORB, it is the top of the one minute candle. 
In the case of a Flat Top Breakout, it is the price of the 
Á
at top. I prepare my limit order in my 
brokerage account, with an offset a few cents above the price, and then watch the Level2. By 
using a slight offset, I can usually get 
À
lled. If I see a heavy amount of resistance at the price 
where I want to enter, I will wait until that seller begins to move or the shares get bought up 
before hitting the buy button. Just before it looks like the price is going to break, I jump in. Since 
I am buying at the apex point with most of my momentum trades, I expect almost immediate 
resolution. If i do not see immediate resolution, that by itself is an indicator of weakness, and a 
cue to possibly reduce my position size or exit completely. Using the one minute chart, I always 
start with a half sized position. I never like to start with full size when I am buying at the apex 
point, because if I am wrong, I will experience a big loss. Additionally, whenever I 
À
rst enter a 
trade, I am exposed to my max risk level. Instead, I start with half size and double up if I can 
adjust my stop to breakeven. If I cannot double up, I will happily take the win with the smaller 
position size knowing I managed my risk properly.