Guide to Day Trading Strategies

Image of Gap Scanner by Trade-Ideas.

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R O S S C A M E R O N
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Gap Scanner Settings.
Gap Scanners
The 
À
rst thing I do every morning is check my gap scanner. This shows me the list of stocks 
gapping up or down more than 4%. I sort the results on the gap scanners by biggest percentage 
of gap, then largest volume. I switch sorting methods to 
À
nd the most active stocks each 
morning. As traders we have to follow the volume, so I always put a special emphasis on the 
amount of pre-market volume.
Creating your Pre-Market Watch List
It is critical to your success as a trader, that you are able to make a watch list each day. Your 
watch list will be a list of the top 4-6 stocks each day, that have the potential to make 5-10% 
intraday moves. By 9 AM, I have built a watch list of the top 4-6 stocks I think will be in play each 
day. These will be stocks already trading on heavy pre-market volume due to a catalyst. I 
À
nd 
these stocks using simple stock scanners that are displayed in our day trading chat room. For 
each of the stocks on my watch list, I take notes about the catalyst, 
Á
oat, key price levels on the 
daily chart that are in play and potential entry points. It is important to keep a close eye on the 

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H O W T O D A Y T R A D E
107
stocks you put on your daily watch list, because you know if a pattern forms you will not miss it. 
Many new students jump from chart to chart during the day, and end up missing all the setups 
because they never focused on one stock long enough to see a pattern. The best approach is 
to keep your favorite watch list stocks on the radar all day long, while looking at other stocks 
on a separate screen.
Once you get into the habit of creating a watch list of stocks every day, you are well on your 
way to becoming a trader! In order to trade, you need to 
À
nd stocks worth trading. This means 
building a watch list every day and then reviewing how each of the stocks off your watch list 
performed. Sometimes, a great looking pre-market candidate will end up being out of play, 
because of a rapid morning sell off. Other times, a stock that was not on your watch list at all, 
will become the biggest mover of the day.