Guide to Day Trading Strategies

R O S S C A M E R O N
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Chart showing the value of the 
À
 rst and second pullbacks to 
moving average support in the form of Bull Flags.
Buying the First and Second Pullbacks
Every time a momentum stock makes a fresh breakout, I will look to trade the breakout as well 
as potentially trade the 
À
rst and second pullback. These pullbacks can take the form of either a 
bull 
Á
ag, a 
Á
at top breakout or a moving average retracement. The best pullbacks are a bull 
Á
ag 
that touch the 9 EMA. Each of these patterns will be discussed in detail below. It is important 
to understand the reason stocks respond well to the 
À
rst and second pullbacks. It’s because 

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H O W T O D A Y T R A D E
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traders who miss the 
À
rst breakout, will often seek to buy the 
À
rst pullback, and some traders 
who missed the 
À
rst pullback will trade the second pullback, especially if the stock is showing 
extreme strength. Again, we can con
À
rm there is strength if extremely high relative volume is 
present. Beyond the second pullback, it becomes much riskier to take entries unless the stock 
goes through a period of consolidation. But with that said, if a stock appears to be irrationally 
strong, which sometimes they are, I may continue to trade beyond the second pullback. In 
these cases, I will use smaller position sizes to prevent giving back pro
À
t from the 
À
rst trades. 
After a long period of consolidation, if the stock makes a fresh breakout, we can again trade 
that breakout and the 
À
rst and second pullbacks. We look for pullbacks on both the 
À
ve minute 
chart and the one minute chart.