Strategies

It is important to note that these strategies are not without risk, and traders should always be prepared for the possibility of losses.

Gap and Crap

The Gap and Crap setup is a popular day trading strategy that involves taking advantage of stock price movements and market volatility. The Gap and Crap setup is based on the idea that when a stock opens with a significant gap, either up or down, from its previous day's close, it often experiences a follow-up move in the same direction. This creates an opportunity for traders to take advantage of the stock's movement and profit from the trade.

To execute the Gap and Crap setup, traders will look for stocks that have opened with a gap of at least 3% from the previous day's close. They will then watch the stock's price action and look for additional signs of momentum, such as high trading volume or a continued price move in the same direction as the gap.

Once a trader has identified a stock that fits the Gap and Crap setup, they will place a trade in the direction of the gap, with a tight stop loss in place to limit potential losses. If the stock continues to move in the expected direction, the trader can then look to exit the trade and lock in their profits.

Extension

The Extension setup is a popular day trading strategy that involves identifying stocks that are experiencing strong momentum and then using that momentum to make profitable trades. The Extension setup is based on the idea that once a stock has broken out of a key level of resistance, it will often continue to move in the same direction, creating an opportunity for traders to capitalize on that move.

To execute the Extension setup, traders will look for stocks that have broken out of a key level of resistance, and then confirm the move by looking for additional signs of momentum, such as high trading volume or a sustained price move in the same direction as the breakout.

Once a trader has identified a stock that fits the Extension setup, they will place a trade in the direction of the breakout, with a tight stop loss in place to limit potential losses. If the stock continues to move in the expected direction, the trader can then look to exit the trade and lock in their profits.

Late Day Fade

The Late Day Fade setup is a popular day trading strategy that involves looking for stocks that are experiencing strong momentum in the early part of the trading day, but then start to lose steam as the day progresses. This setup is based on the idea that stocks that are overbought in the morning may experience a pullback later in the day as traders take profits or as the stock runs out of momentum.

To execute the Late Day Fade setup, traders will look for stocks that are experiencing strong momentum in the early part of the day, with high trading volume and a sustained price move in the same direction. Once the stock starts to lose steam, traders will look for signs of a potential pullback, such as a decrease in trading volume or a slowdown in price momentum.

Once a trader has identified a stock that fits the Late Day Fade setup, they will place a trade in the direction of the potential pullback, with a tight stop loss in place to limit potential losses. If the stock starts to pull back as expected, the trader can then look to exit the trade and lock in their profits.