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Traders: If You Only Trade One Chart Use This…

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As a new or intermediate trader you should be focusing on the minimal amounts of setups. And today I’m gonna talk about one of the best that you should always be looking for.

So today I’m gonna talk about something that you should always be scanning for. AnjayToTrade makes it very easy but you can also do this with other scanners. And what I want you to be looking for is that low priced, one to $10 stock, breaking out on the one year, one day chart with news and in a hot sector, okay?

As a new or intermediate trader, you can’t trade five times a day. You’re probably under the PDT, you’ve probably got a job, you’ve probably got other commitments. I want your focusing on the minimal amounts of setups. That’s the best way to grow your account over time. And if you’ve got work, family, school, whatever, you can’t sit there eight hours a day but you can scan for this setup.

So start out with running that 52 week scan in that one to $10 price range, you write all these criteria down so that you can duplicate ’em. 52 week high, one to $10, trading over a million shares a day. That gives you a basket of stocks. Some days it might be zero, not often but some days. Some days it might be one, some days it might be 10, some days it might be 50.

But that’s gonna take you down from 16,000 publicly traded stocks to most days a handful maybe four or five. You can’t research 16,000 stocks. You can research a handful. So now let’s say you’ve gotten your five that fit those criteria.

Next thing you’re gonna start doin’ is looking do they have news?

Is there a reason for the movement, okay? Sometimes some stocks whether it be manipulation, whether it be randomness, sometimes some stocks just kind of move on no news. I want you to avoid those. I’m not saying they’re not trades, but I would like you to avoid those.

Look for that stock that has that contract win today, yesterday. Maybe that’s earnings. I mean earning season is one of the best times to be trading as a new trader. If there’s earnings. New product. New product’s a big one. Contract wins, et cetera. These are the things you want to look for. FDA approvals, those are great for in the biotech space.

Now let’s say you’ve taken your five down to two. Now you got two stocks you’re lookin’ to trade. The last criteria I mentioned is is it in a hot sector? Is it a sympathy play we call it.

So again, you might not always check this box at the end but if I can put together those technical criteria, the news, then it’s we talk about the bitcoin stock run a lot, we talk about the mariajuana stock run a lot, electric cars. If that stock then is also in a hot sector, you’ve got a great potential to find a profitable trade because now you’ve checked all five of those boxes.

So, that is the best setup I think you should be looking for.

And is there one every day? No.

But as a new trader, you can’t nor should you be trading every day. If you can whittle it down to that small list, focus on those, I think that’s one of the best ways to grow your account.

So, comment below. Do you trade this setup? Do you trade these 52 week breakouts with news in a hot sector? Has it worked for you or not? I’d love to know, drop me a comment below. Thanks for reading our video.

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