We’re in a bear market. Check out this chart of the S&P 500 ETF TRUST ETF (NYSE: SPY). It’s been on a decline since January…
Discovering high quality performs has been harder. For instance, I solely made three trades final week.
However in relation to my area of interest — day buying and selling penny shares — I don’t must commerce on a regular basis. I solely commerce after I see an ideal setup.
That’s how I’ve been capable of keep worthwhile for over 20 years within the markets.
The reality is, I’m not even that nice of a dealer. A few of my college students do higher than me. Like Tim Grittani. He’s managed to revenue over $13.5 million in his buying and selling profession.
You may be taught one thing from a dealer with that unimaginable file. Right here’s how he crushes it in bull and bear markets…
The New Scanner
For the final 12 months, Tim’s been engaged on algorithmic buying and selling.
He acquired so good at common day buying and selling, now he’s constructing computer systems to do it for him.
However final week in a reside video webinar, he admitted to some difficulties with the method of constructing an algo. (Right here’s a sneak peek of the webinar. )
Apparently, it’s fairly robust to quantify his technique.
So within the meantime, he’s nonetheless doing a little buying and selling and instructing. One sample Grittani likes to play is the in a single day gap-up.
Right here’s a video I made on the technique…
Principally, a inventory runs for the day and closes at the very least 10% above the open. Then the value gaps up the following morning.
Again in 2020 and the start of 2021, gap-up performs have been an everyday incidence. Now that the markets are slower, there are fewer.
However skilled day merchants don’t simply twiddle their thumbs ready for the following scorching market. We search for volatility.
Right here’s the place we are able to be taught from Grittani (once more). He created a inventory scanner that assesses the chance of in a single day gap-ups.
Learn on for the standards, and I’ll additionally present you plug this scan into the StocksToTrade platform…
The right way to Construct the Scanner
For this half, you want some buying and selling and scanning software program. There are quite a lot of choices on the market, and a few are higher than others.
For instance, the StocksToTrade platform permits me to rapidly scan for the most popular shares whereas buying and selling. So I don’t miss something…
Right here’s the place you can begin your two-week trial.
Tim Grittani’s latest scanner has 4 primary elements…
- Prev. shut > Prev. open: This finds shares which have spiked at the very least 10%
- Open > Prev. shut: This finds shares that gapped up in a single day at the very least 5%
- Value ≤ $5: Seek for penny shares, that are extra unstable than higher-priced shares
- Yesterday’s quantity > 1 million: Excessive buying and selling quantity ensures liquidity
I might additionally add a fifth essential issue — whether or not the inventory has a historical past of working. Shares which have spiked can spike once more. I have a look at the chart to seek out this.
Right here’s what the scanner ought to seem like in StocksToTrade…
The right way to Use This Scanner
Within the inventory market, historical past repeats itself. That’s why I mentioned former runners can run once more.
Right here’s one of the simplest ways to make use of market scans: construct watchlists.
This scan helped Grittani discover current spikers like Houston American Power Company (AMEX: HUSA)…
… and Mexco Power Company (AMEX: MXC) …
However simply because he discovered a bunch of shares that gapped up doesn’t imply they’ll proceed to run.
It’s a must to commerce safely.
So he provides the best-looking performs to a watchlist and waits for a sample to arrange.
There are tons of various inventory patterns on the market. However Grittani and the remainder of my millionaire college students commerce this 7-step framework essentially the most.
It’s the identical as after I found it twenty years in the past. And I’ve been instructing it to different merchants ever since.
Comply with within the footsteps of over two dozen millionaires…
Apply for my in-depth day buying and selling course right now.
If my workforce thinks you’re prepared, I’ll see you in chat!
How do you utilize scans to seek out scorching shares? Do you seek for any of the identical standards as Grittani? Depart a remark to point out me you perceive these classes!