Employing Momentum Trading Strategies in Amplifying Profits

Combining advanced trading courses with an active chat room, Warrior Trading is staffed by professionals who demonstrate the fundamentals of successful swing and day trading in real time. Warrior Trading provides chat room members with real-time insight into the reasons for profit-seeking trades that employ proven strategies, such as gap and go and momentum.

A high-risk, high-reward strategy, momentum trading involves identifying stocks that are witnessing high-volume movement in a single direction. The trader seeks to take advantage of that movement and profit while it lasts, with typical positions lasting from a few minutes to a couple hours.

A key to success in this involves doing homework each day prior to the bell, identifying those stocks that are generating the most buzz in chatrooms and on message boards. Analyst recommendations and earnings are then perused and the list of stocks carefully tracked as markets open.

Identifying a breakout involves utilizing a host of technical indicators, with a particular focus on net stock changes over specified timeframes. Buy triggers and, in the case of shorted stocks, sell triggers are set in place within specific momentum periods and market orders reflecting how the investor expects the stock to run in the short term. The challenging aspect of this involves predicting how markets will react to specific news within a set timeframe and setting the trading parameters correctly.

Pursuing a Gap-and-Go Trading Strategy at the Opening Bell

Drawing on the knowledge of experienced Wall Street swing and day traders, Warrior Trading enables investors to consistently take advantage of market fluctuations. The active professionals at Warrior Trading employ diverse strategies, including momentum, reversal, and gap and go.

A disciplined approach to shorting stocks, gap trading involves actively seeking out those stocks displaying a significant price gap from the previous close. Warrior’s gap-and-go strategy employs Trade-Ideas scanners in identifying gappers. This is followed by a look into the catalyst for the gap. Pre-market highs are marked, with an emphasis on finding stocks that hold the upper end of the gap and are not being sold off prior to the opening bell. 

An order is prepared for stocks that meet specific criterion, aligned to pre-market highs. During the first minute, opening-range breakout (or candle) gappers are purchased, with stops placed on the low of the candle. 

Reasons for this strategy being successful, with an opening bell squeeze occurring despite previous gapping, has to do with the event catalyst that has often just occurred. Retail traders are anxious to jump onto a stock that is already trending upward, secure in the knowledge that further gains can often be realized in the first half hour of trading.