The idea of day trading can be scary.
I get it. I was in your shoes once when I first started off.
Everyone has to start somewhere. So today, I want to give you five things that you can do right now to get started day-trading around the VWAP.
Once you’ve seen what I have to show you today, you’ll turbocharge your moneymaking potential.
I’ve been trading for more than 30 years — I’ve seen and done it all, so I can safely say you need to know just five things…
1. Get Yourself a Good Trading Platform
When you trade with the VWAP, you need to be quick.
That means one click to buy and one click to sell.
Trading alongside the VWAP is all about timing. And if you’re even 2 seconds late to an entry or exit, you could be giving up hundreds of dollars depending on the move.
There are plenty of platforms out there that are tailored to quickly getting in and out of positions.
Find one that fits your needs.
2. Make Sure Your Account Is Properly Set Up for Multiple Trades Per Week
Trading platforms have restrictions on how many “day-trades” — trades that you enter and exit in the same trading day — a person can make per week if they have less than $25,000 in the account.
If you are in this position, your platform will limit you to less than four day trades per week. And that’s extremely limiting for trading around the VWAP.
There are ways around this though. Many brokers offer the ability to trade off a cash account that will allow you to make as many trades as you want. The downside is that it will take longer for your trades to clear.
Reach out to your broker to see what your options are if you have less than $25,000 in your account.
3. Don’t Trade While Distracted
Trading is a mental game. If you’re physically or mentally off, then you need to avoid it altogether.
That means don’t trade when you’re sick. Timing is everything and you need to be as fast as possible with a clear head.
Don’t trade if you are working. If you go get lunch, exit your positions.
The market can do anything while you’re away.
Don’t blow up your account because you’re lacking focus.
4. Practice Makes Perfect
If you aren’t 100% confident in your trading yet, then you need to practice with smaller amounts of money.
Instead of buying 1000 shares of a stock, buy 10 and get a feel for how the VWAP works.
That way instead of risking hundreds of dollars per trade, you’ll only be risking $5 or $10 to make potentially $30 or $40
At the same time, hold off on playing options on the VWAP until you get the hang of trading stocks alongside it.
Options can blow up your account if you’re not quick enough on the trigger to buy and sell.
5. Focus on One Name, and StickTo It
Every day, the market gives us dozens of names to trade.
But which ones do we choose?
I curate a list every morning of stocks that I think are worthwhile to watch.
Out of that list, I want you to choose one name, and stick to it throughout the day.
If it’s not working for you, ditch it and find one that is working.
Then once you find your stock, stick with it throughout the rest of the day.
Trying to jump from stock to stock is a key way of getting distracted. To start off, stick to one name at a time per day.
Every day the market is open at 8:30 AM, I go live with the rest of the Money Morning LIVE team to discuss the hottest moves in the markets. And I personally break down the VWAP trades that you will want to have on your list.
I want you to be there so you can prep for your trading day properly, and not miss a single move.
And as always, Remember, if you have any questions on any of this, feel free to shoot me an email at KennyGlick@MoneyMapPress.com.
I’ll see you soon!
December 02 2022