Step-by-step Beginner Guide on How to Trade with VWAP
The simplest question I get sent to me, is “how do I trade the VWAP?”
It’s a simple question, with a not so simple answer.
In the Warlock’s World we have new traders all the time that transform themselves from people who don’t know what a stock is, to VWAP trading experts.
And that’s what I want for you.
To start you on your journey, I’ve laid out this guide for you today.
Follow these steps and you’ll be well on your way to mastering trading around the VWAP.
Let’s jump right in…
Step 1: Read the Pillars of VWAP Report
If you are going to trade around the VWAP, you need to have a base knowledge of what we’re doing here.
My Pillars of VWAP report is free and will give you everything you need to get started.
I want you to read it thoroughly. Memorize the concepts, the charts and all the terms.
And get acquainted with what we’re talking about here.
I go over a lot of different concepts here. But it’s no use if you don’t have a base understanding of what I’m talking about.
If I throw around terms like VWAP, Shorting, or Earnings, you need to be able to know what I’m talking about.
It’s a Saturday. So sip your coffee and page through this reportat your leisure.
So once you’re acquainted with everything you need to get started with VWAP, let’s get into the steps you need to trade starting Monday Morning
Step 2: Choose ONE Stock from My Watchlist to Stalk, And Form a Plan
As you know, I am Scan Man.
I scour the markets with my dozens of scanners to target the companies that are making new highs, lows and are breaking VWAP.
But because I have so many different trades to target, it’s possible that I’ll miss a VWAP break on a stock because I’m focused on a different stock.
That’s where you come in.
I can’t tell you when a stock is breaking VWAP.
So it’s up to you to make that decision.
But Kenny, how do I pick the stock to follow? I hear you ask.
Every morning at 8:15 am ET, I send you my watchlist.
And in every watchlist there are profit opportunities and VWAP breaks to be had throughout the day.
So, when I send you this watchlist Monday morning, I want you to pick one stock to follow throughout the day.
If you’re unsure which stock to pick from the watchlist, read this guide here on picking what kind of stock to trade.
Personally, I like trading companies that meet the following criteria: they reported earnings, they are gapped up or down, and they have volume in them.
If a company is gapped up, you look to short it and if it’s gapped down you look to buy it. Simple as that.
For example, let’s say come Monday morning ZIM Integrated Shipping (ZIM) reports earnings and they are gapped down on bad news.
Your plan here should be to buy ZIM once VWAP is confirming your plan.
Very rarely do stocks gap one way and keep going.
The reason for this is traders want to take profits. So a huge gap of even 5% can be a huge payday for these guys.
Step 3: Wait for the VWAP to Confirm Your Plan and Actually Trade
So, now you have a plan. You’re going to try and buy ZIM now that it’s gapped down.
Do you buy it once it’s gapped down?
NO. You wait.
You wait until the stock is confirming a bullish run back up.
Sometimes this can happen in the pre-market.
But a lot of times the biggest swings in a stock will happen in the first hour of the trading day.
Don’t forget with each trade you put on, you want to identify your risk going in.
And mark your significant levels on the stock by drawing your red lines on the chart.
If you aren’t seeing what you want out of the stock Monday morning, move on to a different one.
But if you do see what you want, and ZIM is breaking VWAP to the upside, BUY IT.
If you’re scared, then buy maybe 10 shares of ZIM and risk $5.00 on the trade to make potentially $20.00 or more.
Or, if you don’t want to trade in small lots, then paper trade using a fake account.
However, you do it, I want you to get your feet wet, and start trading come Monday morning.
I’ll admit, Mondays can be slow.
But for someone just starting out, that’s perfect. You have one name to follow, and one plan to execute.
Remember, ZIM could be a dud Monday. Or it could gap up, and then we would want to short it.
But whatever happens, I want you to be there.
And follow these steps that I laid out for you today:
1. Get acquainted with the Pillars of VWAP Report
2. Pick a stock to stalk from my watchlist Monday Morning, and make a plan for the stock
3. Wait for VWAP to confirm your trade, and actually trade it.
Follow these steps, and you’ll take your first step to mastering the VWAP.
As always, I’m calling out trades every day in Warlock’s World. So if you want profitable opportunities every day with me pointing them out for you, join me today.
And feel free to shoot me an email at KennyGlick@MoneyMapPress.comto let me know if this was helpful or if you had any questions.
I’ll see you all Monday morning!
March 10 2023
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