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Day Trader Josh's Intra-Day Trading Strategy
I like to refer to my trading style simply as “Intra-Day Trading”.
Thanks to pay-per-share brokers that are now offering remote trading platforms to
non-professional traders, intra-day trading is now a feasible day trading strategy for
all traders.
My style of intra-day trading is similar to Scalp trading in that they both specialize in
taking profits on small price changes, generally soon after a trade has been entered and
has become profitable. It requires a trader to have a strict exit strategy because one
large loss could eliminate the many small gains that the trader has worked to obtain
throughout the trading day.
My typical trading day:
I sit at my trade station for the entire duration of market hours (including pre-market
and sometimes after-market trading). I watch for for intra-day dips and hikes in the
stock price to develop, and then apply my proprietary intra-day trading methodology.
I trade stocks priced over $100 (up to $200 maximum value), so there is plenty of
volatility (intra-day price swings). Once I enter the trade I then prepare to exit quickly,
either at a loss or a profit. I have a strict system of taking quick profits of 15-25 cents
per 100-share block, and never allowing the price to move more then 75 cents against me.
- I NEVER HOLD a position past my predetermined Profit exit point.
- I NEVER HOLD a position past my predetermined Stop/Loss exit point.
I typically start my trading positions in 100 share-blocks, and a maximum of 300 shares.
On average, I will place about 100-150 executions (10k-15k total shares traded per day),
that’s 30-60 round-trip-trades per day (depends on how many shares per trade: maximum
up to 300 shares per round-trip-trade).
My profit/loss ratio is about 80-90% in the green.
Again, I will either profit $15-$25 on a 100-share block trade or lose up to $75 on a
Stop/Loss.
My average profit on each 100-share trade is $20. My intra-day average is $30 per trade
due to me averaging into each trade up to 300 shares.
On an typical day I profit about $1200 ($30 X 40 trades), and I will lose about
$375 ($75 X 5 trades).
My commissions are never a problem since I pay-per-share . I pay about .004 cents
per share traded. So if I placed 30-60 round-trip-trades (100-150 executions) in 100 to
300 share-blocks, that translates to roughly 12,500 shares traded per day (250k/month)....
I would owe roughly $50 in commissions for the day (12,500 X .004 per share).
My total net profit for an average day usually comes to roughly $775 ($1200-$375-$50).
Note:
I don’t always trade 45 round-trip trades per day, on average. Some days I trade only
20-30 round-trip trades and net profit about $400.
I am very satisfied if I make more then $400 per day.
Realistically, most beginners who graduate my 20-day program can expect to profit
between $100-$200 per day.
CLICK HERE to view a typical end-of-day orders log from a graduate of my program.
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