You're Trading the WRONG Stocks
41sDirectly challenges viewers' trading approach, creating curiosity and immediate engagement.
▶ Play Clip"Delivers a solid, actionable framework for finding stocks in play, though the 'zero experience' promise is slightly overstated — it's still beginner-friendly."
This video teaches traders, especially beginners, how to identify 'stocks in play' — stocks with a real reason to move — before considering an entry. The core framework is a three-part filter: reason, participation, and structure. The presenter argues that trading dead stocks is the root cause of many trading failures, and provides a practical morning routine to find high-probability opportunities.
The problem may not be your entry, stop, indicator, or mindset. It could be that you're trading the wrong stocks. A good-looking pattern in a dead stock is usually not a great trade, while a simple setup in a stock in play can be one of the best trades.
Before asking where to buy or short, ask why the stock should move today. If there's no real reason — no unusual volume, major level, or serious participants — the cleanest pattern can turn into chop.
A stock in play has a real reason to move today: earnings, upgrades/downgrades, FDA news, lawsuits, contract wins, CEO changes, M&A headlines, regulatory decisions, or breaking a major level. This attracts more participants, volume, and emotion.
The entire framework is three words: reason, participation, structure. These become your filter for deciding whether a stock deserves your attention at all.
We trade them for real edge: more volume means cleaner entries/exits, more range means more reward potential, more attention means more participants, and more emotion means more panic, FOMO, short covering, and profit taking. This leads to faster learning.
Trading dead stocks is one of the most expensive mistakes. A trader on the desk traded a technical pattern daily in stocks not in play, leading to confusion, blaming the wrong things (entry, stop, indicator), and ultimately not trusting good setups.
Trading dead stocks is like practicing in an empty gym — no scoreboard, pressure, crowd, or urgency. Stocks in play are the real game with pressure, speed, and participants with a reason to act.
Ask what changed today, not yesterday or last week. Good answers: earnings gap above resistance, lowered guidance breaking support, sector leader, major downgrade, FDA approval with exploding volume. Weak answers: 'looks like it might go up,' 'moved yesterday,' 'someone mentioned it.'
If you can't explain why the stock is in play in a single sentence, you probably don't have a trade yet. Fill in the blank: 'Stock XYZ is in play today because ___'. If you can't, move on.
Participation means other people actually care, visible in volume. News explains why a stock might move, but volume tells you whether traders care. Not every headline creates a trade; some stocks gap and die.
Useful filters: gapping up/down at least 3%, average volume over 2 million shares, ATR over a dollar, pre-market volume (20%, 50%, 100% of average daily volume), and RVOL after open (30% in first 10 minutes is strong).
Structure means the stock has a clean chart level or setup to build a trade around. Ask: where are the important levels? Breaking above a multi-month base, below major support, clearing 52-week high, failing at resistance, or gapping into a clean area with room.
Stock A: up 3%+, positive catalyst, 25% of average daily volume pre-market, breaking above consolidation, strong sector, volume over 2M, ATR over $1 — passes all filters. Stock B: down, no news, no volume, no clean level — fails all filters.
Sometimes bad stocks have better-looking patterns. This is a trap. The pattern fails because the stock lacks reason, participation, and structure. Professionals see the stock as the problem, not the setup.
Step 1: Run a gap scanner (3% gap, 2M volume, ATR > $1). Step 2: Read morning news for catalysts. Step 3: Prioritize earnings. Step 4: Check volume (10% pre-market signals trend day, 30% in first 10 min is strong). Step 5: Validate higher timeframe charts. Step 6: Rerun scanner midday for stocks that become in play.
On busy days, prioritize based on your playbook. Choose cleanest higher timeframe levels, favor strong names in strong sectors for longs, weak names in weak sectors for shorts. Cap active watchlist at three names for beginners.
1) Trading just because it's moving. 2) Only trading SPY/QQQ/Tesla/Amazon. 3) Forcing trades after 11 AM in low-volume names. 4) Watching too many stocks. 5) Ignoring market context. 6) Confusing 'interesting' with 'in play'.
Every morning answer: What changed today? What's the catalyst? How much volume? Where are the higher timeframe levels? Is it stronger/weaker than market/sector? What setup from my playbook could appear? What's my if-then plan? Write down top three focus names.
Before a stock earns your focus, it must pass all three tests. Reason: clear why it matters today. Participation: enough volume and attention. Structure: clean chart level or setup. If it has only one, be careful; if none, you're choosing the hardest version of the game.
The key to better trading is not finding the perfect entry, but finding the right stock. By filtering for reason, participation, and structure, you can avoid the randomness of dead stocks and trade where real opportunity exists. Always ask 'Why should this stock move today?' before 'Where do I buy?'
What is the first question to ask before considering an entry?
Why should this stock move today?
01:09
What are the three components of the framework for identifying stocks in play?
Reason, participation, and structure.
03:12
What is the one-sentence test for a stock in play?
If you can't explain why the stock is in play in a single sentence, you probably don't have a trade yet.
11:08
What are the three participation filters mentioned?
Gapping up or down at least 3%, average volume over 2 million shares, and ATR over a dollar.
13:16
What does RVOL of 30% in the first 10 minutes indicate?
A strong sign that the stock is truly in play.
14:39
What is the 'polka dot chart'?
A chart with many dots but no real order flow, indicating a stock that appears active but lacks genuine participation.
12:46
What is the recommended cap for a beginner's active watchlist?
Three names.
29:03
What are the six beginner mistakes listed?
1) Trading just because it's moving. 2) Only trading SPY/QQQ/Tesla/Amazon. 3) Forcing trades after 11 AM in low-volume names. 4) Watching too many stocks. 5) Ignoring market context. 6) Confusing 'interesting' with 'in play'.
29:33
What does 'structure' mean in the context of stocks in play?
The stock has a clean enough chart level or setup to build a trade around, such as support, resistance, breakout, or breakdown.
15:06
What is the final standard for a stock to earn your focus?
It must pass all three tests: reason, participation, and structure.
33:59
First Question: Why Should This Stock Move Today?
Shifts the focus from entry mechanics to the fundamental driver of a trade, which is a key principle for beginners.
01:09The Framework: Reason, Participation, Structure
Provides a simple, memorable filter that can be applied to any stock before trading.
03:12Empty Gym Analogy
Vividly illustrates why trading dead stocks lacks the pressure and feedback needed for skill development.
08:24One-Sentence Test
A practical, actionable rule that forces clarity and prevents impulsive trades.
11:08Trap: Good Pattern in a Bad Stock
Highlights a common psychological trap where traders blame the setup instead of the stock.
19:58[00:02] failing, the problem may not be your entry. It may not be your stop. It may not be your indicator. It may not even be your mindset. The problem may be much simpler. You may be trading the wrong stocks and that one mistake can make day
[00:18] trading feel almost impossible. Because a good looking pattern in a dead stock is usually not a great trade. But a simple setup in a true stock in play
[00:30] can become one of the best trades of the day, the week, or even the month. So in this video, I'm going to show you how to find the stocks professional day traders actually want to trade. Even if you're brand new. And by the end, you'll have a
[00:43] simple three-part filter you can use before you ever think about an entry. the wrong place. They open up a chart and ask, all right, where do I buy?
[00:55] Where do I short? Is this a breakout? Is this a reversal? Is this a pullback? Should I use the 9 EMA? Should I use VWAP? Should I use RSI? Those questions do matter, but they're not the first question. The first question,
[01:09] question. The first question, why should this stock move today? That's it. Why should this stock move today? Because if the stock has no real reason to move, no unusual volume, no major level, and no serious participants
[01:22] involved, then the cleanest looking pattern can still turn into complete chop. And this is where a lot of developing traders get stuck. but they're actually working and practicing in the wrong environment.
[01:37] Which brings us to our first big idea, right? The big idea number one is a setup is only as good as the stock that it appears in. only as good as the stocks you trade. Remember that because later in this
[01:51] video, I'm going to show you two charts that look almost identical at first. One is completely worth your attention, the others are complete trap, and the difference will not be the pattern. The difference will be the stock. So, what's
[02:03] a stock in play? A stock in play is a stock that has a real reason to move today. That's the simplest definition. Something changed, right? Maybe the company reported earnings. Maybe
[02:16] upgrade or a downgrade. Maybe the company received FDA news, right? Maybe there was a lawsuit, a contract win, a CEO change, an M&A headline, or a regulatory decision, right? Maybe the stock's just breaking above a major
[02:29] watching for months. Maybe the entire sector's hot. Whatever the reason, something has happened that causes more people, more big players to pay attention. More traders are involved. More institutions are involved. More
[02:44] short sellers are involved. More long-only buyers get involved. More algorithms, liquidity-seeking algorithms are involved. More volume comes in. More emotion shows up. And most importantly, more people are forced
[02:58] This is where the opportunity comes from. A stock in play has a reason, participation, structure. That's the entire framework. Reason, participation, structure.
[03:12] At the beginning of this video, this may sound like three really simple words, but by the end, they're going to become your filter for deciding whether a stock deserves your attention at all. All right, let's talk about why this
[03:24] matters so much. We do not trade stocks in play because they're exciting, right? We don't trade because it's We trade stocks in play because they give us a better chance to
[03:38] because they give us a better chance to find real edge. That's why we trade. To exploit real edges available in the market. More volume means cleaner entries and exits. More range means more reward potential when the trade works.
[03:51] More attention means more participants are watching. More emotion means more panic, more FOMO, more short covering, more profit taking, and more forced decision-making. And that increased amount of feedback
[04:05] that you get from a stock in play means you learn faster. That last part is really huge. A developing trader needs feedback. You need to know, did the buyers really step up? Did the sellers really defend
[04:19] volume? Did the pullback hold? Did the stock reject resistance? Or did the trend continue? Stocks in play give us clearer feedback because real participants are actually involved. Dead stocks, stocks that aren't really
[04:34] in play, that are just moving around based on what's happening in the market, they don't have real order flow, they often give us really confusing feedback participation for the pattern that we're seeing to actually matter. Clean
[04:48] opportunity. That's the second big idea. And now we can open this first big loop of all of this. All right, so if clean participation matters so much, then what happens when you trade without it?
[05:02] This is where trading gets so dangerous, right? One of the biggest mistakes all the time, is they come in and they trade dead stocks.
[05:14] One of the most mis- expensive mistakes a developing trader can make is spending too much time in stocks that are not in play. We had this trader on our desk who would come in every single day
[05:26] with ideas. He would be looking at stocks based on this technical pattern that he had observed in the market, and when he looked across to all his examples, he would see that, yes, this technical pattern has some edge. He'd
[05:38] trade that edge every single day. When he traded that edge in stocks that weren't in play, so often he'd come over to me halfway don't under This pattern just isn't working today. This isn't working today.
[05:52] I want. It got so close to my profit target and then just reversed Or I was waiting for the opportunity. I didn't really get that opportunity, so I kind of invented one, right? When you trade a stock that's not in play, you're
[06:06] often choosing the hardest possible version of the trading game. You're choosing less volume, less range, less institutional participation, honestly, less urgency and less emotional pressure. All of those things
[06:20] chop. They lead to weaker follow-through. And for this trader in particular, it led to slower feedback, lower quality patterns. And here's the most brutal part of it. A trader usually blames the wrong thing.
[06:35] He would come and say, "My entry was bad. My stop was bad. My indicator failed." "My setup does not work." And then he would go on to say, "Maybe I need a new strategy. Maybe I need a new scanner.
[06:48] Maybe I I just need to use a new moving average." And and sometimes, yeah, those things may need work, but most of the time the real problem is simpler. He was trading a stock where nothing important was happening.
[07:04] He was asking a dead stock, essentially, to produce a clean move. And then he was surprised when the stock behaved completely randomly, almost. What's worse is he would make the mistake of not trusting himself when the
[07:19] stock was in play. So he would be in the right trade, doing the right thing, but just failed because he was always in stocks that weren't in play, that when he got into a good-looking pattern,
[07:31] he wouldn't even trust it. Now, a good-looking pattern in a dead stock can teach completely the wrong lesson. It actually eats at your psychology. This line is so important because a
[07:43] pattern can fail not because the pattern's bad, but because the stock the pattern matter. If you're trading that way, if you continually trade that way, how can you afford to trust if that pattern's going
[07:58] going to wind up cutting everything short. Your winners going to cut get cut short. Your losers going to feel more impactful to you. It's just a negative slope that you have to avoid. Later in this video, we're
[08:12] going to come back to this with some examples, but first I want to make this examples, but first I want to make this concept completely impossible to forget. we're in New York. When we're shooting this video, the
[08:24] Knicks are about to start in the finals. Very exciting for all of us, right? Let's think about an empty basketball gym. Like somebody just working out on play is like trying to become a better
[08:37] basketball player by practicing in a completely empty gym. There's no scoreboard. There's no pressure. There's no crowd. There's no speed, no urgency. There's no cost associated with your
[08:51] might be moving around. You may be getting the reps, but you're not getting real game feedback. You're not feeling that energy of the crowd. You're not You're trying to build it up in your head,
[09:05] but it's hard to. If you haven't had that experience, you're kind of doing the wrong thing because a stock in play is the real game. There's pressure. There's speed. There are participants
[09:20] with a reason to act. Now, even more, there are mistakes that breakouts. There are reversals, traps, momentum moves, failed moves, and second chances. This is where your trading skill
[09:33] actually gets tested. So, if you want real trading feedback, you need to be trading where real traders are being forced to make decisions. That brings us back to this whole framework of this video. The reason, the
[09:46] now let's break each one down together, all right? Reason. The first question you should be asking yourself when you show up on the day and pick a stock is what's changed today? Not what
[10:00] changed yesterday. Not what changed last week. Not because potentially the chart Today, what and why should this stock matter Really good answers tend to sound like this, all right? So, the company
[10:15] reported earnings, it's gapping above a major resistance level, right? Or the company lowered guidance and is breaking below multi-month support. The whole sector's moving, the stock is moving, and it's the relative strength
[10:28] leader, right? Or maybe the stock received a major downgrade and is trading below a key important level. We could take it further and say the company announced FDA approval and the volume's exploding in this stock, right?
[10:40] Those are real reasons. But weak answers. this stock move today?" Well, it looks like it might go up, right? The chart looks interesting. Uh it moved yesterday a little bit.
[10:55] Someone mentioned it, right? It's cheap and it's kind of moving The worst answer is, "Well, because I always trade this stock." Those are just not good enough. The beginner rule is really simple. If you
[11:08] cannot explain why the stock is in play in a single sentence, you probably don't have a trade yet. Here's the one-sentence test, right? Here's the one-sentence test, right? Uh stock XYZ is in play today because
[11:22] if you can't fill in the blank clearly, just move on. But again, reason alone for it to move today is not enough. A stock can have news and still not be a great opportunity. So, now we need that second piece to show up for us,
[11:34] participation. All right, participation has a bunch of little categories that we can use as markers, but the core idea here is ideally growing. They're showing up on a pre-market scanner, right? And there's
[11:49] Participation just means other people care. They don't theoretically care, they actually care. And you can usually see that in the volume. Volume's kind of the market's way of telling you people are involved here.
[12:03] Decisions are made being made here. The money is moving here. A really beginner-friendly way to think about this is the news explains why a stock might move, but the volume tells you whether actually other traders
[12:17] care or not. Because And that distinction matters, because not every headline creates a trade. Some stocks have news and kind of do Some stocks gap and then they completely die. Some stocks look interesting
[12:31] pre-market, but never attract real volume. So, we want that confirmation. We were talking about a trade today that was presented in the morning meeting. And they were picking this stock saying, "I think this news is really
[12:46] And we pulled up the chart and we had what we call polka dot charts. A polka dot chart is a chart that has a bunch of dots on it, but it doesn't have any real order flow. If you wake up and you think a stock is
[13:02] moving, but it looks like polka dots in the pre-market, you really want to kind of guard yourself against entering that stock. If other people don't care, why should you?
[13:16] Here are a few useful filters that you can kind of think of. All right, is the stock gapping up or down at least 3%? Think about that. If the stock is gapping up at least 3% or down at least 3%, people that were not
[13:31] involved yesterday or were involved yesterday are re-evaluating that company They're already giving you a head start in the pre-market. They're saying this stock is important to me and maybe it should be important to you, too.
[13:46] The second one is does it usually trade over 2 million shares a day? It's important. If it doesn't usually trade over 2 million shares a day, other people might not care most of the time. All right? And then the third is
[13:59] range over a dollar? Meaning, does it usually trade enough from the low to the high of the day, meaning that it has enough range to
[14:11] meaning that it has enough range to matter? open? All right? During earning season or with a big catalyst, something we think is important, right? Has the stock already
[14:25] important, right? Has the stock already traded 20%? 50% or even 100% of its average daily volume before the market opens? After the open, it is the relative volume, RVOL, is it strong, right? A stock that has traded 30% of
[14:39] its average daily volume in the first 10 minutes of the day is sending a very different message than a stock that's barely trading. The first stock is saying, "Guess what? A lot of people care about this one
[14:51] today." The second stock is saying, "You know what? This might just be noise." know what? This might just be noise." So, reason tells you why it could move. Participation tells you whether people care. But even reason and participation
[15:06] aren't enough because now we need the third piece, which is structure. And this is where so many traders get fooled, right? Because structure means the stock has a clean enough chart level or a setup
[15:19] or a setup to build a trade around. A gap alone is a good starting point, but it's not enough. A headline alone gets us in the arena with the fans in there, but again, it's not enough. The volume alone is not
[15:32] enough. You still need to ask, where are the important levels? Is this stock breaking above a multi-month base, right? Is it breaking below a major support on a higher timeframe? Is it clearing a 52-week high? Is it failing
[15:47] at obvious resistance? Is it gapping into a clean area with some real room to Or even worse, is it gapping directly into no man's land, what we call the M word, right? Mid-range, with kind of messy
[16:02] everywhere. This is where the higher timeframe charts matter, the daily chart, sometimes even the weekly chart. A lot of times we'll use the daily chart, the hourly chart, and the 15-minute chart to
[16:14] help us create that story before we ever get into the 1- or 2-minute chart, get into the 1- or 2-minute chart, because big levels create big decisions. And if a stock's breaking above a level that everyone has been watching,
[16:26] the shorts might be forced to cover. Breakout traders might enter. Breakout traders may use a momentum model to enter, right? Liquidity programs might come in, and swing traders might be needing to adjust their entire position.
[16:39] If a stock's breaking below major support, some longs may be forced to sell. Shorts may press that stock. Trapped buyers may completely panic out of it, right? The structure gives the trade a battlefield. And without the
[16:52] structure, you may have a stock that's really active, but it's actively hard to plan for as well. It's confusing, right? Structure gives you the place to make All right, so now we have this full framework that we can work with. Reason,
[17:09] framework that we can work with. Reason, participation, and structure. Now, for every single trader, the real test is whether you can use it in real time. So, let's look at some good stocks
[17:21] All right, let's say you have two stocks on your screen, right? Stock A is up more than 3% before the open. It had a really positive catalyst, right? There was some really good news about this stock. Somebody called it a
[17:37] really big opportunity. Sometimes a stock exactly like this has just reported earnings or or raised guidance, right? When we look at it, the stock's already traded 25% of its average daily volume
[17:49] before the open, right? And it's breaking above this important consolidation area, this important resistance area. It's in a strong sector, right? The stock obviously has average volume over 2 million shares and
[18:03] an ATR way over a dollar. So, now let's run our filter. Reason? Check. Yep, it had a really positive catalyst. Something was changing the story today. Change the story today? That story hadn't changed
[18:18] yesterday. Participation? Yes. Pre-market volume is really strong in this stock. Structure? Yes, it's breaking above a major higher time frame consolidation. A stock like this deserves your attention.
[18:33] Not because it guarantees a winning trade. Nothing guarantees that. But because if a clean setup forms, if a clean trade forms in this stock, the stock has all the ingredients that create that follow-through.
[18:47] Now, let's compare that to stock B, all right? Stock B is actually down a little bit on the day. There wasn't any fresh news in this stock. There wasn't any real volume in the pre-market. The only major daily level's kind of far
[19:01] ATR. That choppy pre-market action without the sector strength doesn't really hold water. The chart may still still wiggle, right? It may still look active for a few
[19:15] minutes. You might get faked out because it looks good and then it looks bad. It intraday. But when we run the filter, reason? No. Participation? Relatively weak. Structure?
[19:30] Not not really clean. This is not a stock in play. That's just a stock that kind of maybe might look interesting. developing trader can make is learning the difference between interesting and
[19:44] in play. Interesting is not enough. Just because you like the stock doesn't join it today. Now, here's where it gets more advanced. Sometimes the bad stock will actually have the better looking pattern.
[19:58] And over the course of your career, you will see tons of bad stocks with really good looking patterns. Guess what? That's just a trap, right? The trap is it's a good pattern in a bad stock.
[20:11] "Well, I could have gotten that. I should have gotten that. How did I miss at it to begin with. Honestly, if we use our checklist, you didn't. The stock can even build a small range, break above the highs. Candles can look really good.
[20:24] The entry, when you're looking back, looks so obvious. But again, there's no weak, and there's no important daily level. The market is really going to dictate a lot of what
[20:37] If the market's choppy, that stock's going to be choppy choppy. The sector is choppy, that's not going to be helping. What's funny is when the stock does break out, the volume dries up, and then the stock fails.
[20:52] Now, the beginning trader looks at that and goes, "Yep, I could see it. The breakouts don't work. I can't trust my system. I need a better entry, maybe. Or shouldn't let that turn back against me."
[21:05] But a professional trader and somebody aspiring to be a professional sees professional just says, "The setup was not the real problem. The stock was."
[21:17] There was not enough reason for this to work. There was not enough participation for this to really work. There was not enough structure for me to make a really Now, let's compare that example to a
[21:29] true stock in play. Huge pre-market volume, big news catalyst, major breakout level, strong sector. The actual intraday setup may be simple,
[21:41] right? Opening range break or maybe a pullback to view up, view up hitchhiker trade area. You can get very straightforward
[21:54] patterns, nothing fancy. But, because the stock's in play, the simple setup the stock's in play, the simple setup has a much better chance of mattering. A simple setup plus a great stock is better than a perfect setup in a dead
[22:07] stock. This is exactly the loop we opened at the beginning. The difference between the two charts wasn't the pattern. The difference was the stock. Now, let's make this really practical.
[22:20] How do you actually find these stocks every morning? When we built Scalp Radar, this was one of the biggest challenges we needed to accomplish. Because if you're scalping around in a stock that's not in play,
[22:33] amount of randomness. So, each day in Scalp Radar, we select stocks that have a high probability of being in play. So, that when people are using Scalp Radar, they're trading stocks in play. Those patterns have a higher probability of
[22:47] playing out simply because we're filtering out so much of the noise. If you don't have that, here's the beginner morning process, right? Is it just a checklist? It's a morning routine checklist because the goal of
[23:00] the morning process is not to find every stock that's moving. The goal is to find the small number of stocks that most likely will produce clean, tradeable opportunities. Here's the exact process you can follow. All right? Step one, run
[23:16] a simple gap scanner. Look for stocks gapping up or down at least 3% average daily volume over 2 million shares and an ATR over one. All right? That usually narrows the market to names that are moving enough, they're liquid enough,
[23:28] and have enough range to matter. You've already filtered your list way You've already filtered your list way down. Step two, read the morning news. tell you what is moving. The news is going to tell you why it's moving.
[23:41] You're going to look for guidance. You're going to look for upgrades, downgrades, FDA news, M&A, lawsuits, contract wins, regulatory headlines, maybe even major macro headlines. What you're looking for in steps one and
[23:57] steps two is what are the names that I'm observing on my gap scanner that are having a lot of headlines today. Guess what? really good headlines that other people are paying attention to, they're more
[24:13] likely to pay attention to the stock and it's more likely to be in play. Step three, you're going to prioritize earnings during earning season. Earnings can create some of the cleanest stocks in play because the company's
[24:26] just given the market brand new information. If a name's traded 20% of its average daily volume before the open, it's worth attention. If it's traded 50% or 70% of its average daily volume in premarket
[24:39] before the opens, it's completely worth watching. Sometimes they've even traded 100% or more before the open. It's rare and it really deserves a lot of study. Step four, you're going to check that
[24:53] volume. This is where the participation confirms the story. 10% of the average daily volume in pre-market can can kind of signal a potential trend day. That's all you need. 10% of the average daily
[25:07] 30% of the average daily volume in the first 10 minutes is a strong sign the stock is truly in play. Now, funny enough, this works better in futures than it does in equity. If you are using futures or a futures
[25:21] trader, you really want to pay attention to the pre-market volume because on to the pre-market volume because on trending days in the market, they will have far more volume in the pre-market than they will on a
[25:34] non-trending day. It's really fascinating. So, for all you futures traders out there, that's a really good thing to use. We're to step This is where you're going to validate the higher time frame chart because that
[25:47] gap isn't enough, right? You're going to look at the daily, hourly, and 15-minute chart. And you're going to identify is there a clean level? Is it breaking out? Is it breaking down? Is it failing at resistance? Is it gapping right into a
[25:59] resistance? Is it clearing out of a base? Is it holding above a prior high? If the stock's gapping into a messy chart with no clear level, you're going to downgrade that instantly. Because there's confusion. You don't want to be
[26:11] caught in the confusion. Step six is something a lot of people miss. You actually want to rerun a scanner in the middle of the day. About a quarter of the time that we're trading, 252 trading days in the year, right? About
[26:24] 50 trading days a year, 60 trading days a year. Some stocks become more in play after the market opens. And at that point, you're going to look for stocks that have already done a multiple of their average daily volume, right?
[26:40] So, you're going to be looking a simple scanner is what at 12:00 or 11:00, 11:30, whatever time you want to run it, what stocks have already traded more volume than they trade on an entire average day. Okay? What stocks are
[26:54] trading more than an ATR, more than their average true range? are showing you there's participation. They're showing you that there's opportunity there into the afternoon or into the middle of the day even. When
[27:10] to trade because I don't want to get chopped up in the randomness, those stocks are telling you this is where everybody's eyes are. This is where the focus is. So, your morning process is pretty
[27:25] simple now. Scanner, news, volume, higher time frame, you get to your top question. What if you find like 10 names? Because on busy days the problem isn't finding opportunity, the problem's finding the
[27:39] right opportunity. So, here's how you narrow that list. On a busy day more stocks may qualify than you can trade well. It's not a green light to watch everything. Your job is to cut the list
[27:53] down any even further. And the best way to do that is to prioritize based on the patterns that you already understand, your playbook. If the stock's in play but the setup isn't one you understand, pass or just
[28:06] name with the wrong setup for you is still not your trade. So, you're going to choose the cleanest higher time frame idea based on your choose the cleanest higher time frame levels. Because clean levels and clear
[28:23] levels. Because clean levels and clear levels create cleaner if-then plans. we're going to talk about our hot sectors and the relative strength names. For longs, we're going to favor the strong names in strong sectors. Is it a
[28:37] sector that you've heard about? Is it a sector that everyone's talking about? If it is, that's something you're going to favor. For shorts, you're going going When you're looking around at the sectors, is it like nobody's paid
[28:50] attention to them in a while? Nobody cares? They're getting sold? That's when you're going to watch only what you can actually watch. Beginners need to cap the active watch list at three names.
[29:03] Not 10, not 15, you got to get it down to three. Because more names, especially early in the day, does not mean more opportunity. It often means less focus. don't want to delete it. You just want to set an alert, right? Let the market
[29:19] tell you when it's time to re-engage with that stock. Because your job is not to watch everything. Your job is to focus on the best things. Now, let's protect you from the mistakes that keep most beginners stuck. Here are
[29:33] the six biggest beginner mistakes. Mistake number one is trading a stock just because it's moving, right? Movement alone is never edge. The better question is what's causing the movement. Are serious participants
[29:48] involved? If they're not, should you be involved? Mistake number two, only trading spy or Q or Tesla or Amazon. You know, spy and Q can be traded, but for most developing traders, individual stocks in play often
[30:02] traders, individual stocks in play often show cleaner catalysts, cleaner volume expansion, and cleaner participation. Remember how we talked about with when there's more participation in pre-market? Guess what?
[30:16] you're probably walking into good situation, and when there's not as much pre-market, you need to be very careful because you might be walking into a really dangerous situation for your trading. That exact same pattern that
[30:29] works with a high-volume pre-market day may fail miserably with a low-volume day. Mistake number three is forcing trades after 11:00 a.m. in low-volume names. We talked about that, right? Come back to the stocks that are really
[30:42] liquidity and direction in the middle of the day. If the stock's no longer in play and it doesn't match your playbook, stuff. Go watch some of our other videos. Mistake number four is watching
[30:55] too many stocks. More charts often mean worse focus. And we have a trader sitting just over there who struggled with this exact problem today. watching. And then they all of a sudden expanded
[31:10] their list to six. Three of those names had really, really good trades today. They were in one of those three. things at the same time. The minute they were calling out something
[31:27] interesting was the exact moment that something that they knew they should have been watching was playing out. You have to earn the right to expand outside of those three names. The only way you earn the right to expand is by
[31:42] trading those three names well and trading them consistently. Mistake context because even a great stock in play trades better when the broad market the move. You got to check the index, spy, Q, IWM,
[31:57] right? You want to check the sector. You want to check the relative strength. And then number six, confusing interest and interesting
[32:09] within play. And this might be the biggest one. A stock can be interesting and it might even seem that it has interest from other participants. The volume might be pushing it higher or pushing it lower, but it still may not
[32:22] be worth trading. In play truly means there's a real reason, there's real participation, and there's clean enough structure to build If you cannot explain why the stock should move today,
[32:36] yet. Now, let's give you this entire simple daily checklist. Every morning, you want to answer these questions. For the stocks that I'm looking at, what changed today?
[32:50] What's the catalyst? How much volume is it doing? considering, where's the important higher time frame levels? Is it stronger or weaker than the market? Is it stronger or weaker than
[33:03] the sector? Or maybe the other peers in that sector even. Then you want to go further. What setup from my playbook could appear? from my playbook could appear? And then what's my if-then plan?
[33:17] Where should I set my alerts? And then you want to narrow everything down and make sure you have written down your top three focus names. Not because those are the only stocks that can move today, but because those are the ones you're most
[33:29] prepared to trade well. The goal is not to build the biggest watch list. The goal is to build the best watch list Your top three focus names will be the one with the best reason, best
[33:43] participation, and best structure. Now, let's close this whole loop, right? At traders are trying to fix the wrong problem. Here is the final standard. This final standard is reason, participation,
[33:59] structure. Because before a stock earns your focus, it should pass all three of these tests. The first test is the reason. There has to be a clear reason why the stock should matter today.
[34:12] Something has to have changed. The news, earnings, guidance, uh major technical levels, sector move. Maybe the market environment shifted, right? Test two, participation. There has to be
[34:26] enough volume and attention to create opportunity. Other people have to care. Other people have to be involved. Other people forced to make decisions. That's where our best trading comes from.
[34:40] Test three is structure. There has to be a clean enough chart level or setup to build a trade around. You want to see support, you want to see resistance, you want to see a breakout, you want to see a breakdown, you want to
[34:52] You want to look for a trend or you want to identify a clear range. If a stock passes all those tests, it deserves your attention. If it has only one, you have to be careful. If it has none, you may be choosing the
[35:06] If it has none, you may be choosing the hardest possible version of this game. And the goal is never to trade more stocks. The goal is to trade better stocks. Because stocks in play are where new information,
[35:18] increased participation, emotional decision-making, and repeatable patterns all come together. If you ignore them, you're probably to be. So, before you hunt for the perfect
[35:31] entry, hunt for the right stock. Before you ask, "Where do I buy?" ask, "Why you ask, "Where do I buy?" ask, "Why should this stock move today? Who cares, right? Where is the level? What's the reason? What's the participation look
[35:45] like?" And of course, what is the structure? stocks to day trade even if you're brand new. You don't need to be perfect to get better at trading.
[35:58] But you do need to stop making the game harder than it already is. Trading dead stocks is really hard. Trading random movement is really hard.
[36:10] Trading without a reason, without participation, and without structure is really hard. So, give yourself a better shot. Find the stocks where something significant changed. Find the stocks
[36:22] where other people care. Find the stocks where the chart gives you a clean where the chart gives you a clean battlefield. Find the stocks in play first. Then wait for your trade.
[36:34] Then wait for your trade. That is the trading game.
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