A day trader enters and exits a trade many times over a trading session to book profits from often small price movements in stocks, exchange-traded funds (ETFs), indexes, and other assets. The day trader usually closes these transactions by the end of the trading session to avoid risk exposures overnight. Many intraday scalping strategies involve using certain screener settings to reveal possible profitable opportunities.
Watch lists in the Webull Platform
Enter the stock and index symbols on your Watch list. You may rank your Watch list according to your preferences. The field populates to include the 1) company/index name, 2) movement, 3) current price, 4) after hours, 5) change in currency (e.g. dollars), and 6) percentage change.
Use the Webull screener settings to monitor trades in both foreign and U.S. markets. For example, if you have positions in the U.S. market and Hong Kong market, or you’re buying and selling global indexes and assets, Track them on the Webull day trading platform.
• Click on your Webull screener settings and a box to the right of the screen opens. Here, you will find more information about the price, movement, open/close, key statistics, orders and positions, time and sales, and much more.
• Screener alerts to corporate actions–e.g. share buybacks, earnings reports, secondary offerings, stock split announcement, reverse stock split announcement, dividends, mergers & acquisitions activity, spinoffs, and rights issues–are right here.
• Receive information about the companies on your watch list in real-time. This information may assist you in making buy and sell decisions based on current events.
• Get real-time charts. This stock chart service is included with your account. If you’re new to reading technical charts, take some time to learn this important skill. You will find myriad lines, numbers, acronyms, and colors on the chart. Start by breaking each chart into its separate parts. Once you master the knack of understanding stock chart basics, you’ll find it’s easier to make faster, more confident trading decisions.
Webull Screener Scanner
Let’s say you want to screen securities in the U.S. market. Click on 1) Market, 2) Region, 3) Exchange and 4) Sector to get started. Next, in the Quotes Indicator, and select Market Capitalization (low to high). The screener tool displays the stocks that meet your criteria.
Set the screener to select:
• Low-priced stocks, e.g. from $1-20. Play around with the tool to discover the full range of functions. Buy fractional shares on Webull with a $5 minimum. Expand your portfolio to invest in more companies. Average your stock basis price with as little as 1/100000 of a share. There are no fees or commissions on Webull.
• Percent change in price, e.g. 2 percent to maximum, or any point in between. Percentage change represents the degree of the security’s change over a period of time. Tracking the percentage change is a simple way to track individual securities and stocks, market indexes, and when comparing values of currencies. Percentage changes of a security over time can help you to identify trends.
• Volume information. Identify liquidity in your positions. Liquidity is one of the most crucial elements of trading. It tells you how easily you may buy/sell a position. To understand why liquidity is so important, imagine that your stock trading account is a motorboat. Liquidity is the water that supports the motorboat. When your motorboat is in the water, you need the ability to steer it in any direction. If you water level is low, the motorboat can’t move as fast. This may be dangerous, especially if you’re managing a larger boat! As a day trader, you must know that your motorboat always floats well and isn’t too large for the body of water.
• Low float names. Buy or sell names that gap up between the open or overnight. A low float stock is a popular investment for the day trader. It has a lower than average amount of shares outstanding. The low float stock has a higher than average spread, the difference between the buy/sell price for the shares. The float of a stock is the measure of its number of shares outstanding. This number indicates the number of stock shares that are available to buy or sell. The measurement doesn’t include shares owned by control investors, company owners, or other types of closely-held shares. Calculate the float by taking the number of shares issued by a company and subtracting closely-held and restricted shares. It’s important to carefully screen low float stocks. If the trader sees a profit of 1-1/2 but the spread between bid and ask is 2, they can’t realize a profit in the low float stock.
• Gap screener. Morning gappers excite day traders. A morning gap is a potentially profitable pattern. Many day traders use gappers to make the most of their trading profits.
The morning gap is the after-effect of trade activity that’s placed overnight because of an expected earnings release, economic indicator, or other event-driven information.
Let’s keep day trading morning gaps as simple as possible. Many trading pros divide gaps into two basic types: 1) full, and 2) gap fill.
• A full gap occurs if the security price fails to breach the prior day’s close.
• A gap fill happens when the stock “gaps” at the open and, at some point in the session, overlaps with the prior day’s close.
Morning gappers/gap trades
Most gaps get filled during the trading session. When a stock gaps very widely it may take days or weeks to fill it. These gaps are called breakaway gaps.
It’s fun to trade gaps if you’re aware of what you’re doing:
Three tried-and-true gap trading techniques include:
1. Don’t trade on the first candle. Charts can inform your trading. The first five-minute bar usually tells you lots about the stock’s strength. It’s common for traders to buy the first five-minute bar breakout. Sometimes, that works. It may be possible to grab most of the 15- to 30-minute open by doing this!
But never assume that every stock will perform in this way next time. Day traders know that the best-laid plans might need revisions. For instance, it’s possible that buying the first five-minute bar leads to an immediate reversal. You should have a stop order in place in case the trade doesn’t go your way.
Let the trade wait a bit to review your charts again. Although you may miss an opportunity, you’ll also avoid possible losses by entering a trade too early—then holding because it’s going to reverse direction again, right?
If you buy the first candlestick post-gap, you may ask where it’s best to place the stop. You may place the stop below the candlestick low: that works at times. It’s also possible to short at the level of weakness.
2. Don’t trade till you see the flag. Wait for the stock to gap up on the open. If it consolidates near the high (over four-eight bars), it may be time to enter your trade. It’s also beneficial if the stock doesn’t pull back much into its strong “gap up” candle. Avoid the trade if the stock stays above its 10 period EMA to ensure it’s still in a hard trend. (This is what we call a chart with clean candlesticks.) Wait for the stock to run for its daily high, no later than 10:30 a.m. After 10:30, the stock may drag without a clear direction.
3. Wait for it: the “gap fill”
Wait for the stock to retreat to its close of the previous day, then fill the gap. Watch for a sign of strength, then enter the trade on that move. Place the stock order beneath the candlestick low.
Traders say it’s hardest to set the price target. They notice pullbacks may exceed the morning high/low. Try buying the pullback and selling its retest of the morning high.
Know that trading gaps aren’t easy. You must be disciplined to trade at the open, the most volatile start of the trading day. Paper-trade these trading gap setups to identify those you like best or create your own. The best Webull screener settings are those used most often.
Paper Trading and Your Webull Screener
Your Webull screener settings are preloaded in the default screen or it’s possible to customize the screener to your needs. Paper trading is one of the best ways to get to know the full range of functions on the Webull platform. With paper trading, you are able to trade using a “paper” account that uses simulated money to trade real securities. Paper trading is a great way to get a feel for the market and different strategies while not risking real money.
Experienced and new day traders will appreciate the range of tools available to you with Webull. You’ll have access to many educational resources on the Webull platform that will help inform you as well as provide technical information that you can use when deciding on trades. As always, be sure to do your proper research before attempting any new strategy and test these strategies with a paper trading account first.
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