The rules you MUST follow trading in 2021. Day Trading

hello guys steven ducks here welcome to this youtube videos today we're going to talk about some of the rules i would like to take into 2020 because i've noticed there is a dramatic change from the market condition from 2018 2019 to 2021 so hopefully those sets of rules will help you to grow your account and also to be able to avoid all those huge mistakes that can potentially blow up your account so before i start this video make sure to click the like button and subscribe and let's get into the video so the first rule

i want to call its name of volume density because recently pretty much for 90 percent of the gappers their pre-market volume normally exceeds 20 million to 40 million ish now for the normal volume is under 20 million and extremely crowded volume is over 40 million so let me give you like a rough estimate formula for that type of pre-market volume to estimate the entire day volume so back in 2018 2019 we have around in average around 10 million to 20 million that is considered as crowded trades now crowded trades is over 40 million but for

the formula itself that pre-market valentine's day to estimate entirely volume doesn't really work lately especially that the volume is so much that you can basically trade in pre-market without actually affecting the liquidity so the first hard rule i want to say for myself will be if the pre-market bond is under 10 million in the market condition of 2021 that's basically not tradable because there's way too much volume potential can pour into the stock to make the stock jump 200 300 percent and nobody can expect that now the second rule is if the volume stays between

10 million to 20 million that's considered to be like a normal stock that can be traded with maximum volume but not as crowded that's basically untreatable for the pre-market volume exceed over 40 million then that's type of indicator to tell you that do not trade aftermarket open because it's impossible to predict if it's gonna pull 20 percent or spike another 50 percent so if you want to trade this type of crowded tickers i always recommend that wait until 10 30 about an hour after market open to see if there's an actual fake out or potential

consolidation swerve to short into because there is way too much unpredictable factor in the first an hour for those crowded tickers so if you are mainly short sellers uh there's going to be two time zones for you to take your positions first of all will be between 10 15 to 11 o'clock that's probably the most predictable time zone for you to take a position the second time zone will be anywhere between three to three thirty to size into your potential consolidations now remember you can not sizing into a parabolic action because volume potential that can

potentially squeeze the stock over 70 percent in most of the scenarios so in conclusion three things you have to remember 10 million or under in pre-market that's not tradable 10 minutes 20 million that's stable or normal volume can be traded throughout the day over 40 million is basically untreatable and also two different time zone you can take a short positions will be anywhere between 10 15 to 11 and three to three thirty now try to not hold a stock overnight because there's also unpredictable factor in there as well so if you want to be a

short sellers and stay profitable and consistent make sure follow the first rule now let's talk about the second rule the second rule is meaning for buyers if you want to buy something that try not to buy into the next day now next day has its definitions if you see a chart that trades over 3 400 million volume in the previous day and the next day the stock is only trading two three miniatures in the pre-market that means in the next day volume it's not going to even compete with the first day volume because the first

day volume is way too crowded if there is a massive difference between the previous day and the current day volume let's say the volume ratio is 20 to 1. so for example on the previous day 400 miniature traded on the next day there's only 20 minutes here traded so the volume is 20 to 1. now if there is a massive difference of the volume uh between two days then try not to dip by in the next day because there's way too much back orders trying to sell into your bids and the stock is pretty much

impossible to come back up or to test the previous high now let's talk about ideal timing for buyers to potentially take up positions throughout the day so first thing you can think of is if the stock is not yet overextended enough and how should i take a risk and where should i take a risk so if you don't find the right timing for taking on long positions i do recommend that always take a look at the volume if the stock is not creating enough range let's say the stock is only up about eighty percent seventy

percent and it's not over five hundred six hundred percent on the day then that's an ideal scenario for you to take a long positions as i talked about for pre-market breakouts uh in the previous videos that the flow has to stay under 20 million market cap as low as possible and also there's a either it's a multi-breakout have a high dense support or you're looking at the pre-market resistance and the majority of the short squeezes happen in the midday so if you really want to take advantage of that if the stock tends to hold close

to 60 percent of the entire day again and consolidate about two to three hours that's where you have to pay attention to the volume if there is enough fluid quality as soon as there's a perk come into the chart and you can attract this amount of buyers to push it off the support level and cause a huge short squeezes that's where you should take your positions before that and that time zone are normally between 12 to 1. so for midday breakout it is extremely tricky i do recommend to you to track a lot of data

asag is example that perk through the midday and when parabolic eventually hit 20 a share of a three dollar stock so that's something that you can take a look at try to find a very similar chart and also a similar flow as well also a similar volume so that will be all the suggestions for short timing long timing and something for you to look at and also something for you to avoid as well hopefully this video is helpful and i do wish you stay consistent and profitable in 2021 and i'll see you guys in the

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