How To Day Trade Heaters – AAOI Intraday Momentum

A trader is only as good as the stocks he trades. This means that he needs to always be on top of his stocks and always have his best picks on his watchlist. One of the things that used to happen to me all of the time when I was a new trader was I would make this big elaborate watchlist and then miss big moves. This was always really frustrating because I suffered from paralysis by analysis since my watchlist was too long.

The Importance of Organization

To keep organized I use TC2000 as my charting platform and display a 6 window layout. These 6 charts show my main stocks and they’re kept on a different monitor so that I can always keep an eye on them. Then I keep a watchlist of 5 – 10 stocks, ones that I really like. In a bull market there can be so many heaters, but they may not be ready right now.


Yesterday when I was flipping through my stocks, I saw AAOI curling down. Normally this could be a bear flag but this particular setup appeared to be a rounded bottom. The technology sector is really hot right now and people were likely to pick this stock up and ramp it back up. But it was still under resistance and I didn’t think it was ready.

So I drew a trendline and set an alert. I asked TC2000 to alert me if it pops above this level. My alert was set at $60.

Setting Alerts

I heard a gong, then a text message, and an email alert. Now I know this stock has a history of making runs. If it goes again, I know that I could get a good chunk out of it. So once it went above $60, I’m watching it for any pattern over that level. I don’t care what pattern it is as long as my risk is managed.

AAOI pops up and flags with a 9EMA curl underneath. I put my stop right under the consolidation to limit my risk. The float was really low with 18 million shares and expanding volume. I entered this trade at around $60.60 and it was off to the races.

Best Trades

My best trades will typically allow 2 to 3 entries in them. This consists of a play in the morning, a play in the mid-day, and a play at the end of the day. There are 3 stages to the market and I want to have 3 plays for a stock that’s trending in my favor. Remember, when a stock is trending I want to keep hammering it and hammering it, adding risk and adding size.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. Our new bootcamp starts today on October 12th, 2017. To learn more or signup, email me at today!



Stock & Option Software used by Bulls on Wallstreet

Social Media

Related Posts

Stop Guessing.
Start Trading.

Secured Checkout Providers

Don’t Miss Out

Pre-Market Live-stream

Tuesday’s and Thursday’s at
9:00 AM EST.

Connect With Us…