Only trade stocks moving for a reason, not with the herd
On a Wednesday before the bell, your scanner lights up with TQND and RIGH each gapping down 6% on fresh biotech trial results. You bookmark their news releases for a quick caffeine-fueled read: a clinical hold on one, an FDA priority review on the other. As you sip your coffee, you open sector charts—biotech ETFs have barely budged. These aren’t herd moves; these stocks have their own stories.
By 9:25 a.m., you’ve chosen RIGH for a long trade and TQND for a short. You draft your if-then scenarios: if RIGH clears VWAP, you buy; if TQND can’t hold the 5-minute low, you short. When the bell rings, focused Fishers of Catalysts, not Scrooges of Noise, win the day.
By 11 a.m., RIGH has run to VWAP-plus a buck and you’ve pocketed a tidy gain. TQND falls another 4% and you exit ahead of midday chop. It wasn’t luck—it was disciplined focus on catalyst-driven movers. In the End, Alpha stocks defy algorithms and sector flows.
Scientific trading theory confirms that independent volume surges signal true information flow, not random noise. When you trade only these catalysts, you align with real supply-demand shifts rather than chasing ephemeral momentum.
Watch before the bell for stocks with sizable gaps and volume, then verify the specific news behind each move. Compare those candidates to their sector ETFs to spot true Alaska-type Movers in Play. Finally, condense your focus to two top picks and craft simple if-then rules: if they break key levels, you trigger your orders—no guessing around it.
What You'll Achieve
You’ll develop a laser focus on catalyst-driven opportunities, reducing time wasted on crowd-driven noise. Externally, you’ll build a tight watchlist of high-probability setups with clear entry signals.
Focus on catalyst-driven movers
Scan for big pre-market gaps
Before 9:30 a.m. New York time, use a scanner set for stocks gapping ±2% plus unusual volume. This filters out crowd-driven moves and focuses on real catalysts.
Verify the catalyst
Open your browser and read the fresh news: earnings misses, FDA rulings, M&A deals. If you can describe in one sentence why it’s moving, the setup is valid.
Check sector correlation
Compare the stock’s move to sector ETFs. If it’s bucking the sector trend, it’s an Alpha stock in Play and worth your attention.
Build a two-stock watchlist
Limit your morning list to two candidates. Spreading attention thin invites mistakes—focused surveillance reveals patterns more clearly.
Reflection Questions
- How often have you traded a stock simply because “everyone else” was?
- What’s one recent news event you overlooked before entering a trade?
- How can you tighten your watchlist to eliminate noise tomorrow?
Personalization Tips
- At work, you only chase projects with clear ROI, not every shiny new initiative.
- Healthwise, you stick to diet tweaks backed by medical tests, not random internet fads.
- In relationships, you address issues when triggered by real events, not vague suspicions.
How to Day Trade for a Living: A Beginner's Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
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