Ross Cameron, a YouTuber with 1.25 million followers, turned a $583 account into over $10 million. He said he used to trade like a headless chicken, eventually suffering a devastating margin call. It was only after this that he began to focus on researching trading strategies. Finally, one day, he found a trading model and has been executing it ever since.
Although many KOLs are questioned as to why, if they have such strong trading abilities, they choose to be KOLs, Ross Cameron often conducts real-time challenges during live broadcasts, repeatedly turning a few hundred dollars into tens of thousands or more within a month, leaving skeptics speechless.
Ross Cameron is undoubtedly one of the most successful day traders, and he does not shy away from sharing some key points of his success.
Half of his success comes from his strategy for selecting stocks. How to pick the right stocks? Of course, it's about finding those with factors for rapid appreciation. Rapid price increases are unlikely to occur in giants like Alibaba, Google, or virtual currencies like Bitcoin, where a single-day increase of over 20% is very rare.
Stocks with rapid appreciation factors generally have 5 characteristics:
1. If a stock's price increases by more than 10% on the same day, it has gained momentum. Continuing to rise another 10% will be much easier than for a stock that hasn't started rising yet.
2. It should be in the top five of the gainers list, as stocks that rank high on the gainers list indicate that market funds and attention are focused on these stocks, resulting in better liquidity and more adherence to trading rules.
3. There needs to be a high relative trading volume, meaning a stock has significantly increased its trading volume compared to previous days. For example, if a stock usually trades around 150,000 shares but today trades 150 shares, it indicates a very high relative trading volume. A large short-term trading volume is necessary to drive a price increase of over 10%.
4. The price of the stock should not be too high; it is certainly easier for a stock to rise rapidly from $1 to $2 than from $20 to $40.
5. The circulating supply should be low; price increases occur because there is huge unmet demand in the market, and if the stock being traded is not abundant, it can trigger further price increases.
After selecting a stock, we open the chart to see what position the stock is currently at in a smaller time frame, whether it is in a pullback, at a low point, or breaking through a specific price range.
Next, let's look at the daily chart to see if the overall trend of this stock has been broken, and mark the key support and resistance levels and highs and lows. These levels will become important reference points for setting take-profit and stop-loss orders in the future.
Regarding entry positions, there are several possibilities:
1. In trend trading, if the price breaks through a key resistance level, it is likely to return near the resistance level after the breakout; this is a good time to enter. If the current price is far from the key resistance, check if the recent key support and resistance levels allow for a 1:2 risk-reward ratio; if they do, consider entering.
2. Some key breakout patterns are also good tools for determining entry points, such as the ascending/descending flag patterns, triangles, or box patterns we've discussed before.
I wonder if everyone is interested in Ross Cameron's content; in the future, we can also share some of his content for technical discussions.
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