The Simplest Day Trading Strategy: Gap and Go ↗️📈 #stockmarket #daytrading

Overview (Gap-and-Go Day Trading)

The presenter discusses a day-trading “Gap and Go” strategy focused on stocks that gap up (open higher than the prior close). The approach is built around using a gap scanner to find momentum candidates and then trading them shortly after the open using predefined breakout levels—while tightly managing risk and knowing when to stop.

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Key Instruments / Tickers Mentioned

Example NASDAQ stocks

• INDP (main running example; described as the leading gapper)
• PIXY (case study)
• MDGS (case study)
• ACB (mentioned; not fully detailed)
• MOSY (example caution / setup behavior)

Other referenced tickers / companies

• GameStop (referenced for a supply/demand/float comparison; ticker not explicitly stated)
• Bank of America (referenced for a float comparison; ticker not stated)
• Nasdaq (market/venue referenced generally)

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Macro / Market Context

This strategy is framed as microstructure + intraday momentum, not macroeconomic analysis:

• The core idea: news-driven gaps + low float can create sharp supply/demand imbalances, leading to outsized price moves.
• No broader macro factors (rates, inflation, jobs) are discussed; the focus is on intraday behavior.

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Methodology (Gap Scanner → Trade Setup)

1) Use a gap scanner daily

• Sort for “leading gappers” (stocks up the most).
• Review the top 5 leading gappers each morning.

2) Filter by gap size

• Minimum: at least ~5% up (described as “statistically significant”).
• Preferred: around ~20% gap or higher (“usually i like to see something at least 20 percent if not higher”).

3) Filter by float (supply)

Low float tends to create more parabolic moves.

Preference bands stated:

• Under 50M shares
• Under 25M shares
• Under 10M shares
• Under 5M shares

Float examples mentioned:

• INDP: ~1.6M shares (also mentioned as ~1.16M–1.61M)
• GameStop: ~46M shares
• Bank of America: ~7.5B shares

4) Choose a price range

• Sweet spot: $2 to $20
• Caution/discretion: when price > $50, performance is said to “get sloppy.”

5) Trade specific breakout setups

Primary setup highlighted:

• Break of the pre-market high (“gap and go”)

Another referenced category (not fully detailed):

• First and second pullback approach

6) Entry/exit discipline

• Use the breakout level(s) (e.g., pre-market high) and predefined entry points.
• Emphasis on avoiding overtrading:
  • Aim for 1–2 high-quality trades/day, not many.
• Explicit reminder:
  • A gap up is not guaranteed to continue higher (e.g., MOSY gapped up then sold off).

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Key Numbers / Metrics and Examples

INDP (main example)

Price action

• Move described: from about $12 to about $28.83 intraday high
• Stated % move: ~225% (at one point described as “up 225 percent”)

Profit / drawdowns

• Profit cited: up $103,000
• Later drawdown described: about $15,000 given back

Gap magnitude

• Prior close: ~$7.05
• Open: ~$11.85
• Gap described: ~67%

Volume / relative activity

• Prior day volume: ~170,000 shares
• Next day total volume: ~112 million shares
• Relative volume: ~1,310x

Catalyst timing

• News timing: around ~7:00 a.m.

Trading trigger levels mentioned

• Pre-market high: about $12.86 (referenced as 1286 / 12.86)
• Another breakout level: $12.50 (reference to 1250)

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Performance / strategy statistics (as presented)

• Total gross profit claim: ~$9.5 million (not presented as typical; see disclaimer)
• Profit attribution claim:
  • Majority attributed to stocks gapping up by over ~2%
  • Mentions values like $9 million, $9.5 million, and $8.8 million tied to “over two percent” (exact criteria partially unclear due to subtitle noise)
• Also references “stocks that are over 10” (likely a price bucket), though the exact filter is not fully clear.

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PIXY (case study)

• Profit cited: $40,000 on PIXY
• Gap: ~78%
• Float: ~300,000 shares of float
• Volume: ~1.8 million shares
• Catalyst: COVID-related

MDGS (case study)

• Trade sizing: $7,000 a pop
• Listed as the second leading gapper on that scan day
• Float: ~1.1 billion shares

ACB (mentioned)

• Appears as another case identifier in the scan context, but details are not fully provided in the subtitles.

MOSY (caution / setup behavior)

• Behavior: gapped up but sold off at the open
• Not worth trading “until it broke over $6.80” (reference 680)
• Key takeaway: wait for breakout confirmation; don’t buy too early.

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Risk Management / Explicit Recommendations

Trading is risky

The presenter repeatedly emphasizes:

• Trading is risky
• Results are not typical

Don’t assume others’ results

• Viewers should not assume they will achieve similar outcomes.
• Do not “blindly follow” the presenter or anyone else.

Stop when conditions degrade

Day management example:

• Up $103,000, then gave back about $15,000
• Multiple drawdowns described, eventually leading to a decision that it may be time to “throw in the towel.”

Avoid overtrading

• “Being a trader is not about taking 100 trades a day”
• Risk mitigation starts with:
  • Finding a strong stock (via gap scanner)
  • Best entries
  • Knowing when to walk away

Gap-up can fail

• MOSY is used to reinforce that gappers can reverse and stop the trade thesis quickly.

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Disclosures / Disclaimers

• Trading is risky
• My results are not typical
• Do not assume you’ll achieve similar results
• Do not blindly follow the presenter or others
• Mentions broker statement proof on warriortrading.com
• No special “finance advice” disclaimer beyond typical trading-caution language in subtitles

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Presenters / Sources

• Presenter referenced: Warrior Trading / WarriorTrading.com
  • Specific name not stated in the provided subtitles
  • References include “warrior pro courses,” “chapter seven gap and go trading,” and “warrior pro classes”
• Source material referenced: Warrior Pro course / “Chapter 7”
  • Gap and Go / “gap and go trading”