Whenever I’m about to enter a trade live in front of our community, I say the name of the strategy out loud. It might sound a little strange, but it’s a rule I have for myself. It’s my way of making sure I’m not just jumping into a random gamble without a plan. You’ll hear me say something like, "Going long on CCL for a 1-minute Opening Range Breakup, stop loss below $11.50 and VWAP." The trade might fail—I might get stopped out—but at least I went in with a plan. This is one of the most important fundamentals of day trading, and it should be a non-negotiable for every single trade you make.

The hard truth is that most traders fail because they're trading on feelings, not on a proven system. They see a little of this and a little of that, jump in randomly, and wonder why their account is gone. You don't want to live-trade a new strategy until you've proven it’s worth your money. Your focus should be on developing and mastering core day trading strategies in a simulator first.

Find Your Edge, Then Master It

I don’t expect what works for me to work perfectly for you. My goal is to help you find a strategy that fits your personality, account size, and risk tolerance. I saw this firsthand with a successful trader who learned the basics from my book. He put in the time and effort to find his own edge in the market. Today, he trades completely differently than I do. He built his own set of rules and defined a strategy that works for him.

This is the key in your early days: master just one strategy. It can be the ABCD Pattern, the Opening Range Breakout, or something you create yourself. Once you have one down cold, you can start exploring others.

Timing is Everything: Trading by the Clock

Not all strategies work at all times, and good traders know this. They pay attention to what time of day their most profitable trades happen and adjust accordingly. I break the trading day into four distinct sessions, each with its own personality.

• The Open (9:30 a.m. - 10:30 a.m. ET): This is the most volatile and, for me, the most profitable period. I trade with the most size and frequency here. Opening Range Breakouts, Bull Flag Momentum, and VWAP trades tend to work best. New traders should be careful, as this is often where they do the worst due to unexpected volatility.
• Late-Morning (10:30 a.m. - 12 p.m. ET): The market slows down, but there's still good movement in Stocks in Play. This is one of the easiest times for new traders. There’s less volume and less chaos, which makes for some excellent risk/reward trades.
• Mid-day (12 p.m. - 3 p.m. ET): This is the most dangerous time of day. Volume and liquidity are low, meaning a small order can move a stock more than you’d expect. I do my worst during this period, so if I trade at all, I lower my share size and keep my stops tight. Often, the smartest trade is no trade at all.
• The Close (3 p.m. - 4 p.m. ET): Stocks become more directional as Wall Street professionals dominate the last hour. I like to trade with them, not against them. If a stock is moving higher, it means the pros are likely bullish. VWAP, Support or Resistance, and Moving Average trades are often effective here.

A rule I created for myself is that I'm not allowed to lose more than 30% of my morning profits after the Open. If I do, I either stop trading or switch to a simulator. This is a crucial element of risk management and trading psychology.

A Real Trade, Step-by-Step

Let's see how this works in practice. On the morning of June 12, 2020, Occidental Petroleum (OXY) was on my watchlist. The market was strong, OXY was gapping up over 7% pre-market, and the volume was huge. Day traders love this combination of volatility and liquidity.

My plan was set before the market even opened: if OXY stayed above VWAP, I was looking for an Opening Range Breakup.

1. The Setup: As the market opened, OXY formed a nice hammer Doji candlestick right above VWAP on its 5-minute chart. This is an indecision candle that leans toward the buyers—a bullish sign.
2. The Entry: With my plan in place, I took the trade on the long side at $18.85 for a 5-minute Opening Range Breakup.
3. The Exit: I sold my position in three steps as the price pushed toward $19.40. By 9:39 a.m., just nine minutes into the trading day, I was done with a profit of $2,421. One good, well-planned trade was all it took.

It’s More Than a Hobby; It’s a Business

That kind of execution isn’t luck; it’s the result of treating trading seriously. Building a professional trading business is about creating a process and sticking to it with discipline. My trading process looks like this every day:

1. Morning Routine: I wake up at 4:30 a.m. for a run. Physical activity has a proven positive effect on decision-making.
2. Develop Watchlist: By 6:15 a.m., my watchlist is set. I don’t add anything after that.
3. Organize a Trade Plan: For the next 15 minutes, I'm developing if-then scenarios for the stocks I'm watching.
4. Initiate & Execute: When the bell rings, I'm just looking for the signal to execute my pre-written plan.
5. Journal & Reflect: After the trade, I reflect on what I did right and wrong. This is where real growth happens.

Profitable trading is not about emotion. If you are an emotional trader, you will lose money. The traders who fail often think they need more technical knowledge, but their real problem is a lack of self-discipline and bad habits.

Lessons from a Trader Who Turned It Around

A trader I know, John, found consistent profitability only after making all of the common mistakes. The advice that finally turned his career around is a masterclass in risk management and trading psychology.

• Risk the same amount per trade: He started thinking in terms of "R" (risk). A losing trade was always -1R. This removed the emotional swings.
• Risk small until you're consistent: He risked just $20 per trade for months until he could prove his strategy worked. His account survived the learning curve because his losses were manageable.
• Use hard stops: This was a psychological battle he had to win. A -1R loss is a great outcome because it can be overcome. A -3R loss can wipe out a day's work.
• Focus on a single strategy: He mastered one setup—the Break of High of Day (BHOD)—which forced him to be patient and picky.

His journey reinforces the core fundamentals of day trading: you need a handful of solid setups, a system for managing risk, and the discipline to follow your plan, even when it's hard. By focusing on the process instead of the profit, you build the skills that last a lifetime.