How to Day Trade for a Living

My watch list Gapper on June 21, 2016 at 9:20 a.m. KMX is an Alpha Predator for that day.
KMX support or resistance lines and my trade for that day.
After reviewing the daily charts, I found two levels of $48.09 and $48.48. When the market
opened, I watched the stock and realized that the area of around 48.09 acted as a support. When
I saw an indecision candle around the support line, I purchased 1,000 shares of KMX with a
stop of below $48. The stock surged up toward the next level at $48.48 and, interestingly
enough, $48.48 was also close to my invisible half-round number ($48.50). I sold half of my
position for a profit and kept the balance for going higher. Since I did not have any other
support or resistance area higher up, I decided to sell my remaining position at the invisible

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resistance line of $49. As you can see, $49 acted as a strong resistance line, and the stock sold
off from that level.
To summarize my trading strategy for support or resistance trading:
1. Each morning, when I make my watch list for the day, I quickly look at the daily charts for
my watch list and find the area of support or resistance.
2. I monitor the price action around those areas on a 5-minute chart. If an indecision candle
forms around that area, that is the confirmation of the level and I enter the trade. I usually
buy as close as possible to minimize my risk. Stop would be a break and a close 5-minute
chart under support or resistance level.
3. I will take profit near the next support or resistance level.
4. I keep the trade open until I hit my profit target or I reach a new support or resistance
level.
5. I usually sell half-positions near the profit target or support or resistance level and move
my stop up to my entry point for break-even.
6. If there are no next obvious support or resistance levels, I will consider closing my trade at
or near half-dollar or round-dollar levels.
A similar approach will also work when you short a stock.

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