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Have you ever thought to yourself…

What am I going to trade today?

It seems like an innocent question but it’s really not that easy to answer once you get into the details

Maybe you like to trade breakouts, or reversals…

But let me ask you this…

What is your edge?

Unfortunately, you don’t have one if you are guessing at technical patterns, like double tops.

Why’s that?

Because one trader views this as a reversal and the other thinks it will break out to new highs.

So unfortunately that’s not something that gives you an edge.

But one thing that will give you an edge is following the trend and momentum that the whales create

And once they trade, playing along with the smart money they put into the markets.

So let me show you how to do this with my new custom scanner!

 

Dark Pool Profits

 

One thing that I noticed when I first started trading is that I just couldn’t find stock to trade

I would stare at charts and never know what to do

And it definitely wasn’t easy dealing with research and trading throughout the trading day

What I found was this:

And when I started looking at what I was doing wrong, I noticed that I was not following the smart money, I was not paying attention to the dark pools, and I chased momentum.

In order to fix this… I need to focus on accuracy and timing.

I developed a strategy that targets the dark pools and finds the trades that the smart money is trading so I can tag along for the ride

How does this work?

 

Accuracy And Timing Is What Makes A Good Trade

 

Unfortunately, many new traders suffer from both of these issues… they enter a trade too late, and they enter a trade at the wrong price.

But with the right tools and having good accuracy and timing will put you in a position to make money

However one of the hardest parts is understanding which stock will pop off next.

And I’ve developed a way to analyze the dark pools and search for those exact times to enter my trades

You see, even though stock charts seem to work, I believe it’s the dark pool volumes which drive a stock price in the future.

Another thing that drives prices is fundamentals, earnings, or other key announcements about the company.

And by time most traders see this move it’s already too late!

The key to knowing what to trade is spotting these catalysts ahead of time before or right as the move is happening!

So here’s a stock that hit my radar at 9 am this morning that I traded and wanted to share with you

GEVO INC (GEVO)

Catalyst : Large dark pool volume in the before 10am

Buy Zones : Pull back into the short-term moving averages 

Profit Zones: 25%/50%/75%/100%/200% profit increments

 

Source: Thinkorswim

 

This stock looks like it’s a boring and sleepy stock since it’s sell off a few months ago

Then this happened

 

 

Now looking at the 5 minute chart when the alerts started to hit

 

Source: Thinkorswim

 

You can see this stock already made a huge move in the pre market, but it’s looking like it can still go higher based on the daily charts

It seems it was all based on this catalyst

 

Source: Thinkorswim

 

And if you take a look at the trading plan above you can get a quick idea how to handle this trade

But did you see how sleepy the stock was, and how it was primed to take off higher with the slightest interest?

And I laid out where I was going to buy, take profits, and have a hard stop in case things go badly.

So this checks off both boxes, accuracy and timing on this trade by following this alert.  

We were able to know exactly what stock to trade and at what price, making it a perfect dark pools trade.If you’re struggling to come up with ideas, then check out how I only trade the SPY and have won over 90% of the trades on the year

Author:
Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com podcast where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share some of the wisdom needed to live a successful life.

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