Today, we’re looking at the NASDAQ pre-market activity through the Sonic trading system. Many of you requested a quick breakdown using this system on a 3-minute chart, so we’ll go through a real-time setup. You can see here that a buy signal triggered at 20,961.25.
When I enter trades, I avoid market orders due to NASDAQ’s volatility, which can cause slippage. Instead, I prefer limit orders for precise entry at my target price or better.
Managing Targets and Stops
With the trade placed, it’s crucial to set clear targets and stops. For this entry, I focused on a balanced risk-to-reward ratio. While we aim for a slightly larger reward relative to the stop, a minimum 1:1 ratio ensures we’re not taking unnecessary risks.
With the volatility even in pre-market, careful management of stops and targets can make all the difference.
Risk of Overtrading
One key point for all traders, especially using systems like Sonic, is the risk of overtrading. After three or four winning trades in a row, it’s often best to step back. The Sonic system can deliver a sequence of winning trades, but continuous trading may reduce profitability.
Today, we saw four winning trades, and I advise taking a break until market open or waiting for a high-quality setup.
Trading in Volatile Times and News Events
Be mindful of news events, which often hit around 8:30 or 10:00 am New York time. I use a news indicator on my chart to anticipate potential volatility spikes that can impact trades. If you’d like this indicator, it’s available for free on our website at daytradetowin.com.
Maximizing Learning: Join Our Mentorship Training Room
For those looking to dive deeper, we host a dedicated training room for our members. This is where we explore advanced strategies, such as optimizing the Sonic system and understanding price action. Starting with micro contracts allows you to practice without heavy risk while building skill in real trading conditions.
Every Friday, we offer an all-day mentorship session for our members. This is a great opportunity to deepen your understanding of trading systems like Sonic and get hands-on guidance in areas like risk management, trade selection, and entry optimization.
Join us to make the most of these resources!
For more insights, subscribe to our YouTube channel and visit daytradetowin.com for resources, courses, and software—many with limited licenses available.
