The video discusses a simple yet powerful day trading strategy that involves using the SPY (S&P 500 ETF) as a baseline to determine the overall market trend. The speaker, Clay, explains that by comparing individual stocks to the SPY, traders can identify which stocks are relatively strong or weak compared to the market.
Clay demonstrates how to use a scanner to identify stocks that are above or below the average, and how to use this information to make trading decisions. He emphasizes that this strategy is not a guarantee of success, but it can help traders to "rig" the odds in their favor.
The key takeaways from the video are:
1. Use the SPY as a baseline to determine the overall market trend.
2. Compare individual stocks to the SPY to identify which ones are relatively strong or weak.
3. Use a scanner to identify stocks that are above or below the average.
4. Make trading decisions based on the relative strength or weakness of the stock compared to the market.
5. This strategy is not a guarantee of success, but it can help traders to make more informed decisions.
Overall, the video provides a simple and straightforward approach to day trading that can be used by traders of all levels.
Fact 1: The video is hosted by Clay from ClayTrader.com, who is sharing a day trader strategy that is straightforward and powerful.
Fact 2: Clay is demonstrating the strategy using a real-life example and will walk viewers through it.
Fact 3: Clay emphasizes that the strategy is not theory, but has been tested and proven to work by members of his training.
Fact 4: The strategy involves creating a trade plan, which Clay compares to having a plan when traveling to a destination.
Fact 5: Clay suggests that a good trade plan involves understanding the context, or whether the markets are bullish or bearish.
Fact 6: Clay uses the SPY (an ETF that measures the S&P 500) as a baseline to measure certain components of stocks.
Fact 7: Clay explains that if a stock is above the SPY, it's relatively strong, and if it's below the SPY, it's relatively weak.
Fact 8: Clay uses a platform called Lightspeed, which has a feature called "risers and fallers" to identify stocks that are getting volume and seeing significant movement.
Fact 9: Clay uses the percentage column in the scanner to determine if stocks are above or below average.
Fact 10: Clay warns against using the strategy in a blind manner, emphasizing that it's not a guarantee of profit.
Fact 11: Clay provides a recap of the strategy, stating that it's not complicated and should be used as part of a comprehensive trade plan.
Fact 12: Clay provides a disclaimer, advising viewers not to blindly buy or sell stocks based on their relative strength or weakness compared to the market.
Fact 13: Clay concludes by emphasizing that there is more to a trade plan than just understanding the strength or weakness of a stock compared to the market.