Pre-Trade Entry Checklist

Run through this 30-second checklist before every momentum trade. Tap each item to check it off.

Setup Confirmation

Volume at least 3x average (check RVOL) Relative volume confirms real interest, not noise. Look for RVOL 3+ on your scanner.
Price above VWAP (or reclaiming) VWAP is the institutional fair-value line. Longs want price above it; reclaim = bullish reversal signal.
Float under 20M shares (ideal) or strong rotation Low float = bigger moves on volume. Higher floats can work if rotation and volume are strong.
Clear catalyst (PR, FDA, earnings, sector momentum) No catalyst = no reason for the move to sustain. Know WHY the stock is running before you buy.

No active S-1 / S-3 registration (check Intel Terminal) An active shelf registration means new shares can be dumped into the market at any time.
No recent EFFECT filing in past 30 days EFFECT = SEC approved the share sale. If recent, those shares could hit the market any day now.
No known toxic lender in recent filings Toxic lenders (convertible note holders) short the stock while converting shares. Death spiral risk.
Authorized share headroom under 5x outstanding If authorized shares are far above outstanding, the company has room to dilute without a vote.

Entry price identified (breakout level or VWAP reclaim) Never chase. Define the exact level you want to enter BEFORE the move happens.
Stop loss set (below VWAP or key support) If you don't know where you're wrong, you shouldn't be in the trade. Set your stop before entry.
Position size calculated (max 2-5% of account) Size based on your stop distance, not conviction. Survive the losses so you can capture the wins.
Target R:R ratio at least 2:1 Risk $1 to make $2 minimum. If the math doesn't work, the trade doesn't work. Walk away.

Scan for S-1 filings, EFFECT notices, dilution risk, and more before you trade.

Open Intel Terminal