A Deep Dive into the Momentum Access Masterclass (Part 1)

This is a 3-part series on Goverdhan Gajjala's free Momentum Access Day Trading Masterclass. I was first introduced to his work when he was interviewed on TraderLion where he discussed his incredible 805% portfolio performance resulting in a decisive victory in the US Investing Championship for 2023.

This post will first go over some of the basics of intraday momentum trading touching on aspects of trading resources Goverdhan Gajjala (GG) uses, risk management, and trading psychology.

Part 2 will go through the specific setups that GG uses with key examples displaying what an optimal setup would look like as well as some invalid setups.

The third part of this series will be a question and answer with GG. As I was compiling all the information for the posts, I had a few questions about his style of trading, his methodology, and his scanning methods. This is the first time that I have reached out to ask further questions about a trader and GG was incredibly kind and took time out of his day to jump on a quick call with me. And for that I am thankful!

If you are interested in his method of trading you can visit ….

Basics:

• Momentum trading is like surfing on short-term trends. The goal is to enter trades with good Risk to Reward (RR), good risk management, and a good mindset.

• Given a catalyst (ie. news, earnings, FDA approvals, etc) it triggers price movement with heavy volume.

Types of Stocks to Focus on:

Identifying Trades:

Key Must-Have Criteria for Setup:

• Good Volume!

Financial Objectives:

Lifestyle/ Time Allocation:

Trader Tools:

Setup:

• Main Scan

WorkStation:

Pre Market Routine

• Starts to review the market at 6:30am CST [7:30am EST]

• Pulls up Premarket Scanner and Zendoo Live Streamed Scanner

• Does meditation and visualization in order to improve self-awareness

Post Market Routine

• Grade yourself on how trades were executed and if you followed your trade plan

• Takes screenshots and video records of all the trades taken, and trades missed

• At the end of the week, review all past trades.

Weekend Routine

• The weekend is a time for self-improvement and review

• He reviews all past trades from the week and journals that week’s performance

• He will prepare a gameplan for the upcoming week

Remember a trader who fails to prepare is preparing to fail

Book Recommendations:

• GG recommends NOT reading too many trading books, instead, he recommends reading and studying charts and journaling every day

• But if he had to recommend trading books:

• Personal Favourite Book recommendations:

Experience is Everything:

• Only by putting hours in the market, making mistakes, learning from them, and journaling will teach you more than anything else.

• Experience and execution are the most important elements to improve

Select Your Mentors Wisely:

Risk Management Approach:

• Risk Management was the #1 factor in GG’s 805% performance in 2023.

  • As a trader, risk management should be your highest priority

  • Not forcing trades, not revenge trading, being disciplined, and waiting patiently for setups, are all under risk management

• Trades should be thought of in terms of risk, not profits. The position value, position size, and risk depend on the current account value for GG as he risks a percentage of his account per trade.

• Risk per Trade: 0.25% of total account value and will gradually increase or decrease risk per trade based on monthly performance

Progressive Exposure:

Position Size Calculator:

Stop Losses:

• Managing open trades can be one of the hardest parts of trading

• From his experience, the most optimal way of managing a trade is selling partials into strength, and trading the remaining partials with a stop loss. This could also be in the form of a trailing stop loss on one of the EMAs for example.

• Emotional discipline plays a major role in a trader’s performance. If you are emotionally grounded and focused on being self-aware, you improve your chances of trading with minimal emotional errors

• We cannot fully eliminate emotions but we can reduce their intensity by being self-aware

  • To build self-awareness GG uses meditation, journaling, visualization, physical activity

The one who masters the mind masters everything!

Trading Psychology:

Mistakes Turn into Lessons:

Overtrading:

• A lot of losses are due to overtrading when there is not a good setup. Remember, that you don’t need to force trades

• Losses are a fact of this game, and not accepting losses will cost time, hinder your mental attitude, and reduce your capital

Drawdowns:

• Start early in life! It takes time to figure out what works for your. For GG, it took almost a year to figure out that day trading suits him

• Start trading with a small account, using different trading methods, risk small, and learn every day

• Invest more time in your trading methodology and have deliberate practice everyday

• Don’t take trading as a hobby (if you are serious about trading) - hobbies are used to pass the time and they cost money.

• Trading is not a get-rich-quick scheme, it takes a long time to master

Part 2 to come…Happy Trading,

-F4VS

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