The day trading blog
Kevin Cabana writes about small-cap momentum day trading: the setups he trades, the risk rules he follows and what happens in the live room each morning.
Free for 7 days, then $197 a month. Cancel anytime.
Education only, not investment advice. Trading involves substantial risk of loss.
How to Trade a Hot Cycle: Sympathy Plays, Halt Runs, and Coming Back From a Slow Week
One stock ran 800% and lit up an entire sector overnight. A trade-by-trade breakdown of the hot cycle that followed: premarket pullbacks on GMM, a halt run on JZXN, and how to get back in rhythm after a slow week.
Latest articles
New guides, setups and trade breakdowns from Kevin Cabana, newest first.
November
2026
Kev’s watchlist lands the night before
The articles explain the method. The room puts it to work: the nightly watchlist lands at 5 PM ET with the levels Kev cares about, then he trades the open live from 8 to 11 AM ET.
Free for 7 days, then $197 a month. Cancel anytime.
An example morning in the room. Illustrative, not a record of a real trade.
October
2026
Stock Market Holidays 2026 and 2027, Plus Early Closes
Every 2026 and 2027 stock market holiday (2027 from NYSE), the 1:00 p.m. ET early closes, how many trading days each year has and the days the bond market closes but stocks trade.
Position Size Calculator for Day Traders (Plus How to Size Every Trade)
A position size calculator for US stock day traders: enter your account, 1% risk, entry and stop to get the most shares that fit, plus the formula and a worked example.
The 3-5-7 Rule in Trading: What It Means and How It Compares to the 1-2-3 Rule
The 3-5-7 rule caps risk at 3% per trade and 5% across all open trades, with a 7 that sources read four ways. The math, a worked example and why Momentum teaches 1% per trade.
Is Day Trading Worth It? An Honest Answer for Beginners
For most people, day trading is not worth it as a way to make money. What the research and the SEC say, the real costs, who it can suit and a cheap way to test it first.
Day Trading Tools: What You Actually Need to Start (Scanner, Charts, Level 2, Broker)
A checklist of the day trading tools you actually need to start: what each one does, what to look for and what can wait, from your broker and charts to Level 2, SEC filings and a position size calculator.
Falling Wedge Pattern: How to Read It on a Small-Cap Chart
A falling wedge is a stock making lower highs and lower lows inside two lines that squeeze together. Here is how to draw one without forcing it, how it differs from a rising wedge, a descending triangle, a bull flag and a pennant, and what to watch on an intraday small-cap chart: the break, the volume and the hold.
Tape Reading and Time and Sales: How to Read Order Flow on Small Caps
Time and Sales shows every trade as it prints: time, price, size and where it hit the quote. Here's how to read the tape beside Level 2 on small caps, a worked example, and the limits most guides skip: odd lots, hidden orders, off-exchange prints and late reports.
What Is SSR (Short Sale Restriction) and How It Affects Small Caps
SSR switches on when a stock trades 10% or more below yesterday's close. Here's what Rule 201 actually restricts, how long it lasts, what it doesn't do, and how I think about SSR names as a long-only small-cap trader.
Dead Cat Bounce: How to Tell a Bounce From a Real Reversal
A dead cat bounce looks like a recovery until it rolls over and makes a new low. Here's how I tell a bounce inside a downtrend from a real reversal, using lower highs, VWAP, volume and the news behind the drop, and why I let price prove that buyers are defending a level first.
Is Day Trading Legal? The US Rules Every Beginner Should Know
Day trading is legal in the US. Here are the rules that do apply: FINRA margin after the 2026 PDT change, T+1 cash settlement, taxes, what counts as illegal, whether you need a license, and how old you must be.
Cash Account vs Margin Account for Day Trading (Good Faith Violations Explained)
A side-by-side comparison of cash and margin accounts for day traders, with worked examples of good faith, freeriding and cash liquidation violations, what Reg T says vs your broker's policy, and a checklist.
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Every column on the scanner is a term in the glossary. Gap, relative volume and float, read the way Kev reads them at the open.
An example morning in the room. Illustrative, not a record of a real trade.
The words on the scanner, in plain English
A plain-English day trading glossary: moving average, VWAP, relative volume, Level 2, order types, float, short interest, hard-to-borrow, gap up, and penny stocks, each with a full guide and a trader's take.
- Gap upA gap up is when a stock opens above the prior day's close.
- Relative volumeRVOLRelative volume (RVOL) compares a stock's volume today to its usual volume.
- Level 2Level 2 is the order book, showing the buy and sell orders stacked at each price beyond the best bid and ask.
- Hard to borrowHTBA hard-to-borrow (HTB) stock is one a broker struggles to source shares of for short sellers.
- Penny stocksPenny stocks are low-priced shares of small companies, usually under $5.
- Margin tradingMargin trading means borrowing from your broker to buy more stock, using your account as collateral.
Your first week
in the room is free
The live stream, the watchlists, the scanner and the journal, with Kev at the open every morning.
Free for 7 days, then $197 a month. Cancel anytime.
An example morning in the room. Illustrative, not a record of a real trade.