Goverdhan Gajjala: Q&A (Part 3)
A Q&A with Goverdhan Gajjala, the trader who won the 2023 US Investing Championship!
Index:
Goverdhan Gajjala: A Deep Dive into the Momentum Access Masterclass (Part 1)
Goverdhan Gajjala: Trading Methodology & Setups (Part 2)
Goverdhan Gajjala: Q&A (Part 3)
As I conclude the Goverdhan Gajjala (GG) series there is one final post I wanted to make. After going through all of GGs material I had a few questions I wanted to ask him about his setups and ideas.
Below is a Q&A with GG. I want to give a big shout-out to GG for taking the time to answer questions I had and and making all of his material free to the public. Truly appreciate it!
And if you like this new type of content where I chat with traders, please subscribe and comment!
Question and Answer:
How do you determine which time frame (ie. 1m, 5m, 15m, etc) to use? Is there specific criteria to determine if you are using a 5m vs 15m chart? Specifically for the Bull Flag Breakouts setups vs the EMA Kiss & Fly's setup.
90% of trades and viewing trades are done on the 5m chart, while 10% of the time 15m charts will be used
The 10% of the time where 15m is used, will be when the 5m chart doesn’t look optimal but zooming out to 15m, the setup aligns with criteria or that there is a more optimal RR or entry point
It is also based on a level of comfortability
Can you talk more about finding the right stocks to trade? For example, using price, volume and % change filters may get over 100-200 stocks in certain periods of time in your scan. Would you go through each individual chart or try to filter those stocks out using more criteria? And if you are looking at each chart quickly, what are some of the aspects that you are looking for in order to go through a considerable number of charts?
Usually, ~20 tickers will show up on scans with 10 of them being watchable or noteworthy, and 5 being very good potential setups. It is always about the left side of the chart. The price needs to show strength/ momentum and have organic pullbacks in price.
GG uses multiple monitors to see 18 stocks and view them throughout the day.
Does market conditions (SPY or QQQ) impact your trading? In times of market downturns, are there more or less setups that you see and if so do those setups offer worse RR or higher probability of failure?
No, because the focus is small-cap stocks, in most cases, the general market won’t impact his trading routine. However, in unique situations (ie. GME and the meme stock rally) specific news events could magnify the small-cap market.
If you’re using 15m charts for EMA Kiss and Fly and Horizontal Fade setups, at times they look similar to one another. Would the distinction be the longer base formation on the Horiz Fade Setup?
The Horizontal Fade, EMA Kiss & Fly, and the Bull Flag Breakout setups are all timeframe variants of the same type of momentum trade. The Horizontal Fade from the 30m chart, the EMA Kiss & Fly using a 5-15m chart and the Bull Flag Breakout on a 5-minute chart are roughly the same in essence.
GG uses timeframes in a unique way that most don’t. He uses the timeframes to make the chart and setup work for him
For scanning of stocks, do you have your scanner on all day? And when you hear a new stock hit your scans are you checking instantly?
After the market opens - I can see 18 stocks and view them throughout the day!
Normally, if a stock pops up on the scanner mid-day while there are notable stocks that formed before, he will ignore
Is float size considered, even on other setups other than the Reversal Squeeze?
Remember that for the other setups, momentum and the magnitude of that momentum are the most important! You want to catch large moves in price; 20%, 50%, 100% in price movement. And normally low float stocks will be more likely to produce higher jumps in price. Low float stocks offer a larger magnitude in price, so yes, it is a focus.
If you are interested in his method of trading you can visit ….
Link to X Account: @gov_gajjala
This concludes the GG series!
-F4VS
