Monday morning started like any other day…
Pre-market scans, coffee, and a few quick glances at charts.
But by 2:15 p.m. ET, one stock had already run up 165%*.
Traders who spotted it early doubled their money in one day. Everyone else watched from the sidelines.
There’s something about Mondays.
The start of the week regularly spawns massive runners like this one. That’s why I wasn’t surprised to see my Monday Morning Setup working … again.
You just have to know where to look.
The best trading opportunities are hiding in plain sight, buried among thousands of tickers.
The good news: finding them doesn’t require hours of scrolling or dozens of screens…
It only takes one essential skill, the cornerstone of consistent trading…
Any given morning, I can whittle thousands of stock ideas into a handful of killer opportunities in under ten minutes.
And the process is simple:
Step #1: Start With a Scanner
Every morning begins with a scan for specific criteria:
- Low-priced stocks, typically between $1 and $10
- Significant percentage gainers
- Millions of shares traded
- Unusual activity
The biggest gainers early often turn into the biggest gainers later. A stock can’t move 200% without first moving 20%, 30%, or 50%.
When traders ignore something because it’s “already up,” they’re often overlooking the very fuel that powers continuation moves.
But if a stock’s barely moving … there’s no urgency, no imbalance, no demand. Pass.
Momentum leaves clues. Scanning helps you find them immediately.
Step #2: Align Float With Volume
Once I have a list of strong movers, I narrow it down further by looking at float and volume.
I focus on stocks with a float of less than 10 million shares.
For example, the biggest mover on Monday, NeoConcept International Group Holdings (NASDAQ: NCI), had a float of just over a million shares. Perfect for major price action.
When a low-float stock trades with heavy volume, you get float rotation (where shares change hands rapidly relative to the available supply).
And when demand presses against limited supply, prices move aggressively.
This principle works in any market, whether it’s housing, oil, or collectibles, and it absolutely applies here.
Step #3: Require a Real Catalyst
A move with a news catalyst attached makes for more durable price action.
Earnings, major contracts, regulatory decisions, sector momentum … something real.
If you’re trying to grow a small account, you want probability on your side.
Catalysts create a story to go with the price action. They give other traders a reason to buy.
When technical strength and meaningful news align, the sky’s the limit.
Step #4: Use Multiple Time Frames for Clean Levels
After filtering by price, volume, float, and catalyst…
I move to the charts.
I use three time frames:
- Short term: 5-minute candles, two days
- Midterm: 15-minute candles, two months
- Long term: Daily candles, one year
These charts help me identify support, resistance, and areas of prior market enthusiasm. I’m looking for clean levels where breakouts or rejections are likely to occur.
Using longer time frames smooths out noise. It lowers emotional intensity and helps focus on structure instead of zeroing in on every tick.
Recent history matters more than distant history. Moves and levels from a few months ago are likely to influence current behavior. Moves from years ago? Not so much.
Step #5 Rank and Reduce
At this stage, I might have around ten stocks that meet the criteria.
Then I rank them:
- Highest volume.
- Lowest float.
- Strongest catalyst.
- Sector momentum.
- Prior history of explosive runs.
From there, I narrow it down further, ideally to fewer than five names.
Even after 20 years in the market, I prefer focusing on 1 to 3 stocks. Depth beats breadth. Attention divided too many ways dilutes execution.
Less is more.
Why This 5-Step Process Works
When you scan intelligently, filter by float and volume, require real catalysts, and align multiple time frames, the market narrows itself down to the names that truly matter.
Preparation and discipline are your secret weapons.
Scan smart, filter hard, and focus on fewer, higher-quality opportunities.
10 minutes of structured work can set you up for the rest of the day.
And when you approach it that way, you’re no longer searching for trades…
You’re ready for them.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S. The U.S. defense sector is on the brink of a once-in-a-generation surge.
With a trillion-dollar budget that hasn’t fully hit the market, contracts still pending, and winners yet to be announced, most traders will chase the legacy contractors and ultimately get left behind.
Last year, I called KTOS before it ran 179%, AVAV before it ran 54%, and HEI before it ran 24%.
Now, I’m going to show you how I did it…
I’ll share exactly how I use my proprietary system to analyze the market, spot the next big movers, and trade this historic catalyst, all without being chained to your screen all day.