We’re in the hottest part of earnings season, the day trade setups are aplenty, and this is one of the busiest summers I’ve seen in a long time.
We’re in the Golden Age of Trading, and I’m loving every minute of it!!
We’re facing an endless list of high-quality, high-probability trade patterns every single morning.
Last week, one of these patterns delivered a return of over 90% in ten minutes!
The massive price action is off the charts!
And it’s especially insane on Mondays…
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
Right at 9:30 am Eastern, as the opening bell rings, we look for a very specific setup that often shows up like clockwork.
And it has delivered some incredible wins!
Take this past Monday, the 28th…
VisionWave Holdings (NASDAQ: VWAV) gained an incredible 443%* after announcing it had obtained major funding for its AI Defense Platform!
These are the kinds of morning spikes we hunt for every Monday!
Want to learn how to spot them for yourself?
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
With all of these profit opportunities in our midst, is it possible to narrow down which stocks will make the biggest moves?
Why yes, it is…
Table of Contents
The Magic of Low-Float Stocks
Did you know that low-float stocks are often the biggest movers in the entire market?
That’s not an exaggeration… It’s just basic economics.
But trading them successfully takes precision, timing, and discipline. You can’t just jump in because you saw a spike in pre-market.
Why Low-Float Stocks Move So Fast
Float = supply. It’s the number of shares available to trade.
And what happens when supply is low, but demand is high due to a press release, hype, or a chat pump?
Prices can spike…and fast.
Just like any other hot asset, whether it’s oil, gas, Taylor Swift tickets, or Tickle Me Elmo from almost two decades ago…
Limited supply + huge demand = a price explosion.
Source: FinancialPipeline.com
Now for some context…
Anything under 10 million shares in the float is typically considered low.
For example, SAE Biotherapeutics Inc. (NASDAQ: SABS), which exploded 90%+ last week, has a float of around 7 million shares.
You Don’t Need to Chase the Pre-Market Move
There’s a huge myth out there that if you’re not trading these low-float runners in pre-market, you’ve missed the opportunity.
Wrong.
In fact, some of the best setups often come after the market opens, once all the chasers get shaken out.
That’s what happened with SABS…
The company dropped a press release during pre-market, and the stock immediately gapped up.
But that’s the trap…
Tons of traders pile in early without a plan… No entry strategy, no stop loss level, just FOMO.
What happened next?
SABS slowly faded into the open, and the early chasers were in the red.
What The Smart Traders Did Instead
Those who waited until the opening bell were rewarded.
They let the pre-market chaos dissipate, bought in at the open around $3.46 per share, and watched the SABS spike to a high of $6.60 within minutes!
Take a look at the price action…
SABS Intraday, 5-Minute Candles Chart
Float Rotation: The Fuel Behind the Move
Float rotation is simple:
It’s the total trading volume divided by the number of shares in the float.
High float rotation tells you that the demand is real and the move has momentum behind it.
As a day trader, that’s exactly what you’re looking for.
When a stock trades multiple times its float, it means shares are changing hands rapidly, and that can fuel big moves.
Here’s what you want to see:
- Pre-market: Look for 9X–10X float rotation or higher
- Regular hours: Anything above 5X is solid
When a stock is rotating like that, it deserves a spot on your screen, and potentially in your plan.
The more the float turns over, the more momentum builds, and the more the odds are stacked in your favor for a breakout.
My Final Thoughts…
Here’s your game plan for trading low-float stocks…
- You don’t have to chase low floats in pre-market.
- Let the trade set up at or after the open… And if you’re brand new, ideally around 9:45 a.m.
- Focus on low-float stocks with volume, news, and float rotation.
- Always know your risk before you enter the trade.
- For more precision, use tools like Oracle to identify clean entries, stops, and targets.
Learn more about Oracle, our algorithmic trading tool, during one of our free live webinars.
We’re in low-float mania right now…
Tons of these fast movers show up every single day on my radar.
Are you trading them yet?
If not, you’re missing out on some potentially enormous wins.
Big gains. Small losses. That’s the goal.
Low-float runners can get you there if you’re ready.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
How much do you know about inverse ETFs?
If you’re not using this tool, you’re not really trading.
Are you ready for short selling?