Trade ideas and plans don’t play out or work perfectly every time.
Just look at the idea I handed out yesterday…
Nkarta, Inc. (NASDAQ: NKTX) could’ve had a beautiful day three surge.
Instead, it gapped down and opened red so it lost momentum. The signal for a trade didn’t get hit so we don’t trade it.
But penny stock patterns tend to repeat over time…
And often when big runners spike again, you can reuse the same key levels from previous runs.
I’ll show you an example from this week and how those levels sparked a 90% move over two days.
Are you ready for the 11-day surge? Nearly $1 Trillion in cash is set to exchange hands on November 1 — see what it means for you here.
How To Reuse Key Levels In Trading Plans
SeaStar Medical Holding Corporation (NASDAQ: ICU) originally spiked back in early October.
And on October 3, I made a trading plan that included an entry in the low 60-cent range…
Now, as much as I’d like to say it was a successful dip and rip — it hit our signal in the low 60s but it didn’t hit the goal.
We were watching 63 cents as a key level and 69 cents as an upper level. And when it broke through 69 it went to 79 cents. But our goal was higher.
Then it pulled back and did nothing for the last two weeks…
Then all of a sudden, ICU is back this week!
On Thursday the company announced the FDA granted its medical device ‘breakthrough device designation.’
I told traders in the SteadyTrade Team webinar to watch that 63-cent to 69-cent area again…
From there it never really looked back with a big push into the afternoon. And yesterday it hit a high of $1.20.
ICU chart: 15-day, 5-minute candle — courtesy of StocksToTrade.com
I never thought it could go that high, but when you get into the technical analysis of these plays, you start to see that these entries and key levels repeat.
And that just shows the power of these low-float stocks with news.
Volatile moves like ICUs are why we love low floats. But they can be dangerous to trade without the right process and rules.
Make sure you’re prepared for anything with the right tools to help you find hot stocks, and make trading plans.
In my live training sessions, I’ll show you the same tools I use daily and how they can help you.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade