You know that kind of trade that lights up your scanner like a Christmas tree?
Pre-market volume’s exploding, price action is ripping, and the hype is already swirling in every chat room before the bell even rings.
You’re tempted. Everyone’s watching it. And it looks like it’s just getting started…
But a few hours later, that same ticker is in free fall, and half the retail crowd is stuck bag-holding, wondering what just happened.
Sound familiar?
If you’ve been trading low-priced stocks for more than five minutes, chances are you’ve been there.
Don’t want to be there anymore? I can help you with that, particularly on Mondays.
Try out my Monday Setup, and you won’t be sorry! Here’s how it works…
Every Monday, the market kicks back into gear after its weekend nap, and that reset creates a unique opportunity.
As the first session of the week gets started, there’s a specific pattern we look for that appears again and again with uncanny consistency.
And it has given us some unbelievable gains!
Look what happened this past Monday morning…
Right after the opening bell, Flye-E Group Inc. (NASDAQ: FLYE) surged 385%*!
We hunt for these kinds of Monday morning spikes every single week.
Now, it’s your turn to spot them for yourself…
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
If you haven’t been the trader left holding the bag after a big stock run, at the very least, you’ve watched someone else take that ride.
When stocks do this, it’s no accident.
They follow a playbook, and if you know the signals, you can trade them with clarity, confidence, and most importantly, discipline.
And it’s even better if you catch them early.
Why?
Most traders fall for the same misconceptions when it comes to options…
Myth #1: “Options are too complicated.”
Myth #2: “Options are too risky.”
Myth #3: “Options trading is just luck.”
In the LAST Options Bootcamp of 2025, 20-year pro Ben Sturgill breaks it down so clearly, you’ll go from “I don’t get it” to “This makes total sense” in under 2 days.
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No Greeks. No complex math. Just real trades and lightbulb moments.
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Table of Contents
The Red Flag Setup Traders Love to Chase
If you’ve ever traded low-priced stocks, you’ve heard the phrase before:
“Pump and dump.”
It gets tossed around so much, people almost stop paying attention…
That is, until they’re caught in one.
These setups are real. And they’re not just for OTCs anymore. They pop up on major exchanges too, and they often follow the same playbook.
They spike fast and they attract attention. And then they crash just as fast when the insiders, or early traders, lock in profits and walk away.
That doesn’t mean you have to avoid them entirely. It just means you need to know how to recognize the play, trade it with discipline, and never let FOMO drive your decision-making.
What It Looks Like
Let’s break down the signals:
Weird corporate history:
Maybe it used to be a clothes retailer…
Now it’s a bitcoin miner.
That kind of extreme pivot is a major red flag. It screams: “We’ll chase whatever trend helps us sell shares.”
No fundamentals:
The company’s financials are spotty at best…
Examples include negative income, zero revenue, NASDAQ compliance issues… The list goes on.
This isn’t a long-term investment play. It’s a day trade only situation.
Volume out of nowhere:
The stock spiked for no real reason…
Not earnings, not real news, just a pre-market surge of volume likely driven by chat room buzz and early hype.
The result? A clean spike but only for traders who recognized what it was and didn’t overstay their welcome.
How to Trade It Without Getting Dumped On
Here’s how to navigate these setups when they show up on your scanner:
Step 1: Wait for confirmation.
You don’t buy blind. Look for signs of a “pumpy” move:
- Sudden sector pivot
- No real news or sketchy PR at 9:00 AM
- Chat room volume (especially short-biased rooms trying to lure traders in)
- Big pre-market volume out of nowhere
When you see those ingredients, the alarm bells should go off. You’re likely looking at a short-term hype play.
Step 2: Get in early, get out fast.
These trades aren’t about diamond hands. They’re about fast hands.
Once the volume confirms the move and the pre-market breakout forms, a quick entry can deliver a nice win.
But remember, you have to respect the exit.
If you get greedy or try to hold through the open just to “see what happens,” don’t be surprised if you’re left with a losing position.
Step 3: Bail on the first red candle.
The biggest mistake traders make in these setups?
Hoping.
There’s no room for hope in a momentum trade.
The second that first big red candle forms, especially on high volume, it’s time to exit.
No second guesses, and no “maybe it’ll bounce.” Just get out and protect your gains.
My Final Thoughts…
These setups aren’t going away…
If anything, they’re getting more common. Fast-moving, low-float stocks with no real story but just enough hype to lure in retail volume.
They’re gold mines when you trade them smart. They’re land mines if you don’t.
So here’s what to look for in a chat pump:
- Sketchy history or sector pivot? Check.
- Weak fundamentals? Check.
- Chat room buzz or 9 AM PR? Check.
- Clean breakout with volume? That’s your time to strike.
Always remember, you’re trading the momentum, not the story.
Lock in gains, use stops, and stay disciplined.
And when the dump hits (because it will), you’ll already be on to the next trade.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade