Last week we had some insane action. If you missed Friday’s Daily Accelerator — see the five stocks that doubled last week here.
But despite all the opportunities, there’s one theme I noticed when it comes to trading these big runners…
What I’m about to show you could save you from getting chopped around, buying fake breakouts, and having to cut your trade at the low of the day only for the plan to work out later.
We could all use less frustration during our trading day … So see how one rule can save you frustration and maybe even give you better entries into some of these massive runners…
If you want to trade alongside a millionaire pro trader — sign up here for Tim Sykes’ all-day trading event.
How Patience Pays Off
I have a rule when it comes to trading chat pumps — because nine out of 10 fail at the open.
So I tell traders to wait until 9:45 or later to see if it survives. Then you can plan a trade from there.
It saves you from getting caught in moves like this one on Friday…
Chanson International Holding Class A Ordinary Shares (NASDAQ: CHSN) was a chat pump in premarket and you can see what happened after the market opened…
CHSN chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
Waiting until 9:45 a.m. or later would’ve kept you safe from annihilation in this one.
But the 9:45 a.m. rule isn’t just for chat pumps…
It’s a great rule for all new traders to implement. Because it can save you from getting to a stock too soon while it’s still chopping around at the market open and hasn’t picked a direction.
Having patience can give the chart more time to set up so you have more clear levels to trade off of.
And you won’t necessarily miss out on a move.
Palisade Bio, Inc. (NASDAQ: PALI) made its best move in the afternoon and after hours on Thursday.
Then on Friday, it chopped sideways along VWAP and between the Oracle support and resistance lines all morning…
There was no reason to enter this early.
PALI chart: 2-day, 5-minute candle — courtesy of StocksToTrade.com
And look at Pyxis Oncology, Inc. (NASDAQ: PYXS) last week…
Every single day of the run, it made its move in the morning after 9:45 a.m., or in the afternoon.
PYXS chart: 4-day, 2-minute candle — courtesy of StocksToTrade.com
So this week consider using this rule in your trading to avoid getting chopped around at the market open.
Learn more about my 9:45 a.m. or later rule in this video.
And if you want to get your trading week started off with some exciting action — my boy Tim Sykes is giving an all-day LIVE trading webinar today!
Have a great Money Monday, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade