Every day, traders rush into the market chasing whatever’s flashing green on their screen…
And unfortunately, most of them walk away frustrated, wondering why their trades keep falling apart.
The problem is they don’t know how to spot setups that stack the odds in their favor instead of against them.
I can tell you one trade pattern that definitely does that. It’s reliable, proven, and can deliver huge wins.
If you aren’t already using my Monday Setup, you need to start ASAP!
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
As the first session of the week gets started, there’s a specific pattern we look for, one that appears again and again with uncanny consistency.
And it has delivered some incredible wins!
Look at last Monday…
HCW Biologics (NASDAQ: HCWB) announced its development of a groundbreaking treatment for certain types of cancers… And the stock took off, gaining 113%*!
These are the kinds of morning spikes we hunt for every Monday!
Now I want to teach you how to spot them for yourself!
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
What most people don’t realize is that the real opportunities don’t come from chasing noise…
They come when specific conditions line up and momentum shifts in your favor.
Like what happened last Thursday before the stock below spiked over 40%* in less than 20 minutes…
Once you learn to spot these specific conditions, you’ll understand why some traders find themselves on the winning side over and over again while others are always left behind.
Breakouts have a reputation problem. Some traders swear by them. Others say they’re just “chasing.”
The truth is that Breakouts do work… if you know what to look for.
The reason so many traders get burned is simple: they buy random pops with no news, no volume, and no sector strength. They chase, they lose, and then they complain that breakouts don’t work.
But when you apply the right criteria, breakouts can deliver some of the highest-probability opportunities in the market.
The best part is that we see these plays set up almost every day.
Table of Contents
Why Afternoon Breakouts Are Different
I love afternoon breakouts. Here’s why:
- The odds of success are higher compared to morning breakouts.
- They give you more time to evaluate the catalyst, volume, and price action.
- They’re perfect for new traders who need to take it slow and be selective.
Of course, there aren’t as many afternoon breakouts, but that’s actually a good thing. If you’re new, you need to be picky.
The Hunter Mentality
Think of trading like hunting. A good hunter doesn’t fire at every rustle in the woods. They wait, they track, and they aim for the high-quality target.
Your buying power is your ammo. And if you’ve got limited ammo (a small account), you can’t afford to waste it shooting at everything that moves.
That’s why new traders should treat afternoon breakouts like a hunter treats a prized buck…
Only take the shot when all the stars align.
What Makes a Quality Breakout?
Here’s what separates a real breakout from a fake one:
News Catalyst:
Not vague, fluffy PR. A real announcement like earnings beats, government contracts, partnerships with named companies like Apple…
Firefly Neuroscience (NASDAQ: AIFF) was a great example. Its stock went vertical the other day when it announced a product using Nvidia (NASDAQ: NVDA) technology.
Hot Sector:
Sectors move in waves. When EVs, AI, or biotechs are hot, sympathy plays run together. If your breakout stock is in the hot sector of the week, your odds improve.
Unusual Volume:
Compare current volume to the 60-day average. If a stock normally trades 1M shares a day and today it’s trading 50M, that’s proof the market cares.
If it’s just slightly above average, skip it.
A Recent Real-World Example
The stock that ran over 40% on Thursday?
That was an afternoon breakout.
Everything had aligned for CaliberCos Inc. (NASDAQ: CWD)…
News Catalyst? Yup. The company announced it had adopted a digital asset treasury (DAT) policy.
Hot sector? Check… crypto
Unusual Volume? Check out the chart below.
CWD Intraday, 5-Minute Candles Chart; SteadyTrade
CWD hit my scanner during my Thursday morning Pre-Market Prep, and I advised buying in once it broke through its resistance of $3.30 per share.
Sure enough, it did just that around 3:40 PM.
Now that’s an afternoon breakout!
My Final Thoughts…
Most traders fail because they think more trades = more profits. That’s a trap.
Overtrading kills new traders because they turn trading into a video game, chasing action instead of waiting for quality.
90% of traders fail….
Why? Because they want action.
The 10% succeed because they wait. They’re selective. They only trade when the best opportunity is in front of them.
Breakouts aren’t dead. They’re one of the most powerful moves in trading if you filter for the right ingredients: real news, unusual volume, hot sectors, and alignment across timeframes.
Trade less and hunt for quality.
Because the best way to grow a small account into a big account isn’t by going after every target. It’s by waiting for the perfect shot.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
I love breakouts, but how do you know when it’s a false one?
Wanna trade the market open? You need to know the right way to do it.
Here’s another afternoon trade to add to your playbook.