For sure another crazy week in low float stocks, especially shipping related, or even just stocks that traders think are shipping related. One of the most powerful features of STT is the ability to filter stocks that are moving, by price, volume and float. We offer many other filters, but right now the best way to filter for the stocks that are ripping each morning is solely on those factors. While trading is very difficult and challenging often the simplest solutions are best.
“Simplicity is the key to brilliance.” Bruce Lee
Sophiris Bio, Inc. (SPHS)
The plan for this stock Monday was if it could stay above $6.00 the potential for a short squeeze was there. Pretty much right out of the gate it failed flipping quickly to a solid short setup. You will see this happen repeatedly in momentum type stocks. If the trend is not maintained fast selling comes in.
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We nailed this Tuesday morning for a quick trade in and out in minutes, the kind most day traders love. Almost a $1.00 move over where we started in during pre market. Perfect “meat of the move” type trade. Always have a plan and take your profits according to that plan, since as you see this pulled quickly and faded all week.
Our plan was to take a quick trade into the open Wednesday with a target of $7.00. Played out perfectly but in all reality the better trade was to wait out the open and let this put in a top. Many traders did much better than we did by focusing on a short. Perfect example of what day traders like though, oppurtunity long and short. You can be biased, but also keep an open mind and if a stock shows signs of topping at $7.00 like this did, prepare to get short.
I would refer to this as a “whiff”. As I discussed in the youtube trade recap on Thursday while I profited on this short I never got the price I wanted on entry. And in the end spent far too much time focusing on this stock versus better setups. It happens though. Sometimes you just pick the wrong stock. But I took my small profits and moved on, no point “hoping and wishing” for it to work.
Wow is all you can say. I did not trade this, was just too crazy, but I heard of subscribers making 100%-200% and more on this. This can be very tough to trade without getting spooked, but if you are smart and use the right size (SMALL!) no reason you can’t make a nice day’s paycheck with a puny amount of capital at risk. Great example of being a sniper though, dial your watchlist down to only the most active and most volatile stocks in your trading account. Something we discuss in STT PRO is the strategy of having separate trading and investing accounts. If you missed this trade just take a minute to appreciate the explosiveness of that chart!
Great week and looking forward to next week, as I mentioned above tomorrow (Sunday) the weekly watchlist goes out, click here to subscribe for FREE!