People want to believe it’s possible to buy the one big runner before the move. It’s the dream…
“I caught a 1,000% winner the other day. I just knew it was the one.”
The reality is, it’s the ultimate pipe dream. Which is exactly why I put in the hours every day making videos, creating watchlists, and mentoring traders.
For A Chance To See 149% Gains In One Day… Every Week
Make This Trade At 9:30AM On Monday
Table of Contents
The Big Picture
If you’re like most people, at some point you’ve thought to yourself, “I wish I’d bought that stock BEFORE the big move.”
Now, depending on the day, about 95% of listed stocks move less than 5%. But people still dream they’re going to either pick one of the 95% before some future move. Or one of the 5% on the day.
It’s a common error for new traders.
So, you have to ask yourself…
What Are the Odds?
There are roughly 20,000 tradable tickers on any given day:
- ~4,300 listed stocks. Keep in mind that it fluctuates due to IPOs, delistings, reverse mergers, etc.
- ~12,300 actively traded OTCs. Many OTCs never trade or are dormant
- ~ 3,700 ETFs. This number changes daily with new launches and closures
So, let’s round it off at ~20,000 tradable tickers.
What are the odds you’re going to pick the one?
Do you have a gift, like Morpheus? Like, is your stock the Neo of the day? Can you really find the one, out of 20,000 stocks, BEFORE the move?
Write this down and keep it visible at all times…
We Don’t Anticipate, We React
This is fundamental to what we do.
Now, newbies want to know how to buy before the move. They think there’s some way to know when the stock du jour is about to go bananas.
Here’s an example:
On Wednesday (August 12) OFA Group (NASDAQ: OFAL) was one of the big premarket movers.
OFAL, 87/12/26,
If you bought OFAL at 6:00 a.m., at $0.72, you were right.
But the odds are astronomical that you would have known to buy it at the time.
Every stock I give you on the watchlist has already moved. That’s what gives them volume. That’s what creates the next move, and the patterns that we look for. Do they all work out? Of course not.
My Take
Don’t fall for the before-the-move penny stock pipe dream. Trading is a game of odds and discipline.
The reason we use tools and technical indicators is so we can create a trade plan with three parts:
- An entry
- A stop loss
- A target.
You can’t predict those numbers. You react to the initial move and the pattern on the chart. People waste a lot of time trying to predict the stock du jour before the move.
Today’s watchlist stock is a great example of what I mean…
Watchlist
FGI Industries Ltd. (NASDAQ: FGI) reported strong Q2 earnings after the bell on Tuesday (August 12). The earnings call was in premarket yesterday.
Special shout out to the best in the business, the StocksToTrade Breaking News analysts who alerted it in the $8s before the earnings call:
As you can see from the chart below, the Oracle signal was $8.84. FGI hit the signal at roughly 10:00 a.m.
FGI, 2-day, 5-min candle, earnings winner, Oracle Signal hit
FGI went on to be one of the hottest stocks of the day.
Notice that the first move happened after-hours on Wednesday. The big move started yesterday in premarket. But the biggest move happened after it hit the signal.
On My Radar
- My Sunday Market Brief is LIVE on YouTube (all questions answered)
- I highly recommend you sign up to get my mentor’s FREE after-hours watchlist and trading guide
- If I had to choose one, it would be Grok
- Why? Pareto gold
- The S&P 500 hit another all-time high yesterday