Last week I gave you one tip to help you avoid chasing stocks, entering too early, and getting chopped out of trades…
And on Friday we saw a perfect example of how the right timing can lead to better trades.
I’ll show you what I mean on the chart.
One early entry would’ve stopped you out…
But waiting for the crucial time window I think every new trader should wait for — you would’ve had a nice trade in one of the biggest gainers we’ve seen in a while…
Beat this time window into your head and wait for it the next time you’re thinking about chasing a big gainer…
Crucial Time Window Every Trade Should Wait For
Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) skyrocketed 373% on Friday as part of a massive short squeeze.
The company announced cancer news in premarket and our Breaking News Chat team was on top of it…
But you didn’t have to take an aggressive premarket trade or chase at the open to make the most of this opportunity.
Even though it was on Oracle with an entry at $18.71.
You don’t have to take that entry when it happens right after the open — especially after it climbed so much in premarket.
If you chased, you probably would’ve been stopped out after the halt and pullback.
Instead, ask yourself, what are the odds of it continuing after such a big straight-up move already?
Eventually, stocks have to pull back.
And those can give you a better risk level and improve your risk to reward.
Remember, we’re trying to stack as many odds in our favor as we can.
One way you can do that is to wait for an entry after 9:45 a.m.
It was the best time to enter CRBP on Friday…
CRBP chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
It gave all the short sellers enough time to build their positions…
And they got a little pullback to make them think the stock might fail…
But instead, it ripped higher, broke through the high of the day, and squeezed them all in a beautiful Friday short squeeze.
Notice the pullback held VWAP … That was a bullish sign that it had more potential to run. And it didn’t disappoint.
I hope you caught a piece of the move.
Remember, we’re not trying to catch the bottom and the top of the moves. Just look for a good entry and risk level, and execute your plan.
And if you missed CRBP, don’t worry, there will be another one…
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Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade