In my Facebook live session on Wednesday, I gave traders a homework assignment…
Compare three stock charts to see what’s working currently.
You see, these three stocks gained 83%, 245%, and 105%. But more importantly, they ALL had one thing in common.
It still blows my mind that so many traders overlook it.
But have no fear. I’ll show you what it’s all about, and hopefully, you can take advantage of it next time you see it.
This trend is red-hot, so let’s not waste any more time.
By the way, If you want to watch my live lessons — join the StocksToTrade Facebook group.
The Chart Pattern to Look For Right Now
There are a ton of stocks to watch lately.
I thought we might have a quiet day yesterday after multiple days of 100%, 300%, and 500% gainers.
But again we woke up to new stocks gapping up and running in premarket.
So some of you may be wondering how you can cut down your watchlist to a manageable size and catch the best potential runners…
I gave you the hot sector and criteria to watch for in yesterday’s Daily Accelerator.
And there are three things we always look for are:
- Float rotation
One of the most important for us as day traders is a news catalyst.
Stocks without news move every day, but we want news so traders have something to get excited about. Then that can bring the volume and float rotation.
Beaten-down charts are the fourth thing to look for right now. I want to see the most terrible-looking long-term charts out there…
So disgusting even your mom couldn’t love them.
Because these stocks with beaten-down charts have more potential for January jumps.
This is the effect stocks can experience in January as buyers come into the market looking for ‘deals.’
So this was the homework assignment for Facebook group members and we’re going to do it together right now…
It’s not a coincidence that those alerts offered traders potential gains of 83%, 245%, and 105% respectively. (That was three winning alerts to start the year — get my next one here.)
Just look at the charts…
Do you see the similarities?
They were all nasty down-trending charts before the news gave traders something to get excited about.
So if you put together hot sector stocks with news and other criteria we look for every day….
Plus, look for these beaten-down charts that can create January jumps — you can get your watchlist down to just a few stocks that can offer the best potential trades.
Remember, as a new trader, you should be focusing on YOUR best setups to gain consistency, not chasing a bunch of random spikes.
If you’re struggling, I’ll see you in my next Facebook live session so we can go over it together.
Have a great day everyone! See you back here tomorrow.
Lead Trainer, StocksToTrade