Some trading days feel like a punch to the gut…
You check your phone or sit down at your computer after work, and there it is, a stock you’ve been watching just spiked 200%, and you missed it. Again.
Your first instinct is that you feel like you blew it.
You tell yourself you should’ve been quicker, and that tomorrow you’ll find another one, and you’ll be more aggressive this time.
But stop right there.
That big move you missed might not be over.
In fact, what comes after it could be a better, cleaner, and more manageable opportunity, especially if you’re part-time, newer to trading, or just trying to avoid chasing random spikes with no plan.
This is where smarter traders separate themselves. They don’t beat themselves up for missing day one. They get ready for what comes next, and they do it with a clear strategy that stacks the odds in their favor.
The Setup No One Talks About
Most traders obsess over day-one spikes. But seasoned traders know the real edge often comes later, on day two or day three.
These continuation setups are more predictable, more manageable, and far less emotional.
On day one, the move often comes out of nowhere. A surprise catalyst, a volume surge, a social media buzz, and suddenly the stock is ripping. That’s exciting, but it’s also chaotic. If you’re not watching in real time, you miss it. And chasing at the top rarely ends well.
But day two and day three bring the setups you can plan for.
Run your scans after hours. Look for big movers that closed strong. Study the volume, the chart, the float, and the catalyst. Now you’re approaching the market with a plan, not a panic.
Why “Smaller” Moves Can Be Smarter
Let’s get one thing straight: No, you probably won’t get another 300% move on day two. The explosive upside of day one is usually an outlier.
But what you do get is better structure and lower risk.
Think about it…
If you’re constantly chasing day-one runners and getting stopped out, how’s that working out for you? On days two and three, the moves may be smaller, but the setups are cleaner. You can define your risk and wait for confirmation. That’s real execution.
Lower reward, yes. But lower risk, too. And in trading, that’s a trade-off worth making.
What to Look for After a Big Move
Not every day-one runner becomes a great day-two opportunity. So what should you be scanning for?
Start with a strong close. No, the stock doesn’t have to spike right into the close, but it should finish the session near its high of the day.
That shows strength and increases the odds of continuation. You don’t want a stock that fades into the close or, worse, collapses. Those get tossed from your watchlist.
Remember this: The trend into the close often continues the next day.
If a stock ramps late and holds near highs, there’s a higher probability it gaps up or pushes again the following morning. If it sells off late, expect more weakness.
Now add another layer. One of my favorites is Volume Weighted Average Price (VWAP).
You want the stock to close at or above VWAP. This helps confirm that the big buyers are still in control. If it’s closing below VWAP, even if it held up okay, that’s a red flag because the big money tends to defend that line. If they’re not buying, you probably shouldn’t either.
How to Trade These Setups
Once you’ve built your watchlist of strong closers that held VWAP, here’s how you approach them the next day.
Break of Day-One High:
This is a straightforward setup. Mark the high from day one, and if the stock reclaims that level on day two, that’s your entry trigger.
Build your trade plan around it. Define your stop (usually near support or a key intraday level) and map out your target based on prior resistance or key chart zones.
You don’t need to predict where the stock opens. Up, down, sideways, it doesn’t matter. You’re just waiting for the breakout.
Weak Open, Red to Green (WORG):
This is my personal favorite.
The idea is simple: the stock opens lower (a weak open), starts to base or consolidate, and then pushes back through the previous day’s close (going green).
This setup is powerful because it gives you a defined risk level, which is the bottom of that morning base. You’re entering on strength, not guessing. And you’re not chasing a gap-up. Instead, you’re joining the move once it confirms.
Check out my recent blog post to learn more about the mechanics of WORG.
And speaking of gaps-ups…
Avoid Gap-Up Traps and Low-Volume Laggards
If a stock gaps up 30 to 50% after a strong close, don’t chase it. That kind of open often triggers a wave of profit-taking from traders who bought late the day before.
They’re smart because they bought strength and are now cashing in. If you jump in too early, you’re likely buying their shares. And once they unload, you’re the one left holding the bag. Don’t be a bag holder!
Let the early morning crowd do their thing. If the stock holds up and reclaims the high later in the day, that’s when you look to enter.
Also, be mindful of volume. Yes, day-two volume will usually be lower than day one, but it should still be healthy. Look for stocks trading above their 60-day average volume and showing signs of float rotation.
If it’s barely moving volume and just drifting, take a pass, no matter how good the chart looks.
My Final Thoughts…
It’s easy to feel frustrated when you miss the first move. But if you take anything away from this article, let it be this:
Missing the first spike is not a mistake. It’s an opportunity to trade with a clear head.
Let the FOMO crowd chase the tops. Let them get shaken out.
Because you’re planning your trades around clean closes, VWAP holds, and trend continuation. You’re waiting for the right entries, not forcing trades. You’re trading setups with discipline, not emotion.
So next time you see a big mover and think, “I missed it!”
Good!
Now you get to prepare for day two. That’s where the edge is, and that’s where the plan comes in…
And that’s where consistency starts to take hold.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade