You know the scene…
You wake up early, scan the pre-market movers, and there it is… that stock.
It’s already up 80% and the volume is surging, Twitter’s blowing up, and the chat rooms are frothing. You hesitate for a second, then smash the buy button.
Moments later, the move dies. The price rolls over. Now you’re bag-holding… again.
If this scenario sounds even a little familiar, you’re not alone.
But I have a solution!
If you haven’t used my Monday Setup yet, now is the time…
It’s simple, reliable, and it’s been delivering huge wins at the start of each week.
Every Monday, the market kicks back into gear after its weekend nap… and that reset creates a unique opportunity.
As the first session of the week gets started, there’s a specific pattern we look for that appears again and again with uncanny consistency.
And it has given us some unbelievable gains!
Look at last Monday morning, November 24th…
Antelope Enterprise Holdings Limited (NASDAQ: AEHL) surged 130%* after the company announced its Phase 2 Bitcoin storage and security initiative with BitGo.
We hunt for these kinds of Monday morning spikes every single week.
Now it’s time to learn how to spot them for yourself…
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
When you’re missing out on the big stock moves, there’s something deeper going on here.
And it’s something that quietly sabotages thousands of new traders every single day.
The Hidden Loop That Wrecks New Traders
Everyone wants to catch that one monster runner, the stock that goes from $4 to $16 in a single session. It’s exciting, it gets hyped across chat rooms and social media, and the FOMO is real.
But in reality, most traders aren’t catching the bulk of the move.
They’re entering late, they’re chasing into resistance, they’re holding losing trades while the smart money exits.
I know how it works because I’ve been there.
You see the breakout, you hit buy, and before you can even settle into the trade, it rolls over. Suddenly, you’re not in a breakout anymore but in a panic sell-off.
The worst part is that it becomes a habit.
You chase the top, get stopped out, then do it again the next time a stock spikes. That’s the loop, and it’s what destroys consistency.
Volatile stocks can be your biggest opportunity, but without a plan, they’re also where accounts go to die.
The Smarter Strategy: Multi-Day Breakouts
So, how do you stop chasing and start trading with purpose?
You wait.
You focus on multi-day breakouts, not random spikes. These are the stocks that prove themselves over time with clear levels, strong catalysts, and sustainable momentum.
Here’s how to spot them…
- Volume Confirmation:
Start by comparing the volume to the stock’s 60-day average.
You’re looking for unusual activity, like 10x, 100x, even 1,000x the average volume. That tells you the move has real interest behind it, and it’s not just a low-float blip.
No volume? No trade.
- Low Float = High Potential (and Risk)
Low float stocks, typically under 10 million shares, move fast. That’s both a blessing and a curse.
Smaller floats mean less supply, so when demand comes in, the price can spike quickly. But remember, the reversals can be just as violent.
Only trade these with a clear plan, and respect your risk.
- Catalysts Drive the Move:
A real setup needs a reason to move.
Look for things like press releases (especially after 4 p.m. the day before or pre-market), earnings beats or guidance, FDA approvals or filings, and sector momentum.
If you’re chasing a random stock with no news, that’s not a strategy. That’s just hope.
Catalyst-driven moves are repeatable. Random squeezes are not.
How to Chart It: The “Big Picture” Method
Once you’ve identified a stock with strong volume, a catalyst, and a low float, pull up the 1-year, 1-day chart. This is your roadmap.
Look for support levels. These are past areas where the stock bounced. They’re your best entry zones.
Then identify resistance, or areas where the stock previously failed. Most traders buy into resistance, thinking the stock will break out. And often, it doesn’t.
Instead, buy near support and sell into resistance unless the stock bursts through and confirms the breakout.
Now you’re trading with structure instead of emotion.
Practice: The Secret to Building the Skill
It might sound crazy, but here’s an old-school tip that still works: Print out charts and mark them by hand.
Grab a ruler, draw support and resistance, and review your levels.
Over time, you’ll stop guessing and start seeing real patterns. You’ll develop an eye for where stocks bounce and where they fail. That’s how you build your edge.
My Final Thoughts…
Every time you chase a stock without a plan, you’re trading like 90% of the market… the part that consistently loses money.
Occasionally, you might get lucky. And that’s dangerous because it creates false confidence. One random win convinces you the strategy works, even if you can’t repeat it.
But if you want long-term consistency, if you want to trade like a pro, you have to break the cycle.
The next time you see that shiny breakout, pause and ask yourself, “Do I understand why this is moving? Do I have a plan? Or am I just chasing like everyone else?”
Because being in the top 10% starts with doing what the other 90% won’t.
Wait, prepare, and execute with purpose.
That’s how you’ll stop gambling and start growing.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade