Jul 1, 2016
Written by:
Al Hill
The broad stock market made a ferocious recovery off of the BREXIT lows. It was a broad-based market rally that essentially retraced everything that was lost. As a day trader, I look for high momentum stocks to trade on a daily basis. This week presented challenges in terms of the number of trades available. Fortunately, there were a couple of high flying momo stocks out there which presented great opportunities for profit. One of them was Stone Energy, or ticker: SGY.
The stock was up over 2000% in a couple of days. It rallied from around .50 all the way over 12. I wanted to create a video on how you could have traded this stock on the breakout above its most recent rally highs from last week. There were actually three different entries that you could have taken on these stocks intraday.
Many of these high momentum stocks are low float issues. This means that they do not have a very large outstanding float of shares available to trade. This lack of liquidity provides even more gas for stocks like this to go much higher than most people think they can. The short covering in momo stocks can create vicious rallies especially when they have wide bid/ask spreads.
HELP US GROW by subscribing to our Youtube channel and be updated every time we post a new trade review.
Awesome Day Trading Strategies
Today, were going to cover another low float parabolic stock, OPTT. There have been many of these types of trades in the last couple weeks. See our videos on HMNY and SGY for two additional examples....
Trading 101
Do you notice how a stock or a group of stocks behave when it touches all-time highs? Have you been curious on how stocks perform as they approach this key milestone? All-time highs in stocks are a...
Awesome Day Trading Strategies
Hi Guys, it’s Kunal from Tradingsim. Earnings season is here! This is the period of time where momentum traders do really well as many story stocks tend to move very directionally. Day trading...
