I loved it. And in premarket, I was excited for a post 9:45 a.m. Eastern dip and rip...
$DTST
The recipe is there for a 'Money Monday low float runner' good volume to float ratio, nice hold in pre, 'earnings winner' keep in mind that's in quotes for a reason, this is just daytrade… don't fall for believing in this. Also getting ready to break out to 6 month high which also correlates to a whole dollar/half dollar area of $3.50
Target: $3.50
Stop: $3.20 fail (current VWAP)
Goal: High $4's MAYBE $5.50 'Oracle level' if this gets 'insane volume'
It was a solid trade idea…
DTST broke above $3.50 in premarket and made a high of $3.80.
If you took the trade, you could've ended up with a small win if you sold before the goal. If you held and got stopped out, you took a small loss…
But if you didn't trade in premarket and wait for the post 9:45 a.m. dip and rip over the premarket high, the move never happened. The plan kept you safe.
Yesterday, I liked DTST again…
It was hanging around and I liked that it closed near its highs on Monday. So I told SteadyTrade Team members to watch it for a weak open red-to-green move.
Because DTST reminded me of another stock…
On the first day of Cyngn Inc.'s (NASDAQ: CYN) run on April 21, it was also a failed dip and rip...
But look at day two, day three, day four … you get the idea…
CYN chart: April 21, 2022 - May 2, 2022, 2-minute candle — courtesy of StocksToTrade.com
My point is that you can get as excited as you want about a setup…
But they don't work 100% of the time. That's why we set plans and stops.
And even though CYN didn't have a dip and rip on day one … the opportunities weren't over.
It's just one day and one setup...
You can keep recent runners on your watchlist and wait for your next shot.
That's why I'll keep watching DTST until it dies…
It held up yesterday with low volume, perking in the afternoon. Then, it broke through the high of the day and stayed above VWAP...
…and that can mean trapped short sellers.
DTST is worth watching for a potential day three surge today. (If you don't know about the day three surge, watch this…)
But remember, if the setup isn't there, having a plan can keep you safe.
And if you take your shot and a setup fails, taking a small loss is completely acceptable.
Have a great day and I'll see you back here tomorrow.
(As an Amazon Associate, we earn from qualifying purchases.)
13809 Research Boulevard, Suite 500, Austin, TX 78750
*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.
This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.
StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing.
StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.
No comments:
Post a Comment