Hey traders, it’s Bryce here.
A lot of traders are trying too hard to profit.
These stocks can spike +100%, but we’re not trying to catch the whole move.
For example, already this week my mentor, Tim Sykes snagged a 10% profit from a 150%* runner.
That’s all we need! Stop swinging for the fences.
Take a look at Sykes’ trade notes below from Monday:
Source: Profit.ly
We make trades like this all the time, where we take the meat of the move from a bigger spike.
And the more times that you see these trades, the quicker you can apply this process for your own account.
That’s how I learned this strategy … studying trade after trade.
So, in today’s blog post I’ll show you Sykes’ exact position from yesterday’s spike.
Take notes and stash this trading pattern in your brain … We’ll likely see another opportunity this week.
Monday’s Runner
The stock that Sykes traded on Monday, it’s still in play.
But that doesn’t mean we’re holding shares waiting for it to spike higher … We only make a trade when we see specific price action.
Right now, I’m waiting for Monday’s runner to show us additional bullish volatility around the highs from Monday. If it can break past that level, there’s no telling how high it could run!
Especially because it’s a low float stock with a merger catalyst …Â
The low float, or low supply of shares, ensures the price will spike higher when demand increases.
And the demand increased after it announced the merger agreement on November 4 during premarket hours.
Staffing 360 Solutions Inc. (NASDAQ: STAF) is merging with Atlantic International Corp., and the combined company is expected to reach an annual revenue of $620 million.
Key Price Action
Sykes saw the spike that morning, he waited for the price to dip to a key support level ($3.50), and then he rode the bounce for a 10% profit.
On the chart below, you can see the exact position that he held. Every candle represents one trading minute:
STAF chart intraday, 1-minute candles Source: StocksToTrade
Some of the best dip-buying opportunities are during premarket hours. That’s when Sykes made this trade.
But you can find intraday spikes like this as well …Â
The key is to stay humble and realistic about your profit opportunities. We don’t need to snag all 150%* from the STAF spike. A quick 10% is all good!
A trader who takes 10% here, another 10% there, maybe a 5% profit from over there … It all adds up!
I didn’t become a millionaire after just one trade.
My Profit.ly shows that I’ve made over 5,700 trades. And the trade that pushed me over the $1 million milestone was as routine as any other.
Take a look below:
Get ready for more stock spikes this week … And make sure to watch for dip-buy opportunities.
Cheers,
Bryce Tuohey
*Past performance does not indicate future results