How To Trade Smart Profits

by | Jul 2, 2024

Hey traders, it’s Bryce here.

A lot of new traders get themselves into trouble because they’re trying too hard. Or they get greedy …

There are major opportunities in the market right now!

But we’ve got to be SMART about how we play this volatility.

I can’t impose my will on the stock market. The price action will do whatever it wants. That’s why I focus on the most predictable* setups. Setups that have a clear risk level in case things go wrong.

As an example, we’ll look at yesterday’s big runner, Senti Biosciences Inc (NASDAQ: SNTI). The price spiked 120%* after the company announced an awarded grant for the clinical development of its cell therapy.

There’s a very simple process that a trader could use to trade this price action.

And it’s a SMART setup, meaning there was a key risk level that we could use to protect our position.

Look for this price action among today’s biggest stock spikes!

This price action repeats in the market:

Support & Resistance

When we see a volatile stock spiking in the market … 

  • Up at least 20% on the day.
  • With strong trading volume.
  • A low float.
  • Hot news.

We can follow the price action to build smart intraday positions.

This is where a lot of people get tripped up:

We don’t need to hold for new highs. Be realistic about your profit opportunity. Sometimes a ‘small’ intraday bounce is the best setup.

Now, for you to understand this trade pattern, you need to understand how stocks behave around support and resistance lines.

Watch the video below for more details:

SNTI spiked on Monday morning. But there wasn’t a decent trade opportunity until we found clear support and resistance lines after 10:00 A.M. Eastern.

See the chart below of SNTI:

 SNTI chart intraday, 1-minute candles Source: StocksToTrade

Multiple Plays

There were two bounces off of the $0.50 support that you could have traded. The price didn’t breakout to new highs, but we can trade the difference between support and the highs for a less stressful trade.

The first bounce started around 10:20 A.M. Eastern, from $0.50 back toward the intraday highs. It offered a 10% profit opportunity … 10% in a matter of minutes with a low stress level thanks to $0.50 support.

You could have even got back in above $0.50 support around 11:10 A.M. Eastern for another bounce play!

And there were bounces off of $0.45 support too!

You don’t have to swing for the fences. It’s OK to stack up singles.

Not sure how to find key levels to trade?

New traders in this market are using AI to build smart positions on the hottest stocks. This is the AI bot that tracked SNTI yesterday!

You can use it to track today’s price action too!


Bryce Tuohey