Howdy traders, it’s Bryce here.
If you want to trade on Monday, you need to watch the right stocks. Thousands are moving every day!
But only a few will give us opportunities to profit …Â
My Monday watchlist consists of the hottest runners from last Friday. And today I’ll share my #1 watch.
On Friday, November 10, this stock spiked well over 100%. It was an obvious trade from top to bottom. And you didn’t even need to wake up early!
Don’t feel bad about missing it. Instead, use any frustration to encourage your future account growth. There are real opportunities in this market, and your next chance is on Monday.
Understand: There are still ways to lose money on the hottest stocks. We have to be strategic with our approach.
I don’t want anyone to get burned in this market.
That’s why, I’ll share my #1 stock with you. But it comes with a condition. You’ve got to follow the rules!
Even if that means you miss a trade on Monday.
The rules are in place to protect our overall accounts. This is a game of longevity. It’s a marathon, not a sprint.
Follow the rules and eventually, this will all start to click.
Here’s what you need to know …
The Rules
We’ll get to my #1 watch.
But first, you’ve got to understand the rules. Don’t worry, it’s not complicated. There’s only one.
It’s the most important rule Tim Sykes gave me when I started.
That’s right … I’m not some wiz kid that pulled this knowledge from the universe. I had a mentor. The best way to succeed in the market is to copy the most successful players.
I’m not saying that I copy Tim Sykes’ trades. I copy his strategies.
The hottest stocks in the market are actually some of the most predictable. They look scary when they spike over 100% intraday, but if you understand the mechanics, it all makes sense.
See, human beings are inherently predictable. When we’re stressed, afraid, greedy, etc. our behavior can be mapped.
The hottest stocks in the market follow predictable patterns because human beings are predictable.
I use the same patterns that Sykes has used for the last two decades. And they’re not going to change any time soon.
But it’s not a sure thing.
Even the best traders lose sometimes. That brings me to the #1 rule you need to follow.
Cut your losses quickly.
Don’t get married to these stocks. Recognize that anything can happen in the market. Losses are part of the game. But if we control the losses, our profits outshine them.
Plus, if we sell shares of a stock, we can always get in later.
Protect your overall account.
Here’s my top watch for Monday …Â
Marpai Inc. (NASDAQ: MRAI)
I mentioned it was an obvious trade.
Here’s what I mean …Â
- Low float.
- Below 10 million shares outstanding. The constricted supply helps prices spike higher.
- Hot Sector.
- Biotech and AI stocks are red hot in 2023. MRAI has a foot in both sectors.
- Hot news.
- The new CEO wants to “create substantial value for shareholders”.
- Premarket spike.
- The price launched 170%. That’s a hint the price will also be volatile intraday.
- Intraday consolidation above support.
- Stocks like to trade between key levels, see the image below …Â
Here’s a chart of MRAI showing the consolidation and rally off of support.
MRAI chart 1-day, 2-minute candles Source: StocksToTrade
The price consolidated between $0.55 and $0.60 the first two-thirds of the day.
That obvious sign of strength is a hint to plan a trade.
Ideally, we buy shares above the support and wait for the intraday breakout. If the trade fails and falls below $0.55 support, we cut the loss quickly.
But here’s the key for Monday …Â
The chart will look different.
These patterns can be predictable but you’ve got to use the right pattern for the chart’s price action.
And you’ll always play catch-up unless you watch a live trading session.
Professional traders outline the hottest stocks and plan key trades in real-time. It’s how we avoid any latency in this market.
We’re not using a buy-and-hold strategy. We’re taking advantage of key price action.
Some of these trades only last a few minutes. The benefit is that our accounts aren’t constantly exposed to this volatility.
That’s how I passed the $1 million milestone. One trade at a time.
And you can too.
Cheers.