Hitting two big momo trades back to back this week! Yesterday we hit $ENOC right out of the gates for a big winner, see full post here, then today we nailed $SGOC.
I jumped in $SGOC at 3.49 based on the break of pre-market highs. This was on my watch list for a Gap and Go Strategy trade since it was gapping up on news. We rode the momentum from 3.50 to a high of right over 6.00. Such a clean rip right out of the gates. This is what low float stocks can do when they get a headline! Great job to all our traders who nailed this with me.
4 Steps to hitting big winners like $SGOC
- Scan pre-market for gappers. Search the headlines, and choose 4 stocks that look the best. We like Low Float, High Short Interest, less than 500k pre-market volume (more than 500k and it will be crowded out of the gates), Price between $2-10 ideally, and always big % gappers of more than 5-10%.
- Know your SETUP. I trade a Break of Pre-Market Highs (3.50 in the case of SGOC today), a break of the first 1min candle to make a new high (1min ORB), Red to Green Moves, and of course, the first pullback.
- Manage your risk. Understand what your stop is and how many shares you can afford to take with that stop. If you max risk is $100/trade on these Gap and Go trades 1k shares is usually good. Sometimes just 500 if there is a lot of anticipated volatility.
- Execute your trades according to your plan! I’m on my 44th consecutive green trading day thanks to this strategy.
09:53 D: in SGOC 3.99 out at 5.65 for a 42% win!
09:53 G: two shorts SGOC total 1600
09:53 E 426 profit, first day in chat
09:53 S: 2300 SGOC
09:53 K: almost 4k now but i think im done 🙂
09:53 Y .: hell yeah look at all those wins!!!!!! cheers guys!!!!!
09:53 Y .: +1585 ON SGOC, cheers ross!
09:45 J: still holding 3000 shares SGOC from 4.47
09:53 K: this chatroom is the bessst
09:53 L: in 3.62, out 5.65, 5.80, and 6.15
09:53 M: total +1400 on 3 positions
09:54 M: Trader Rehab works for me…lol
09:54 G .: $3400 SGOC had to call it in etrade
09:54 L: $637
09:53 R .: 927 on SGOC
09:53 T: +$706