There’s a lot to pay attention to when you are trading, particularly in the morning. Stocks from your watch list are popping, as are others that you didn’t even have on your list. You are also keeping an eye on the news, the market as a whole, what’s happening with your Twitter feed and in the chat room. The point is – it’s easy to miss your ideal first entry on a stock.
A great example for me recently was $NUGT. I had been watching it carefully for days, expecting a gap up that I could long. But instead, on 7/7 it gapped down. I wasn’t prepared for this at all, and I missed a great opportunity for a secondary trade. When a stock gaps down like this, it will often bounce back to a resistance point, consolidate, then move lower again. That’s exactly what $NUGT did in this case. If I’d been paying closer attention, watching for a secondary entry, I could have made a nice short trade – it dropped $8 in an hour.
Stocks that make big moves will often provide a secondary opportunity. The key is to not chase the first missed opportunity, but keep an eye on it for the secondary opportunity. You’ll be glad you did! Here’s a short video I created to walk you through this concept.
Swing trading pro Paul Singh loves trading $NUGT as much as I do! He just made a video that will show you how to trade a parabolic short – check it out!
Want to become a better trader? Check out these resources!
- Don’t Buy Stock in the Companies You Love
- 5 Advantages to Trading a Small Account
- Why You Should Trade Momentum Stocks
- How to trade the VWAP
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