Here is a video on our trade in $GNOM today. This is a stock we have been stalking now for four days. Every day it gave me signs that it was going to breakout, but then it couldn’t. In the past two weeks, we have taken this trade twice and both times we sold for just small gains as the stock just wasn’t ready. But every attempt that the stock made at breaking out sucked up all the supply overhead, so today when it started gapping premarket, I could tell right away that this was the day it was going to explode.
I give myself a B+ on the trade. I could have gotten a slightly better entry to lessen my risk (my net went out as I was adding it and I had to text Maribeth to tell everyone to buy it at $3.15. Damn wifi!) and I also should have held the last 1/3 for a pop over intraday highs instead of selling it all off right before it broke again for another 10 cents. So I left a tad bit on the table, but booking my last 2/3 shares for a 10% gain and less than 1 hours worth of work is still a good trade in my book, as I can always enter later if the stock looks like its going to run again.
Trades like this are why I love small caps. If you buy even a small amount, you can often walk away in an hour or so with $500 – $1000 dollar gain – that’s pretty good money in my book!
If you’d like to learn how to trade like this, email me at kunal@bullsonwallstreet.com
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