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Here is a simple pattern I use everyday. As day traders we have to be in the best stocks at all time. That means for me the ones with the most profit potential in the shortest amount of time. $gbsn had a few different things that I liked.
1. Chart Breakout.
2. History of Large moves (always look at daily chart see if this stock makes runs)
3. Short Term Catalyst (pr/earnings)
4. Premarket-action/volume
Im in dominican republic right now so our internet is awful Im running about 1mbps downloads. So I traded really small. I had about 2k shares on this stock on most of my adds in it. The best thing I like about stocks that are in play is that you will get setups for a few days after the fact as we traded it again today after the initial trade on the red to green ripper over 5.00. Between the 2 days I booked about 2500 bucks while trading about 1/3 of the size I normally would as the internet is way to sketch to have big position sizes. Thats what I love about momo stocks though you don’t need a huge position sizing to make money as the stocks have so much range you just need a small amount of capital to be able to get some good profits.
