Here is a trade that we took in $RMTI at the end of September. This is my favorite type of trade – you find a momentum stock that has consolidated after a large move and then explodes out of that pattern. If timed correctly, this type of thrust can often give you numerous trading opportunities over the next 2-3 days.
After $RMTI had its initial flag pattern breakout, which we traded, we made four additional trades in the stock over the course of the two days while trading around core positions.
The second day we made another $1500 in the stock using similar strategies on the continuing breakout from the previous day. Our first add was in the $9.4 range and our last sells were near $12. See how we traded this in the video below. This is the exact type of play that we teach in our Trading Bootcamps. This is a simple pattern, but it takes practice and knowledge to be able to find them and trade them! Email me kunal@bullsonwallstreet.com if you have ever any trading questions.
