Here is a trade review on STP. In a trade like this is true often we anticipate the breakout due to the “sympathy play” Sympathy plays are essentially a play where a stock in a sector has a huge run off earnings, news, etc. Often on that 1st play traders will pile in and push up the stock. What tends to happen is the momo in that stock will spill over into stocks in the sector as traders take profits in the original and reallocate capital into something new. Also traders who missed the 1st play are feeling the itch to get in the momentum and are hoping that they can find a stock that will do just the same. This tends to lift many of the stocks in that sector especially if there is a similiar company with a similiar price point ie if its a 1.00 stock or 2 dollar stock.
STP we added in chat at 2.65 sold off 1/3 at 2.77 then 1/3 at 2.83 the stock hit 2.9s where i should have unloaded the rest but i got greedy and kept 1/3 for the homerun. You will often see me do this. Its nice getting 5-10% winners but if you can deal from a position of strength and use that last bit for a 30-40% trade it does wonders for your account if you can do that 3-4x a month.
you guys see me do this everyday couple weeks ago we ripped an 80% gain on BIOF. HERE IS the trade review on that
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