Lesson 101 in Chasing Euphoric Stock Movers

Kristin Alonzo

29-Jun-2018 13:50 PM



There are myriad of articles and videos on “how to” catch the breakouts or determine the next potential explosive stock breakout.  What we will be discussing on this blog is the opposite- avoiding the pitfall of bag holder from chasing the euphoric rally. 

What is euphoric rally ~ it is the 1-day glory pop of over 40% in a single day.  Stocks that move this much comes from a variety of reasons ~ 

  • heavily shorted stocks can deliver this rally if it surprises upsides on such as earnings beat, acquisition, or a new line of products etc.; 
  • Small cap biotech in a preclinical stage is the usual suspect for this kind of massive 1-day move when these preclinical stages update their ongoing data.
  • Penny stocks is another usual suspect for this kind of move, especially the under $3, ( Penny stock category is under $5)

The most common thing about they share is having low float shares available to trade

 If you have just begun your journey in trading, it is likely that you are keen on trading the  1 day big % winner, expecting the stock to rally again. As per data statistics, the chances that the said stock to rally again stood at 23%, 77% chance it will pull back.  Today’s trading environment has totally evolved in social media sentiment, you need to do your own thorough due diligence before executing a position on these such “one-day” glory trades.  It can easily fade or pull back from highs, which will result in losses on your end.  

Here is TradersFish Unique Compilation of Stock Movers:

Trading is very complex there are many variables of strategies to factor in.  It will all come down on your own perspective & trading style.  Knowledge is power and can prolong your capital in trading.  Awareness in 1-day glory stock breakout is one to bookmark in your Trading career. 

** Investment word is mentioned herein - Trading and Investing are two different worlds**

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Disclaimer! This is NOT an investment advice. The data result herein is purely speculation only. You must do your own due diligence and mitigate your risk. You acknowledge that will not be held responsible and accountable for any losses you may incur using our Biotech Data Calculator. Please consult your own financial adviser before executing trades.