“The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder
On May 4th, all eyes were on penny stock FNBC after seeing strong volume and a good run in the prior trading day. A few days earlier, FNBC had gapped down from around $2.50 to around $0.25. This is a particularly cheap stock for our us since typically we focus on the $1-$15 range. After a stock gaps down a large amount, we like to look for a bounce-ideally a fill into the gap. The volume in this stock was very strong on May 4th and our traders became confident in a bullish position after the price broke above the prior days’ high of $0.35. As we can see in the attached chart, the stock developed a bullish ascending triangle pattern which ultimately broke out to a 100%+ gain. Many of our students who took the trade were able to easily load a few thousand shares and take advantage of the move because of the cheap price and tons of volume.
When you see a good set-up for a stock you don’t have much time to waste until it’s over. That’s why it’s SO important to have a trade plan with a defined strategy and the proper tools to execute it. If you want to learn more about how Fausto Pugliese and his team of instructors trade the market each day with success, please join us for our next FREE online presentation.