Every trader wants to make a quick buck, but very few traders have a well defined strategy to identify stocks that are likely to increase in the short term. A charting software is essential to help a trader identify potential targets which is then followed up with a trading strategy to help manage risk.
The 5-phase trade was obvious in BUB which had entry signals and an excellent exit signal.
The entry came on the close above $0.30 with a volume spike:
Your stock charting software should have bought this stock up on a 21-day breakout scan. If the first day breakout was missed, BUB provided 2 more days for the potential entry.
The break was coupled with high volume and rising lows.
The first down bar on high volume signaled the exit according to the 5-phase trade. The trade should have resulted in a profit of 53% excluding brokerage. The ability to scan the market for these setups and have a tested trading plan will make all the difference.
If you need help identifying these setups, use a 21-day breakout scan in the ProTrader Scanning software under Patterns & Events Scanner.
For a full break down of our trading strategy, see our 5-Phase Trade.
Happy trading!
