Trade Reviews

Would You Buy a Stock up 50% on the Day?

Would you?

If a stock was up over 50% on the day — would you buy it? My canned answer to this question used to be a resounding no. But momentum is a powerful thing.

Have you seen what’s possible when charts get explosive? When momentum rockets?

Take a look at this chart:

This stock is up over 50% on the day with an ever bigger range.  Would you buy it?  My answer used to be “Never!”

But wait, let’s look at what happens the next day:

Another 50%!

So what about now?  Would you buy it now?  Would you?

Let’s take a look at the NEXT day…

Another 76%.

I’m guessing this is how traders go broke in the market — betting against trades like this.  And it just goes to show — you never know what’s coming next. This is a crazy example. Over 300% in a week. From a simple high volume breakout.

Should it be this easy?  Well, it’s not. First, you have to believe it’s possible. An amazing opportunity to make money.

I think it’s important to keep our minds open in the market.  If we do, a couple 300% weeks might be waiting for us too.

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