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:
So what about now? Would you buy it now? Would you?
Let’s take a look at the NEXT day…
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.