@CTUCyberGroup Lesson: Up Too Much
We’ve been having a phenomenal May so far in the CyberGroup Live Trading Room. Yesterday’s winner is up over 200% for the day $HFT certainly helped as the #cybertraders jumped on it and made a killing! Today the list of big winners seemed endless! $DXM $KNDI $PBR $SFY and $ISR are just to name a few. Something interesting I want to go over is $HFT.
When I do my morning meetings, one of the first thing we do is scan through some big gainers on the #Nasdaq. A lot of the time my students will see my skip over a stock that is up huge already. There is a such thing as a stock being up too much. If you look at the graph of $HFT it show’s yesterday and today’s one minute chart. Even though it had a great push into the close, this morning in the premarket it actually opened lower. Something I tell my students is that you can buy it back. When a stock is up big you have lots of profit taking, when lots of people sell a stock, what happens? This on top of an overall correction and sometimes you’ll see the stock go all the way back down to where it was. Be careful just following a stock long because it’s up big. You know I always say, you can’t go broke taking a profit, so do yourself a favor, lock in your profit and let me just reiterate it one more time. You can always buy it back.