A Critical Component Of Any Trade Idea

This is more important than anything else                                                                                                                                                                      Good Morning! Say you’re in a trade and you expect the stock to act a certain way… But instead of it doing what you think it should, it does something completely different. As my mentor Tim Sykes says, trading isn’t an exact science… So a pattern or setup won’t look the same every time. But it’s not just the pattern and setup you have to consider when you're in a trade… So today I’ll explain with a breakdown of something odd I saw happen on Friday ... Then I’ll share how you can handle these types of situations if it happens to you! A Critical Component Of Any Trade Idea Dermata Therapeutics, Inc. (NASDAQ: [DRMA]( was [my top watch]( on Friday. I was watching it for a break above $3.25 with a goal into the high $3s. It’s a low-float stock and the company just [announced earnings]( showing it has $8 million in cash. So it’s not a [money-losing biotech]( that likely won’t be out of business tomorrow (but it probably will be eventually). I sent out my alert to subscribers at around 9 a.m. Eastern… But then in my morning [SteadyTrade Team webinar]( when the stock hit my signal, I noticed something odd. The stock had the weirdest price action I’ve seen in a [low-float stock]( in a looong time. When the stock hit my signal at the high of the day in premarket, it didn’t do what I expected… Usually, a low float stock — especially a micro float stock with fewer than 1 million shares — will start ripping higher when it breaks the high of the day. Especially in premarket like we’ve seen in so many other stocks recently. But instead of [ripping higher]( immediately, DRMA went up only 3 cents per share. I didn’t want to spook anyone or be the boogeyman, but it was definitely odd. So I had to mention it to the members… It was unusual [price action](. And price action is king. It doesn’t matter what high odds, repeatable setup you’re looking to trade… You have to consider how the stock is moving. When a low float stock is moving like a 500 million float stock, you have to take note. Ask yourself if this is the kind of move you expected… [Maybe you need to adjust your plan](. [My plan]( did end up working with my goal into the high $3s — DRMA hit a high of $3.68. Luckily a lot of traders in the [SteadyTrade Team]( heeded my warning… Because DRMA ended up failing within the first few minutes of the market open… DRMA chart: 1-day, 5-minute candle — courtesy of [StocksToTrade.com]( This is why it’s crucial to [analyze every trade individually](. If a stock doesn’t react how you think it should at a key level, reconsider your trade… Do you want to take profits if you have them … Or get out of the trade for a small loss before things potentially get worse? Or maybe you just size down and see what the stock does… Only you can decide what’s right for you… But with enough experience, you’ll be able to spot when price action looks strange for yourself. If you’re not there yet and are consistently finding yourself in the wrong trades — consider getting a mentor. Attend one of our free live webinars to discover how you can get my alerts and mentorship… [Sign up for our next one with your email here](. Have a great day everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade   sponsored   Important Message from Customer Service Hey, Tim Sykes here… My publisher Zak normally operates in the background. But there’s something urgent happening on Friday… So urgent that he had to record a short video to explain this critical situation. [>> Go here to see his message <<]( sponsored   Why can’t veteran trader Tim Bohen stop laughing? He says he’s just identified the ultimate revenge trade… And can’t wait to hear from the haters. One year, people who doubted him missed out on the opportunity to make EIGHT TIMES their money. [>> Click here to see why he’s having the last laugh <<](   Recommended Membership Gifts   ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Mark Croock Evolved Trader Daily](     [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. 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