Friday afternoon, I made a classic EOD breakout call, alerting the chat members of the room I frequent in real time about the symbol ZQK. The chat room link is: http://timalerts.com/chatroom/ Sign up and join 140+ of us in the room excellently moderated by Reaper which gives thinking man's calls, not just momentum candy.
Several lessons exist in this alert, which I detail in the video, that you should watch after reading this post.
Some of the things I did not mention in the video that are quite important, are:
1. This is a "real" stock, residing on the NYSE despite its low price, not a penny equity.
2. This is not a promotion/pumper.
3. This is earnings related.
Most of the plays I call in Watchers are shorts, often involving promoted mailer and e-mail bait, or over extensions of penny stocks, or Supernovae plays on the same. This was a good call, but of a different type.
Some folks, particularly those used to thinking in terms of the above strategies, confused the typical strategies with an earnings related play that has been very strong in recent weeks, this is a common error I have found.
This was a LONG breakout, of a stock that took out its 52 week high, then held that level roughly for hours, consolidating near the highs until the early session high level of 3.90ish was penetrated decisively on strong volume into the close, where I alerted the chat room. The stock had been mentioned in pre-market as a watcher for interesting activity, I recall, but I have had an eye on this stock for weeks.
Traders lose money because they act without having valid plays, or they go the wrong way in terms of direction after a complete misread of the landscape, as one person did after shorting ZQK just before it broke out EOD, despite my repeated warnings of the the play details not being short related. Very instructive error.
Watch the video for additional notes on ZQK:
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2 comments:
Nice! Thanks for the positive mention!
np, keep up the excellent work on the chat room moderation and blog.
I really appreciate the time and effort you put in each day, a lot of folks do!
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