At open $BGI reported massive earnings. The stock started reloading for a huge run. The float is only 2.73M, so when it is positive news and huge volume there is huge chance for a good run. Like I have said earlier the lower the float is the bigger reaction the stock gets.
But where should you buy?
The stock had four perfect breakouts. I bought the dip in 1.44s. Remember my rule by buying earnings winners? When I buy a huge earnings winner with a tiny float what is the risk? In the dip I risked only 5-10 cents and by the news and float what did I actually had to lose? This is a very profitable pattern. I waited for the stock to break the trend line before I sold. But apparently, the stock didn’t break it. And I sold in the 3.25s! That gave me a percent win by 125.69%! I always try to hold on earnings winners as long as possible. But if breaking my rules I’m out. TomorrowI will look for dips in the 2.16s and 2.65s. Need to look closer at price action tomorrow.