Something I always say is humans can pretty much justify anything.. You could talk yourself into buying the worst of the worst stock.. Some Twitter pump chat room pump newsletter pump.. I remember getting pumps on the fax machine., That's how old I am.

Hey. You can tell by the gray beard., But anyway you can talk yourself into buying anything.. What I want to do in this video is talk about red flags and things. You should look for to not trade a stock.

Defense wins championships. Cash is the position. All right. Everyone be sure to like share subscribe, ring that bell to be notified as soon as we drop a new video and, most importantly, check out the SteadyTrade Team.

Hit that link below., Something that we go over every single day is what's a good setup. What's a bad setup, Where do you stop? Where do you have a goal? When do you know not to trade And that's what I'm going to talk about in this video., So that'd being said, check out the SteadyTrade Team below, but there's a lot of red flags that we look for, particularly in these morning, runners that dip and rip that You hear me talk about my favorite morning set up., And what I'm going to talk about today is DARE, oddly enough, you may think I'm cherry picking, but if you're on pre-market prep every day 8:30 ET on YouTube., If you're in the SteadyTrade Team, you know my Extreme disdain for this stock okay., You might be laughing now. I've made many all my jokes are bad, but my jokes about DARE are particularly bad, but this stock always spikes and fails., And there's indicators that you can look for. And again last night.

You know this thing gapped up huge everyone wanted to talk about it. I mean I actually in pre-market prep like I headed it off with the pass.. I'm like. I came right out and I'm like we ain't talking about.

Dare this morning. Now when I was live gapping up huge, they had some FDA news. Last night everyone was like, DARE DARE DARE and I'm like. We ain't talking about, DARE okay, Because I had nothing's guaranteed.

I don't you know, I can't say with certainty, but with high likelihood, I'm like this stock is gon na gap down it's going to fade and that you want to ignore it and look at DARE right now closed red on today., I mean goes from up 50 Per 70-80 percent in pre-market when everyone wants to talk about it., So plus 70-80 percent to red on the day, 0.9 % red, probably gaps down tomorrow.. So that being said, let's talk about the things we look for a stock to avoid avoid dip and rip. Right off the bat 75 million float okay.. It's a high float stock..

The biggest thing that creates a good dip and rip is a dubious stock. Dubious news but low float, understand, supply and demand.. Remember: we've got a ton of videos, blog posts talking about float talking about float rotation, but just really quickly. The idea is the lower the float, the lower the supply., Then, when there's great demand when they drop a press release when there's an FDA announcement when there's a pump.

Okay, that creates a supply and demand in balance.. What happens when everyone wants pens And there's no pens.? I mean we're going through that right now. I mean, as I'm recording we're in the middle of this supply chain, issue inflation. Exploding.

I mean who knows: if you check the price of pen, it would probably be up like 20 %, this year.. Why? Because everything's so hard to get.? That's what happens with float rotation., Something like DARE odds. Are it's not going to rotate the float until the end of the day., And you can see you traded a 100 million shares. So sure it did churn through the float, but it took the entire day..

We like to look for stocks like an ISIG, which was a glorious dip and rip 1 million float stock.. I mean it traded the first candle of the day., It rotated the float in one candle. When it broke out on high volume. It rotated the float 4 times in one candle.

Okay. Closes the day with 70 times, float rotation. Traded, 70 million shares with 1 million float., So the odds of float rotation very low on a high float stock red flag number one. Other one chart history.

I mean one of the reasons I hate this stock. So much this thing spike. I don't remember this thing: spiking early in my career., Okay, Look at every one of these spikes and fails. Now understand the stock, never traded at a 100 dollars..

It's also a reverse split stock. That's also another red flag., Reverse Split Plays were hot a couple of years ago.. They probably will come back but know that, right now in the post 2020 world, the reverse split stuff is just there's just haven't been, plays there. So a stock with a history of reverse splits, always a red flag..

Look at all of these timeframes, the tenure the five-year the one year. Look at this one year spike fails spike, fails spike, fails spike, fails. Every time the stock spikes it closes on the low of the day and gaps down the leg next day. Chart.

History tells you that okay., So those are some of the biggest red flags., Then zoom in and look at the intraday action. Okay. So remember this darker gray area is after hours. This lighter gray area is pre-market.

Look at this collapse at 7:00. Am.. That breakdown is what we do not want to see on the intra day for a dip and rip.. What we want to see is that holding near the highs.

When this thing collapses at 7:00 AM look at those huge red candles., I mean that's your death knell. And also from a technical perspective. It breaks last night support., So last night support after it came out of the halt for news pending. You know it based at 275, all through after hours.

When it breaks on that level. You know now everyone that bought after the T1 halt. The news pending halt. They're all red., So you've got a stock with a history of bag holders that just created another load of bag.

Holders.. Now, if DARE was hugging around three, maybe hugging around the highs, maybe I would've had a different opinion., But when I went live at 8:00 AM or 8:30 AM it's sitting here at the low of the day, looks like it's going to fill the gap to the Downside, but still still - and this is what I want to save you - from. People still were like. What's the buy signal on DARE And I'm like, there's no buy signal on.

Dare this thing is dead, as can be based on lack of float rotation based on bag holders on the yearly based on bag holders on the intraday based on this thing, couldn't even get back to VWAP and pre-market, and ultimately you have a stock within in a Very dubious sector okay. They make these ridiculous female health products.. I mean again not a hot sector., So there's all these red flags that tell you this stock should be in ignore.. Now, hopefully you watch this video and you're.

Like I get it, you know, the volume is not there. The floats out there, the chart history's not there.. The news is dubious bag holders on all time frames, but hopefully you made it to this point, and these are all you know. Turning on light bulbs for you., So the next time you see a stock that looks like, DARE, which will probably be DARE.

Who knows you might be watching this video 6 months from now, and it would probably gap up again fade and close red on the day and gap down the next day.. So if I can keep you out of DARE in the coming years, that might make this entire video worth it., But these signs, these signals replicate for crappy non-ideal trades. That, especially if you're under the PDT you should avoid, especially if you're new you should avoid. Watch The past videos, I talk about, float rotation.

I talk about dip and rip talk about all of these good setups, but if you're not checking all those boxes avoid avoid avoid save your day, trades. And listen if you trade a stock like this you're, probably going to take a loss., Maybe you keep your loss. Small, which is a good thing, that's what you should do, but it's still a loss is a loss that takes away your not only your trading capital, but your emotional capital., I mean listen. I said it this morning.

I'm like this was my quote. I said, if DARE is the best stock? I got the best idea. I will not trade today will not because odds are I'm gon na lose I'm gon na get frustrated And I'm going to be like seriously DARE of all of the stocks. No float rotation crappy chart on multiple timeframes, not a hot sector, and this is the stock.

You chose to take a loser on., So it drains your mental capital as well.. You get frustrated. You, revenge trade. You make more mistakes., You know, I think in momentum works.

Both ways. That's one of the reasons I preach. Taking small gains. You know focusing on green trades, no matter how small momentum builds.

Now that sword can cut both ways. Keep making bad mistakes. You get frustrated, you get too aggressive. You revenge trade and you magnify your mistakes., So don't discount the value of staying out of crappy setups from an emotional and mental standpoint..

All right. Everyone check out the SteadyTrade Team ISPC. Another low float hanging around gapping up.. So anyway, it's a wild times.

Man. Check out the SteadyTrade Team subscribe share with your friends and we'll see on the next video.