Today I'm going to be talking about the one blaring reason to avoid any stock I Don't care what the sector is I don't care what the catalyst is ETC This is something that trips up a lot of new. Traders So Speaking of new, Traders intermediate Traders even Advanced Traders Be sure to like subscribe and ring that Bell We've done I don't know thousands of videos. Over the years, we continue to put out multiple videos a week. Educational videos, actionable videos, live videos.

definitely subscribe and ring that Bell to get access to everything. especially the actionable live stuff I really want you on those that way you can get notified. All right. So one of the things I'm going to talk about what we do look for every single day.

These are the things I want you to focus on: Get out a notepad, get out a piece of paper, and write all of these down. Then I'm going to focus on that. One thing that still surprises me. but again, I know everyone's learning.

That trips people up. So the biggest criteria we're looking for, especially when it comes to day trading short-term trading, is we're looking for low float stocks. Okay, the float is the freely tradable shares that is the supply. Okay, when we talk about the stock market, understand the stock market is a market.

always kind of surprises me. When you ask people, why do stocks go up, you know I could walk past somebody on the street and be like, hey, why do you think a stock goes from a dollar to three and lots of times they'll have no answer or they'll be like I don't know aliens or Bigfoot But remember, the stock market's a market. so the reason the stock goes from one to three is there's more demand than there is Supply Okay, now the demand might be created by the Catalyst. the demand might be created by Fomo, the demand might be created by some social media influencer or some Twitter pumper.

but the fact is there is more demand than there is Supply Just like if you were selling apples or oranges or concert tickets, it's going to push the price up. So by having a low float lower, the better, that's limited. Supply And when a catalyst hits or a pump hits or national news coverage hits, then that creates the demand and creates the explosive move higher. Now the next thing we want to look for is volume.

Okay, that is so important a lot of people just because it's a 5 million float stock. Hey, maybe they get a press release, but if it's not rotating the float, it's not going to go anywhere. Okay, and when we talk about rope float rotation, such a simple concept, but so important what that is is multiples of the float exchanging hands. So if we got a 5 million float stock, we don't even care about it until it trades five million shares until it goes through the float.

Now more multiples and Float rotation better, especially in pre-market into that 945 window. Love to see 4X 5x 10x float rotation, which isn't as common lately in 2022, but in 2020 and 2021, we'd see 50x flow rotation at the market open. Okay, so we want to look for float rotation for confirmation that there's unusual volume. Next thing we want to see is breakthroughs on the chart.

Okay, breakthroughs of major resistance levels bounces off support levels. If you're not well versed on technical analysis, it is. Uh, you know it isn't art, not a science. But if you follow enough, if you learn enough actually, technical support and resistance, technical analysis is really, uh, very intuitive.

You just need to be taught it. I Think one of the best ways to learn it is to check out stocks to Trade Live. So Stock Trade Live is 100 live 100 free one hour webinars four times a day during the week. Okay, I try and pack as much information into these.

You know, eight minute YouTube videos. But there's a limit. It's an eight minute video. Okay, stocks trade Live.

The power is you can ask questions. Okay, you can be like, well, wait a minute. I Don't see the technical levels you're looking at? Can you explain? like all of us? Whether it be Rob or Matt or I We get on a whiteboard. We got a whiteboard.

We'll bring up the chart and we'll draw on that and denote that and break it down for you. So check out Stocks Trade Live to really take those net, take it to the next level Mornings, midday, evenings, even weekends. So we want to based on technical levels for our entries and exits. and then we always always always write the trade.

Plan Before we enter, we write that trade plan to decide our entry to decide our stop loss which is always based on technicals and then our goal is reflective of the stop loss. We use the goal or the stop loss to actually determine a solid area to take profits. Because these stocks pull back quickly, they fail to break out a lot, so we always need to know an intelligent area to take profits so that we don't give back profits or make the Cardinal mistake of turning a winner into a loser. Actually let me know in the comments.

um I Know it might be a difficult to admit, but have you ever had a nice win but didn't know where to take profits and turn that winner into a loser? So let me know in the comments, turn the winner into loser I'm curious I might reach out to you to break that down Um I Like to reach out to new Traders and kind of help them break these things down so give me a comment in the chat. So then what is the number one thing we always always need to avoid that is wide spreads. Okay and Ill liquid stocks. They go hand in hand.

Okay, a widespread stock is always going to be an illiquid stock and Ill liquid stock is always going to have a widespread. Okay. when I talk about that. That's your bid in your ask on the level two.

You can't trade stocks with a wide spread because every tick you're giving back or you're either losing or giving back profits. Now it upticks and then you're green it down takes in your red. You got to stick with sub one penny stock, one penny stock spreads, or sub one penny because they're liquid and you can easily exit when the stock goes against you. Okay, if you trade a stock with a wide spread in Illiquid, you can have a winner and then it reverses.

There's no liquidity to get you out, the spreads wide and all of a sudden you're just panicking and you can't get out because you're actually trading against yourself at some point because you're the only one on the ask. Okay, and as you keep moving your ass down, the bids keep moving away and you're like, why can't I get filled? Why can't I get out of this. The problem is you took an Ill liquid stock with a wide spread. Okay, tight spreads float rotation Catalyst Unusual volume relative to the 60-day average.

All things we teach in stocks to trade live. Click that link below. 100 live 100 free four times a day during the weekend and on Saturdays and Sundays Join us today.