Welcome to this latest edition of ‘What Makes This Trade Great!’ This week, we will take a deep-dive into a trading scenario, highlighting an unexpected but primary event that took place in the stock market recently. Let’s delve into some specifics, shall we? Feel free to explore my Home Page, where you can acquire Trade Ideas scanners at a discounted price of 15% using promo code BARRIE15

A Breathtaking Rise… and Fall

This journey starts with a particular stock – MTC. MTC, a Chinese stock, was hovering around 50 cents on last Friday. What followed soon after, though, was extraordinary – MTC shot up to nearly $5!

This sudden rise was truly remarkable. As we watched the stock price climb, it suddenly soared up, leaving us all in awe. But this meteoric rise wasn’t the end of the story.

A Dramatic Turn of Events

Just as the MTC’s rise was stunning, so was its fall. A dramatic shift in course ensued, painting a vivid picture – of volatility, unpredictability, and the need for intense vigilance in stock trading. Particularly when we’re dealing with stocks that we’ll henceforth refer to as ‘crazy, crazy stocks’ – the kind that are notorious for their parabolic runs.

With MTC, the plunge happened almost instantly after the climb. So swift was the fall that even a 30-second break from your computer screen could have meant missing the dramatic downturn. From its soaring high-point, the stock barely had time to descend before it was already spiraling downwards, settling at a meager 137 at the time of our analysis.

The Mystery of the Unexplained Spike

What makes this event more mystifying is that it sprang up without warning or apparent reason. In fact, despite exhaustive investigation, we found no news to explain why MTC had such a bullish run in the first place. It’s almost as if the market itself held its breath, shot upwards, and then promptly exhaled – leaving us all gasping in surprise.

“Never take your eyes off volatile low-price stocks particularly when they’re on a parabolic run“

Lessons Learned and Precautions to Take

This event is a perfect reminder of the inherent unpredictability and volatility often found in low-priced stocks – an invaluable lesson for all traders. If there’s one thing to take away from this, it is this: Never take your eyes off such stocks particularly when they’re on a parabolic run. The risk can be immensely high, so your vigilance must match it.

Signing Off For Now

And that is all for this week, traders. Whether it’s carefully watching those ‘crazy, crazy’ stocks or trying to understand the unpredictability of the stock market, always remember that caution can make the difference between a successful trade and a lost opportunity. We hope you have a great weekend, and remember, keep your eyes on the screen! We’ll be back on Monday at 09:00 to explore new trade opportunities, until then, happy trading everyone!