What Makes This Trade Great: Insights from Barrie Einarson

What Makes This Trade Great: Insights from Barrie Einarson

Jun 7, 2024

Hello, Barrie Einarson here with another edition of “What Makes This Trade Great.” Today, I want to discuss an interesting case from our AI team featuring the stock Huda (H-U-D-A). This example illustrates the potential and unpredictability of trading based on AI-generated insights.

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At 9:45 AM, the AI identified a short opportunity with Huda at $17.46. Initially, the stock moved down slightly, but then it quickly surged, triggering a stop. If you had taken the short position right at $17.46, the rapid movement might have caught you off guard, resulting in an early exit.

However, as I emphasize daily, it’s crucial not to lose sight of the trade potential even if the AI’s initial direction appears incorrect. This particular case with Huda is a perfect illustration of why patience and continued observation are key.

After the initial stop, the stock surged, then reversed its direction and started to decline again. From the initial price of $17.46, Huda dropped all the way down to $12.75. At its current price of $13.40, this represents a significant 23% gain from the short opportunity identified by the AI.

This experience with Huda serves as a reminder: even if an AI-generated trade doesn’t immediately go in the expected direction, it can still turn out to be highly profitable. The AI might be early, but the underlying analysis often holds value if you stay vigilant and ready to capitalize on subsequent movements.

So, always remember to keep an eye on the trades, even if the initial performance is not as anticipated. The potential for significant gains is real, as demonstrated by this Huda trade.

Have a great weekend, everyone. We’ll see you on Monday for more trading insights! If you haven’t tried Trade Ideas sign up today