What Makes This Trade Great: YHC – A Case Study in Reentry

What Makes This Trade Great: YHC – A Case Study in Reentry

May 12, 2025

Hello traders,
Barrie Einarson from Trade Ideas here with another edition of What Makes This Trade Great—and today, we’re looking at YHC, a tricky one that still delivered if you stuck with the process.

Let’s get into it.


Initial Setup: AI Short Alert on YHC

At 6:15 AM, our Trade Ideas AI fired off a short alert on YHC. The setup was clear, and if you were using CenterPoint, you had shorts available—which is a huge advantage in these types of plays.

But here’s the thing: the trade got stopped out.

Now I know what you’re thinking—“Well that’s the end of that.” Not quite. This is where discipline and reentry strategy can make all the difference.


Respect the Stop—Then Watch for Reentry

Getting stopped out isn’t failure. It’s protection. You obey the stop and live to trade another day. But sometimes, the opportunity comes back around—and when it does, it’s often even better.

In this case, I used a tactic I’ve talked about before: looking for a reentry level halfway between the stop price and the original entry.

We had:

  • Stop: $6.90
  • Entry Zone: Below that
  • Midpoint: ~$6.53

Once the stock dipped back to that midpoint level, it opened up a clean reentry opportunity.


The Result: From Reentry to Breakdown

And it worked. From the reentry point near $6.53, the stock rolled over and collapsed all the way to $1.90.

That’s a massive gain—but only if:

  • You were patient.
  • You had shorts available (again, CenterPoint is key here).
  • You were watching for the reentry level and didn’t emotionally check out after the stop.

Final Thoughts

There’s no magic in trading. Just structure, preparation, and a willingness to stick to the plan even after a losing start. Reentries can offer incredible second chances, especially in fast-moving small caps like YHC.

Until next time—trade safe, stay focused, and let the AI do the heavy lifting.