By Barrie Einarson | Trade Ideas

If you’ve ever been stopped out of a trade and felt like you missed the whole move — this one’s for you. Today’s edition of What Makes This Trade Great? features RXT, a textbook example of why the re-entry is one of the most powerful tools in a trader’s arsenal.To Subscribe: https://go.trade-ideas.com/SHQ
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The Setup: An AI Alert That Started It All

Our Trade Ideas AI flagged RXT with an alert at $1.59. That’s where the opportunity began. Now, not every alert turns into a clean move right away — and this one was no exception.

Getting Stopped Out Is Not the End

After the alert at $1.59, the stock popped slightly but then hit the stop at $1.54. For many traders, that’s where the story ends. They move on, frustrated, and miss what happens next.

But here’s the thing: getting stopped out is not a failure. It’s risk management working exactly as it should. The real question is — what do you do next?

The Re-Entry: Where the Magic Happened

After hitting the stop, RXT found its footing. It climbed back to $1.57 — the halfway point between the original alert price of $1.59 and the stop at $1.54. That midpoint level is your re-entry signal.

From $1.57, the stock went almost straight up. This is the beauty of the re-entry strategy: you’re getting back in at a confirmed level of strength, with fresh momentum and a clearly defined risk point.

The Move: From $1.57 to $1.92

RXT ran from the re-entry at $1.57 all the way to $1.83 — a tremendous percentage move on its own. But it didn’t stop there. After a brief pullback, the stock pushed up to $1.92 before seeing a more significant retracement.

Savvy traders could have trimmed some shares along the way — locking in gains at $1.83, letting the rest ride toward $1.92, or even exiting the full position and watching to see if it held the VWAP on the pullback.

VWAP Holds = Another Green Light

After the pullback, RXT tested the VWAP (Volume Weighted Average Price) — and held it. That was the confirmation signal to get back in or add to an existing position. And from there? Boom. Another leg up.

VWAP is one of the most reliable intraday support and resistance levels. When a stock pulls back to VWAP and holds, it’s telling you the buyers are still in control.

Key Takeaways

1. Trust your AI alerts. The Trade Ideas AI flagged RXT at exactly the right time.

2. Honor your stops. Getting stopped out at $1.54 protected capital for the real move.

3. Watch for the re-entry. The midpoint between your entry and stop is a powerful re-entry zone.

4. Use VWAP as your guide. VWAP holds are green lights to re-engage.

5. Manage your exits. Whether you scale out or exit fully on strength, have a plan.

Final Thoughts

RXT is a perfect case study in patience, discipline, and the power of the re-entry. The traders who made money on this weren’t the ones who got it perfect from the start — they were the ones who stayed alert, followed the levels, and weren’t afraid to get back in when the setup re-confirmed.

That’s what makes this trade great.

— Barrie Einarson, Trade Ideas