By Barrie Einarson

Good morning everyone—Barrie Einarson here with today’s edition of What Makes This Trade Great. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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Today we’re looking at two names that really drive home a lesson traders need to internalize if they want to level up: WATT and BIRD.

And I’ll tell you right now—this is all about respecting momentum, even when it feels uncomfortable.

WATT – The Power of a Premarket Catalyst

Let’s start with WATT.

This one came out with a business review, and that was enough to spark a strong move in the premarket. Now, this is where a lot of traders either hesitate or miss the opportunity entirely—they see the gap and assume the move is already over.

But here’s what Trade Ideas did well.

RAI picked it up at $19.75.

Yes, there was a bit of a pullback right after the open—that’s normal. But instead of collapsing, it held and pushed higher, trading around $22.70 shortly after.

That’s about a 15% move from the alert, and when you step back and look at the daily and weekly charts, you can see this still has room to run.

The key here isn’t just the news—it’s how the stock reacts to the news.

Strong reaction plus holding gains equals continuation potential.

BIRD – When “Too Late” Becomes Early

Now let’s talk about BIRD.

This one makes people uncomfortable—and that’s exactly why it’s worth discussing.

You’ll hear traders say, “How can you watch something that’s already up 200% or 300%?”

But here’s the reality.

By the end of the day, it could be up 600 percent or even 800 percent.

And that’s exactly what we saw—this thing pushed toward $24 at one point.

Now suddenly, the narrative shifts. It’s not just a shoe company anymore. It’s being talked about as an AI play.

And whether that makes sense fundamentally doesn’t matter in the short term.

The market trades on story, momentum, and attention.

The Lesson – Stop Fighting Momentum

Both of these trades highlight something I see traders struggle with every single day.

Don’t anchor to price. Just because a stock has moved doesn’t mean it’s done moving.

Momentum can extend far beyond expectations. What feels overextended can become even more extended.

Premarket is a clue, not a trap. WATT showed us that premarket strength can lead into intraday opportunity.

Psychology is everything. Most traders didn’t miss BIRD because they didn’t see it. They missed it because they didn’t believe it.

Final Thought

The best trades often feel like you’re late or that you’re chasing.

But those are often the exact conditions where the biggest opportunities exist.