By Barrie Einarson · Trade Ideas

“How can you possibly trade a stock that’s already up 200 or 300%?”

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I get that question all the time — and today I want to break down exactly why you shouldn’t dismiss these plays.

Here’s a perfect example. We had a stock that was trading around $5. By the time pre-market opened, it was already sitting at $16. That’s a move of roughly 220% before the opening bell even rang. Most traders look at something like that and immediately think: “I missed it. It’s too late.”

But here’s the thing — it can keep going. And in this case, it did. From $17.50, the stock went on to nearly double again.

By the numbers

• Original price: $5
• Pre-market price: $16
• Move before the open: ~220%
• Further move from $17.50: nearly doubled again

Now, I’ll be honest with you — I wasn’t even able to trade this one myself. Interactive Brokers had it on their restricted list, meaning I couldn’t touch it (and this wasn’t a shorting issue — I mean trading it at all). That’s frustrating, but it happens.

But plenty of traders in the room were able to get in, and we were all watching and talking through it in real time. That’s exactly the kind of opportunity we look for and discuss together every day.

The takeaway

Don’t write off a stock just because it’s already had a massive run. A stock up 250% can still double again. The momentum is the signal, not the enemy. You just have to know what you’re looking at and have the right tools to identify the setup.

That’s what we do every day at Trade Ideas — find these setups before they move even further, and figure out what makes the trade great.