By Barrie Einarson | Trade Ideas

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Today’s edition of “What Makes This Trade Great” looks at QMCO — and it’s a great example of a lesson I talk about a lot: what to do after a stock stops you out. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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The Alert

Our AI flagged QMCO with an alert at $16.38. This one was an earnings play, so some early volatility was expected going in.

The First Attempt — and the Stop

QMCO popped a little above the $16.38 alert price, so there was a small window to make some money. But not long after, it hit the stop at $15.89.

The Re-Entry Setup

This is where it gets interesting. I talk about this a lot in my videos: when a stock hits its stop and then rallies back to the halfway point between the original alert price and the stop, that’s often a signal worth watching.

Here, the alert was $16.38 and the stop was $15.89. The halfway point between those two levels comes out to $16.13 — and sure enough, there was an alert right at that price.

The Payoff

If you’d taken that re-entry at $16.13, the stock ran from there up to $18.67 without pulling back at all. That’s a strong move off a level most traders would have written off after getting stopped out the first time.

The Takeaway

This trade still could have more room to run later in the day, but the real lesson here is the re-entry price. Getting stopped out isn’t always the end of a setup — watching that halfway level between your original entry and your stop can turn a losing first attempt into a much better second one.

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Trade Ideas’ AI-driven alerts are designed to spot setups like this — including re-entries after a stop. As always, past performance on any single trade doesn’t guarantee future results — manage your risk accordingly.