By Barrie Einarson | Trade Ideas

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Today’s edition of “What Makes This Trade Great” looks at FGI — and honestly, this one’s less about a clean setup and more about a lesson every trader needs when it comes to ultra-low float names. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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A Ridiculously Low Float

FGI has only about 540,000 shares in the float. That’s an incredibly small number, and we’re seeing more and more of these low-float names show up lately. This one’s a US stock, and it actually had earnings out today, which added fuel to the move.

The Move

FGI had a big pop in the pre-market. Watching the VWAP (that purple line) tells the story here — the stock plunged straight through it, came back up, tested it again, and then really got going.

The Real Lesson: Where Do You Put Your Stop?

This is the part I really want to highlight. With a stock this thin and this whippy, the question isn’t just “when do I get in” — it’s “where do I even put my stop?” These low-float names can swing hard in both directions with very little warning.

The approach that makes sense here: take a smaller position size than you normally would, and give yourself wider stops so you can actually hold through the chop instead of getting shaken out on noise.

The Numbers

This isn’t necessarily the cleanest textbook example, but if you’d taken a position around the $9 mark, the stock ran all the way up to $14 — a big move for anyone who sized in appropriately and had the stop room to stay in the trade.

The Takeaway

Low-float stocks like FGI can offer huge moves, but they demand a different approach than your typical setup. Smaller size, wider stops, and the discipline to accept that these names will be volatile — that’s the trade-off for the kind of upside FGI showed today.

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Trade Ideas’ AI-driven alerts can help surface unusual activity in low-float names like this one. As always, past performance on any single trade doesn’t guarantee future results, and low-float stocks carry elevated volatility risk — manage your risk accordingly.