Hello, everyone! Barrie Einarson from Trade Ideas 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 are looking at AVAT, and if you had a little patience with this one, it turned into an awesome alert from our AI.

The Trade Ideas AI initially alerted AVAT at $1.46. The stock did not do very much immediately and eventually hit its stop at $1.42. That was an extremely tight stop—just four cents below the original entry.

However, the trade was not necessarily over.

Our AI provided a re-entry level halfway between the original $1.46 entry and the $1.42 stop. That placed the potential re-entry at $1.44.

This is where the trade became really interesting.

After reaching $1.44, AVAT moved all the way up to approximately $1.74 before experiencing much of a pullback. Following a brief dip, the stock exploded higher again and eventually reached $2.12.

From the $1.44 re-entry to the $2.12 high, that represented a potential gain of approximately 47%.

The stock was pulling back considerably at the time of recording, which is another reminder of how quickly lower-priced stocks can move in either direction. Managing risk and protecting profits remain extremely important.

The main lesson from AVAT is not to automatically forget about a stock simply because the original alert hits its stop—especially when that stop is very tight.

Trade Ideas’ re-entry feature gives traders another level to watch after a stopped-out trade. In this case, waiting for the $1.44 re-entry created a much better opportunity than chasing the stock.

AVAT became an awesome percentage mover, rewarding the traders who remained patient and paid attention to the re-entry level.

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This content is for educational purposes only and is not financial advice.