1. After 40% move you have to be very careful dip buying the stock, especially if it can't break its new highs convincingly.
2. When it's a promotion and a stock has collapsed on a daily chart, but now it's breaking out, you can dip buy it because promotions can come back.
3. When it's a biotech that has collapsed off its highs, and now is bouncing into previous lowest support, it's not a play because if it has bounced a couple of days in a row it's the best case scenario. Biotechs don't come back large usually.
4. 3-5% increase in stock price is not a spike and it's not enough to trade it.
5. Front side of the move - a chart that is grinding, making new highs, holding all of its dips. It's a big green candle on a daily chart.
6. Sometimes when you took a loss, it doesn't mean that the trade is over. You can always get back in on a better entry point. There is always another opportunity.
7. Always know that risk level, don't take anything for granted, no setup is ever a 100% to work. All you can do is out yourself in very favorable risk/reward situation and things will take care of themselves longterm.
8. Stuffed trade - when there's an intraday breakout and many people start buying in anticipation of a spike; but someone has been waiting to sell into this breakout, so the stock doesn't go anywhere. And now all the recent buyers have to sell their positions, which leads to an unwind.
9. You have to feel yourself comfortable in a trade. If you're not comfortable, you're not going to make rational decisions.
10. Don't let the results necessarily dictate whether you did something right or wrong. As long as you're following your plan, keeping your risk levels, you're on the right track.
11.Do not dip buy because a stock is cheap, buy it because it has a chance of coming back. The further down it is off its highs, the less of a chance of it coming back.
12. Looking on a 3-5 year chart, you're looking to see anytime there was a big volume spike, and the stock spikes on some kind of news, where those levels it topped out were.