On December 31, 2013, we sold our position in Kandi Tech Corp ($KNDI) for a price gain of 60% over a 3-week holding period.
Scoring a gain of more than 50% on a stock trade of only a few weeks duration may seem unusual, but it actually is not.
These trading opportunities happen on a regular basis, but the key is knowing how to identify the technical criteria that typically precedes such moves. This is where the “Blast Off” breakout setup comes into play.
One of three different types of breakout stock trades we target, the Blast Off setup seeks to identify massive volume spikes with large one-day price gains, followed by periods of tight price consolidation.
Typically, these are low-priced, small-cap NASDAQ stocks in the $5 to $10 range, but never penny stocks (which are easily manipulated and a playground for scammers).
Whenever a stock meets our initial criteria for a potential Blast Off trade setup, we add the stock to our internal breakout watchlist, then patiently wait for a proper, low-risk entry point to catch the next momentum wave higher.
In the 4-minute video below, we walk you step-by-step through the exact technical criteria that helped us identify $KNDI as a Blast Off candidate in early December, which subsequently led to a 60% winner in The Wagner Daily newsletter less than one month later.
For best quality, view the video in full-screen by clicking the rectangle in bottom right of video player window:
Our rule-based swing trading system is designed to profit from three different types of technical trade setups: Breakouts (Combo, Relative Strength, and Blast Off), Pullbacks, and Trend Reversals. For an overview of each of these different types of stock trade setups, check out our main Stock Trading Strategy page.
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