LCI – WHY I DAY TRADE!!

LCI, what a run. It is stocks like these that get my juices flowing. I have seen stocks make massive moves like this time and time again. I did not trade today but it is always exciting when I glance at the market and see something like this. Let’s take a look at how and why this happens.

First thing I check when looking for a stock with this kind of potential is the float, or, common stocks that are available in the market for retail traders to purchase (Supply). On the ThinkOrSwim app, you can click the drop down area at the top of the chart to bring this menu up. The float of LCI is about 40 million shares according to ThinkOrSwim. This is a decently low float but only one piece of the puzzle.

The next thing I look for is the volume, or, how many investors are trading the particular stock. (Demand). Low supply and high demand can create these awesome opportunities. This stock met both criteria, and a third piece of criteria which I use periodically is the news. If the company also has any really juicy news, it just makes it that much more interesting to watch for opportunities.

Happy trading. Hit the FOLLOW button to become a member of TheFreedomGrind trading.

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