Big Day Trade With AEHR

I have different rules with Day Trading. Sometimes I don’t even know the name of the stock or what it does for business. So far my Day Trading has been completely on the candlestick chart.

I get up in the morning and look for gapping stocks. I can look on the computer by Googling or just watch the ticker on CNBC. This morning I noticed the stock AEHR gapped up. Yesterday the stock closed at $11.78 and this morning at 7am the stock was at $15.11. That is a nice gap up!

I looked at the news feed and the company had “record breaking” booking for it’s business and raised their guidance by 80%. At this point I still don’t know what the company does.

Aehr Test Systems is engaged in the designing, engineering and manufacturing of test and burn-in equipment used in the semiconductor industry. Mainly for the EV industry.

At the open I’m watching closely. With this news I wasn’t sure if the stock would come down after the big gap up, or continue up.

The stock continued up and it was staying above the VWAP line (Volume Weighted Average Price). At 10:17am it crossed the VWAP to the south. Many times the candlesticks will cross the VWAP but bounce back to the direction it was moving. I decided to watch the chart for a few candles to get confirmation. A few candles later it reversed and started moving back up and crossed the VWAP to the north. The VWAP was at $14.95. I put a buy order in at $15 for 1000 shares. The stock continued up and I was filled at $15. When the stock got to $15.15 I put a “stop loss” at $15, my buy-in price. The stock continued up. When the stock hit $15.40 I raised my “stop” to $15.20. This 20¢, if I was stopped out, would give me my $200 goal I look for. The stock shot up to $16 and I quickly moved my “stop” to $15.90. The stock stopped moving up and back off. I was stopped out at $15.90. This entire trade took 2 minutes. Take a look at the 1 minute candlestick chart. Look at the stock at $10:15am and you will see this action. This is the fastest $900 I ever made.

9/24/21 – Buy 1000 Shares AEHR @ $15.00

9/24/21 – Sell 1000 Shares AEHR @ $15.90

Profit +$900

I’m enjoying my Day Trading, especially when it works like this. But this doesn’t happen very often. If it did we would all be rich. However, I am having fun with the VWAP line and having some good luck.

Any questions send me an email.

I hope this post makes sense. I typed fast and have to get back to trading. lol

 

Successful trading,

Steve

The Options Coach