 Hey guys, this is Hydra from Xtrades and in this video we're gonna go over how to find big winners like SMCI, right? so SMCI was a really really big winner for people in 2024 and this stock pretty much it went from So this is when the breakout happened around 350 level and it went all the way up to 1077 so they're pretty much double or 200 percent gain and less than like around a month, so Pretty pretty insane move, right? But how can we position ourselves to catch these types of moves, right? So that's the whole point of this video and that's what I'm gonna cover So the reason why SMCI had such a big move was first because of its so This is how SMCI was set up before its move, right? So it made a big move before and then it's just been consolidating for a couple months within this space and then it has really good earnings report and it makes a really really big move up the first day, right? And what you want to notice is look at the volume bar, right? Look at the volume bar on this candle and look at the volume bars before So this is this volume It's like a skyscraper bar compared to the volume bars before And when you see this much of volume on a strong candle like this in a strong close That's a sign that institutions are buying into the stock and that's exactly what happened So when you have a very powerful breakout and breaking out of this big base, you have lots of volume Good sign that institutions are buying into the stock and when you strong this close It's almost always a very very positive sign, right? So look at what SMCI did in the next couple days So the next day went up a lot higher hit 480 but ended up pulling back in and then few days of consolidation Here just again almost testing 500 another inside bar here More consolidation and then again testing 500. So here was one in the low base so And then the next day breaks out it actually gapped up really high and then Yeah, it just continues to go basically SMCI doesn't really give any Opportunities to buy into the stock after the initial date This is like the best time to buy right because if you're breaking out of a big base at 350 level is very clear resistance Right, so you buy there you place your stop loss on the low of The candle so over here you buy over here a lot there stop loss placed over here And then yeah, you can pretty much ride this entire thing So I ended up actually that I did end up buying by sold way too early. I sold around 425 because Because it was just a really quick move in such a short period of time, right? But obviously had I known it would go to a thousand then obviously I would keep holding it I made a really good return in a short period of time, but I could have improved on this trade by using 10 like a 10-day moving average Or 20-day moving average and then basically Take some profits at that 425 level where I did but then ride the rest until it violates a moving average I had done that I would have been able to capture a much bigger profit But I did it and that's okay lesson learned. But yeah, so how can we capture these big winners, right? so SMCI's move started from that big earnings report big volume, right? So What we want to be paying attention to our stocks that have big volume on a big case some sort of big catalyst an example that would be an earnings report, but Any sort of like news article that drops that causes a big spike in a very big candle Now that's almost always a sign that institutions are buying into the stock and you want to try to find ways into You know basically buying it with a low risk entry. So let's take a look at some other examples. So Snapchat in Yeah, so 2020 Snapchat had big earnings report big volume look at the volume bars before look at the volume bar here right again same thing right so once Once I had that big Report they formed a little flag here and then broke out and then pretty much just slow grinded higher for the next couple of months and then Another really big earnings gap up big volume again and continues grand higher and higher, right? So from that first gap up So from the first gap up, which was over here it went from Make up my drawing tool. I went from $15 to $83 and pretty much Like well, what is that? Less than two years. Yeah So 451 percent move right and the catalyst which started this move was that earnings report When you see a big earnings report big volume strong close So sign the institutions are buying into the stock and that's exactly what happened for like the next couple months And they just continue to go higher and higher right so that's a good example pens is another good example So again, this was in 2020 had a really strong earnings report really strong volume Look at the volume bar before and look at the volume bar there, right? very clear skyscraper volume and Want to made that I want to got that move it pretty much just slow grinded up for the next year and They made a hundred seventy percent move in a pretty short period of time So if you can just capture moves like these and compound your money over and over again It's very easy to make a lot of money in the market, right? but Obviously, you'll also have Some names that don't work out so they'll end up having really big volume But they'll end up stopping you outright stop like you always place your stop loss at the lobe of the first candle So Some do not work out But those losses are very small and when you're right you make huge gains like this one, right? Like and snap Yeah, that's Basically what I'm trying to get at we'll take a look at a few more examples So NVIDIA is another really good example So NVIDIA actually had a very strong gap up in 2023 right and then in pretty much just consolidated So if you bought here This would have been in the first buy when you want to breaks out of this Flag, right? So this would be the first buy at 389 and then over here pretty much just forms a base for a long time Which is completely fine, right? And then over here. We finally get a strong breakout again. So this is this could be your second chance to buy and then yeah, pretty much doubled one from Yep 90% almost double from your first buy in a good Period of time and then second buy one up almost 50% in a very very short period of time But yeah, again in NVIDIA was also The earnings report was the first catalyst, right? So Yeah, that's basically what you want to be watching out for you want to be watching out for big volume or big gap ups with Big volume and if they can strong close and then yeah, ideally they end up basing and then continue grinding higher like just like snapchat instead So some names that are also showing the same signs right now are ARM ARM also had a very big earnings gap up huge volume with the volume bars before and look at this volume bar, right? It's a skyscraper and yeah, this one also looks like it has a lot of potential similar to SMCI But yeah, this one I'm sure that this one has potential to double very quickly from here Another one is Palantir Palantir also had a monster earnings gap up here So take a look at the weekly chart really strong look at the volume on the weekly chart, right? That's a very very clear sign of accumulation, right? So this one looks like wants to get back to all-time highs and This one I'm sure has a lot of potential to Double or even triple in the next couple months to years, right? So Palantir is another um High order a stock with a lot of potential This is another one APP this one also had a very strong earnings gap up Really good volume very strong close Couple others frog this one had very very strong volume look at that volume bar compared to the volume bars before, right? You know on the weekly chart, it looks pretty good looks like it's finally turning up to the right side now Um, so a lot of potential there Path is another one really big volume bar here on earnings Yeah that volume bar there. So this is one that wouldn't have worked out Would have stopped you out, but you can always find ways to re-enter and Take a look at a couple more. Yes, TC. This one worked out pretty well This was the first gap up and then it pretty much just consolidated and then the second gap up And then this one's been working pretty well so far Yeah, it's pretty much all I got for you guys for this video. Oh wait, actually before I stop lift is another good example um lift Has yeah, look at the volume bar compared to all the other volume bars before and it's finally kind of break out of this base On the daily chart. Yeah, just huge volume And this one just completely took off as soon as it went from 14 dollars to 19.5 Pretty much what that yeah, that's pretty much all I have for this video. 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