Hey traders,
Let me tell you something from experience: Most tickers don’t crash and burn in some epic way.
They just fade away slowly and quietly while people online keep yelling, “This is the next big one!”
I’ve been there, when you catch a great run, make some nice profits, and then…you get greedy.
So you try to squeeze out one more trade.
And that’s when it gets you.
Suddenly, you’re stuck in a choppy mess, profits gone, and you’re wondering just where you went wrong.
So, I put together a simple guide with the signs to look for when a play’s about done.
Let’s dive in.
Volume’s Gone, Hope Isn’t
You’ve seen it: A stock has a big breakout day where volume’s booming and everyone’s excited.
Then the next day — crickets.
Volume gets chopped in half and the chart’s flat, but Twitter and chatrooms are still hyping it like it’s day one.
This is a classic trap.
What to look for:
- Weak bounce volume compared to the breakout
- Intraday spikes that fade fast
- Tiny range = no edge
Failed Morning Spikes
Strong plays usually pop right out of the gate with a quick move up and a clean breakout.
But if the open just fizzles, that’s a big warning.
It means the excitement is gone, and there’s not enough demand to push higher.
What to look for:
- Quick morning spike that fails fast
- Gets stuffed at resistance
- No follow-through in the first 15 minutes
Strong Open, Weak Close
This one hurts.
You see a strong open, maybe it even breaks out… but then it just bleeds into the close. That tells me the early buyers took their profits and dipped.
What to look for:
- Big wick candles on the daily chart
- Lower highs into the afternoon
- No push into the close
Everyone Is Talking About It
Ever see a stock with huge volume but it’s not going anywhere?
That’s what happens when it’s overcrowded. Everyone’s already in, so there’s no one left to buy.
What to look for:
- Tons of chatter on Twitter, Discord, even TikTok
- Huge volume, but flat intraday price action
- Smart money fades the hype, retail takes the hit
Gap Down…and Nothing
This one’s sneaky. You wake up, check your phone — and boom — the stock gaps down 15%.
What to look for:
- No bid support in premarket
- No bounce attempt at open
- Lower lows with zero recovery
Surprise Filings or Offerings
Things are heating up, and then out of nowhere, a midday halt.
Or worse, an offering drops after hours. It’s the company cashing out while you’re left stuck.
What to look for:
- Halts with no explanation
- SEC filings mid-run
- Next-day gap down, no bounce
The Chart Just Feels…Heavy
I know this sounds vague, but it’s real.
You watch the chart and it just feels off. It grinds lower and every pop gets sold.
The tape feels sluggish, like it’s running out of gas.
What to look for:
- Slower action throughout the day
- Lower highs, tighter range
- No follow-through on volume
Know When to Walk Away
You don’t have to catch every bounce.
I used to force trades on these tickers, thinking I was missing out, but now I let them go.
I wait for clean setups, and if the chart isn’t screaming momentum, I skip it.
Let the weak plays die in peace while you focus on the ones with real juice.
Jack Kellogg