Trade Idea #3 For the Week: Full Truck Alliance (YMM)

Derek Barnett

3d ago in 💬 General

Trade Idea: YMM

Trade Type: Small Cap Gap

Grade: C (25% of normal position size)

Entry Criteria: Price opens at or below 9.94. Buy stop limit order at $9.95.

Target 1: $10.44

Target 2: $10.94

Target 3: $11.44

Target 4: $11.94

Target 5: Trailing Stop

Hard stop: 4 hour close below $8.89

Trail stop after the first price target is hit.

Rationale:

YMM gapped up today on a positive earnings report and a stellar earnings call. Their income increased 81.4% year over year. Their revenue is up 33.9% year over year. Demand for their logistics solutions has increased by 22.1%. Their monthly active users went up by 33.6%.

Comments:

With this entry below $10/share this is an executable trade for a smaller account and only needs to be checked on once or twice a day with a casual glance at the 4 hour char. To learn how to execute this trade with precision and how to size the trade accordingly, I highly recommend watching my free tutorial on how to trade this specific strategy.

2 comments