Best honeymoon places on When the leader finally announces it, depending on the stock, it can move up a point or more when the traders in the room follow the leader into the trade. However, the room 16 Trading on Momentum leader entered a position in the stock before the announcement was made. As the stock is propelled up, he exits his trade safely, selling his shares to those room buyers who are anxiously bidding the stock higher. Room leaders normally pick low-volume stocks to tout because they can move up quickly on low volume.
Unfortunately, they turn and drop twice as fast as the rest of the traders scramble to exit their trades all at once, leaving them holding a losing trade.
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They end up selling the stock in panic or holding the stock hoping for the stock to return to those heights so they can exit the trade with little or no loss. Usually, the stock never returns to those highs and the trader is left wondering what to do next and takes a bigger loss.
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