What Makes This Trade Great
What Makes This Trade Great
Feb 25, 2025
A Cautionary Tale: FMTO and the Dangers of Low Float Stocks
Hey traders,
Let’s talk about something that happens all too often with low float stocks—massive moves, sudden halts, and brutal drops. Today’s session with FMTO was a perfect example of why you can’t take your eyes off these plays for even a second. To Subscribe: https://go.trade-ideas.com/SHQ
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The Setup: FMTO’s Pre-Market Surge
FMTO was a big mover in the pre-market, with a tiny float of just 500,000 shares. No obvious news, but the stock was running.
Watching the VAP (Volume-Weighted Average Price) closely, I entered just over $9 as it pushed toward the pre-market high of $10. It looked strong, but these stocks can turn in an instant.
The Drop: When Seconds Matter
- FMTO spiked and pulled back, but what happened next was fast and nasty.
- The stock halted as it started to dump.
- Then came the gap-down… and down… and down.
This all happened in seconds—not minutes, not hours. If you stepped away, you were trapped. No time to react.
Lesson: Stay Glued to Your Screen
If you’re in a low float stock, you cannot walk away—not even for a few seconds. These moves happen fast, and when they go against you, there’s no mercy.
Trade smart, stay alert, and I’ll see you in the next session.