Every trader’s been in this position …
Maybe you slept in too late, you were busy at work, just getting out of school, taking after the kids, etc.
For whatever reason, you’re late to the move.
Once you finally got to check the market, there’s a perfect stock spike staring you in the face:
- It has a news catalyst.
- The float is below 10 million shares.
- The price consolidated beautifully before the next surge higher.
It’s a textbook runner with incredible upside.
But you can’t wind back time to take the trade. And now you missed it.
A lot of my newest students find themselves in this situation because they haven’t learned how to recognize a stock before it spikes yet.
I have a solution …
We can still find trade setups when we’re late to a stock spike.
Yes, we missed the biggest part of the move, but when the stock runs +100%* intraday, there’s a lot of room to get in and out with gains.
Even if you’re late.
Dip-Buy Pattern
In this market, there are tons of low-float tickers with fresh news that spike to incredible highs intraday, multiple runners every week.
It’s pretty easy to identify a massive stock spike after it’s already happened. And most traders think, “I missed it again! If only I knew how to buy on the front end.”
Unless … You learn to trade the back-end bounce.
These stock spikes burn hot, anyone can see that. But they have to pull back to breathe and take a break at some point.
That breath, an overextended pullback, is where the dip-buy pattern lives.
- Euphoria peaks as the price turns vertical.
- The stock hits a point of exhaustion.
- The price slides back toward a logical level.
- And it bounces off that support momentarily.
I’m not looking for it to make new highs. I’m just capitalizing on the volatility within this new range.
The risk is tiny and almost obvious for disciplined traders (a few cents below the level that just proved itself).
Our target is modest. But when a stock spikes 100%*, a dip-buy bounce could offer 10% or more of upside.
Dip-Buy Example
On February 2, right as the market closed for regular hours. FatPipe Inc. (NASDAQ: FATN) announced bullish third quarter fiscal year results.
- Total revenue grew 30% year-over-year.
- Monthly recurring billings grew 48% compared to the same quarter last year.
- Cash and cash equivalents measured $6.2 million.
The stock immediately spiked into after hours. And 45 minutes later, it was pushing toward a breakout.
The move was fast, and I missed the surge to new highs.
But I was there for the back-end dip buy.
Read my trade notes below:
Here’s my position overlaid on the chart. Every candle represents one trading minute:
That was a 10% gain in just a few minutes, with a textbook pattern and a defined risk level.
The S&P 500 ETF Trust (NYSE: SPY) gained 17% in 2025 … I made more than half of that gain in a single afternoon.
The dip-buy pattern might not be as exciting as trading an explosive breakout. But in some ways it’s, that’s what makes it such a good pattern.
We know the move is smaller so our imagination won’t get in the way, and we’re not trying to anxiously position during a consolidation that could take hours before a breakout.
The dip buy is a quick move after a blow off top. In and out.
My millionaire students eventually learn multiple angles to trade these explosive moves in the market. That helps traders maximize their opportunities as they grow.
- Dip buys
- Breakouts
- Panic dip buys
- Weekend swing setups
- Etc.
To take full advantage of my entire trading process, join me and two of my millionaire students on February 13 and 14 for a FREE trading bootcamp.
Matt and Bryce started learning my strategies while still in college. Matt started studying first, and Bryce wanted some of the magic once he saw Matt making progress.
Now they’re both millionaire traders.
Learn how they approach the market and turned their small accounts into millions:
>> Claim a Free Spot for My Trading Bootcamp <<
Cheers
*Past performance does not indicate future results
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