On Monday, I alerted you that three new stocks had been added to my Watchlist for this week.
One of those was Oramed Pharmaceuticals Inc. (ORMP).
And I sure hope you got involved with this trade idea…
This is a pharmaceutical company focused on the development of oral drug delivery systems – most notably, insulin capsules for the treatment of type 2 diabetes.
I explained that this was an exciting development for the medical community and, specifically, for anyone required to inject themselves with insulin.
Last Friday, the company announced that its majority-owned subsidiary, Oravax Medical, received clearance to begin Phase 1 clinical trials of its oral COVID-19 vaccine in South Africa.
And it turns out that I was right about there being plenty of news to keep interest alive and demand high for shares of ORMP.
A Textbook Surge Stock
From a technical perspective, this was the set-up at the time…
It was a textbook “surge” formation…
The stock chart was showing shrinking pullbacks and a clear resistance level, and volume was drying up before the breakout.
The green line in the chart above represents our entry trigger at $24.00 per share.
Here’s how it played out…
As of Wednesday morning, traders who bought the stock at our entry trigger on Monday should have an open gain of about 28%.
If you took the trade and stayed with it, well done!
I just took profits, and you might consider doing the same.
The Secret to Strong Performance
But here’s the best thing about this trade…
We only risked 5.25%!
That’s one of the secrets to strong performance in the stock market.
You want your winners to be several times larger in percentage terms than the risk you are taking to get them.
If you can do that consistently, you will be on the fast track to untold wealth.
And remember, if you’re unsure of how to best take advantage of these weekly trades…
Be sure to check out my article from last week, How to Follow My Weekly Trades.
Embrace the Surge,
Editor, Traders Daily Direction