Ultimate Day Trading Strategies Crash Course 2025 (with Live Trading examples)

time- tested trading strategies for all

levels of experience you're going to

learn the real trading strategies that I

use to trade stocks for the last 10

years as a full-time Trader I've tried

various trading setups and patterns to

adapt to the Ever Changing market

conditions in this video I'll give you a

list of proven trading strategies that

been working consistently for me and

hundreds of other Traders have mentored

in the humble Trader community

for each of these strategies I'll break

it down for you the level of experience

needed and what kind of Traders are most

suitable for that particular strategy

the ideal Market environment and the

time frame for each setup the strategy

criteria Trader psychology behind the

setup and my very own live trades to

help you understand price action and

strategy executions for entries and

exits all of the trading strategies

included in this video are taught in the

humble Trader Academy but today I want

to share them with you all my fellow

Traders here on YouTube so whether you

are a beginner or an experienced Trader

you'll learn something new that can

improve your Edge in this market all I'm

asking for is a big smash on the like

button and share this video with your

trading partners to elevate your trading

experience I prepared each of these

chapters and the timestamps in

description below feel free to save this

video and learn at your own pace and and

remember to use a comment section to ask

me any questions you may have okay let's

begin with the best trading strategies

for beginner Traders a very important

mindset that I want to share with you

here is that in trading the simpler the

better so that's the reason I handpick

two of my favorite trading strategies

for newer Traders the morning de by

strategy and GAP up reversal long these

are the two setups I consider to be the

most suitable for newer Traders because

of these three main reasons number one

these are the most consistent patterns

that can be identified almost every day

or every other day among the stocks in

play number two I started to see some

consistency in my trading progress after

developing these strategies and I'm

still trading these same setups after 9

years of trading number three and most

importantly no Short Selling is involved

in these beginner trading setups Short

Selling generally requires a lot more

experience in risk management and you

also need a lot more Capital to have

access to premium Brokers and advanced

trading research tools so if you're

struggling to trade consistently not

sure how to develop a systematic trading

approach or you're pretty new to trading

in general make sure to pay attention to

these step-by-step tutorials and take

notes are you ready okay let's begin

with the first humble Trader trading

strategy

if you seen my video lessons before then

you know that a good strategy must have

a set of straightforward criteria and a

repeatable pattern for you to time your

entries and exits in this video you're

about to learn how to identify the

correct chart pattern for this strategy

for simple criteria to buy the dip the

technical analysis and psychology behind

this setup and last but not least I'm

going to show you a live trading demo of

how to execute the sper dip strategy the

best part is that you can apply this

setup to any stocks above 500 million

market cap so even though you see me

trading a $400 stock in this example

this is still very applicable to much

cheaper stocks like Sofi or even palente

tier if you enjoy these kind of

step-by-step video lessons then make

sure to drop a like down below all right

to properly trade this by the dip

strategy I always follow four important

criteria number one is a stock

uptrending on the daily chart with

multiple levels of support areas that

starts by going over the technical

charts pattern that you must be able to

identify to enter a trade so on the

charts over here you're looking at

Nvidia I know this is a more expensive

stock but once again this is applicable

to any stocks over 500 million whether

it's $5 or $10 so you can see on the

daily chart the this stock has been on a

tear um pretty much since the $400 held

on The Daily support here the stock has

climbed up $100 per share to testing

that $500 area so you can see this stock

has been setting higher highs day after

day and higher lows so you can see once

it broke through that recent resistance

around here 473 the stock tested 500 had

some small pullbacks here and there but

you can see this range on The Daily

every every time it dip to around this

area 480s 490s over here you can see

these like small little dating Wix

candles the stock has been getting

bought back up so you can see there's a

lot of support around this 493 area and

down here 490s and then over here you

can see these areas around 484s as well

and below that you have more support

down here at 478 then later on 473 so

this is why I mean by you have multiple

levels of support after the stock has

started consolidating you can see a lot

of highs did back down to lows bounce

back off again this is the multiple Le

levels of support that you want to see

if you're picking a stock to buy the dip

and it's not just this month the stock

has done that around the same levels you

can see all the way back in August over

here the stock has tested very similar

levels before and each time it's bounced

off over here broke above it bounced off

the same levels retest the highs and

came back down so this is a kind of

chart you want to see in order for you

to pick the stop to dip by you don't

want to see the kind of stock that just

goes straight up and straight down so a

good example of a stock you want to

avoid to buy the dip on is something

like this you can see a lot of straight

up and down the next day straight up no

consolidation on The Daily at all and

you just go straight back down to where

you came from so this is not the kind of

chart I would buy the dip on for this

particular strategy so a deadly mistake

a lot of Traders make when buying the

dip is that they're trying to catch the

folding knife again the key difference

is that you're trying to buy the dip on

an uptrending chart on The Daily time

frame and you're buying a very

established intraday support So now

looking at the intraday chart on Nvidia

you can see there's a lot of support

around that 493 490 area um you know on

this day particularly that we traded at

493 sold off bounce had a nice bounce

you can see once again that same support

areas tested here the previous day and

the last couple of days before so just

make sure that whichever support area

whether it's 490 or 493 that you are

using to trade this particular strategy

it's being tested intraday in the past

couple of days before moving on to

criteria number two for this buy the dip

strategy is a stock forming

consolidation or reversal patterns near

the key support area that you identified

remember earlier I mentioned that you're

not trying to catch the falling knife

you need to wait for consolidation or

confirmation now what does that look

like there are a couple of different

ways to identify potential reversal a

very simple one is you are waiting for

the first green five minute candle to

form after multiple red selling off

candles so in this example I also took

this trade on this day you can see the

stock sold off from 497 previous um

prear highs area to that daily support

at 493 so you can see consecutive red

candle selling in into the open and once

that first green candle forms that's

when you actually have the bounce and

you can see the exact same example the

next day the stock spiked to 505

pre-market levels then you sold off to

that same five uh sorry 493 support area

multiple red candle selling off then you

have the first green candle to finally

form around that daily support 493 key

level area then you got a $5 per share

bounce a couple other ways to look for

reversals can be higher lows and higher

highs on the 2 minutes or five minute

chart or some people even use 10 minutes

that's fine too or another way is to see

whether the stock really quickly bounced

off that support area and that would be

price action and don't worry if you feel

a little bit lost right now because I'm

going to be showing you step by step

later in the live trading example for

this B dip strategy all right we're back

to Criterion number three is the market

stabilizing or uptrending instead of

selling off all day I think this is such

a simple concept to follow as a Trader

regardless of what kind of long strategy

you trade if you are generally long

buyas you should concentrate most of

your buying power or trades on days

where the market is uptrending or

consolidating green on the day and at

the same time that means avoid going

long when the market is just selling off

all day you can see the market sentiment

really simply by going to the market tab

over here on weeo you can see markets

Tab and you can see a heat map of the

overall Market condition across

different Industries you can also see

globally how the Market's doing over

here as well and as well as how many

gappers are holding up on the day the

percentage change as well as how many

stocks are making new highs a lot of

times these are the strongest stocks in

the market just by doing this very

simple thing we'll increase your win

rates drastically if you're long biased

criteria number four for this particular

strategy this should be a given but you

don't want to see negative news that's

causing the stock to sell off it's fine

if the stock has no news or positive

news but you don't want a very negative

Catalyst that's pushing the stock down

heavily and luckily for us on today's de

buying strategy examples the stock had

very neutral to decent news but

obviously it would be even better if the

stock had very positive catalyst

so now that you learned the four very

important criteria for this buy the dip

strategy the next step is trade planning

as a Trader you should understand the

technicals and the psychology behind a

strategy only then you can manage your

entries and exits with proper risk

management so we did talk about earlier

that the daily support area we're

looking at is around this 493 Zone you

can see that daily support a lot of

little Wicks on The Daily the stock is

getting bought back up around that key

level so looking at the intraday chart

you can see the stock spiked and later

on sold off to that support area so for

me what I'm looking for is okay stock is

selling off where is the previous low

day if I looked at the previous day

which I also did bought this particular

stock at the exact same price area you

can see 493 is bounced off nicely and

then the previous day you actually

rallied to like $500 so on this

particular day if I I bounce this here I

want to see if I can get you know around

that at least vwap area that's a nice

price Target or even 500s if we get

there so we're talking about potentially

you know three four5 per share upside

but at the same time when we plan out

risk for this kind of Entry you want to

make sure you are risking at least a

dollar a150 for a stock like Nvidia

because it's considered a high beta

large cap stock meaning it's very very

volatile so if we look at the previous

day you can see the exact same Level 492

493 area that's been tested the day

before so when I long this area I need

to be okay with risking yesterday's

lower day of around 492 so about a

dollar per share and if my price Target

is the pre-market highs $ 4.96 that

means I'm risking a dollar per share to

make $3 or even more you can see it went

all the way to like

$4.98 um but you're risking at least a

dollar to make three and potentially

higher and these kind of price targets

is the beauty of this particular

strategy you can often get really

outsized reward that's more than one to

two one to three or even more because

your entry is waiting for the stock to

sell off to the support area remember

you're not buying the stocks breakout at

the high of the day in this example if

you're buying the breakout or the the

way up here that's say at you know 497

your risk to the downside is a lot

greater and sometimes you have very

limited upside like this one the one

caveat of this strategy is that you have

to be very patient and wait for your

entries to buy the dip you can see later

on in the two live trading examples

there was one that definitely got in way

too early and that made me sell my

position for a profit way too soon and

missing out on almost $5 per share

upside if you've been following Along on

this strategy lesson please remember to

drop a like down below and feel free to

ask any questions you may have in the

comment

section okay so now that you've learned

the criteria for the strategy including

the entries exits and the stop- loss

area let me show you my live trading

executions using the step buying

strategy okay to start you can see I

already traded a lot of different

tickers for about hour you can see the

realizes and unrealized down here but I

want to bring your attention to

Nvidia um on the on the chart down below

here I currently have zero Precision in

Nvidia even though I traded a long and a

short side you can see I had that 492

area drawn out on the intraday charts

that's going to be the key level I'm

using so note I'm using 5 minute chart

on the top and 15 minutes at the bottom

you can see I just got in a th000 shares

of Nvidia at

49320 back at the 5 minute chart Nvidia

I'm waiting for the stock to bounce this

is definitely an example where I'm kind

of more anticipating my entry instead of

waiting for confirmation but you're

going to see it later on I'm going to

add after the stock has started to form

um the five minute candle for

confirmation you can see that 493 is

holding up nicely on Nvidia yes you did

like sell off a little bit to like

49250 but that's like what 50 cents

unrealized um so you want to give it

room to breathe at least a dollar to

a150 you can see after a couple minutes

nvidia's finally starting to show a

bounce all the way down here the first

five minute candle that I was looking

for you can see I'm looking to buy 500

shares more of Nvidia 493 60s 493 70s so

I added how much uh

510

shares um

493 average now that gave me an average

of you can see down here

4934s 1,500

shares again we're buying a bounce right

I think earlier I mentioned that with

this I'm looking for a bounce as close

to vwap area as I can get to or

potentially higher so you can see vwap

right now is $4.99

but if I can get to that previous High

intraday that 4.98 you know that's still

like $5 per share that's pretty good so

you can see the first five minute candle

closed green down here again that's a

very simple and Technical way to buy the

dip with uh confirmation you can see

fast forward a little bit I sold you

know just 500 shares locking in at 495s

300 shares at 495s that's what I meant

1,200 shares

4934s Average stock is now back all the

way close to

496 and this is like what just a spend

of less than 10 minutes you can see two

five minute candles have formed so this

is a very very uh quick trade that's a

really good thing about trading these

high beta um stocks because the bounces

are huge as long as you're comfortable

risking a dollar to

a150 fast forward I definitely sold this

one too soon 4 94s sorry 495s I sold

another like 200 shares so I'm keeping

just the 900 shares left on Nvidia um I

have a good average at this point I'm

gonna I'm not going to risk you know a

dollar per share at this point with the

remainder shares right I sold 600 shares

with the remainder 910 shares I'm going

to set my stops break even on those you

can see on the two-minute chart you're

holding up very nicely higher high highs

higher lows same on the 5 minute

chart so at this point the trade is risk

free it's either you know yeah I

realized $1,000 on Nvidia and have this

unrealized go back to zero or it

actually bounces to like you know 4 97

498 for me to lock in a even bigger

profit so I'm really trying to let this

winner write out longer so you can see

I'm trying to sell a a little bit at 497

if we get there i' like to put an order

out sold a little bit probably a little

bit too soon you can see I sold 300

shares at

496 close to 497 definitely could have

held

longer so I sold pretty much all of it

besides that 300

shares at

4.97 so you can see lock in

$22,900 on Nvidia um by the dip strategy

and I'm keeping the unrealized $1,000

with 300 shares so I actually didn't

keep recording but I did hold on to

Nvidia all the way to about you can see

over here

498 as close to that as I could

497 uh but regardless that's like you

know a $4 per share on the final sale

and all of that is risking a dollar per

share on Nvidia around the 492 area so I

just want to show show you one more

example of the same Nvidia did by

strategy this is actually the day before

so you can see I got in a th000 shares

at around $492 .99 just call it 493 area

that's also lined up with previous day

close this little dotted line area

that's a prior day's close so that's

multiple support lining up together so

since this is like an opening trade it's

almost like a scalp um I treat almost

all my trades within the first 20

minutes of the open scalps just because

of so much volatility um usually when I

trade these I don't add to it you can

see I you know I have a thousand shares

with one entry and that's it and I'm

just looking for a bounds uh ideally you

know I was looking for that pre-market

highs area which is what 495s 497 those

two will be good price targets to aim

for you can see stocks WI back a little

bit but again if it breaks down lower

day I'm out risking that a dollar per

share taking that $1,000 loss you can

see we're already bouncing so that

bounce happened way too quickly 4 94s

nice little bounce you can see the

opening is very volatile which is why I

treat all my opening trades as like

little

scalps I rarely add to my opening

trades um I only start adding after

about

10:00 but yeah you can see this one 4.95

if I get it I'm going to sell into that

so I'm up about a dollar per share on

Nvidia on the two-minute charts also

holding up nicely reclaiming vwap as you

can see fast forward a couple minutes

later you can see we're testing at 495s

I sold 300 shares in the

495s realizing

$600 now let's see if we get higher day

which is like 496 497 that would be

great but I have a feeling I uh I didn't

have the patience to hold that long

being again being that it's still like

within the opening time I know how

volatile things can be so I always

prefer to sell into that opening

breakout you can see I sold into

495s lock in

$1,300 I still have unrealized

850 um I don't think I get to sell that

maybe I did okay I'm selling all over at

$4.97 199 you can see it did look like

it was forming like a long Wick um

around here and a lot of times these

like wigs that means it's a false

breakout so that's why I want to lock it

in then M all out you can see lock in

two $2,000 you know within the first

what 20 minutes of the open at

495s and by the way back to the intraday

chart um even though I didn't keep on

recording I you can see on this chart I

basically got out all the way here 495s

I got out here but the stock later on

continue rallying past the pre-market

highs 497 go to 499 then eventually at

the end of the day went all the way to

505s um obviously I left a lot of money

on the table as you can see this very

simple buy the dip strategy can be very

profit able and repeatable day after day

if you can truly Master it and learn the

four criteria we talked about earlier in

just the last two weeks I've traded this

particular setup many many times on

expensive stocks to very cheap stocks I

hope you're starting to get a knack of

day trading and how to have a repeatable

process this Bu The Dip strategy video

Lesson is not only teaching you how to

identify a reversal pattern but more

importantly how you should be planning

your entries and exits to achieve proper

risk War ratio having a defined set of

criteria and risk management rules are

also extremely important to succeed in

trading the next strategy is slightly

more advanced and well- defined version

of the dip buying strategy which I call

the Gap up reversal long this strategy

has been talked about a gazillion times

on my YouTube channel because it's

literally my A++ Trading setup I trade

this strategy almost daily as long as

there's large cap gappers good companies

with good Catalyst then I'm good quick

reminder here I send a free email watch

list every single weekend so if you want

to see these potential day trade and

swing trading ideas make sure to sign up

free down below and now let's dive into

the second beginner friendly strategy

the Gap up reversal long in this video

you're going to learn three golden

criteria for you to use as your strategy

checklist the psychological and

Technical factors behind this long

strategy understand what really makes

this pattern repeatable and suitable for

beginners for timing entry signals as

well as a live trading example of how I

executed a strategy and made over $7,000

in under 30 minutes to kick off this

particular strategy that I used for two

trades today you should learn the three

golden CR criteria first so number one

you want to see a huge overnight Gap up

so for example here the stock gapped up

from $79 to over $98 premarket this is a

over 5% overnight Gap up number two you

want to see a very strong positive

Catalyst in this case for the stock they

beat on earnings on all3 metrics and

number three you want to see a very

bullish daily chart so in this

particular example here you can see were

gapping up over the daily resistance at

93 95 96 and also

$98 and that's what I mean by a very

strong bullish daily chart and we'll go

over each of these criteria in detail in

just a little bit now let's talk about

the psychological and Technical factors

behind this gapa reversal long strategy

of course we talked about earlier you

want to see a huge overnight Gap up and

not just any Gap up you want to see a

gap up in this case with very positive

earnings Catalyst and once again like I

explained many times on this channel the

reason you want to look for these

gappers have gapped up so much overnight

due to positive catalyst is because you

want to have other investors Traders

institutions be attracted into the stock

to create volume and range for you to

profit from that's the whole reason ddog

was able to Gap up from $79 to $96 pre

market and even after that continue to

break through $100 here premarket highs

and then slowly Trend all the way up to

104 that's the kind of range we're

talking about we're not talking about 50

cents move we're talking about a stock

that can move two three five 10 points

in one day now let's take a look at the

technical analysis on this particular

stock now the reason you want a huge gap

up pre market and not just any Gap up

you want to see

the stock already kind of trending up

pre-market so you can see after hours it

gapped up pre-market this morning

despite a little pull back at around

8:00 you had to pull back from 98 down

to $94 but you later on reclaimed that

pre-market VAP over here reclaimed on a

5 minute chart and slowly reclaimed to

98 $99 this provides you the pre-market

level to use as intraday support and you

can see that pre-market support area 95

96 Range is what I'm going to be using

as key level later on in a live trading

recording and once you have that key

level to use from both the daily chart

as well as intraday you can use that

level to plan your risk entry areas and

potential profit targets so in this case

if I get in around this $96 area I want

to be aiming for that pre-market

resistance around $ 9950 or1 $100 Mark

and even higher to the daily chart you

can see over that 100 you have upside to

101 here as well as on this little WIS

here on the daily 102s and potentially

even higher to

104 now before I dive into the live

trading example to go over this trade

step by step with you let's talk about

what makes this particular strategy or

pattern so repeatable and suitable for

beginner traders to get started so the

the first reason I think this is a very

great strategy for new traders to get

started is because it's easy to find

these stocks like I said earlier with

all the criteria we just mentioned these

Gap UPS especially on large cap and

midcap stocks they happen very often

among these stocks like apple Tesla you

know ddog or even cheaper stocks like

block or coinbase and you can do that

with either paid or free scanners as

well now the next reason I think this is

a very bner friendly strategy is that

the technical support and resistance

levels on The Daily charts especially

like I showed you earlier are very

likely to form and very easy to plan out

like I said earlier if you just use a

daily chart on this example here you can

see all the potential support resistance

and you can use your intraday chart to

kind of reaffirm your thesis it's quite

simple I shouldn't use the word easy

it's simple to plan your entries risk

award and upside price Target next let's

talk about planning for these entries

you're not buying a breakout on this

particular strategy you're buying the

Breakthrough of the key level

consolidation and you're watching a pull

back and slowly grind up higher that's

the reason you're going to see in my

live trading recording I use the five

minute chart as well as the two-minute

chart you'll see in a live trading

example that I'm not getting in at the

high of the day breakout I'm buying on

these little pullbacks and 97 vwat

reclaim and once it starts consolidating

over n that $99 area and then selling

into the breakout and this is how you

can also plan to have a decent risk word

when you're buying the breakout a lot of

times once the stock breaks out let's

say at right here at 101s you're

immediately running into resistance a

dollar or $2 doll later you don't have

time to let this thing reclaim vwap

reclaim pre-market highs and slowly

Trend up okay enough talking now let's

dive into this live trading example of

how I executed this particular strategy

on two different trades and made over

$7,000 in 30 minutes we're going to talk

about commentary on the two stocks and

my executions you're going to see my

entry stop loss as well as profit Target

and how I read price action to stay in a

winner and let it work so you can see

over here Market had just opened it's

9:30 a.m. Market time you can see ddog

2-minute chart at the bottom here you

can see I I got in one once the stock

test that vwap area you know the

pre-market vwap we talked about earlier

at around 97 80s I started in with 1,000

shares now my plan is to slowly add into

it uh my starter size on this will

actually be 500 shares but uh I think

today I'm feeling quite good about the

stock fast forward you know a couple

minutes later well only about 2 minutes

later you can see we're still teetering

around the

9740 area I'm down about 40 cents but

I'm not panicking and looking at the

stock looking at if we're going to hold

that premarket vwap or are we actually

going to test that key level I planned

out at $96 you can you can see I have an

Ord sitting there seeing if I'm going to

get

filled fast forward a little bit you can

see we're still trading around that $97

area with a small pull back here and

there by one point but once again this

ddog moves in big ranges you cannot be

risking just a

dollar and it only went down to 96 you

know 40s for a split second let's see

does it break down or does it slowly

consolidate and reclaim

you can see on the top I like to switch

back and forth between the 2 minute and

the 5 minute chart on the top over here

you can see I'm looking at a two-minute

chart I'm looking at okay are we really

selling off or are we just slowly

holding that you know pre-market support

area around

$96 you can see I'm trying to see if I

can like just add a little bit down here

at $96 on the five minute chart you can

and as well as the two-minute charts you

can see little Wicks at the bottom of

the candle getting bought back up to me

that's a bullish sign especially for a

stock that has such a strong Catalyst of

earnings beat we are testing that vwap

area on the 2-minute chart so my starter

size is usually 500 shares you're going

to see me trim it down from 1,000 down

to 500 just to be safe after all we're

still within 10 minutes of the market

open at train 500 shares just to you

know reduce my risk a little bit during

this uncertain

period so I'm down to 500 sh 500 shares

at 9780 is

average I realized a loss of

$380 you can see at the bottom screen

here on the 5 minutes we immediately

jumping over vwap I added back in a

th000 shares that gave me an average of

9790 and we are already skipping up

that's the thing with this uh DDO G it's

a stock I've traded in the past when it

breaks out it kind of Skips in dollars

when it sells off it sells off slowly in

like 20 cents so I'm glad I got in you

can see on the top on the two-minute

chart we are already skipping through to

$99 that's how fast these things go

again bullish daily charts down here

that's really great to see you can see

on the daily chart you are breaking out

um through that $96 premarket you really

don't have any like strong resistance

until 101 102 is on the daily so that's

the the beauty of having a daily chart

on the side um as well as your intraday

chart so you can see the bigger picture

and we are already testing that $100

Mark uh I added some more over here as

you can see added up here uh 500 shares

now I have 2,000 shares at $98 and 38

average I sold a a little bit should

have held it but uh I I did sell 300

shares at around $100 because I think I

was looking at that pre-market

resistance right here you can see um on

the yellow line that pre-market

resistance trying to be safe but

sometimes uh you don't want to be too

conservative I sold a little bit more it

was a shame into that

180s no worries I still have a remainder

of, 1400 shares you we pulling back to

that $99 area but the action still holds

up quite well you can see this ddog

despite that $100 rejection you're not

getting like a like give you pause here

on the top two- minute chart you're

still yes you are below that $100 area

the resistance but uh you're holding up

the $99 quite quite all right um so

you're holding up you're not seeing like

a instant rejection down to vwap so to

me you know it's a good time the stock

needs time to slowly consolidate to go

up higher this is around the time I

noticed snow looking at that 57s um

that's the daily resistance as well as I

also do did a quick due diligence on the

Catalyst and the daily chart so identify

that as the same setup as ddog you can

see on the bottom leftand corner snow

daily chart once you clear through the

157 you have a lot of upside too 160

161 so added some more you can see added

back to 2,000 shares at

ddog at that $99 Mark now I have an

average of

$98 78 because I see it consolidate I

see a testing that premarket highs once

again what a

monster I'm up a little bit over un

realized 5

$4,000 with 2,000

shares and uh at the time Market's also

trending up quite nicely hope you guys

are following Along on this strategy and

using our strategy checklist on screen

here if you're enjoying the video so far

please remember to drop a like down

below I really appreciate it also

reminder that you can get a free weekly

watch list of all the stocks I'm

watching for the next week you can do

that by signing up with the email down

below fast forward I sold into the 101s

I believe yeah I sold into that 101s so

I realized a total of

$1,400 oh a little bit more now

realizing

$3,100 now I have a remainder of 730

shares on ddog with the same average as

before I think I just started managing

way too many positions as you can see I

have like Nvidia at the bottom and I was

also looking at snow but so fast forward

now you can see on the top window I'm

entering snow the exact same strategy as

d e OG entering only 500 shares same

strategy also a nice gapa reversal long

on the daily chart very strong markets

overall

today so you can see on the top here

after that 157's broken out of you're

upside to 161 so that's where I'm in

with 500 shares averaging about

15820 so I'm essentially risking a

dollar per share on snow and on the D OG

my average is so well now now I wouldn't

let this go into negative you can see

I'm just trying to let it work I'm being

patient on the five minute chart on ddog

trying to see like okay are you going to

consolidate and go higher ddog testing

High day

$180 we're pulling back a little bit on

both snow and DD I know a lot is

happening at the same time it's been a

while since I've had like four actually

three positions open at the same time um

so it was a it was a very exciting day

uh quick recap ddog I still have 700

shares um and the snow I still have the

500 shares I haven't sold any but I

think my target on this is 161 and both

of this the snow and ddog they are the

exact same strategy I wish I had

allocated the same amount of position

for snow but uh it's like like I said

it's hard for me to manage a lot of

positions at once so I usually choose to

focus on one uh ticker which is ddog and

then kind of like switch back and forth

and look at um snow Nvidia and like you

know all the other tickers at the bottom

so you can see I sold 200 shares on snow

at 160 so locking about two $2 per share

almost you can see I realized about

$340 and I still have unrealized

520 nice breakout on snow this one I

never got a chance to add um other than

my starter of 500 shares ddog is now

testing 102 is at the bottom window you

can see I'm looking to sell everything

into that 102's breakout snow is also

breaking out as well testing that 161s

like we talked about nice locking in

$4,000 on

ddog now I only have 300 Shar years

left snow is now on the top here one you

can see I'm trying to sell 162s I don't

know if I end up getting that but uh

it's getting there 160 170s is the ask

as you see here I mean these are very

very strong Candlestick Trends we're

talking about on the five minute chart

these are three four five green very

bullish candles that's how you read

price action you just sit here and you

let it work the candles are doing just

fine it's not choppy it's not pulling

back it just straight up slow and

steady okay ddog now testing 103s I

believe I'm going to get out all of it

right here yeah so I just sold the

remainder 300 shares at 103 on ddog

locking in

$5,800 on this particular stock let's

take a look at what I'm about to do with

snow because that's the exact same

strategy no I believe I'm going to try

to lock in snow at 1601

120s with a remainder of 300 shares sold

at 16120 so locking in $1,200 on snow so

together on these two tickers both are

the gapa reversal Lum strategy that is a

total of $7,000 profit on the day once

again on this particular strategy you're

looking for um an overnight Gap up like

you see on DD dog and you can see the

same thing on snow same overnight Gap up

from 144 over to

156 very positive Catalyst on both of

these tickers and you have a very

bullish daily chart and you're gapping

up over the recent daily resistance you

can see snow a huge gap up over that

know 150 156 is 158 and that gives you

decent upside all the way to these daily

resistance areas around 161 162 in

trading you really don't need to have

anything complicated like complicated

trading strategies it really does not

guarantee you better outcome or more

profits if anything that leads you to be

more confused so that's why I highly

recommend you to master these two

beginner trading setups practice how to

find the right stock suitable for these

strategies based on the criteria we

talked about today and always remember

to plan your risk work before entering

the trade and remember you can always

use paper trading to test out these

strategies first and get familiar with

the process and executions okay before

we move on to the next level of trading

strategies I'd like to ask you to share

your thoughts and personal takeaways

with me down in the comment section

below I really appreciate your Insight

and feedback moving on to the next level

of trading strategies I have two more

advanced trading setups for you to get

your feed wet in the realm of small cap

stocks these are the strategies that you

can use for a lot more volatile stocks

like GameStop AMC with the low float

stocks I'm sure you've probably seen

many day Traders showing big six or even

seven figure profits trading these meme

stocks and low float stocks but the key

difference between these profitable

Traders and the ones who lost really

badly in these short squeezes is their

experience in risk management and

knowing the right timing to trade these

kind of volatile stocks when you have

mastered risk management and how to

manage your emotions and discipline as a

Trader trading these kind of fast-paced

small cap stocks can help you achieve

higher returns with a lot less capital

and possibly less time required in front

of the screen let me ask you this

question if you have $1,000 would you

choose to buy 10 $100 apples and wait to

sell them at 101 to make a profit of $10

or would you rather buy a,1 apples and

sell them at $150 to gain $500 profits

in total that's the name of the game

with these small cap stocks trading

these cheaper small cap stocks is much

more Capital efficient than trading the

large cap stocks like Amazon and Google

of course the small cap stocks are

usually much more volatile and their

price move a lot faster in wide ranges

due to lower share float but that's the

reason having proper risk management and

prion sizing is even more important when

you're trading small cap stocks however

when you have proper risk management and

position sizing in place trading these

kind of small cap stocks can often give

you a much higher risky War ratio for

example risking $100 to make $500

potential profit so if You' been Trading

for a while and you understand how to

cut losses and manage your position

sizing with proper risk management then

I want to share with you these two of my

favorite small cap stock trading

strategies the first one is called the

short trap consolidation loan setup the

second the back holder short selding

setup again I cannot stress this enough

the reason why I consider these two

particular strategies more advanced is

because you need to be very disciplined

and very selective

and very matured in terms of risk

management and following your rules

because once again you are trading the

risky volatile lowf float small cap

stocks so just make sure you're actually

paying attention to this portion of the

strategy criteria and especially risk

management okay with all that disclaimer

aside let's start with a short trap

consolidation L strategy the US Stock

Market has been hitting new oldtime

highs in the past past couple of weeks

the S&P 500 is a multiple months of

bullish Trend and we've been seeing many

smoke cap stocks that surged hundreds or

even thousands of percent in a single

day in this video I'm going to share

with you how to find and trade short

squeezes before they go to the Moon it

really is a great time to be trading and

an even better time for new traders to

get started however I'm sure a lot of

you are wondering how exact exactly do

you find these profitable trading

opportunities in this market this year

so far we've been very very blessed with

multiple crazy runners in a single week

providing us so much

opportunities but in order to be

profitable as a Trader you need to know

how to choose the right kind of stocks

to trade and most important of all how

to recognize a repeatable pattern I'm

sure many of you eventually want to

master entries and ex it for your

strategies so you can rinse and repeat

to do so you must be able to recognize

charts patterns and setups there's no

other way around it hm maybe the only

other way is to smash the like button

and Make It Rain

Lamborghinis in this video I'll use my

own trade examples to explain a

repeatable process that you can learn to

find and trade the hottest stocks in the

market you are going to learn the short

squeeze chart pattern and how you can

find the pattern early on the premarket

criteria I use to find the right kind of

stocks to trade while Trader psychology

news Catalyst and technical analysis are

all closely related and how I determine

whether to go long or short a stock

based on my criteria and the best part

is that I have both winning and losing

examples to show you later in the video

so you can learn from the ideal and the

losing scenarios as you know no strategy

out there works 100% of the time but if

you have one though let me know let's

begin with everyone's favorite the short

squeeze charts pattern every other day

in the stock market there's news or

press release that drives a company's

stock price to Gap up significantly

during pre-market hours and sometimes

these Runners can Gap up up a lot even

without news short sellers tend to pay

attention to the stocks with highest

percentage increase also known as the

top gainers and most of the time these

top gainers are low float small cap

stocks from smaller companies with very

weak

fundamentals not only do they not have

good financial statements to show the

news catalysts are probably ambiguous or

sometimes recycled from the past

these kind of stocks can easily get

overcrowded with short sellers

especially when the shares Too Short are

easy to borrow or cheap to borrow as

Short Selling has become so popular

nowadays you probably notice a lot more

short squeezes on these kind of small

cap low float socks especially the ones

with poor

fundamentals and in terms of price

action you can identify the price levels

which short sellers are most most likely

trapped by looking at where the stocks

consolidating usually multiple times

that starts with looking at this really

fun stock Hollow you can see this huge

parabolic daily charts here uh the stock

came from about like $4 came all the way

between 20s broke above the 42s 50s and

close to

$100 you can see it's been through

multiple days of massive short squeezes

recently with no no actual news whenever

you see a small cap stock that's a top

Gainer on the day with no actual news

it's very tempting for short sellers now

I want to show you how you can identify

a potential short squeeze chart pattern

before it happens so let's take a look

at the first day this thing gapped up uh

by the way with no news Okay on this

particular day when the stock went from

over $4 to close to $15 at the end of

the day you can see just looking at the

intraday charts here you can see

pre-market missing started gaining some

Traction in terms of volume into the

open now pre-market high is this 390

Mark okay on the stock a lot of times

that pre-market highs is going to be the

first sign of a bullish strength if the

stock is able to break above it and hold

and continue trending up now you can see

the stock did exactly that broke above

the 390s pre-market at around U 950s and

never looked back created higher lows

and higher highs um so besides the

uptrend another key you can identify

here is that it never actually created

any drastic selloff it just kept on

holding that um steady five minute Trend

this is the five minute chart you can

see it keeps on making steady slow new

highs pulled back but you're holding

this really really distinct um up Trend

the entire day if you line up this line

all the lows from this lower day all the

way to the in the middle to the

afternoon it's a very clear

uptrend I think what's even more

dangerous of course now we reviewing

this in hindsight but you can learn all

of these bits and pieces for next time

is that the stock was relatively easy to

borrow there was a lot of locates

available for short Sellers and they

were extremely cheap as well some for

for less than 1 cent per share so a lot

of times you can see this is how they

get you um the stocks just steadily

uptrend all day no drastic pullback so

that means none of the short sellers

were kind of let out they just kept on

adding adding adding as a stock broke

through multiple daily resistance levels

you can see stock broke through that

770s 10 and $12 and never had a huge

pullback so you know this thing is piled

on with short sellers so we just talked

about the pre-market highs key level

that's going to be the first important

key level for you to identify potential

short squeezes now the next level to

remember is the previous day's highs for

small cap stocks I've identify this

pattern again and again whenever it

breaks through the previous day's higher

day whether it's a spike or a clear

breakout you usually get a huge volume

coming in you know a lot of short

sellers getting squee out new buyers

breakout buyers coming in to buy a lot

of times that's where you get a huge

Spike after the break of the previous

day higher day so you can see the exact

same thing here after this thing kind of

pulled back a couple of days on daily

charts you can see it Formed that huge

Spike on The Daily charts here um 40 90s

just call it 41 now this huge breakout

day where the stock broke through $41

and went close to $100 that happened

happened when that $41 level this day's

higher day and this day's higher day

lines up with this particular days

pre-market highs you can see right here

pre-market highs is trading near that

$41 level and at the open pretty much

once this thing clears through that $41

then you have a huge VAP hug you can see

stock Consolidated around this vwap area

and then you get a huge squeeze to

$95 recognize in this chart pattern is

almost an essential skill that most day

Traders need to have especially if

you're trading price action if you're a

long buas Trader you want to spot the

short trap consolidation and size in to

maximize the potential return of your

winning trades so again two key levels

to keep in mind pre-market highs and the

previous days higher day so my own trade

on Hollow that I do want to go over

actually happens on the second day of

this huge gap up you can see the stock

actually gapped up after that $12 broke

out went all the way to that $41 key

level we talked about pull back and

started consolidating premarket this is

where I got long premarket thinking that

we're going to test that shirt that $41

High a day and continue to new highs

this kind of charts pattern is actually

one of my favorite to go long sometimes

pre-market

after seeing a lot of shorts have been

trapped either previously or the day

before so that's the reason I got in at

$30 on premarket on day two of the move

because I saw that day one a lot of

shorts are still trapped sure a lot of

people got let out after hours causing

the huge squeeze but I think premarket

it looked like it was consolidating for

another squeeze move and you can see I

was only about half correct on a thesis

you can see pree Market we did

consolidate around a lot of higher lows

pre market holding at

2560 and especially if you can you can

see that $30 channel here um once this

level keeps on holding for a couple of

times I did get AIM around $30 thinking

we're going to test at 41s again which

yes we did uh but right after we spiked

to that $41 level we immediately sold

off and it was actually holded down

multiple times so as you can see from my

execution chart I did sell some into

that $41 Spike but I was really trying

to hold at least half of it for um a

much bigger move to the upside so just

keep in mind whether you are trading

this short squeeze chart pattern on the

first day or the second day like I did

or premarket the key is to identify

whether there's enough shorts that's

trapped inside the stock that can help

you squeeze a stock even higher and

that's the reason I didn't go short on

the second day uh I've noticed that a

lot of these low floats Runners they're

going up for three four five days

straight before the eventual unwind so

it's actually a very dangerous time to

go Short Selling too early on remember

you got to adapt right if it's too early

to short not ideal to short then go long

until it's suitable for short selling so

here on the screen I have a few more

chart examples for you if you want to

practice and familiarize yourself with

this specific short squeeze chart

pattern and my recommendation is to use

the one minute or twom minute intraday

chart besides technical analysis and

chart pattern a key component of a good

trading strategy is a stock selection

criteria this is especially true for

small cap stocks you must learn how to

choose the right kind the stocks to

trade with your strategy do you remember

these video interviews I've done with

millionaire day Traders many of them

talked about tracking and analyzing

stock statistics such as volume float

initial market cap range percentages and

so much more you may not like numbers

and that's okay because I definitely

don't but you should at least have a

general idea of what kind of stocks you

should be trading with your setup don't

don't worry I'm going to give you a

cheat sheet to help you find stocks that

could potentially squeeze and run

hundreds of per. and I'm not going to

charge you $10 for the secret stock

criteria recipe all I'm asking for is a

gentle tap on the like button

fundamentally we're looking for low

float small cap stocks with fresh news

Catalyst ideally one that's gone on with

the current theme for example AI

artificial int intelligence has been

very hot lately so a lot of smoke cap

stocks that's related to that category

are likely going to run so you're going

to want to scan for stocks with a market

cap that's below 1 billion remember

you're looking for small cap stocks so

if you look at my configuration you can

see that I'm looking for stocks below 1

billion market cap with no minimum

filter and for volume you want to see at

least 1 million shares traded pre-market

it's okay to scam for a little bit lower

like I did only 20,000 but again when

I'm actually choosing a stock to trade I

want to trade these ones that have over

a million shares traded and as for float

I want to make sure ideally I have

something lower than 10 million to

ensure that it has the range to go and

can create a lot of volatility so

besides market cap volume and Float the

next important thing is to look for Gap

up percentage

now this really depends on the cycle of

small cap stocks that we're in currently

we're seeing a lot of stocks gapping up

above 80% 90% And even hundreds of

percent so you can see on the scanner

right now you're seeing some stocks

gapping up above 90% yesterday we had

200% gainers now that's the current hot

cycle we're in so as long as you set a

filter for a minimum of 20% you should

be pretty good for a small cap stock

next I do have a golden tip for you guys

and take note you should also have a way

to check whether the stock is easy to

borrow or hard to borrow remember

earlier we talked about the reason a lot

of these small cap stocks can trap a lot

and then squeeze up higher is because

there's a lot of shorts available to

borrow for the short sellers so that

means if a stock is easy to borrow or

cheap to borrow and it's trading a lot

of volume and has really low float

there's a good chance that the stock

could keep on squeezing up higher again

it's not guaranteed but it's a very good

indicator to look for now in terms of

how to check whether a stock is easy to

borrow or hard to borrow and the cost is

that's the reason a lot of pro Traders

have multiple brokerage accounts that's

number one number two is being in a

trading Community it's very easy to

check hey how much is ABC costing at

brokerage a BC you can compare and

contrast very easily a simple way to

check is also on the actual trading

platform so you can see this is Dash

Trader that's the one I use with

Centerpoint Securities if you look at

the Montage window if you have htb that

means the stock is hard to borrow then

you have to actually go in to locate

window and look at how much the cost is

per share now if you look at the stock

Nvidia s over here that means it's easy

to borrow means it's free to borrow

essentially so those are the few simple

ways you can use to check whether a

stock is easy to borrow or hard to

borrow and what are the likelyhood of

these lowf flow stocks squeezing up

higher now that you've learned how to

recognize a highly repeatable short

squeeze pattern and how to find this

kind of stock yourself it is now up to

you to intern analyze what you learned

and create an entry and exit strategy

that works for you that's why the next

topic I want to talk about is knowing

the best entry timing and Market

environment for your strategies I'm

going to use my own trading style for

your reference I have a few sets of

trading strategies and some Traders will

call them different playbooks when it

comes to trading small cap gappers I

also have a strategy that focuses on

Short Selling the stock on the day it

gaps up now you might be wondering why

didn't I short sell Hollow so the key

differentiator for me to decide whether

to go long or short or avoid the small

cap gapper it's no longer about the

Catalyst that used to be the case prior

to

2023 but nowadays as you can see we have

Runners with no news flying to the moon

now the main differentiator I look for

when decided to go long or to go short

is number one whether there's a lot of

shorts already trapped in the stock and

number two does the daily time frame

show a bag holder daily chart again

we're talking about patn recognition and

Trader psychology behind the technical

patterns so let me explain this bag

holder daily chart pattern to you using

this particular stock

dtss so this is the daily charts of dtss

the stock in question here and the day I

traded it is this particular day over

here February 14th I spent it with my

favorite Valentine the stock market

anyways um you can see the reason I'm

more short buyers on the stock is the

long-term downtrend it's had you can see

this is actually the stock I've traded

many many times in the past it's always

a pump and dump uh it's very apparent

for the daily chart you can see stock

gaps up sells off over here as well this

is back in like 2021 gaps up sells off

um a lot of times um you can see this

here in particular here Spike and sold

off over here as well in here so this is

what we call a long-term downtrending

daily chart the stock I forgot to

mention the stock Al also did multiple

reverse splits um in order to prop the

share prices up

um and whenever you have something like

this long-term downtrending multiple

reverse splits and uh that's where you

have a lot of bag holders holding the

stock bag holders are basically people

who have bought the stock high and

refusing to cut losses so I'm sure

there's a lot of people are holding a

stock at $40 $51 and above and again

once again the pattern recognition theme

comes back again and again whether you

are long biased or short buyers like

this one the stock I've seen this break

out and sell off the entire gains many

times in the last eight nine years of my

trading career so that creates a natural

bias for the stock now that doesn't mean

I'm guaranteed to make money on the

stock despite knowing the back holder

Short Selling strategy yeah because long

story short I actually lost money on the

stock um what happened is I was actually

way too early you see dtss despite the

long-term back holder chart despite all

the failed breakouts there's one thing

it does really well when it squeezes

because everyone's so short biased

because the float is so low it's only

one million shares float and despite the

fact that there's no Catalyst for the

run it can still squeeze from you know

$6 as you can see on the intraday chart

all the way to

$20 so I definitely got squee

I want to use my losing trade on dtss to

show you the importance of choosing the

right kind of stocks to trade for your

particular setup and more importantly

knowing the right timing and Ideal

Market environment for your particular

strategy when I was shorting dtss last

week that was when all the lowf flow

stocks whether this news or not was

flying to the Moon everything was going

200 300 400%

so that was a market favoring the Longs

I definitely jumped the gun way too soon

on the short side again there's always a

lesson to be learned this loss I think

about $3,000 $4,000 loss is relatively

small percentage of my trading account

but without proper risk management this

could have gone really really badly so

as promised we went over both my winning

trades and the losing trades on this

topic of short squeeze charts pattern

recognition and stock selection once

again the only way to achieve

consistency in trading is to find a

pattern that's repeatable and to choose

the right market for your particular

strategy now I want to share with you a

crucial piece of information before you

start to think that it's very easy to

buy low and sell high in the realm of

small cap stocks statistically speaking

most of the small cap stocks that Gap up

during the morning pre-market they will

start selling off after the markets

opened and they usually close red at the

end of the day the reason is that most

small cap stocks have really weak

fundamentals in financial records so

unlike the large cap stocks like Nvidia

or apple no one actually buys these

small cap stocks to hold for the long

term most Market participants want to

make their profits quick and get rid of

the Shar fast and that's why the prices

for the small cap stocks they often fall

quickly within a day or two after the

huge run so most of the time day Traders

including myself were looking for short

selling opportunities in these kind of

trashy stocks and more specifically

looking for historical resistance levels

on the daily chart where the back

holders are most likely going to sell

and dump their shares let me cue your

favorite meme on this channel now

imagine imaginary ex-husband Mike bag

holder and let's dive into this bag

holder short

strategy I specifically want to go over

two small cap low float stocks I traded

there's a common theme that you will

soon observe in both of these trades

which is how I wait for the right timing

to execute my entries in this video I

want to share a very crucial technique

with you guys if you want to succeed in

trading how to time your entry to make

your profits fast and reduce stress

either during premarket or normal

trading hours how to analyze small cap

stocks with various data points as your

Edge my go-to strategy for trading small

cap stocks and how I find these stocks

to trade with my

strategy so if you want to learn the

sniper entry trading technique including

when to enter your trades premarket then

make sure to smash the Lamborghini like

button

okay I'm just kidding I'll never tell

you that there is a way to get the

perfect entry in every single trade but

I will teach you some realistic

technical analysis techniques that you

can use to improve your entry and timing

so without further Ado let's get started

the first concept that I want you to

pick up today is knowing your Edge as a

Trader if you don't know what that means

you probably are not ready to trade a

live account let me keep it simple for

you if you want to make trading a

consistent career rather than a get-rich

quick scheme you should start by

focusing on mastering one trading

strategy rather than trading four or

five different kind of setups all at

once some of you may call this a

Playbook a pattern or a trading setup my

point is that you should know what your

focus is every single morning when you

wake up to look for stocks to trade if

you are a breakout long Trader then

focus on mastering ability to find the

right place and the timing to breakout

entries or if you are a reversal Trader

then focus on finding the reversal

patterns to trade midday after almost 10

years of trading I've developed an edge

insuring the small cap stocks I have my

entry criteria and I will specifically

look for these kind of stocks that fit

my criteria to trade this is the real

process of what I do daytoday as a

Trader you should not just wake up and

open your trading platform and start

trading random tickers that other people

are talking about that's what we call

being a sheep and as we all should know

sheep get slaughtered there's no Edge in

that okay now that you understand the

importance of knowing your Edge and

knowing which kind of strategies to

focus on the next part of the video I'll

walk you through my trading strategy the

bag holder short setup for smoke cap

stock

the back holder short strategy is

essentially a highly repeatable setup

that I've used throughout my trading

career it's specifically designed for

trading stocks that very small cap low

float High trading volume and high Gap

up percentage either dream pre-market or

the regular trading hours I named this

the bag holder short because this

strategy requires a clear and strong

technical resistance level on the daily

chart

or as many of you may call it the supply

Zone we'll go through a detailed

scanning criteria for these stocks in

just a little bit but whenever you see

the stock price approach a daily extreme

resistance level the back holders who's

been losing and holding on to those

losing positions for days weeks or

months they finally get the chance to

start selling their bags of course

that's with a hope of recovering some of

their losses this kind of selling

pressure from the bag holders will

likely cause the stock price to go down

of course that's also on top of even

bigger selling pressure from insiders

debt holders other dilution

activities these are very common

scenarios we see with small cap stocks

especially those stocks with long-term

downtrending daily charts like this so

now that you understand the psychology

and the thesis behind this Bolder short

strategy the next crucial thing you need

to learn is how to find the right stocks

to trade so here's how I scan for stocks

to trade for this particular strategy on

the screen right now you're looking at

my stock scanner stocks STX I have two

different scans for this particular

strategy one is pre-market scanning and

one is during the middle of the day and

even after hours now so we'll start with

the pre-market Gap scan so you can see

my pre-market Gap scan over here if you

see my filters I'm scanning for um

stocks greater than

one50 um with volume over 200k this is

pre-market okay and then I want to see

at least a 10% Gap up and market cap I'm

looking for stocks that's under 800

million so essentially I'm scanning for

small cap stocks so once you can see the

results here I can sort it by Gap

percentage so we are looking at the

highest percentage gappers on the day

you can see all these different um

results here and I'll go through what I

look for on the chart in just a second

but let me show you what I do midday

during the middle of the day I change my

scan criteria to something different

here so I have a midday scan over here

for small caps if you look at this I'm

scanning for still stocks above a dollar

or $150 um volume midday I'm looking for

500k cuz in the middle of a days a lot

of time you get new runners in during

the the lunch hours so I'm keeping my

filters quite low percentage I'm still

looking for 10% and 800 mil market cap

once again and since right now it's

after hours I'm casting a wider net I'm

using an after hour scan so I'm scanning

for stocks um that have a change

percentage of more than 10% so I'm

sorting everything by change percentage

here and with much lower volume criteria

for after hour scanning so so we can

take a look at all these different

charts here BF

so you can see this is indeed also a bag

holder chart for sure if you zoom out on

the daily chart you can see this

particular stock it's been selling off

ever since IPO around $6 or five five or

$6 and since then it's sold off to you

know just a little bit of above a dollar

um today probably has some sort of

catalyst and stock ramped up to the

Daily resistance areas around the 250s

260s now while I didn't trade this

particular stock today the reason it's

still very useful to do the scan after

hours is that you can plan for your

trade the next day so tomorrow morning

if this inest the same resistant that's

say 240s area once again 240s or even

the intraday levels around the 220s over

here I will look for um another short

using this particular strategy so BF is

indeed the bod short MTC let's take a

look so chartwise you can see this thing

is actually a breakout chart so I would

be cautious shorting this one in

particular even though you do have some

small resistance around the 380s area so

if you look at MTC even though it's a

pretty big float almost 200 million the

stock is still breaking out so that

tells you that there's some sort of

catalyst that's quite significant um so

I would be cautious trying to short this

one this one I would not show this so

you can see we have like a a lot of

these like $1 stocks Wii WI me this is

also a back holder chart cuz I remember

shorting this in the past before if you

zoom out long-term back holder chart uh

you can see this day breakout you're

testing a lot of resistance around the

uh 120 and next you're going to to go to

a 140 area so this is another potential

for the back holder short setup um let's

look for something slightly more

expensive perhaps M and Mullen I know

this this um this stock you know very

dilutive as you can see multiple reverse

splits you can see a split here so you

can see the stock had a long history of

selling off um on this and also recently

you can see a lot of resistance after

today's breakout we have some resistance

on the 550s over here again $8 660s this

is a long-term dilutive stock um I just

remember this thing R rang up during

20120 and since then it's been selling

off so lot of back holders on this so

this is also another potential for the

back holder short let's look at a couple

here

CZ this one is indeed the back holder

short again I'm quite impressed that

this thing actually held the gains on

today um so if you look at this stock

you're now testing the resistance around

the $13 and also the $16 range um so

those two areas will be areas I be

looking to short into during the market

hours not after hours obviously but if

you zoom out the daily chart again

long-term dilutive and downtrending

charts so these are the charts you want

to be careful of if you are long biased

and if you're short biased then these

would be the kind of chart you want to

look for as candidate to short into so

yeah some more key metrics you want to

look at um on the scanner to make sure

you are targeting the right kind of

stocks to trade for this particular

strategy um is another really important

one is Insider ownership so inside

ownership essentially tells you how much

of the shares available is held by

people inside the company CEOs board of

directors um Etc so you want to know

that especially if you're trading small

cap stocks because whenever we see high

Insider ownership on small cap stocks

under 800 million there tend to be

whenever the stocks break out usually on

one day day one day two or day three

you'll start to see a lot of selling

pressure because smoke cap stocks these

insiders they finally have a chance to

sell some stock to make some money right

if you think about it most of small cap

stocks they're not profitable so the

only way for them to make money the

Insiders to make money is to sell paper

which is sell the their shares you know

imagine if you had a stock that was only

a couple dollars before a couple days

ago like you know for example this one

um BF which we saw ear had a a high

Insider ownership over here you can see

anywhere around 50% you know over 40 50%

that's when Insider ownership starts

become really really high again not

always right we're talking about stock

market after all nothing is guaranteed

but you can learn all these important

data points to help you make the best

decisions when you are picking which

kind of stocks to trade on the long side

or the short side and another metric you

want to be aware of is IO which stands

for institutional ownership stocks with

high institutional ownership above 25

30% they either trade in a tight range

so they don't really move that much

after the initial 30 minutes of the day

or they are one directional because they

can be very very controlled by the

institutions who own the stock if they

choose for the stock to not move that

day that the stock is not going to move

if they choose for the stock to Rally up

like they as in they're buying more

shares the stock is going to rally and

if they're selling more shares you bet

the stock is going to you know have a

beine straight down because institutions

they move the market so those are just

some small things to keep in mind when

you are trading small cap stocks you

know not only is the float important

market cap important you want to make

sure you have the Gap and the change

percentage as well as make note of the

inside own ownership as well as

institutional ownership the scanner you

just saw on screen is stocks STX my

proprietary scanner I wanted a scanner

that's very simple to use web based so I

can easily take it anywhere when I

travel and it's also available on your

phone so regardless of whether you're a

day trader or swing Trader full-time or

part-time you can easily find stocks to

trade and most importantly I wanted to

make a premium Scanner with accurate

Market data that's affordable for

everyone that's why I spent the last 6

months working with a team of developers

on stocks we're having an opening

promotion right now for up to 40% off

that's less than $42 per month so make

sure to check out the link down below or

on stocks St

ox. now that you know how to find stocks

that fits this back holder short

strategy let's dive into the first trade

example that have for you on this ticker

rent I made a relatively small amount of

profit slightly over

$2,000 however it was decent considering

the amount of time it took for me to

enter and exit this trade within 30

minutes after the open so on the screen

right now you're looking at rent this is

the stock I traded on this particular

day you can see this giant first red day

here that's the day I shorted the stock

and traded it on the downside

so let's just do some quick technical

analysis really quick chart analysis

like what we did earlier when we were

scanning for stocks to trade now why did

the stock catch my attention if you look

at the stock on the daily chart you can

see that prior to this huge breakout

here which I believe the Catalyst was

earnings and they're trying to do

something you know on the back end that

relates to AI you know all these small

cap stocks are jumping on a bandwagon

even though it's barely related to AI so

you can see stock breaks out you're

breaking through multiple daily

resistance so it's actually quite strong

over here I wouldn't short these small

cap stocks on the first day with um

earnings news but you know on the second

day or third day that's when I start

getting really interested on the short

side so you can see this thing know

broke through both of these resistance

levels like butter um first day I did

not trade the stock second day you can

see this thing spiked um no no broke

through the day before $24 Highs but it

was unable to hold the gains so that's

the reason you have these long tail um

upper wick on the daily chart so if you

go look at the actual intraday

chart you can see this is the hu second

day breakout here you can see you broke

through that higher day around $24 on

the second day broke through that's

great but then you actually slam back

down below that $24 once again and close

that lows so whenever you see this kind

of intraday chart where you break

through previous day higher day but you

cannot hold the gains you know there's

actually a lot of selling pressure um

once you broke out um if we check the

the inside ownership it'll be very

interesting to see whether Insider

ownership on rent was high at all I

don't quite remember but we can check in

just a second but that just helps with

your bearish thesis that the stock

eventually is going to sell off back to

they came from so anyways so that's the

reason I started looking at the short

side on the third day so after seeing

that wick on the first day no wick on

the second day especially when you

cannot hold that $24 level that's when

on the third day I got interested on the

short um so if we look at the intraday

chart on the third day this is the day I

shorted it so you have two green days um

before this so essentially when I look

at shorting these small cap stocks on

the back holder short um I'm looking at

most of the time looking for a sign of

the first red day to confirm my entry

meaning for the first this is the first

day after this huge breakout move that

the stock is unable to hold green on the

day so that's you know a lot of times

that's a signal for the longs to sell

the stock as well as you know you know

the early shorts they have already kind

of blown up so if you look at the

pre-market chart on that particular day

we're already under that $24 area but on

that day $24 is the key level I'm

looking for even though we never got to

24 I just St in a little bit pre-market

this is one of the rare times I trade

pre-market because your risk level no

makees sense like to pre market know

I'll start you know one quarter or 1

position around 22 and then I'm risking

at $24 or I'm leaving some room around

$24 to add it's so either a break a test

of 24 or a break of premarket low which

is this $20 area will trigger a

confirmation because once you break that

20 $20 area you're going red on the day

because this is also the previous day's

closing price a psychological level for

red to green or green to Red move now

downside this stock has a lot of

downside because just because how far

it's come remember if you zoom out on

the chart you can see this thing came

from at least

$16 and then before that came from 13

and then even $10 after the earnings

breakout and like I said earlier most of

the earnings runs for small cap stocks

most of the time okay not all the time

they give up most of the gains so that

theoretically this thing still has more

downside but not only that we have

downside to no 16 and then $14 and

potentially even lower that gives you

the risk word potential knowing that

okay you know I'm risking 24 and once it

breaks down 20 I'm risking $20 to

potentially make all the way down to 16

so that gives you $4 per share to the

downside if it breaks down

$20 okay so over here on my actual

execution chart you can see my entries

on schite you can see I started just

before Market open so just a little bit

pre-market added some around

$21 now this is one of the rare cases

where start premarket because number one

there's a lot of technical analysis

that's already been proven the supply

areas the support that's already been

proven the two days before that's the

first thing so I know very clearly what

my risk would be if I were to enter this

pre-market and number two this is

actually quite important because this is

the first day that there's such low

volume for the stock the last two days

like you know I don't have the

pre-market chart but the last two days

they were tra trading really really high

volume on the stock so what does that

mean if you are short buyers you know

that the interest on the stock has

already dwindled down and there was a I

remember this was a Monday so usually

when you have these Runners over the

weekend the second day or third day is

over the weekend people forget about

them so on this new day this no brand

new start to the week people already

were looking at other stocks to trade

they forgot about reent t so that's

another psychological reason why this

back holder short works so well number

one your trading stocks that people

forgot about so less buying pressure

number two the stock has already been so

extended and already failed to break out

the second day so you have proven Supply

area and number three you have a lot of

downside like we talked about earlier

after this thing goes you know Green to

Red know below that $20 area you have

downside to that $16 you can see this

daily support 16 you know 14s and then

potentially even towards that know 11 or

10 so you have a lot of downside so

that's just one of the very important

benefits of this particular strategy now

obviously the caveat is that you want to

be able to time your entry well which

I'm really happy I did for this one

because I did not touch a stock at all

on the first day and the second day so

just remember the first day may not

always be the best day to trade the

stock on the short site but the second

and the third day is usually where you

have your Edge as I mentioned earlier

knowing the entry timing that works for

your Edge in trading is crucial if you

want to become profitable I don't always

trade pre-market but when So Many

Factors like we talked about line up I

will take the trade on this rent trade

my entry timing was based on a thesis

that the stock was going to sell off at

the market open or soon after that and

end this bullish momentum once the stock

goes green to Red that confirms the

price action we need and we can slowly

add into a winning position and let it

ride out slowly fading into the lows I

hope that you're starting to get the

Knack of it don't worry if you're still

trying to digest the concept of Entry

timing criteria scanning and finding the

right stocks to trade because I have

another trade example to walk you

through this time I have a recorded

footage of this live trade and you'll be

able to see the trading process live are

you ready for some live trading action

please give me a gentle tap on the like

button of this video and comment more

trading Recaps to let me know if you

enjoy these kind of live trading

recording

commentaries the second trade I want to

show you is a similar bag holder short

strategy executed on W IA so the next

stock we're looking at at is W IA Wisa I

guess that's how we'll call it um so the

day I traded is this day in particular

um same thing right you notice I'm I'm

doing the same thing again that you saw

in the previous example I'm shorting on

the second or the third day now the

first day of the Run was this move I

think they just had a stock split that's

where you can see the S here I believe

that's stock split you can see one for

150 split so reverse split actually what

usually happens to reverse split stocks

is that you know their share size you

know the float reduced to very low

floats so maybe this one or two million

shares float but the price of a stock

increased so the market cap is still the

same but now the stock is now you can

see a $6 stock it was probably a penny

stock before with a lot more higher

float but that's the reason why a lot of

these stocks run is because they become

a lower float after the reverse split um

so you can see that they I traded this

day if you look at this like it doesn't

show on the daily chart but pre-market

the pre-market high was 1150 now I did

not trade this one premarket and I'll

tell you why and I wasn't even looking

at trading this in particular in

pre-market is because pre-market on this

second day this thing already broke

through yesterday's higher day so that

higher day yesterday was around this $8

Mark you know know $ 840 to be exact

it's already gapping up above

yesterday's high day so that's when I do

not touch the stock uh on the short side

pre-market on the second or the third

day unless the stock has already proven

to me that it's gapping down or it's you

know pre-market it's a lot lower than

yesterday's resistance then I do not

show the stock premarket trading for

that just too risky in my opinion if you

look at it look on the scan is that Wisa

is still you know a lower float stock 9

million market cap um you can see the

inside ownership only 10% so a lot less

than rent um so that's something to keep

in mind of it's definitely a small cap

stock so looking at the intraday chart

even though I did not trade this

pre-market and in hindsight that looked

like the perfect entry you know short $

but risk 1150 premar highs I did not

take it um I actually waited for the

open when the stock broke down that $10

Mark no that's way below 1150 that's

when I started a short um seeing that

there's a lot of selling pressure just

look at the volume at the open here I

use a 2 minute and the 5 minute chart um

side by side to look at the volume look

at the price action so when a stock

broke down that $10 Mark and essentially

underneath vwap as you will see on my

execution over here that's when I

started adding more so I'm adding along

the trend to the downside in this case

I'm not anticipating as much like I was

with rent so we're about to dive into a

live train trading recording for Wisa

just remember these key levels preik

highs 1150s that's also going to be the

rough risk $10 intraday and the

pre-market support once that breaks down

that confirms the trade and of course

the know vwap breakdown so you can see

on the screen here why is this bottom

chart here uh yeah Market just opened

but already had already entered you know

$10 short and was covering some just to

take some small profit around the 920s

area so a lot going on here I was like

struggling with a little bit of um

update on the settings but you can see I

was already short a, shares at $10 for

Wisa after the market open you can see

after the open the stock immediately

tanked so I was already up like 50 cents

on the stock 920s I'm trying to I'm

trying to take some profit covering up

some I'm also like struggling to locate

a little bit more shares for the stock

as

well uh yeah so I already realized about

$600 after the couple minutes after the

market open definitely uh got a little

bit flustered because I was having some

trouble locating more

shares so you can see on the 5 minute

chart stock is now bouncing off that

vwap that yellow line is vwap so I'm

looking to add backing around like $10

area as you can see so you can see I

shorted $10 around that 500 shares at

$10 so that gave me an average about

$109.99 again at this point the stock is

way below that prear high resistance of

1150s that's the ultimate risk you can

see really really big rejection so that

was a good entry at that $10 Mark I

added some more around

920s adding into that weakness shorting

into that weakness I think what

important to knowe is that each of these

little you know bounces the volume is a

lot lower than the selling so if you

look at down here Below on the

two-minute chart your bounces you have a

lot weaker volume on the two-minute

chart you have a little bit over like

600k volume which is you know compared

to the selling volume at the very open

it's a lot a lot weaker so that's what

you know gave me the conviction to keep

adding into it now you can see added

some more now I have about 1,000

shares um with 955s average I cut some

once it broke through that vwap so you

can see I trimmed another 500 shares

just in case this does like a crazy

nasty short squeeze reclaim even though

the price action was definitely weak for

the stock you can see I'm switching

between a 2-minute and a 5 minute chart

quite a bit the 5 minute chart lets me

see the bigger picture to see okay

whether the stock is actually forming

the downtrend or trying to double bottom

Etc so it's it's nice to switch time

frames to kind of get double

confirmation if you will you can see on

the 2- minute charts it looks like it's

trying to reclaim right but on the F

minute chart it's still weak so that's

why you you it's a good idea to take a

look at both of these time frames I'm

trying to add back more you can see it's

now cracking $9 that's almost like you

know the pre-market low support is

around this $9 mark so if that flushes

you're going to get like a big downside

move um for the stock fast forward a

little bit more after a lot of bearish

consolidation below vwap you can see now

we're finally flushing $9 once again

hopefully this is the Real Flush um I'm

now still holding 1100 shares not a lot

of shares average 920s on the stock at

the same time I'm also trading the exact

same strategy on Ka V

Cel um so that's the top chart over here

so yeah this is one of those strategies

where almost every day or every other

day you have a some candidates um to

trade so this is one of my um favorite

strategies this year okay finally you

have the rug pole you can see stock is

now down to 860s I cover some

small in hindsight you shouldn't really

have covered um cuz there's a lot more

downside to that you know 7even 50s area

but it is what it is so now I have about

900 shares 980 shares with 920s average

with some realized and half of it

unrealized you can see once I got into

this position I'm really not doing much

uh once I have a good average the stock

is now downtrending you know I'm really

trying to let it run as much as I could

to maximize your winners you want to

make sure you want to make sure you're

doing the opposite when it comes to

losers the losers you don't want to make

it run you want to cut it short but with

winners you want to see how low in this

case how low it goes if you're long on

the long side obviously you want to see

how high it goes but that's a key

difference between you know winning

Traders and losing Traders losing

Traders they're going to be they're

going to let the losers work because

they're holding that you'll come back

but they cut the winners short so you

want to make sure you know you're on the

the right side of you know being patient

let your winners run cut your losers

[Music]

short obviously like I'm not going to

keep risking that 1150s area anymore

that premar highs now I'm risking my

wrist to around vwap 940s and if it goes

to my average I'm going to trim some

break even so always move your your risk

down if you're short and the stock is

going in your direction or always move

your risk up if you're on the long side

so you can see stock is flushing down

new lows of the day reaching at $8 Mark

I think my target is around that

77507

area if we get there oo that's a huge

shop yeah I think it's going to hold to

the downside you can see that huge rug

pole this happens when you know you

don't have bids to support the stock and

the next bid is a lot lower that's where

you get like somebody hit the market

order to sell and you have to hit the

essentially the downside level to in

order to find enough buyers to buy a

stock so you can see the stock is not

holded so uh five minutes later the

stock just got un holded 776 you can see

I'm going to try to cover some here um I

covered some you know I realized about

$1,200 having another ,400 unrealized I

think I do try to let it work for like

the rest of a day but eventually I got

stopped out um it went to as low as $7

but I think I I got stopped out during

the middle of the day around that you

know 780s or something like that so yeah

this is the final chart over here as you

can see after the unhold I covered a

majority here and the stock did drip

lower but I never covered around like I

guess lower day was 680s I didn't cover

because from the action it just looked

like it's possible for the stock to go

all the way to bread on the day so I

held on to like the final I don't know

what you saw I think a final 500 shares

or something just to let a runner work I

did set an in the money stop around $8

so if the stock sold off to you know $6

great I make another $150 to the down

side now if I get stopped out then I

still you know stop in the money I still

end up making money on the on the trade

and you can see the stock eventually

kind of reclaimed took out my stop you

know sold off and then at the end of the

day like rallied um into the close so

it's a good thing to have

stops at the end of the day I made about

$3,000 on the day and

2700 or something like that 2400 was

from the stock Wisa on the B holder

short

strategy again this trade on weisa

Highlights the importance of knowing

your entry conditions and timing well

before you hit the trade even though you

saw on the recording and let the trade

run for a few hours longer during the

day I was still able to cover and take

profits quickly within the first 30

minutes of the Wisa short knowing that I

locked in some profit really helped me

think more rationally and re added on

the downside in the the money when the

stock broke vwap rejections which then

help me make more money as the stock

continue to sell off as long as it stays

in a downtrend and remember the most

important part to this back of the short

as you saw on WIA rent kavl and so many

of the other back holder shorts I've

traded the last two weeks the most

important part is finding the right

stocks to trade and waiting for the

perfect entry this back holder Short

Selling strategy has been working

extremely well in the last couple of

weeks during the cycle of small cap

Runners I've been trading the same setup

almost every single day on all these

lowf flow small cap gappers so make sure

you study the key takeaways today and

feel free to ask me any questions down

below all of the four strategies you

learned today they're taught in detail

in the humble Trader Community with

hundreds of like-minded traders who are

trading together every day in helping

each other improve from pre-market

preparation to strategy execution during

Market hours so if you're looking for a

real trading Community as well as

courses and mentorship then visit the

link down below to check out offerings

hopefully you enjoyed learning these

four strategies today if you did I think

you're going to like these other free

strategy crash course over here