So folks, the market has gotten beaten down like a rabid dog and it is time that I armed you the people with the tools to take advantage of it. As many of you know, traders benefit regardless of the direction of the market. So as long as there's massive fluctuation, we can make money. Thus, the sell-off is a great opportunity for us.

However, when I say opportunity I don't just mean randomly buying stocks because you feel that they've been discounted. Rather, I mean taking advantage of opportunities that go up during a sell-off and opportunities that are actually discounted, but are showing signs of recovering such as overreactions. In this video, we will be diving into how to make money off the misery, the misery of the masses people always say. But Charlie, think of the children.

But the stock market does not care about the weak. It is a playing field for the strong. And do you know what the strong always do? They always hit that ravishing like button. Ok so to start.

I Do want to take a moment to remind everybody that at Zip Trader, we aren't magical garden gnomes. Our job as traders is to locate and trade high probability setups. Yet I Know that a lot of people have decided to spend all of their time and resources researching the spread of viruses and its impact on the supply chain of many different companies. But again, there's a ton of moving factors here and even the best institutions.

They aren't able to get a complete picture because there's so many different moving factors. But for traders and our individual trading decisions, this doesn't really matter. As traders, we simply need to find current direction and identify the high probability setups that correspond with said direction. And luckily for us, there's really three big ways at which we can profit off down days in the market.

So the first one is by trading bearish positions on the market such as with inverse ETFs and volatility funds. The second is by taking advantage of stocks that are doing well, ones that are moving aggressively against the market. These are easy to find in a sea of red, but in this case, during this particular sell-off the ones that are doing the best or coronavirus stocks. No shocker there.

Now the third way is by taking advantage of discounted positions after they show signs of a recovery. Remember, we won't buy dead dogs on the side of the Street will wait for signs of a recovery. So starting with number one on Sunday before this week, the first opportunity that I talked about was Vic's now in that video on Sunday I explained that I chose fix. not because I magically knew that the overall market was going to go down the following day.

How can you predict that, right? We don't claim to predict anything. Instead, we follow high probability moves. So I chose fixed. Not because I knew there's going to be insane volatility in the market, but rather because it is a volatility tool that we could trade with when we do see a sharp change in direction.

So I knew that if we did see a sharp change in direction, which was highly likely, then VIX was the place to call in that video. I mentioned that if we see a downward direction on Monday then you should go and focus on finding clean confirmations onch fix. This is the strategy we employ with pretty much any opportunity finding clean run ups. It's pretty simple, right catalysts and clean run ups.

The catalyst here is a sharp change in direction and the run-up is confirmation - validation which by the way, a shameless plug. I Also post this at zip Charlie on Twitter and the market just so happened to dive and this created the opportunity where fix ran up over 30% on Monday and then nearly 20% on Tuesday. But again, if you didn't know how to take an entry point, it really didn't matter that it ran, not because you wouldn't have been able to catch it. how would you have been able to tell when it was going to run up? You couldn't And that's why you need to have a concrete entry point.

And that's fine because we often talk about the need to find clean confirmations and choose the right aggregation period if you need to have some roughing up on that. If you need to have some following up on that, you can watch one of our videos on clean confirmations. But If you had followed our rules for confirmation on either Monday or Tuesday just once once, then you could have conservatively caught any of these claim confirmation and validation moves. But remember, the goal of confirmation - validation is to buy in when we have that first candlestick above the a line and then sell out when we get validated out so that we can take actions to protect ourselves from the downside, but also profit off the upside because again, at the end of the day, trading is a probability game.

we need to avoid the downside and we need to profit off the upside. So how do you do both at the same time? Well, it's by buying into confirmation, which is buying into price breaks and then selling down what we no longer have said price prints doesn't that make sense? And this isn't a perfect strategy. This actually might make it so that you're selling too soon. you're selling slightly too soon, or even breaking up your positions such as in this case where we'd have to sell out and then rebuy and if you wanted to profit off the entire move.

But that's fine because it allows us to be safe. So many people say hey, but Charlie if I sold out of here, then all of a sudden I can't play the next move. Well, you can play the next move by simply buying in at the next confirmation point. And this isn't hindsight analysis, but rather things that we talked about in Sunday's video in terms of high probability setups.

but these aren't the only opportunities. and I didn't cover every opportunity in terms of inverse market funds. for example, if you are looking to take a short position on a large portion of the market, one of the best tools to do that is S. Triple Q.

Now as Q QQ allows you to easily buy in at confirmation of price break than right out until validation on the correct aggregation period. And the reason that I say that it allows you to is because it has a pattern of clean running up Again, Doesn't mean that it always has to, but things tend to repeat themselves in terms of high volatile market conditions. So the key is finding a clear direction and then trading said direction. What? I Recommend trading fix If volatility dies, Would I recommend trading as triple Q if the market starts correcting? Obviously not, but in terms of downward direction days, these are opportunities that can provide great growth in terms of account size.

but again, focus on getting clean running up and that means being able to pick a clear direction. Okay, so my second strategy is to play stocks that are rapidly moving against the market. In this case, that is the hype sector of Coronavirus. And actually I've had a running list on our free zip trader circle Facebook group for the last few weeks of stocks that are most impacted by Coronavirus and ones that I see the most opportunity in and this hasn't been a secret by any means.

I post them with my nightly watchlist which you can get for free by joining us at to tritter Circle below. but some of the big names that we covered were Codex and NV C Core Of and CEO CP and simply having a basic understanding that the market insecurity to the state is largely due to the Coronavirus and the unknown spread of it all of a sudden, you have this idea of where these hype sectors are and simply I dead to find them allows you to go and apply realistic trading techniques to them to take advantage of the moves if they have them. If they have the clear price drivers, you can use solid trading techniques to take advantage of the movements by buying in at price strength and selling out at price weakness, elevating and deprecating factors understanding what it is that's actually moving the price obviously in a hype cycler. The thing that's moving the price overall is the hype around having a drunk anything that touches Coronavirus in terms of potential cures.

those thoughts are going to have a lot more volume and if it has upward sentiment volume, then we have a hype sector stock that's providing a huge elevating factor that we can then go and trade off the technicals on. And this is of course, a bit of an oversimplification. There's a lot that goes into actually going and analyzing a position, but we cover that in depth throughout the channel and you're welcome to check out our getting started playlist if that's something that interests you. But at the end of the day, the goal is to stack your elevating factors and minimize the deprecating ones in a Down training market.

The whole market has a huge deprecating factor, but if you're training something that's going against the market all of a sudden, you're in this area where you have a huge elevating factor of trading into a hype sector and the third strategy is buying the dip. Now, this one is perhaps the most popular, and it's predicated on the idea that since the market tends to go up over time that bind, the dip always allows us to get in at a good deal. And that's true, at least historically. But the issue is that as traders, we can't afford to get stuck in a losing position.

That's not good trade management, that's not good risk management. and that's just not how we work. As traders buying something just because it's been broken down. We risk it continuing to get beaten down and locking up our capital.

And that hurts us both in locking up our capital, but also in losing capital size. So the rule with this is actually quite simple. and I'll demonstrate that with AMD only buy something if it's been beaten down and showing signs of recovery with elevating factors. This is important because while you can look at AMD and say whoopty-doo it's been beaten down.

If you just randomly bought on the first day of the beatdown, you would have had an issue. So wait for price strength, wait for elevating factors, and wait until it makes sense to actually enter a position. Pretty intuitive. Oh okay folks.

well this was meant to be a short video, but I do hope that it was helpful for you. The key point that I was trying to get across to everybody was that there are a ton of opportunities in both Up training markets and down training markets. You just need to know where to look and how to apply your skillset. And of course, for those of you wondering if we do continue to see a sell-off, that just means more bearish positions, right? Taking more various positions, taking situations where you have more deprecating factors as compared to elevating ones.

You just switch the script and you have a little bit different of a strategy in terms of where you're buying and selling, or if you're shorting or if you're buying a put option. It just depends on the types of positions that you're taking. But when it comes to a situation like this, we still have tons of opportunities in terms of just trading using the three strategies that I talked about on this, video. Anyways, folks, if you have any questions whatsoever, feel free to reach out to me in the comment section below or join me on zip Trader Circle if you're wondering what broker to trade these talks I Always like to send new traders over to Weeble.

They offer two free stocks just for signing up and using our link in the description below. Lastly, we also offers the Trader You, which is our premium course for folks who are looking to grow their account to forge growth in their account through a self-paced and structured roadmap. And I'll put that in the description below as well and it also allows you to work closer with me. Anyways, folks have a great day and I'll see you in the next video.

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