Today we are going to be talking about the top three stocks for February 2020. But what? What is a top stock? Charlie? Is it a magical fairy that blesses you with stock market profits? No, no, it is not A top stock is simply an opportunity that provides price action to trade off of. And this could be for many reasons. For example, under Needs Catalyst an overreaction play an FDA approval or even doubting someone's vibe.

ha Elon Musk joke. Probably only half of you got that. But if you don't have any plan, any strategy, or any common sense, you're not going to be able to make profit off these moves. Simply buying in randomly to a stock isn't the way to make profit.

For example, one of my pics from last week's video and watch list was WWE Now WWE got beat down, had an overreaction correction and then after now Tumut got beat down again and yet another overreacting correction. Notice how it gets beat down to oversold and allows us to profit off the subsequent correction. This is what we love. Also, notice that if you had just randomly bought in and then randomly sold out, you would have been much less likely to make money.

That would be gambling. Unfortunately, this is the most popular strategy that I see. It's to buy a random stock because it feels like it's the right time and then to sell out because it feels like it's the right time. I Said this so often.

but the stock Market It does not care about your feelings. So don't be stupid and think that it does, folks. Okay, But with all that being said, the only thing that I ask of you in return for this video is that you hit that ravishing like button. Quick Plug at Zip Trader.

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Woo that special someone with your trading skills! Now Zgx has been pleasantly beaten down like a goose in a goose fire. You actually look at the long-term context of this. It's quite insane, folks. This nearly 40 percent jump downward put us back more than a year in terms of price, action, and place this way below previous support.

But the reason this actually happened is because Z G and X's drug had phase data results that weren't taken as exactly positive. In summary, the drug was being used to treat a certain type of seizure brought on by epilepsy, but the trials found that the drugs reduction in seizures was positive, but was fairly small in terms of reduction stand points and they said it wasn't really statistically significant, especially compared to their competitor GW pH So because investors didn't think it was positive enough, they decided to sell off nearly half of the share price. We love the emotional masses, however, findt helped out the drug in question. It's not a one-trick pony.

If you actually go and visit their website and you go to their pipeline, you can see that Fin Talpa it has multiple uses, one of which is going to be going through an FDA approval in March. So here we have an opportunity that has gotten beaten down beaten down folks on positive phase data. However, this drug is still in the running for a completely different purpose treatment and one that already went through the phase data trials and is now going to the last stage. So the question is, will this FDA approval be significant enough for investors to hype up the share price? Well, the lucky thing is we really don't have to guess because we have reference experience at this point.

on June 27th ZG and Ex ran up massively on news that they were back in the running for their FDA approval for Dravet Syndrome which again will take place in March. So common sense would say if investors were able to hype that decision and catalyze they run up so many months in advance, then an actual approval of the same drug for the same treatment would mean at least some of the same opportunity. But Charlie the stock market. It doesn't care about your common sense and that is true my son.

but it is an elevating factor and that's just one amongst many. So we now have a position that has $7 of upside just to return back to its previous lows and we already know that every reaction is an overreaction. So what is the plan of attack with this? Well, right now it's selling off? I Want to see it break out in priced ranks and provide us proof that it has the inner to sustain running up? One of the things that I'm a big fan of is proof and not promises. So many people message me may like Charlie Why would you wait for proof? Why not just buy in before so you can get slightly more upside? Well, because you want proof and not promises If you're just buying into any hold set up, what is actually driving the price drinks, how do you know when you're not going to get faked out, Do you want to lock up your capital and positions that just go flat? No.

That is why we want proof and not promises. The biggest risk with a lot of these positions is getting stuck in a position that just frankly doesn't move. So find opportunities that have price drivers to make it move and wait for confirmation. We always wait for confirmation.

Upward sentiment volume is a good indication of for example, a price driver, but there's other things as well you need to make sure that you're lining up. You're elevating factors and understanding which ones are clear price drivers for the stock. Okay, next, a Grx. Now a Grx was one of our top penny stocks from last week due to an FDA approval coming on the 16th.

Now, one of the things that I mentioned in that video was that I wanted a Gr X to get beat down I wanted it to cut back so we can get in at a better deal. That sort of happened I didn't exactly get my way, but we gave back enough ground to have the 6% pre anticipatory run on. Friday Now the question is going into this week and heading up to the approval is if we are going to have a continued pre anticipatory run-up. Remember when it comes to FDA approval plays or any sort of catalyst really, that the deal is that you're playing the pre anticipation run-up or you're playing the post reaction.

We never hold through it because we never really know if it's going to be positive or negative, but in this situation, we have five trading periods left until the actual FDA approval date if they're on time, and the fact that the approval is happening over the weekend next weekend could provide us some great opportunities leading up to the market closed on Friday. So again, we want price strength during this week. It may happen Tomorrow it may happen on Friday But make sure that you're waiting for the correct setup. If it doesn't happen, then wait for the post reaction, right? We never know for certain whether or not we're going to have the reaction we want.

All we know is that we have a huge catalyst coming up so we need to figure out hey, is this going to be a strong enough catalyst to move the price, action or do we have to wait till after? Or is it not a volume catalysts? But if you look back to previous patterns, it has spiked ability. It has a previous pattern of reacting to news like this. One of the things that I should mention is that I'm not super happy about where we are trading at. compared to where we were three months ago, it's gone up quite a bit and this just screams overextended to me.

It's probably factored in some bullish sentiment, so it is getting less likely for a pre-need sell-off just because we are getting closer to the announcement, so it wouldn't be shocking to see a sell-off after the approval. Even if it gets approved, we've seen tons of opportunities that they get approved and the pre anticipatory run-up killed all the upside after it got approved. So make sure that you understand that as you're going into these opportunities. But what all this means in effect is that you need to take time to actually learn about managing your risk and then managing your risk properly.

When you're entering these positions, the bare-bones minimum is validation and confirmation confirmation and validation. That's the bare minimum You need to have a clear entry point and you need to have a clear exit point. but there's other things as well: understanding what elevating factors lead you to taking a position and what deprecating factors lead you to exiting a position and having a clear running list of that at all times. Also, quick, unrelated rant.

It just came to my head for folks who were enjoying themselves, trading and they're really enjoying the challenge of growing your account. Don't get discouraged by the Debbie downers every single day. I'll go into my comment section and sometimes I'll even hear this from people in person. Harley You can't be happy and chase money I'd Rather have good kids I'd rather have you know a fulfilling life rather than chase money I Hear this all the time.

But why is it that going the normal route and working for a normal paycheck and a normal job? Why is that not considered chasing money? You're working for the paycheck. Why is that not considered chasing money and trading and many other fields. Money comes from being better at your craft. It comes from learning more skills.

It comes from experience improvement and hard work. So when someone says don't chase money, what they're really saying is don't better yourself, don't improve your life That's what they're saying. Why is it that you have to not like your job to not be accused of chasing money? I'll tell you why. It's because the sheep are upset that you're putting in more effort than they are.

Tons of people in this world get through each and every single day believing that everything that happens to them and everything that brought them to where they are was all a matter of chance. But it's not just chance, its chance and effort. And if you put effort in, you have a higher chance of getting what you want. So show the Sheep that you have discipline, to make your own luck, to make your own chance, and to build something that you're very proud of.

Never apologize for following something that you're passionate about. Okay, rant over. We're gonna go into six now. Fixes our volatility index now.

I Think that this is one of the most underrated opportunities that I cover on this channel I Usually post about it in our nightly watch list and I was introduced Racal Facebook Group but I've also talked about it on some of our top stock videos. However, Afix provides tons of great clean running up opportunities and not all of these are at market open. VIX is prone to having midday and later day run ups as well, and this provides more opportunities for folks who aren't able to trade market open or have different focuses that market open. A lot of people have a very heavy schedule or market up, but so they don't have as much dad to their plate.

But towards the end of the day they have more opportunities, but this fits in pretty well for people who are trying to trade a little bit later. But I will give you a warning. Contrary to popular opinion, Ch6 is not for swing trading. Some people say charlie you liar I made money swing trading sh mix but it's not meant for that purpose.

The leveraging power and formulations of six make it so that it has to go down over time. If you look at it from the long-term it has to force down because of the leveraging power. That's a constant deprecating factor that eats away at your share price every day that you hold it. Do you want to deal with that? I don't want to deal with that, so focus on day trading it okay.

and I do want to make a final point of this video to get you into next week. I'm sorry if this video is a little bit rant heavy, but I thought that this would help people get into the right mindset approaching this week. So what I want to finish this video off with is that if you're at this point where you're sort of feeling a little bit more demotivated in your trading career because everybody starts off trading, they're like super excited. like oh I could achieve all of this and they get really excited.

They learn a lot and then they start getting to be motivated. So if you're at this point we were getting be motivated and you're starting to feel like hey, maybe trading isn't my calling or it's not your passion, you need to understand that trading passion it develops over time. That's so true for really anything that you're going to learn, but passion. It develops over time and with passion.

It doesn't mean that you have to totally enjoy yourself every second that you're doing it, but it makes it so that you start loving the process and then just start really appreciating the game, growing your account. No one is born to love trading. It's something that comes over time. so don't give up on yourself just because your feelings are telling you that trading isn't for you.

Once you reach the right pathway with your trading and you start finding consistent progress, you start getting a lot more motivated because it becomes a little bit easier to actually see the results of your efforts. But in the beginning you don't really see those results because there's such a huge learning curve so just something to keep in mind if you are feeling a little bit demotivated. And I do hope that this reaches the right people anyways. folks, if you have any questions, you can feel free to reach out to us in the comment section below or join our free Facebook group zip Trader Circle if you'd like to work closer with us.

We do have Zip Trader here which is our premium course and private tutoring chat. We do have that Valentine's Day discount 10% off if you use coupon code Valentine at checkout. Also, if you're wondering what broker to trade these stocks on I Always like to send new traders over to Weibo They have a great platform both Boboli and desktop for new traders and if you sign up using our link below you will get not one, not one, but two free stocks Anyways, folks, have a great day and I'll see you in the next video. Also yes, that subscribe button is also quite ravishing.