In this video, we are going to be talking about the top three stocks that you need to know immediately going into this week based on either an FDA catalyst or an overreaction play to a previous catalyst. These, as always, are almost certainly stocks that are likely to provide great price action to trade off. of. Going into this week, last week we pointed out home suffered a massive overreaction and we loved top losers.

But the best overreaction corrections happened here and here. They both provided about 15 to 20 percent of upside a piece. But it is not all birds and roses. Of course, if you had bought in randomly, you would have had a bad time.

What does that mean? Charlie? Well, it means that if you didn't wait to buy in at confirmation and sell out at validation, you wouldn't have been able to take advantage of any of these moves. It's as simple as that. One more example that I will give you is a cue one that I tweeted about last week plce got beat down like a rabid dog provided a clean correction with buying any confirmation after being oversold, riding the price rights to validation and then selling out at an overbought validation point. Cookie-cutter This is the hem and the haw of trading.

So as always, I leave the choice up to you. Do you wait for confirmation? Do you wait for elevating factors to outweigh your deprecating factors? Or do you just randomly buy in hoping that the stock is going to go up. A lot of folks that reach out to me I'm like you are trading like a maniac and they can't explain why it is that they took positions where they took them. This means that you're trading like a maniac.

There's no other excuse for not knowing why you're entering or exiting a position. You're trading like a maniac. But anyways, before we get into it, the only thing I ask of you in return for this video. This ravishing video is that you hit that ravishing like button okay and quick plug.

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Which means if you use coupon code holiday at checkout you will get $75 off. Okay so if you start A.m. or and ran up like an inflamed banshee on its FDA approval on Friday This was another play that we talked about and covered in our Top Penny Stocks video released on December 1st. it had a pre anticipation run-up and then upon announcement turned inflamed.

but again I am NOT A magical garden gnome. You can look at me as a gnome if you'd like. But the reason that we called this out was because they had publicly announced they publicly announced that they have their approval decision and perhaps it could have gotten disapproved, in which case the actual opportunity would have been in the pre anticipation run-up itself. But this is why it's so important to trade like a spoiled brat.

We never know the results or the future for certain. so trade when the price action is so good that it convinces you to. just to reiterate this, if you flashback to Core, which was another one of our picks, core and Up literally several periods before it got disapproved, but then it got disapproved, right? So if you're waiting and holding and hoping with these stocks, you were approaching it in the wrong way. No one really should care if something gets approved or disapproved.

it's more likely to get approved once it's at the final stage. But who cares, right? We're trading off price action. We're not trading on predictions and Gamble's based on whether or not something's going to be approved or disapproved. But the question with a M or N.

Now, since we've already had this run-up and several opportunities come and pass, will we still have more opportunities approach in the market this week? Well, since every reaction in the stock market is an overreaction, we need to be careful. inflamed banshees tend to correct themselves just as fast once the Banshee itself gets burned out. Eventually, the batch is gonna be completely burnt because you can't just burn a banshee indefinitely. There's limited Banshee so there's only so much Banshee to burn.

So what is it that you should be looking for? Well, we need elevating factors at market open. If we see a strong showing of price strength and directional strength come Monday or a morning panic followed by Prai strike then we might have something to consider. But as always I will emphasize selling out at validation. I Understand that even though this was a cookie cutter play, some people are going to randomly buy and hold, but you need to stop doing this.

You need to have a clear plan with an entry point and exit point. It sounds repetitive, but confirmation and validation is a minimum with these types of opportunities. Trading is not about randomly buying in, but means taking advantage of these movements instead of just hoping that in the long run it's going to go up. That is investing.

This is a whole different niche. If you are the type that wants to buy something, sit on it, and then forget about it. for years, trading isn't for you. That's not what we as traders do.

Holding and hoping is not a strategy. it's stupidity. Okay, now VNC is one raunchy raccoon. After breaking into an upward direction, it ran pretty consistently and open pretty high before breaking down and overreacting downward.

Here's the thing though, have we found a bottom? We have a bit of a bearish three bar set up showing on me one hour and we clearly haven't found a bottom as of this point. So I'd caution against just buying it because it's been beat down. We need to see signs of a recovery. The key with overreactions is not just acknowledging that every reaction is an overreaction, but also understanding that we as traders don't know exactly when the overreaction has stopped.

so we need to make sure that we're seeing signs of a recovery. And when you have an already day-long extended break down like this, you need to see extended price strength. That means confirmation. That means oversold and increasing.

That means more elevating factors than deprecating factors. If Monday morning we see a break into an uptrend, I'm buying in only if we see solid confirmation and solid volume and then if it turns against me, we sell out at validation some overreaction plays. you're going to have a lot slower price action. Some plays like Sage that I alerted last week.

For folks who are in zip trader, you will have slow running up in opportunities, which case I can alert you and they'll still be some running up. but a lot of the other opportunities they run too quickly. So make sure that you know what it is that you are doing in terms of your trading plan. Trading plan: Infrequent sips of coffee very important.

Hmm. bueno. Okay another FDA approval place. So a Vdl will have their FDA announcement either today or tomorrow supposed to come out today but as of right now I haven't heard anything back.

So I wanted to depth on the details of this on my top Penny Stocks video that I released December first search penny stocks or caught penny stocks and I should come up first. but as of right now I don't have information as to whether they got approved or not but I really could not care less and the reason is because if it has an opportunity will have beautiful price action trade-off of and if it doesn't then we won't trade it. It's really as simple as that pre anticipation running had already happened. We had several clean days where we could buy in at conformation and simply ride be pry strength over the SML line selling out at validation I Love to see a repeat of this in terms of price strength and increased volume if we get a positive announcement, but the stock market doesn't really care what I'd like to see so instead we need to wait until the setup convinces us to buy into a position.

Ok and Xgn got beat down, hit overreaction lows and had a mini correction. then a continued sell-off I Feel conflicted about this one because we haven't yet seen any significant signs of price strength. So I am NOT going to include this in the official number account for this video? So think of this as a bonus, but it is worth watching for price strength. But please be patient folks.

A lot of people messaged me and they say Charlie you're too patient, you're just too patient Charlie Charlie It's really ridiculous. No one likes a patient Peter no one likes a patient Peter But the truth is folks, it's not that I'm really patient. it's just that there are so many different opportunities that we have no excuse to not trade like a spoiled brat. Make sure you're waiting for the position to convince you to get into it.

and I know there's sort of this attitude that it's like you're a good trader that you need to be able to trade any sort of setup. but for me, that's just not the reality. There's no ego boost that comes from being able to trade a flat set up. Ok, so to finish this video I am going to give you one more bonus review of another stock that we talked about in our Top Penny Stocks video.

So ITC I has been having pre anticipatory run ups leading up to there. Now it's meant later this month. One of the things to keep in mind though is that if it continues to appreciate leading up to the potential announcement, that means that it might end up completely over factoring in any positive announcement which could then lead to break down upon announcing A lot of folks struggle to understand why something might break down on positive news, but it's because people pre factor that in beforehand and it's something that you need to be cautious of. So with something like ITC I I need to see very, very strong price breaks I need to get into high probability setups, confirmation validation, elevating factors, oversold and increasing strong price strengths on the MACD so on and so forth.

and again, if you don't see a good set up, don't trade. I Have always had a strong preference for trading on setups that are strong, simple, and consistent. I Just don't get any extra satisfaction from trading on complicated patterns. It's fine if you do, but that's just not my style.

I Do know that this turns a lot of folks off because they're like, oh well. I Want to trade with hundreds of different indicators on my charts and hundreds of different pattern recognition tools and stuff of that nature, but to each their own. I Have no doubt that there are other traders out there that make more money than I Do trading in there and are able to take more of the move, but for me, it just doesn't make sense for me. I'd love to take a chunk of the move consistently and not focus and overwhelm myself with all of these different tools.

I like long run consistency I Don't really care about taking all of each individual move I Don't really care about how complicated the trade was. The only thing that matters to me is that I was able to get a result that I was aiming for. And that's not to say that you won't get results by complicating your training. It's just to say that for my own personality, I'd rather take a chunk of the move without the complexity without having tons of different spaghetti type indicators all over the chart.

I Think that some people love the thrill of the battle and they feel like if it's complicated, they have more thrill if they come out ahead. But for me I like to get results based on the most effective approach to do it right, which is the easiest way. Not easy, but the simplest way to get a result that I'm aiming for Anyways, folks, I Do hope that this video is helpful for you if you have any questions whatsoever. feel free to reach out to us below or join our free Zip Trader circle Facebook Group can also tweet me at zip Charlie We also have Zip Trader Year which is our premium course and structured environment that I work with each and every single day.

Anyways, have a great day folks and I'll see you in the next video.