By the end of this video, you will have a concrete and step by step actionable plan that will allow you to start working towards making $100 consistently per day by trading earnings plays in this video. I'm going to start with teaching you how to find the opportunities, teaching you when to buy the opportunities, and teaching you when to sell the opportunities. And I'll be finishing the video with the math as to how much you're going to need to trade with and how often you're going to need to trade in order to make $100 per day. And the reason that I love the $100 per day threshold is because once you reach that, you can then begin to scale up and make more money.

Now as many of you know, I'm a huge fan of top losers and this play. This earnings play that we're going to be talking about is in one sentence: consistently taking advantage of plays that get beat down massively and then start to recover. I Love these place so much because they come in both day and swing varieties. That means that you could take advantage of the play, forget about it for a few days, and then come back to a profit.

Of course work will go into finding the correct opportunities and actually execute it into those correct opportunities, but the idea is the same nonetheless. You'll have some positions that take a few days, you'll have some positions that take a few weeks, and you'll have some positions that you trade intraday, but the goal is on average. The only thing that I ask in return is that you hit that ravishing like button. Also, one should never forget to subscribe for more short, sweet and simplified videos on how to trade the stock market.

Ok so to start. if someone put me in an underground Siberian dungeon and told me my only way out was to teach someone how to trade profitably, this is the strategy that I teach them. It's fast acting, easy enough to understand, and simple to implement. Ok, so step one involves acknowledging your long-lost love for top losers.

That means finding earnings plays that have just gotten beating down on a negative report. Now most of you know that I love top losers, but you can't just buy any old pop loser and you can't just buy it after got beat down. Now you can do this in multiple ways, but my favorite way is to go to the Stock Twits Earnings calendar. I will link to this in the description below, but once you get there, you can go ahead and scroll through the list, look at each and every single day for the previous five to ten days, and see which companies got beat down on their earnings.

There are more efficient ways to go about this, but this is how I do it. So if you want to do it another way and you know a better way, you can go ahead and do that, but go through the list and see which ones are making massive moves. As traders we just need volatility to trade off of. Now the key is finding stocks that have gotten beaten down but are now recovering.

I Always say you don't just buy dead dogs on the side of the street. You wait for signs of a recovery and this is ever so true with these earnings plays. And for these plays, try to keep the price at over $1 per share. Smaller caps are going to be more catalyst based and that's why I put them in the FDA approval category smaller than $1 It's just not great for trading unless you have a clear catalyst.

So I wouldn't recommend Overreaction Place to be below $1 But as you scroll through the wonderful list and go day by day by day, you'll find beautiful opportunities. You'll find ones like Coop that already has their reaction where the price action got beat down was oversold when it reached overreaction lows and then recovered and corrected ZM Zoom also had it where it got beat down on earnings hit. Overreaction Loves was oversold and then recovered. Fees are spent opportunities though and you're going to find a lot of these if you're going a little bit too far back, but different opportunities are going to take longer to recover so it is worth going at least a week or two back.

Five to ten days is a pretty good amount of time to go back and the more recent ones are gonna be below 5 days if you check. Yesterday he checked this morning. Stuff of that nature, you're going to find more recent place. You'll find ones like Fran that have just started to show some signs of correcting after getting beat down in over salt.

These are great. You'll find ones like Santa that are pretty clean as well. We love clean price action. You'll find ones like Home that make you feel right at home with their beautiful, consistent running up after their earnings beat down.

Kirk is another example beautiful overreaction even if it is a bit on the lower side. in terms of cap size, you'll also find ones like Expedia that got beat down for a while, reached its lows, and then began to recover. This shows that depending on the type of position you want to play, whether that be a longer term or a day position, you'll have opportunities. It's just a matter of finding the right setups, but you will also find varying levels of difficulty with these opportunities.

For example, this opportunity here got beat down in non-market hours and something like this is going to be harder trade-off of because though gap up at market open and you won't have much liquidity to actually traded during the pre market. so if you're finding a lot of opportunities like this, you can just discard them unless you have enough volume to trade a liquidity in the pre market, but usually you won't so I would just discard them. You'll find ones like DL TR that reached over reaction lows a week after breaking down and then started to recover. These can often be quite a tease, so make sure that you're finding it.

Get set up with these and don't just buy in because it feels like it looks good. Something like road, we have a sustained reaction, so we need to see price strikes and perhaps directional strength on a shorter term time chart and to indicate in order to indicate a sign of a reversal. Others like Pan W will have a slightly extended reaction period and then a few day correction but uncertain price strength moving forward. Another thing that I'd be really careful with is trading stocks with a setup like this.

CRM had an overreaction play where it got beat down to overreaction lows after earnings and then it recovered. but the price action itself is just so dirty and for being honest with ourselves, we trade like spoiled brats and that means not taking opportunities that aren't the best setup. But anyways, take your time going through the list, spend 30 minutes if you need to, and narrow down the best opportunities that will allow you to trade like a spoiled brat. And if you are having a hard time finding opportunities in the beginning or knowing what it is that we look for, you can join our free Zip Trader Circle Facebook group where we post our nightly watch lists every single night by the nature of it being nightly link in the description below.

But anyways, once you've narrowed down opportunities that have recently been cleanly oversold and are now showing signs of recovering, plan out your entry point with something like home. That might mean waiting for market open to see signs of clear price ranks. We had a run up market open but then a clean confirmation and break into an upper direction over our red directional SMA line. This allows us to buy in it conformation and write the price practice of validation.

Remember we love this because if you buy in a confirmation, you can just write the price rank over the SMA line and then sell out when the price strikes. this continues at validation, but for others, you may be more interested in swing trading and all that means is that instead of buying in on a shorter term confirmation, you're waiting for a longer-term confirmation in price strength. For example, buying in after rejecting a increase in price drinks here would have led you to profiting off this upside. After the confirmation, it doesn't look like much in comparison to the dip, but remember, this is buying at 556 and selling out at 619, which is quite a bit of upside for a fairly passive swing position.

And this wasn't even that great of an opportunity, but you still had that passive potential. But the best opportunity, on here was the original correction on the day chart, so pick your opportunities wisely. Another one for my swing traders, for example is be a beat down on negative earnings by any conformation sell out at validation. This run-up was extremely clean and took over two days.

We also have a good day position as well, buying in at confirmation and selling out ad validation. But why is it that Ba keeps attempting to push upward quickly as we start gaining background for more beat down? Well, because we have this massive amount of upward potential and investors are getting to realize that back. Combining that with height and volume and all of a sudden you can see why people are pushing back towards the upward potential. With Sento, we have another great opportunity.

Get speed down to over reaction lows and then clean opportunities for you to buy in based on your time aggregation period. with Expedia we had an overreaction, had some correction positions the very next day in terms of day trading if you were taking day trading positions, but then it's all off until it started to gain its ground back if you were taking a conservative swing position. Confirmation and validation here and here. Another great opportunity.

But what, What is it that all of these plays have in common? Well, they all have very clear and clean entry and exit points. Remember confirmation and validation For folks who are new here, confirmation is just that. first green candlestick opening above the blue as the may line and validation. on the other hand, depending on how conservative you are being is going to be that first candlestick breaking below it.

These are key points of a solid trading plan. You need to have clear entry and exit points. A lot of people just buy in whenever they feel like it's the right time and then sell out whenever they feel like it's the right time, which is usually at a loss. The sad truth about why it is that so many of you can't seem to make consistent profits is because you hate profits.

Whenever you earn profit on a trade, you're like, ah, this is disgusting. Get it away from me. How do I know that this is true? Well, because whenever you earn a profit, you give it away. Anok confirmation, make money, and then you just keep holding and holding and holding it.

You don't care when the market is telling you to get out of validation, you don't care when you're elevating factors turned into deprecating factors. And you don't care when most of your profits are gone. But isn't it funny? Once you hit that break-even point and you start losing your original invested capital, all of a sudden, you start caring. You're like, oh, I don't want to lose this.

I'll just sell out. People would rather chase a winner than lock in profits that they had already earned. And for many of you who are smart enough to actually lock in profit, you'll then go and plunge those profits into another shitty position and you won't even bother to wait for confirmation. Are you kidding me folks? Why even bother to say that you're trying to make a profit when you keep doing stuff like this? But the point is that you need to love your profits.

Think of your profits as a baby, that you're trying to help grow into an adult. every single time you get one. Instead of going ahead and throwing the baby out the window, keep it, and nurture it. you can think of validation as the window from which you're throwing the baby out of.

A certain percentage of the time you may throw the baby out and it lands on pillows and it's better off being outside of the window. but most of the time it's going to go poorly. So remember, protect the baby once you get to validation. If you understand this, go ahead and comment below.

Profits equal baby. This is especially useful if you don't usually comment because then you'll remember this time and you'll be like okay I'll remember to sell out ad validation. Okay, but getting back on topic Roku Got beat down on negative earnings and this was another swing trader screen. After reaching over reaction laws, you buy in at confirmation and rightly price drinks out to validation.

After a week of appreciation. Now to be honest with you, many opportunities are going to be as clean as this one. But the point remains, finding clean write-ups and corrections are going to be the best way to earn profit with these trades With Billy on the other hand, we had a faster reaction. This was a lot harder of a position.

The more volatile and indecisive the price action is. the less I'll value it for an overreaction play, but they still have opportunities. Just remember that some of the best overreaction plays are the ones that we saw like Home that get beat down massively and then have a slow run up. But the key is to find opportunities that have been beat down and then wait for price breaks and then buy in right at the price, breaks up and then sell how it had validation, Rinse and repeat.

Rinse and rip. But the reason that this worked so well is because when a piece of bad news comes out, no one knows how to value it, right? So they have to overreact to it because no one wants to lose money and so they oversell. and this creates our overreaction opportunities as the correction comes later. But that doesn't mean that the reaction itself was not warranted, it just means that the original fighting is an overreaction.

It may continue to still go down over time like I've shown you in some other examples in this video. but the original reaction is always an overreaction. And if you can trade off the overreaction, you're going to have a pretty good go at it. But of course, you need to make sure that you're having a clear trading plan with confirmation and validation.

And our other elevating and deprecated factors. Are we oversold. Are we overbought? Where are we placed on the long term trend line, Or their previous patterns of over seven and over bind? Are there previous patterns of reacting really poorly to news and then recovering things like this? Okay, so with all that being said, how much do you need in order to make this $100 per day? Well, since there are a variety of swing and day trading opportunities, let's say that you're going to be taking advantage of a combination of these positions. And since there are five business days in a week, you need to make at least 500 dollars a week in order to make 100 dollars per day.

So let's go ahead and start looking at it from a weak perspective. Well say you were taking six day training positions and to swing trading positions per week. We will also go ahead and assume that you are a terrible trader one of the worst, and you get validated out at a slight loss on half of your positions. In reality, if you are selling out in validation instead of throwing the baby out the window, it should be less than half a percent.

but we'll just say it's half. We'll say that you're making an average of 5% per trade on your three winning crates and on your one winning swing trade, you're averaging about one percent per day aka five to ten percent per week. With something like Roku for example, This might be one to two percent per day on average, but varies of course. So with this math, you are making three winning positions which earn you an average of 5% each.

Your one winning position are in do ten percent over the entire week. And since you're a terrible trader and you sell out at validation, here are three losing positions in one losing swing position only cost you half a percent each over the entire week. Okay, so if you have built your account up and you are trading with 2,500 per day position and 25 five hundred in one swing position or two swing positions, then winning Day Trade one earns you 125, Winning Day Trade two earns you 125 and winning Day Trades three earns you 125. Winning Swing Trade one earns you 250, So that means that your profits in total are 625.

But remember, you're a terrible trader. I've been the terrible when it comes to trading. That means for your losses, losing Day Trade Number One Losses you $12.50 Losing Day Trade Number two losses you $12.50 and losing day trade number three losses you $12.50 and losing Swing Trade This is you: $25 That means that your loss is in total or $62.50 and 625 dollars in profits. -.

Sixty two dollars and fifty cents in losses equals five hundred and sixty two dollars and fifty cents in gains for the week. Dividing that by five gives you one hundred and twelve per day. Of course, as you may notice, there are some variables here. If you decide to put more money and more attention into day trading or swing trading, you're going to have different profit levels.

and certain times are going to have more earnings reports than others, so certain weeks are going to be less profitable. And of course, unlike Planet Earth, profits are never going to be this flat. But you won't have a disaster as long as you're selling out at validation. Sure, maybe one out of every 50 trades or one out of every 100 trades might execute you out way below validation depending on the types of positions that you're trading.

But overall, you're averaging at that 100 dollar threshold. And the beauty is that once you've proven to yourself that you could reach that 100 dollar threshold, you can then begin to scale up and expand. But anyways, folks I Hope that this video was helpful. If you have any questions whatsoever, feel free to reach out to us below or join our free Zip Trader circle Facebook Group link is also below.

We also have Zip Trader U which is our premium course that I work with every single day for folks who need some more help growing their accounts and I have been tweeting out opportunities. So if you'd like to follow me on Twitter you could follow me at Zip. Charlie Anyways, have a great day I'll see you in the next video.