So in this video, I'm going to be talking about the hidden opportunity that most if not all of you are missing in the market right now. You're chasing the wrong things, you're blowing up your accounts and you're yelling and yapping and we need to stop this. But first, let's backtrack a second and explain how we got here. So in the beginning of this crisis, everything was moving fast.

It was moving fast. Traders directly shorting the markets with funds like Spxs. saw their accounts triple in the beginning of this crisis, new traders throwing money at implied volatility with funds like Schwix and Uv Xy, saw their return skyrocket more than 400 percent. and then traders who decided to randomly buy the most beat down stocks in the worst hit industries from Ccl, Carnival Cruises, to American Airlines, Boeing, to even bankrupt hurts, these traders were rewarded with often multiple hundred percentage point increases.

The intense beatdowns in these sectors back in March gave these tickers so much upside that you literally could have done everything wrong and still made money. And if you bought on a down day, it almost always ran up massively the next day. This was perhaps the most forgiving and most opportune market in many of our lifetimes. a market that just kept running up day after day after day.

New traders were making tons of money, cash was rolling, and despite many dumb mistakes, most people found that doing even stupid things actually ended up rewarding them. And this is why there's an unprecedented amount of new traders trading right now. But here is the problem. It's easy.

It's easy. to make money and throw good trading habits out the window. When everything in the market is moving so rapidly in a clear direction, it's easy to rationalize buying a stay-at-home stock when everybody's staying at home. It's easy for someone to rationalize buying oil when it's been beat down to below negative values.

And it's easy for someone to rationalize buying Facebook for 50 off. It's easy to rationalize buying the entire airline sector for 90 off. Easy to rationalize that eventually a lot of these industries would come back, and even if they came back 20 percent. Hey, that's a 20 return.

But what do you do when the market is trading back near all-time highs in the middle of what is still a global pandemic? How do you rationalize a quick return in something like Apple when it's trading way above where it even got to pre-crisis How do you rationalize a quick return in airline stocks that have already shown stagnation for more than a month? How do you rationalize buying these stay-at-home companies that have already gone up like four or five hundred percent? Now that we've pretty much been treading the same water since early June, we are seeing traders struggle to cope with the current market condition and struggle to get that profitability that they had found so easily just a few months ago. That's because it's so easy to make money when everyone is emotional and everything is getting discounted neurotically. However, these conditions, well, they're not here right now and the slew of new traders that got accustomed to this insane volatility and easy money still crave that same volatility and same easy money. So where do we see them going now? Well, we see them chasing the fewer and fewer runs that do provide these opportunities.

We see huge amounts of traders trading runs like Workhorse Genus, Nikola, B-o-x-l W-k-e-y Tesla, Xspa, and I could go on and on, but in the absence of widespread market opportunity, the opportunists are now congregating in just a handful of positions and causing those runs to be so, so, so much more volatile. And it's great to trade these. We literally talk all the time about how to trade these opportunities. We've called out most of the ones on this list and this whole channel is teaching you how to exploit opportunities.

But notice how all of these particular opportunities run so quickly before getting beat down? Yeah, as traders, we love this hype because we can trade off it. But look at the duration of the hype, it literally can change in seconds and you get beat down 50. You get beat down 70. These are aggressive opportunities, but I'm not dense enough to not know that most of the people that watch these videos are just sort of dabbling in trading.

You're buying positions haphazardly. Maybe you're taking some time to educate yourself, but you sort of do this as a hobby. You're just doing this as a fun way to make money. So let me ask you this question: If you do not have the time or level of effort commitment to develop a clear plan of action to actually control for the risk of these huge runners, is this the best place for you to be spending your time in Capital? Because folks, I see thousands of posts and comments from folks who aren't prepared to trade these.

but yet they are trading them anyways because they see that they have the highest percentage gains and they feel all empowered as their account goes up 20 or 30 a day. But then when it inevitably pulls back, they start crying and yapping. There are unprecedented amounts of what I'll call dabbler traders that are buying these setups that run up hundreds of percentage points and then screaming in confusion when they rapidly get beat down as if they thought they could just run into infinity. If you want to trade these stocks, you cannot be a Dabbler.

Hype plays are great opportunities, but they are the most aggressive moves in the market. Many of you who are new and are getting your feet wet in this are just going to get wiped out by chasing these runners. A lot of the people that watch me on these public channels a lot of you are just looking for stocks to dabble in, right? You're looking for stocks that have A relatively low amount of effort, a relatively low amount of risk, and a relative amount of upside potential. And I assure you that that is not these aggressive runs.

By chasing all of these runners and ignoring the rest of the market, you are missing out and overshadowing one of the greatest underlying opportunities in the market right now. And that, my friends, is overreaction. Beatdowns, Beatdowns to Bad News. So many of you played overreaction Beatdowns in the beginning of the crisis because this was happening with everything.

that's how many many of you made your money and encouraged yourselves into staying in the stock market. But then as the market changed you decided to throw all of that out the window and you decided to switch to playing. Momentum plays in hype plays that were running up hundreds of percentage points on no news whatsoever or just pure hype. But what you did not know in this time where you were switching from overreaction place to Momentum plays into high plays.

What you missed were that the overreaction plays were getting better and better, but they were just getting in fewer and fewer stocks. If you look at the last few weeks we have Bed Bath and Beyond. Bed Bath and Beyond announced closing of stores. Bad News: It got beat down to overreaction lows at 7 39 and then ran up just under 30 over the next few trading periods.

we have Facebook. Facebook got beat down on advertisers pulling out, then the next few days it completely recovers. We have Twitter tweet tweet tweet tweet. Twitter gets beat down on Hacky News, then recovers nearly the complete move.

The next day we have Wells Fargo gets beat down on bad earnings. The next few periods it completely recovers and breaks out. Past that we have Dominion Energy Pipeline falls through. It gets beat down to 71 and the next week it runs up to under 79.99 and not every reaction is created equally.

We have slower plays like semi. Cemi gets beat down, finds the bottom a few weeks later and then starts running up. Next we have Baba Baba. Go! Sheep.

Baba Baba got beat down on negative earnings and then runs and recovers over the next few days. And don't be afraid to use indicators to help guide you. Amd had a bad earnings reaction, oversells the next few days and then recovers over the next week until bought, and again, not all overreaction plays have to move all the way. Even the ones that move less are still great plays because they give us very little downside potential with a lot of upside potential in the immediate future.

We tweeted about how Tcda had gotten beaten down on negative Fda news, and then over the next few sessions it had a 10 run. And it's also true that overreacting corrections can be followed by more selling off if you were following Blue, for example, Blue got beat down so intensely and then ran up 70 before finishing its overreaction correction and selling off. This was a much more rapid play, and by the way, these plays weren't just ones that I searched for online to prove my point. these were ones that we've called out either here on the channel in our Zip Trader Circle nightly watch list, or on Twitter at Zip Charlie, cough at Zit Charlie.

But my point is, if you are somebody that does not have the ability to manage your risk and ride the price strength over the Sma line. If you're not somebody that has the ability to have these concrete rules where you buy in at a certain point, you sell out. Another point, you manage your risk, You manage your upside. And downside, you manage your elevating and deprecating factors.

If you're not following these rules to a T, and you're just sort of loosely following it, well, first of all, you shouldn't loosely be following it. But if you're loosely following it, you better not be trading the most aggressive positions in the stock market. If you're looking to essentially just buy into opportunities and ride it upward for a few days before selling out, doesn't it make more sense to ride slower, calmer moves like B-b-b-y and take most of the move most the time? Or does it make more sense to ride workhorse that's up triple digits and just hope and pray to Buddha that the inevitable reversal doesn't come when you trade it. New traders always like to say oh well, I'll just sell before it gets to the top, but new traders also have no idea what the top looks like.

Your average new trader has no idea whatsoever, has no plan, has not a single clue on what a reversal looks like. So if you're this type of trader, you have to ask yourself these questions if you're finding yourself chasing these runners in this market. If you are not someone who is seriously trading and is instead just sort of dabbling. which is fine.

You can dabble. That's fine, but you need to choose the right opportunities for what your goals are. And if you are a serious trader and you're finding yourself trying to catch these runs over and over again, only to get wiped out. hey, maybe you should go back to the easier setups until you master those and then you can move on to the more aggressive ones later.

A lot of times you'll spend all of your time trying to catch these 100 moves that you never even bother to get any consistency with the lower end moves. People love to skip to the biggest movers because hey, the percentage points are so high. but what does it matter if it moves a lot if you don't know how to protect yourself for when it cuts back? Respectfully folks, these are just questions that I really want you to ask yourself, and I really want you to evaluate what opportunities you're taking advantage of. If you are someone who is not seriously trading and is just instead dabbling, or you're looking to do this sort of part-time I highly recommend first getting your feet wet in easier to manage positions like over-reaction plays.

And lastly, why are over-reaction plays so helpful? Well, it's because every reaction in the stock market is an overreaction. since there's no concrete value placed on any piece of news good or bad, That means that every time a big enough news piece comes out, everyone will react massively and very quickly, and that either over buys or oversells the share price. The bigger the move, the more potential for overreaction. Correction: This is so true.

Right when the news drops, but as the news settles in and everybody is aware of the news, the true impact of the news becomes much more clear. It's also worth noting that over-reaction sell-offs to news aren't the same thing as a sell-off from hyped up highs, since every reaction is an overreaction. A sell-off from a stock that has just run up hundreds of percentage points is technically an overreaction correction from that original overreaction. It's just the opposite direction.

Good news will cause a stock to get overly inflated, just like bad news will cause a stock to get overly beat down. Anyways, folks, this was a quick weekend rant. I hope it was helpful and gave you something to think about. And before we get all the troll comments from people that say but Charlie I made 100 on Genus or you know, whatever other hype stock you want to talk about Again, I'm not saying not to trade it.

We talk about these plays all the time. What I'm saying is that if you aren't someone who is able or is willing to take the necessary steps to take trading seriously, it's likely that you're going to do much, much better just trading easier setups. It's very important to keep in mind that short-term profits are often just long-term losses in disguise. so be aware of that and don't fool yourself into thinking that you're following a sustainable strategy if you're not.

And in summary, at the end of the day, I am a big believer in identifying what your goals are for the stock market and then finding the tickers that work best with your goals and where you're at currently. And by the way, we have tons and tons of resources on this free channel on Twitter on our nightly free Ziptrader Circle watch list, And of course, we have a whole structured guide on how to play earnings over reactions and news over reactions within Ziptraderu. So there's all of these different resources for you to learn from. and that's just from us, right? So you have no excuse not to educate yourself on what opportunities are in the market right now and how you can actually use them to your advantage.

Though I don't want to hear Charlie, I don't know where to look Anyways, folks, if you have any questions, feel free to reach out to us. In the comment section below, make sure to join us on zip Trader Circle for a free nightly watch list. And if you're wondering what broker, what broker should you be trading these stocks on? We always like to send new traders over to Weeble. You will get two free stocks when you both sign up and deposit using our link below.

but it's a great platform. They have great features such as earnings calendars. They have really great scanning capabilities um, what else do they have? They have after hours runners, pre-market scanners, and stuff of that nature. It's a really great platform and you also have your after hours in pre-market trading, which a lot of other platforms don't let you do and a lot of the movement happens in the the pre-market in the after hours, so you might as well have that feature so you can take advantage of it and also protect yourself when the market turns against you.

And lastly, if you are looking to learn how to trade if you want to be forged into a trader, we are offering 50 off if you type in Stay Home 2020 before checkout and that link is in the description below. Anyways, folks have a great day and I'll see you in the next video.