So in this video we are going to be talking about the top three stocks for this week in early October 2019. But I Want to be clear? these lists can either be your best friend or your worst enemy. The goal with these videos is to present extreme price action opportunities. But at the end of the day folks, you are the one that is going to need to have a plan.

I Say this all the time. But you need to have a plan when trading within the stock market. And of course you are going to need to trade like a spoiled brat. What that means? It's only getting into setups that are high quality and as perfect as possible.

Never settle for low quality setups if you're always trading like a spoiled brat. That means that you're not going to over train. There is no reason to over trade if you don't see a good set up. But in any case folks, the only thing that I ask of you in return for this video is that you hit that ravishing like button.

Let it blow your mind with ravishing. Ness And of course do not forget to subscribe for more short sweet and simplified videos on how to trade the stock market. By the way, if you are broker curious and are wondering what broker you should be trading these stocks on, my suggestion is Weeble This is the commission free trading platform that I keep talking about. They have all the tools and features that you need in order to completely destroy the market.

You're a dip predator. We enjoy nothing more than destroying the stock market. And of course, if you sign up with our link below, you will get a free stock just for doing that and another free stock for funding your account. Okay so to start I Mgn Have a busy weekend and that's good because I Am Gns price action has been nothing short of a disease to Penguin for quite a while.

Pretty nonchalant price action that would put anybody to sleep. but I Am GN released positive based trial results for their ovarian cancer treatment this weekend. Cancer drugs bring a lot of hype and euphoria with them, as do phase data releases and this is a beautiful combo because we have both of those things and this is a piece of good news. But just to be clear, we don't just buy in blindly based on positive news.

Positive news does not in any way, shape or form guarantee a positive price reaction. We know that the stock market is an irrational beast, so a good piece of news does not have to reflect in the stock price. So when you are trading a good piece of news, that means that you're going to need to see proof. I Like to say proof not promises.

If you think a piece of news is good, then there is no reason not to wait for proof that I've fallen in love with a promising news release. Wait for proof in the price action. Let the stock market to you that the news was actually positive. Let's go ahead and dig into the report.

So they found a confirmed overall response rate of 83 percent, which is substantially higher than the barrier to passing phase data releases. In most cases, you'll find that most drugs only need a 30 to 50 percent response rate in order to go on to the next phase data process. Thus, this drug has shown some serious efficiency. They also found that it was well tolerated, which is important because a ton of drugs tend to fall into either two categories.

The first categories either they are effective and not tolerated, and the second as they aren't effective and they are tolerated. So the fact of this phase data released was effective and tolerated. that's a good sign and the overall phase data is summarized by the statement. We are encouraged in the initial safety and overall response data.

Blah blah blah. This is great. So now we know that we have a slightly positive phase data release, but it is also important to understand that this is early in the phase process that it is of a preliminary nature and it says that we are going to continue to follow patients for progression-free survival and look forward to initiated in the next set of studies. So I would say In total, it's hard to say whether or not this is going to be perceived as positive.

I would say that it's positive. but it's only slightly so it could be perceived as mixed. Positive phase data releases lead to heightened interest and speculation and thus will be likely to see some price action opportunities to trade off of this week. Well, let's go ahead and dive more into the price action.

We broke into an upward direction here and pretty much helped there for quite some time. So with that being said, why is it that I think that there's going to be price action to trade off of? Well, because we have some precedent of that happening upon releases of news. The last three major news releases ended up in massive running of share prices. We love nothing more than running of share prices or jogging than than there's running.

We prefer running. We had two runs on negative news and one on positive news, but with that being said, IMG N has shown more precedents for breaking into down trends based on price action alone. If we're looking at the price action, there's more down trends than up trends and we're in an overall downtrend. That means that in order to take a position I need to be convinced.

Remember, we're spoiled brats. We only get in when we're convinced that it is a good enough set up to take a position. So in order to evaluate whether or not it is a good set up, we're going to need to see clear signs of an uptrend. We want more elevating factors as compared to deprecating factors.

So I'd say the bare minimum is waiting for a clear upward direction, intraday and price strength confirmation. We want to see it build directional strength over our red directionless the male line because that is a clear upward direction. However, I mgn fought massively on Friday to even hold that clear direction. And when we have an unclear direction, that means that we are going to struggle.

If we take a position, no one wants to buy in upon an unclear direction. So I'd say if you're being extra diligent, I'd wait to take a position upon a break into at least a 20-day upward direction. If the catalyst is worth trading, it'll provide more than enough upside where that won't even matter. And look: I Understand that missing out on 20 cents of upside is painful.

but imagine this lost potential of the 20 cents of upside as sort of an insurance policy. You pay this insurance policy in order to get in at a point where you have more elevating factor that's compared to deprecate any factors. These trades, especially if the biotech variety, are very risky, right? So why would you get in when you don't have more elevating factors, It could just as easily continue its downtrend. So wait for an upward direction and of course a confirmation in order to mitigate some of this risk.

And by the way, for those of you who are having a hard time keeping up to date with all the news and all the different stocks that we're watching, make sure to join our free Zip trader Circle Facebook group because mildly watch list. We answer a ton of questions and it's a community full of beautiful zip traders, the link to which is in the description below. So next, a lot of people know that my personal focus has been on trading volatility indexes such as TV is I Like to pretend that I'm French and in my head I call it tricks now VIX runs up massively every single time. there is volatility in the market and within teach make concerns.

The market has been rattled with uncertainty which is beautiful for fix. but how do you actually trade fix? Well, personally I Focus on identifying a clear direction, your market open and then trading off the subsequent price action. For example, shakes open in an upper direction. tested it a bit and then kept its upper direction all morning.

We then saw another test and boom a confirmation. This allows you to write the price action up and over the SMA line and simply sell out at validation confirmation and validation. folks. VIX Is also quite prone to 3 bar plays.

3 bar plays are great because if you can identify them along with other elevating factors, you could simply buy in upon a confirmation of that pattern. And a lot of the time, you'll see a massive bout of price strength. Because these are huge elevating factors, they multiply the momentum of the upside. Rebar plays are huge elevating factors, and if properly identified, they are a huge asset to us as traders.

But I Have whole video on the three-bar ploy and I'll link to that in the description below if you haven't yet learned how to identify those and use those effectively in your trading. But the point is, Vixx is very prone to having three more plays to trade off of. But make sure that you're only trading it if it is in an upward direction or you have a huge elevating factors such as the three bar play. When it comes to shrieks, it is very important that you are in an upward direction because it can turn at the drop of a hat.

Okay, so last but not least, we have baba. Now this was a tough Loser on Friday And as you know, we Love Love love Top Losers. A lot of folks like to message me and say hey, Charlie you're an idiot. Why would you recommend buying a Top Loser Charlie? Don't you know that you should not buy stocks when they have bad news, But we love Top Losers.

I Mean the reason that we love Top Losers is because every reaction in the stock market is an overreaction if you look at Alibaba long term. We've seen it get beat down like a rabid dog and into a downward direction below our directional SME line and we've hit overreaction lows. And since every reaction in the stock market is nothing but an overreaction, we've seen it regained some price strength. but we are still oversold and we just don't buy sick dogs on the side of the street.

We wait for signs of a recovery. So what I'd say with Alibaba is wait for a confirmation and clear upper direction before taking a position. This discount that we just had could be a great sweet trade, but the potential risk would be slowing Chinese economy means that you were going to want to make sure that you're getting in at a good deal to mitigate the risk. Okay so for those of you who have stayed to this point I want to give you a bonus stock.

A lot of people have been asking me what I think about Ignite Danville's arians big IPO of his marijuana company. If you have not been living under a rock, Dan Bilzerian is the big internet personality with a bunch of interesting behavior, but he has the ability to pop a stock like none other like a lot of speculative. IPOs When he IPO last week at random massively upon open of course that was because of euphoria. so it got beat down and now we are starting to see a slow up trend towards the closed Friday But the reason that this is worth mentioning is because this is a company that is extremely susceptible to popping from Dan Bilzerian If Dan Bilzerian tweets casually just one thing about the company, his 1.6 million followers on Twitter and probably millions more throughout other social media platforms will see that this will cause a reaction in the share price.

And any reaction and the share price would likely cause many more investors to flood into the market. So he has this men's power to rapidly increase or decrease the share price that well. And because it is listed on the OTC exchange, it really isn't regulated like it would be if it was listed on the Nasdaq or the NYC. This is a story that has happened before and it's likely that we'll see some massive fluctuations in euphoria in the upcoming weeks, so definitely worth watching.

When it comes to me though, I have a hard time trading ideas and the reason is because there's not that much previous price action. As traders, we look for a ton of previous price action and when it comes to a new IPO like this, there's just not that much to go off of except for the original hype. so we have a confirmation of hype, but we don't have any other sort of confirmation. so so that is something to keep in mind when you're trading the stock.

But I Have no doubt that it will be worth watching and keeping on your watch list as sort of a guilty speculation if not an actual position. Ok, well folks that concludes this video. Remember to always have a plan when you're trading these stocks. The stock market does not care about your feelings, so don't treat it like a therapist.

Instead, have a plan. Don't go based on your emotions. go based on your trading logic, right? Your trading plan. If you have a concrete plan, that means that you need to execute on it 100% of the time.

That does not mean buy a stock. When you feel like it's the right time. It means buy a stock. When based on your plan, it confirms that it's the right time.

Okay, well I appreciate you watching this video. If you have any questions, feel free to reach out to us below or join our free zip trader circle Facebook group the link to which is in the description below. If you haven't already, make sure to hit that ravishing like button and also subscribe for more short, sweet simplified videos on how to trade the stock market. Anyways, have a great day and I'll see you in the next video.