In this video, you're going to be learning about the top three stocks for late February 2020, But how do I find these opportunities and what is a top stock? Well, let's take a look at last week's picks to explain. So a Gr X was our first one from last week. I Picked this due to an FDA approval. it over factored in the approval in after-hours and then sold off at pre market before running up massively from three twenty six to four twenty-nine and causing a validation out.

Pretty solid pick. Arguably though, the most efficient way to have played this was that it's pre anticipatory run up after we had originally announced it, but both were solvent opportunities. Core: G was the second one from last week. It got beat down on negative earnings and since we loved top losers because every reaction is an overreaction, that means that we can simply buy in at price strength and write the price rights to its partial recovery.

And that's exactly what happened. However, you need to wait for the price action to prove to you that it's a worthy setup you don't just randomly buy in. For example, FN Ko was another pick from last week, but it is yet to show any price strength and thus, while it's still a good setup, there's nothing that has shown us yet that would convince us to take a position. point of these stocks is to catch opportunities that have high probability setups.

Someone messaged me the other day and they're like Charlie I really want to make money in the stock market but I just keep getting stuck in positions I just can't exit Charlie Do you know what I said in response I said you're a big fat liar If you actually wanted to make money in the stock market, you'd have made a plan and then you would have stuck to your plan. And that includes an exit plan. When someone messages me and they tell me that they're stuck in a position, what I hear is that they're just not serious about trading I hear that they're treating trading as a joke and they could not care less about their money. You show me someone without a plan and I'll show you a loser.

But anyways, one of the biggest ways to not be a loser is by being a winner. And winners always hit that ravishing like button. Also, yes, that subscribe button. It's ravishing as well.

Okay and quick plug for folks who are looking to grow their account from the ground up. We do offer Zip Trader U which is our self-paced course. We walk you through trading and connect all of the dots as to what you need to know in order to be a profitable trader and to grow your account. And as part of Zip Trader you, you will also get the opportunity to work closer with me and other people within the program.

That way you can get all of your questions answered and reinforce the concepts on a daily basis. If you're interested in learning whether or not this is a good fit for you, all you need to do is go to Zip Trader, Ucomm or click the link in the description below. Ok so every time the market has a drop, everyone always asks me what opportunities we should be playing and my favorite tool to play unexpected volatility is Fix This is T VIX or as the French say VIX Now mix is an ET N and it allows us to play off sudden volatility in the overall market. For example, the overall market had a quick sell-off on Thursday and most of Friday So both times we broke into a downward direction in the overall market.

We had the ability to play a clean confirmation on fix and ride the price pranks back up to validation. Remember we like this because it allows us to simply measure the price, rank itself with the gap between the price action and our SMA line. The larger the gap, the more priced ranked. We have pretty intuitive, intuitive oh and fantastic.

Oh, but my point with Shrek's is that it's a very strong tool for taking advantage of movements. Next time you see massive volatility in the market, your mind needs to quickly click and say oh, volatility VIX and then you go over and you traits VIX Look at you mix this chart and say hey, is there an opportunity inch VIX But you need to have your mind snapping to opportunities that happen when the market starts to sell-off because so many of you just panic, you're like oh, I guess we can't trade today. Oh I Can only trade stocks when the markets going up. Oh no folks, that's not how it works.

There's tons of opportunities regardless of the direction of the market. In fact, it's probably a lot more clean-cut to make money when everything is going down. But anyways, with Sh Mix and really any sort of setup that you're trading, you need to have a concrete entry plan in a concrete exit plan. And that means always keeping an eye on your elevating and deprecating factors.

But there's one deprecating factor which fixed that you need to know about before actually buying into it. And that's that you shouldn't be holding slicks overnight because it's a levered and that means that it has to go down over time. It also doesn't really make sense to hold chicks overnight because it's an intraday tool for trading off volatility. So understand that this isn't something to swing trade.

You can't swing trade something like this. I Mean you could physically swing trade it, but it's not a good idea because of the long term deprecating factor. A lot of people say success with trading is all about taking your emotions out of your trading, and that's true, But let me explain what that means. Trading without emotion doesn't mean not experiencing any feelings when you're trading.

This is the big thing that I hear a lot of people say like oh, I'm not cut out for trading because I feel nervous when I'm taking a trader. Oh I feel adrenaline when I'm taking a trade. So I'm not a robot. Oh, because I feel something I'm a failed trader.

No trading without emotion means that you're not acting on your emotions when you're trading. You can feel them. You could feel dizzy when you're training. It doesn't matter as long as long as you're sticking to your trading plan.

Okay, AMD Now AMD has always been a zip trader darling because it has a long-term consistent uptrend with a pattern of quick sell-off and recovery. And Boom! we are now in sell-off territory, so this gives us a lot more upward potential than we'd usually get on, say, an intraday sell-off, but I wouldn't mind a little bit more selling off. Ideally, we'd see it reach oversold and allow us to buy in and oversold at increasing, which is, of course, an elevating factor. We love our elevating factors because that boosts our odds of success.

But something to keep in mind with these types of opportunities is that we don't just buy stocks because they've been beaten down. So many people when they see a discount are like oh my God I should buy because it's discounted. No, we don't buy sick dogs on the side of the road. We wait for signs of a recovery.

And what does a recovery look like? Well, it's simply price, strength, confirmation, and if you want to be a little bit more conservative directional strength but it's not too much to ask to ask for the price action to prove to you that it's a good set up, Is that too much to ask? I don't think your account thinks it's too much to ask. Okay, number three is an overreaction play. A PPN got B down on negative earnings. Now as we know every reaction in the stock market is a dirty overreaction.

but not all overreactions are created equally be higher the share price the better for over in place because as we get closer to zero we get more sporadic movements. But a PP n gets be down to oversold and hits. Overreaction loves right above our red directional SMA line. So in training terminology when this sort of behavior happens, that means that it held its upper direction by nature of when we're above the red direction lesson.

a line that means we're in an upward direction. We love socks that prove that they can hold their upper direction because that means that we have proven direction and are more likely to continue holding direction on average. Which by the way, congratulations to folks who are using our over reaction strategies from our earnings video to buy in at confirmation of a reversal and hold the validation to profit off this initial correction because we have the knowledge that every reaction is an overreaction. so that means that if we can just catch all of the over reactions by following earnings, then hey, we can profit off the initial correction.

But this initial correction, it was fairly weak like it was a good day trade for folks who caught it, but this was a weak overall in terms of context. So we are now in this period where we are looking for more opportunity to right price strength. Look at this upward potential and the interesting thing is that a PP ends previous history does indicate that buying ended oversold tends to correlate well with holding to overbought, but it also tends to take a while to go from lows to highs and vice-versa First of ice, but that's interesting because this news triggered such a quick sell-off in comparison to the other sell offs. Usually one me run-up happens, it's very slow.

In a PP ends case, it tends to be very slow and it's the same thing with the sell-off. So this news was very strong and caused a huge overreaction as indicated by the fast sell-off. But before that we had an anticipatory run-up and then a break of anticipation down work. This is Emotions 101 and this anticipatory run-up makes me want to set our conservative upward potential to about 55 32 ish.

What that means is that simply if we recover to 55 32, we have a new deprecating factor of being back in our pre anticipatory run-up territory. This is deprecating because this loop was built on emotion, and that means it's less stable as compared to an original run-up. But that doesn't mean self. A lot of people think that I give buy and sell advice like just specific buy and sell advice in these videos.

I Absolutely don't What I do is I give you elevating and deprecated factors that would personally make me buy or sell. and if you see them and you identify them, then maybe it makes sense to sell, but you have to add up your elevating factors and compare them to your deprecating factors in order to understand what exactly a good position is. Okay, well, we've done three stocks, but what about a bonus Do you guys like bonus hashtag Bonus. Okay, as a bonus, I'll give my thoughts on Spce now.

Spce has been running up massively for quite some time before selling off, and this is the definition of a height play. and I talk about high place quite often throughout Zip Trader You. But high plays are essentially stocks that run up by nature of simply running up. They run up with euphoria of something that may or may never come into fruition into the future.

And then because they form what's called an inflamed banshee, they run up like an inflamed banshee and an overreaction. and then they have to correct. That means that these are great opportunities to ride price strength and take advantage of the masses. We love when the masses pump up these share prices.

Why? Because we can crush them and take their money. Any stock that runs up like an inflamed banshee is going to cut down because the Banshee it can't run forever. Imagine a burning bird. Eventually, the birds gonna burn and die.

And this sell-off Well, it showed it to be true. But I Want to caution folks from considering the sell-off an overreaction. Every reaction is an overreaction, so you'd be justified in saying that. But the overreaction happened here.

and then the overreaction correction was the sell-off. So you have to understand that it doesn't matter the direction, every reaction is an overreaction. So this is not a new period of overreaction, but rather a correction. The question is, will this subsequent correction create an opportunity to buy in at a good deal and also provide us with the price drivers that will get this back up and running.

Only time will tell. So all it is that we can do is keep an eye for strong confirmation and price rates combined with upward sentiment volume. Something like this has a lot of downward potential, so you should also only be planted on the one-minute aggregation period. But it's fine to set some alerts and see if we do have more opportunities.

It's not unlikely that we'd see another opportunity. it's just that at this point I don't see any clear price drivers. Okay folks, Well I really appreciate your time and I hope that we provided value in this video. Remember, one of the best ways to grow your account is by simply not abusing it.

So many people subject their account to abuse. In fact, if I was Child Protective Services I would probably have to cease most of your accounts because of the way you've been treating them. Please be responsible with your account and all that means is simply having a trading plan with solid, solid reasoning behind the trading plan and then executing on said trading plan. If at the end of the day you lose money, but you had a real trading plan and it actually made sense, then hey, that was just the probability where it didn't work out.

But most of you aren't setting a good trading plan and that means you're not going to be able to take advantage of a lot of these moves. So please folks, be responsible with your account. And if you're not profitable yet, don't just dive in with all of your money and think that hey, this is just gonna work out No Go and pay per trade. So many people tell me that paper trading is a waste of time.

But again, if paper trading so easy, then why not start with paper trading and then grow your account there right? If you can't grow your account with paper trading, why do you think you can grow it with real money? So be responsible folks. That's really all I can say. There's only so many different ways I Could phrase and encourage people to have a plan and to know exactly why they're entering and exiting a position. but at the end of the day a lot of people still won't have a plan and they'll still randomly buy in and then some of them will make money a certain percentage of the time and they'll think, hey, well I guess it was just a strong pick, but that's not true.

What we do with these videos is just simply present you with opportunities that I see value in and that are likely to have a high probability set up. but they're not all fruitful. and if you just randomly buy in, that's literally just gambling. Even my best picks if you randomly bought in, odds are strong that you probably would have lost money.

So at the end of the day you need to have a clear reason to get into a position and make clear reason to exit a position Anyways, folks, do you have any questions? Feel free to reach out to us in the comment section below. and for folks who are wondering what broker to trade these stocks on I always like to send new beginners over to Weeble and if you sign up with our link below, you will get not one but two free stocks just for signing up and deposit in any amount. Pretty cool deal for trying out a completely free broker. Aside from that, we also have Zip Trader U which is of course our premium course and you can learn more about it by clicking the link in the description below as well.

Anyways, have a great day, Make sure to subscribe and I'll see you in the next video.