Today we are going to be talking about the top three swing stocks for November 2019. But of course the goal of these videos is to help you become a self-sufficient trader. So let's go ahead and start with how I find these opportunities. So for swing plays, we like more passive position.

So that means that we're looking for stocks that have gotten recently beaten down like a rabid dog and are now showing slow signs of recovering. Thing is that every reaction in the stock market is a dirty overreaction. Docu is a cookie-cutter example of this. It got beat down twice on bad news.

After just a small period, it had completely recovered. Another example of a similar situation was with Amazon a few weeks ago. It got beat down on negative guidance and then a full recovery. But this is just one side of the extreme when it comes to overreactions.

There's also the other side Pinterest. They got beat down like a rabid dog, which we love. And with Pinterest, the overreaction ended here. This is where the overreaction laws were and it only recovered partially.

The key difference with these is that while every reaction in the stock market is an overreaction, that does not mean that the whole reaction is unjustified, it just means that the reaction itself always starts with an overreaction. Oh, it depends on the type of play and that's why it's so important that you employ good trading tactics in order to take advantage of these opportunities. But of course folks, we will go more into how to employ good trading tactics and strategies to take advantage of the opportunities that I'm about to present. But the only thing that I ask of you in return for this video is that you hit that ravishing like button.

And of course if this looks like an avocado, let me know in the comment section below. Ok, so before we start a quick plug, we are about to end our first 400 promotion on Zip Trader. You now the goal of the Traitor View is to help you expedite the growth of your account and become self-sufficient starting from the bottom and building up while also giving you the opportunity to have all of your questions answered and to work closer with me and our small private chat. Honestly folks, as much as I'd love to say that I myself am a fast learner.

it's just not true. The truth is I'm quite a hard head and at the end of the day it takes a while for me to actually get the information that's presented to me. So with that in mind, I created Zip Trader You to help folks who were in the same situation, folks that have a hard time connecting the dots and of course combining everything together to help you get results anyways. with that being said, if you haven't questions, feel free to direct message me or comment below.

If you decide to sign up soon, make sure to use that coupon code first 400 to get the discount. Okay, so let's go ahead and start with XP II Now XP II Got beat down like a winter gnome in the summertime. This was on new information that Google was making changes to his algorithm that hurt their earnings and future expectations. Of course this is a justified sell-off and makes sense based on the news that came out.

But since every reaction in the stock market is an overreaction, people over freaked out and it got me down to ninety seven dollars and five cents before starting to show signs of a recovery. We love seeing signs of their recovery. So now we are in the situation where we have a stock that has a massive amount of upward potential to even previous support. But when adjusting to its pre reaction, huz, there's an insane amount of upward potential for a fairly mainstream stock.

When it comes to some of the more speculative plays that we have, there can be a lot of upward potential, but when you're looking at a penny stock or something that's just so sporadic, the upward potential doesn't mean as much. But when it comes to something like Expedia a very mainstream stock all of a sudden is upward potential, if realized, means a lot a lot more because it's a lot safer of a position as compared to something like Kara Therapeutics or one of the small therapeutic companies or Biopharma stocks that we usually talk about. But we don't just take positions because something's to beat down. What is it exactly that we're looking for? Well, we want continued price strength.

We love price strength. We don't just buy stocks because they've been beating down, but rather because they've showed signs of recovering after they've been beat down. It's the analogy where you don't buy dead dogs on the side of the street, you wait to see if they're just sick in are showing signs of recovery and we are starting to see this. It doesn't mean that it's going to continue like this, but we're starting to see some early warning signs and this really shows that when it comes to swing trading, picking me right time frame is extremely important.

It's of the utmost importance bought in a stock that has igniting price break over our blue price strength. SMA Line is a huge start in identifying solid upward potential. but it's also important to be aware of deprecating factors as traders were stacking elevating and deprecating factors and seeing worthy probabilities live. If the probabilities aren't in your favor, does it make sense to take a position? Well, it does if you want to burn cash.

If you are any correction, position like this where we're thinking it's going to correct. That doesn't mean that it has to correct all the way so you need to be ready to get out When you're elevating, factors turn into deprecating factors. For example, if you were to get in upon price strengthen over selling and then all of a sudden you have a validation point signaling loss of priced, ranked and you are now over bought on the RSI Things have changed and it now makes sense for you to get out and those are just two of the main elevating and deprecating factors that we need to keep track of as traders and eventually these really get internalized by it. Those are just two big examples.

Okay, next we have Med now Med got beat down on a negative earnings report and poor guidance and it was a top loser on Friday. Now one of the things that I always say is that I Love top losers. Top losers are fantastic. It's an overreaction 101.

A top loser is something that's gotten beat down so much, There's nothing that could possibly go so wrong as to cause a immediate 25% reduction in share price. Sure, it could take a while and lose 25% but if something goes down 25% so quickly, you know. Hey, look, this is a massive overreaction and this has proved to be true so far. It hit overreaction lows in the pre-market before showing price ranked and running up.

Now the question is, is the overreaction correction done? Has it been completed and this is what we're going to be analyzing this week? It hit over reaction lows in the pre market on Friday before showing price ranks and running up. This gives us a huge amount of upward potential and wiggle room for a partial correction. A partial continued correction. But let me be clear, let me be perfectly clear: this stock isn't as enticing to me because it is a already in a downward direction for most of its previous 180 days and it's downward direction below our red directional SMA line is a huge deprecating factor, and it's not one that I ever take lightly.

If you have a stock that's grew keenly routinely going downhill just screams hey, look, this is losing money I Don't want to get into a position that's consistently losing money. There's a difference between a quick discount in a long-term discount and when you have both, such as in this situation, it doesn't necessarily help you become profitable because all of a sudden you're getting into a position that was already being discounted long-term and it just sped up the process. So what all of this means in combination is that we need to be extra diligent in evaluating and looking for clear, elevating factors such as a strong price, growth confirmation and making sure to get in at deal. What is a good deal? Well, we like to be below fair value or oversold.

Ideally, as close to oversold or below the oversold line as possible. This is a very simple indicator that helps you figure that out. We love the RSI Now why is it that I spend time emphasizing this. This is trading 101.

Well, the reason that I spent so much time emphasizing this is because a lot of people fail at trading specifically because they're overpaying for the opportunities that they're taking advantage of. I Often go on a bunch of different trading forms and one of the biggest pieces of advice is that you should be buying higher highest. It doesn't matter what a stock's doing, as long as it's breaking out past the previous high, you should always buy it. I've always hated that advice because it encourages folks to buy into overextended stocks.

If you are focusing primarily on opportunities that are overpriced, you are going to be thrown in the dirt like a dog. That's just not how trading works. Imagine the logic of buying into something overvalued in literally any other market in the economy. If you're in a certain neighborhood and real estate is more expensive than ever, would you recommend folks buy it now? Invested in now because it's so expensive or even in the consumer segment.

like if all of a sudden Apple decided to sell a $10,000 iPhone Would you recommend people buy it because it's so much more expensive Now if you advice on blindly buying into higher highs, makes absolutely no sense to me. So folks, you only should buy in when you have either a good deal where you have other strong, elevating factors that outweigh the fact that you're overbought on the RSI If at the end of the day you don't have any elevating factors and you're not in a good deal, it just doesn't make sense for you to take a position. Just because something is more expensive does not mean that you should buy in. Okay, so Zg has actually been quite impressive for me.

After a long sell-off we've seen very consistent price rank and as of Friday at random massively and this is sort of another example of a cookie-cutter swing trade. We had a huge extended sell-off and then all of a sudden we have opportunities to buy in upon price, strength, confirmation, and simply right The price strength up until validation and this is Zip Trader 101 and this gets into the importance of choosing the right time sharp, be wider the timeframe, the more conservative you can be when analyzing swing trades at the end of the day. Folks, you need to pick the right time chart if you're trading off price action because you can have different confirmation points and different validation points and different indications on your indicators based on the time chart that you're looking at and each timespan represents a different level of aggressiveness or conservativeness in a different level of meaning because something that's oversold long-term has a much different meaning as something that's just oversold intraday. But when we're getting into aggressiveness, the wider the timeframe, the more conservative you can be when it comes to analyzing swing traits, but that also comes with a price one of missing out on potential opportunities.

If you're too conservative, you're going to miss out on some other opportunities that you would have caught if you were being more aggressive. And that's sort of the push-pull between being conservative and aggressive. It's really a gentle balance that takes practice and work to hone in on of course. Shameless Plug.

We do cover time charts extensively in Zip Trader You, but you don't have to invest in education to understand that a confirmation of price drinks long term is more concrete. Long term is more concrete than a confirmation of price trace in a shorter term time chart. Now, we had the G run up like an inflamed banshee, and since every reaction in the stock market is an overreaction, I'm not exactly sold on an entry point at this particular time frame. Thoughts that get be down massively have overreaction lives.

It works the same way just in Reverse when it comes to overreactions upward. So what I'm going to be looking for is a small correction and then some continuation of price strength where we can find an opportunity to ride a potential wave back up further. By the way, for those of you who are having a hard time keeping up to date with all these different picks and all of these different opportunities and news catalysts I Highly recommend that you get yourself in a good trading community I recommend you join Zip Trader Circle which is our free Facebook group where I post nightly watchlist and we have tons and tons of traders who post and help people find the best opportunities. And it's of course free and in the description below so please don't make excuses for while you're missing out on good opportunities.

Ok, for folks who stayed until the very end of the video I Of course have a bonus. So Ba has been the gold standard of overreactions for the last 180 days. Literally buying in at any oversold point and selling out at overbought would have made a profit. This is our comeback King Pattern We love to come back King Pattern because that's a huge elevating factor if you can identify it.

But the key with this is of course making sure to buy in when we are at the bottom of the interval. You want to write the price range right and want to ride the appreciation from oversold to overbought and make a profit that way while also combining our elevating factors. So what we are looking for is another entry point below fair value and particularly close to oversold, if not oversold. Ba is great because they have tons and tons of bad news releases which causes over reactions quite frequently for us to trade off of.

Anyways, folks, this concludes the video I Want to remind you to never be a slave to the market. So many people enslave themselves to the market. They look at the price action and they bow down. They bow down in submission.

You cannot down to the stock market. You need to show the stock market that you you are the master. How do you show the stock market that you're the master by having a concrete plan, making sure to only buy in when there's a confirmation of price break and sell out at validation, but also making sure that when you're buying in at confirmation that you're confirming an already good setup, look at your elevating factors. Are your probabilities in your favor? Are they not right? Decide that based on the different technical indications.

But anyways, folks I Hope that you enjoyed this video and you saw some value in it. If you have any questions, feel free to reach out to us below in the comment section below or join our free zip trader circle Facebook Group Of course if you'd like to work closer with me in Detroit area. we also have zip code review and you can read more about it in the description below. Have a great day and I'll see you in the next video.