TESLA GAP-AND-GO TRADE

Usually, when you have a gap down like this you expect a Gap-and-Go and you will soon see Tesla starting to make the journey lower and here we go I’m up $20,000 dollars and just touching the lows take a look at the P&L here 20, $30,000 and going $40,000 dollars. Over ten points and what a big breakdown. I’m about to take my partial and right here at the lows took my partial and well actually it continued to go even further down but you know again when you have a big gap down and lots of stocks which are moving with the gap you would expect lots of fear big moves you know fear always works better than greed, that’s why I usually short stocks, rather than go long and traders if you like this Tesla trade how about giving a thumb up for this trade before we continue to the next trade and thank you for watching this and now let’s see my next trades.

01:38 - My second trade is Boeing, now Boeing is kind of the same idea as Tesla gap down tried to move higher kind of failing now trying to reverse here and I’m expecting it to get Gap-and-Go, now take a look at this spike down it’s just about to have right now and I clicked the button and I moved in right here at 4,000 shares that was a mistake… because you don’t move out on spikes you often hear me say that but you don’t move in on spikes and that’s the first time I’m going to say that again so now take a look at just what happens the first spike down is extremely dangerous you don’t move in when you have extreme spikes, because after an extreme spike could be a continuation coming, I mean maybe some kind of an intraday news or something not very likely more likely just small spikes up and down and I was a bit red there and now it’s coming down and now it’s moving under the lows and I’m already up almost $6,000 right now as you can see and getting ready to take my partial so that was a beautiful move and BA just moved down under the lows and I’m about to take my partial, 3,600 shares right now left 400 shares for some more continuation approximately $6,000 profit, but the thing you need to remember here is that when the stock is spiking when the price is spiking you’re not supposed to get in a trade, sometimes when you see the opposite I’m not moving out of a trade when it’s spiking against me because often after a spike most likely after a spike there will be a move to the other side and what you’ve just seen in Boeing it was right after the spike was kind of playing up and down a little bit which was extremely dangerous I shouldn’t have been there I was supposed to wait for the spike to be over see it coming down gradually but I got so excited you know my first trade in Tesla was going nicely and I thought, well I could have another trade in Boeing that would go the same way, well it did it it did work out fine but the entry was a mistake should have waited a little bit more for the spike to be over, now let’s take a look at the rest of my trades.

03:50 - My next trade is CLSK, now what I liked about CLSK is the fact that the stock started with a big gap down 11% and the bigger the gap the better the Gap-and-Go is going to be so I’m about to short 4,000 shares as it reverses and again failed to move higher as you can see here by the first move up shorting now 4,000 shares, expecting it to Gap-and-Go, meaning come down on the loss but also notice the volume now it’s 700,000 shares, now that’s a replay a fast replay just I showed you like I showed you in the in the other stock that we watched earlier and as you can see it’s failing it’s moving higher and it’s about to move over the whole number which is $35, very bad news and I’m about to close this trade at a loss of almost $4,000, closing now.

Now, I just closed this trade let’s try and figure out why this trade failed, well first I liked it because of the fact that it started down 11%, the bigger the gap, the bigger the Gap-and-Go,  so I really liked it the other issue which I did not like was the volume, now when you have 700,000 shares after what like 10, 15 minutes or so into the trading session that’s usually okay to trade a stock which comes with more than 1 million shares volume per day and 700,000 after just a few minutes that’s fine not really when the stock is getting down 11%.

When the stock is gapping down 11% and that’s the main reason why this stock failed you would expect a lot of fear that will drive it lower you would expect a lot of buyers a lot of people to notice a lot of investors or traders to notice and to trade it 700,000 shares with 11% down means not a lot of people noticed it that’s a very low amount of volume for stock that is gapping down 11%, you would expect much more, millions of shares, that was a mistake.

I just made a mistake and I just paid $4,000 for it.

05:50 - My next trade is BTBT, now notice that BTBT is down 15% it started more than 20% down, that’s a huge gap down and the volume is much better as you can see 1. 4 million shares. Now, I think it’s failing to move higher and I’m about to short, shorting here 4,000 shares. Now, the stock topped a little bit as you can see at the beginning of the trading session which is a bit of a danger issue here but I do know the stock and the daily is way too extended to the upside the stock is like flying in the last few days you should take a look at the volume at the daily so you can see what happened there but anyway I trusted it to come down and it did come down, although much slower than I expected, as you can see it’s slowly making its way down now again a fast forward of what happened, so the stock is just trending lower you would expect that with a Gap-and-Go although I did hope it’s going to just spike down and you know move first to my first target and put the fears and the issues of having a bad trade behind me but, no, it did not and I’m taking my partial right here and just it’s a small winner but it worked out fine so it came down from the highs, a Gap-and-Go which is a little bit different because you do not expect this stock to come down under the lows, you just expect to fail, continue to move higher so it’s a little bit different game but it worked out fine.

And my last trade, MARA. Now take a look at MARA. Big gap down, I mean already down at this point 20% just imagine how it started, I think it was 35% or so just shorted 4,000 shares and the reason I did that is because it’s failing to move higher just like the previous trade we’ve just seen. The stock did start with a big gap down was trying to move higher but you do not expect it to come down and close the gap or continue under the lows, you just expect a downtrend, that’s it, a failure to continue to move higher and as you can see it’s trending lower slowly.

The first move down when I looked at it at the trading room I said to myself well I’m not going to short it because you know it just could bounce from here and move higher and then you can see that it failed to move right at that point here and then when I saw that it was failing the point to short it right there was the point where I thought well it’s probably going to continue coming down just trending slowly and I’m about to take my partial here and again that’s a very fast forward just took my partial.

That was not a huge winner but you know you could expect a failure and it did fail and continue moving lower, so that was another very nice trade. And here’s the end result over $41,000 dollars as you can see here I’ve got four green trades. I had one more loser in Boeing so the end result is not as good as I started with but just really one red trade today and that’s absolutely great for 45 trading minutes. So, traders I really enjoyed that you joined us today and if you want to see more of this trading content just make sure you subscribe and hit the notification bell here so you will be notified of my future uploads and if you do like to trade with me and possibly read my book or join our live trading room for free trial there’s plenty of free resources right here below, so just make sure that you join us and again don’t forget to give us a thumb up if you enjoyed this video it helps our channel it helps youtube to find more people like you are interested in watching day trading videos so just have a great day and stay in green, I’ll see you tomorrow. .