馃攳
How to Buy the Dip day trading? Small Account Long Strategy - YouTube
Channel: Humbled Trader
[0]
this was my favorite long strategy I
[2]
used to grow my small trading account
[5]
while working a full time job and these
[8]
are the three criterias to follow
[10]
stop buying these hi of the day or hold
[13]
all the breakouts
[14]
you hear me say that all the time I
[16]
personally prefer to buy the morning
[18]
panic buying a dip or buying the bounce
[20]
it's all just different names for the
[23]
same trading concept it's one of the
[25]
oldest tricks in the book or DS and
[29]
that's because this strategy provides
[31]
you higher odds of making money from the
[34]
trade a much better risk reward if you
[37]
have a small account under PDT and you
[39]
cannot short or if you're working
[42]
full-time may only have the time to
[44]
trade in the morning then this video is
[46]
perfect for you as long as you follow
[49]
these three criteria and also remember
[52]
to smash the like button for the YouTube
[54]
algorithm go ahead
[56]
did you lose money getting jumped up by
[58]
chatroom alerts this week then destroy
[60]
the like button did your wife or
[63]
girlfriend or boyfriend nag at you this
[65]
week then destroy the like button and
[67]
then call them back of course seriously
[69]
though I should call him back right now
[71]
hey Mike I know it's been six months I
[74]
just forgot to call you I've just been
[75]
so busy watching makeup tutorials on
[78]
YouTube so what's new what you bought a
[81]
penny stock breakout and you didn't sit
[84]
a stoploss oh my god I knew I shouldn't
[87]
have called you back
[88]
wait what stock was it so I can short it
[90]
tomorrow so the first criteria and look
[93]
out for when looking for a stock to dip
[95]
buy is the daily chart and not just any
[99]
daily chart it has to be a parabolic
[101]
daily chart to the upside
[104]
let's take a look at the stock clvs if
[107]
you look at the daily charts you can see
[109]
the stock was going straight up up from
[112]
mid November all the way to beginning of
[114]
December that's two weeks right there
[116]
yes there's a few red days down there at
[119]
the beginning of the trend but near the
[121]
end of the run it was up for six days
[123]
straight this kind of chart setup or
[126]
pattern if you really want to call it
[128]
that is what we call the parabolic daily
[131]
chart when a chart looks like
[133]
visually it means there's a lot of
[135]
emotional and greedy buying the traders
[138]
investors big funds they're just pouring
[141]
their money into the stock after the
[143]
company announced better than expected
[146]
earnings and guidance in the beginning
[148]
of November so knowing that there's
[150]
positive news for the stock a lot of
[152]
emotional buying on the daily not so
[155]
great at all but you do not want to buy
[157]
the breakout like that guy Mike I just
[160]
called earlier his name is now changed
[162]
to bag holder Mike on my phone don't buy
[165]
breakouts sometimes it's okay when
[167]
you're trading mid-cap and large cap
[169]
stocks with a higher float but if you're
[172]
trading low float penny stocks like C /
[174]
SNC a and C etx
[176]
a lot of these breakouts turn into fake
[179]
outs these low flow stocks will
[181]
sometimes pop for like 10 or 20 cents
[183]
and immediately dump 50 cents I'm not
[187]
saying you can't ever make money buying
[189]
breakouts I'm just saying the risk
[191]
reward to that kind of setup it's often
[193]
terrible to me that kind of strategy is
[196]
not consistent and very risky especially
[199]
if you have a small account under PDT I
[203]
prefer to buy the dip at support level
[206]
on stocks like clvs
[208]
with a strong parabolic daily chart now
[211]
you must be wondering okay but how
[213]
exactly do we find those strong support
[216]
levels to buy the bounce and that brings
[219]
us to the second criteria which is to
[221]
click the like button at the bottom of
[223]
the video and please be gentle with a
[225]
like button I really appreciate your
[227]
support
[228]
but please do not break your phone the
[231]
second criteria to this buying a bounce
[234]
strategy is to draw your support levels
[237]
from the daily chart you can't just buy
[240]
the bounce at any support level on any
[242]
given stock the strongest support levels
[244]
are almost always going to come from the
[247]
daily chart so using our parabolic daily
[249]
chart example clvs you can see that this
[253]
stock has some support levels on the
[255]
daily around 11:00 60s
[257]
that's a support area from October of
[260]
2018 and you can see that area of
[262]
support was later broken down in July of
[265]
2009
[266]
ting and when the supports area is
[269]
broken it becomes later resistance which
[272]
is why that's the top tick for clvs on
[276]
this day the stock hit the daily
[278]
resistance level and sold off intraday
[281]
now what if we want the stock to break
[283]
out more on the second day and buy the
[286]
dip after the breakout has confirmed you
[289]
can see that clvs broke out of previous
[293]
day's highs at 11 60s with high trading
[296]
volume early on in the morning and then
[299]
a stock rent to a high of 12 65 and like
[302]
we talked about earlier when a
[304]
resistance line is broken that later on
[307]
could become support and that's why
[309]
after the stock reached the highs and
[311]
pulled back it bounced at this 11 67th
[315]
level and that also coincidentally
[318]
aligns with the support area we were
[320]
looking at on the daily chart yes I am
[323]
aware that the intraday levels miss the
[326]
daily support line by like 7 cents but
[329]
these daily support and resistance
[331]
levels are never going to line up
[333]
exactly to the cent these are
[335]
indications of areas of supply and
[338]
demand and if you are waiting patiently
[340]
for your dip levels to long then you
[342]
will put your stop-loss under the
[344]
support level make sure to always give
[347]
yourself some room to risk like 10 cents
[349]
or 15 cents you never want to put your
[352]
stop right as support because if that's
[355]
the case then you're always gonna get
[357]
stopped out and you can see that same
[359]
1160 support level act as the bottom for
[362]
the next few red days as well and here's
[365]
another example of areas of resistance
[367]
and nice 60s and not also marked as a
[371]
top for 4 days straight in August of
[374]
2019 and once a nice 60s level is broken
[377]
on November 25th that daily resistance
[380]
now becomes intraday support you can see
[383]
that's where the stock bounced off on
[385]
this day and the next morning early on
[387]
at 10 a.m. which would make the stock
[390]
the perfect candidate for the morning
[392]
panic bounce setup if you're working
[394]
full time they only have the first one
[397]
or two hours to trade before going to
[399]
work
[400]
this is a perfect strategy for you but
[402]
of course the setup is only going to
[404]
work if you are patient waited for your
[407]
entries and you had drawn the support
[409]
levels from the daily charts beforehand
[412]
again I cannot stress this enough you
[415]
have to wait for the setup to come to
[417]
you but you will grow to adjust your
[420]
entries and your risk and give yourself
[422]
some wiggle room as you become more
[425]
familiar and comfortable with a setup
[427]
now that we have criterion number one
[429]
parabolic daily chart to daily support
[432]
levels the next criteria is gonna be the
[435]
icing on the cake or as we agents co-eds
[439]
the Japanese chili spice on the ramen
[442]
seriously though you have to try it it's
[444]
so good please stop putting sriracha big
[448]
spicy sauce on your ramen every time I
[451]
see that I get very offended I call
[454]
those third factor the amazing Japanese
[457]
spice of ramen because while it's not
[459]
required for you to buy the dip on the
[462]
setup it's an extra factor that actually
[465]
strengthens your thesis of a particular
[467]
stock and making the setup even more
[470]
favorable and have a higher chance of
[472]
success rate and that bonus criteria is
[476]
high short interest remember when we
[478]
talked about criteria number one from
[480]
earlier now the stock has to have a
[482]
parabolic daily chart that kind of chart
[485]
means that the stock has gone straight
[487]
up for a couple of days with no major
[490]
pullback and at the same time every time
[493]
there's a stock that's running straight
[494]
up to the moon there's always funds big
[498]
money and people trying to short it
[500]
because yes technically speaking a stock
[502]
that looks like this chart is really
[505]
extended on the daily it should pull
[508]
back a little bit right at these
[510]
pullback to nine dollars for eight
[512]
dollars but when a stock should come
[515]
back down to earth but doesn't actually
[517]
do it in reality you bet there's many
[521]
many short sellers piling on and they
[523]
are all trapped in pain for multiple
[526]
days and that's essentially the kind of
[528]
emotional pain that you as a loan trader
[531]
looking to buy the bounce
[533]
morning sell-off want to take advantage
[536]
of these short sellers piled on near
[539]
highs the last few days thinking that
[541]
the stock is up too much and it should
[544]
tank back down right and many of these
[546]
traders are holding on to the short
[548]
position as a swing trade thinking that
[551]
a stock has to go back down to single
[553]
digits and how exactly do you find a
[556]
short interest of a particular stock the
[559]
best way with a most updated data is
[561]
with trade ideas scanner I have the
[564]
scanner set up to show the short
[565]
interest on the pre-market Gabor's and
[568]
the midday momentum scanner you can also
[571]
see the short interest data in a stock
[574]
details as well alternatively you can
[576]
also use short squeeze calm and fin this
[579]
both of these websites are completely
[581]
free the data is a little bit delayed
[583]
but overall it gets the job done
[585]
besides clvs another tip by candidate
[589]
stock that meets all our criteria is our
[592]
ad rite-aid
[594]
after the company announced strong
[596]
guidance and earnings you can see the
[598]
stock is going parabolic on the daily
[601]
chart now if we draw these price levels
[603]
from the daily chart you can see that
[605]
these daily levels become intraday
[608]
support levels for you to dip buy in the
[611]
morning or mid day now are the price
[614]
levels always going to work a hundred
[616]
percent no nothing is 100% guaranteed in
[619]
day trading like I mentioned before in
[622]
this video the only way that's going to
[624]
guarantee you profit a hundred percent
[626]
of the time is keeping your 9 to 5 job
[630]
but looking at our ad you can see the
[632]
stock has a high short interest of 27%
[635]
usually any number greater than 20% is
[638]
why I consider Heavy D shorted but even
[641]
better is when it's over 50% like clvs
[645]
and the reason the highly shortest stock
[648]
with a high short interest is extremely
[651]
favorable to you as a lone trader buying
[654]
the dip is because these short sellers
[657]
are stuck upside down shorting a stock
[659]
for multiple days they will most likely
[662]
look to buy to cover in order to get out
[665]
of their short
[666]
of any major pullback so a short sellers
[669]
buying to cover and the fresh buyers
[671]
coming in to buy the stock and a
[674]
discounted price it's the kind of volume
[676]
that you can use to your advantage for a
[679]
potential upside to retest the highs
[681]
with a pretty good risk reward this
[684]
buying the tip strategy in a swing over
[686]
night long strategy are the two core
[689]
setups that I used to build my small
[692]
account while I was trading part-time
[694]
while working a full-time job again the
[697]
key to both of these low strategies is
[699]
patience and planning ahead you have to
[703]
be ok with not taking setups or missing
[705]
place if the criteria and the setup
[708]
isn't optimal if you want to learn more
[710]
about all the other strategies I've
[712]
mentioned that's suitable for you to
[714]
grow your small account make sure to
[716]
check out these videos if you found the
[719]
video useful and you want to see more in
[721]
the future make sure to always remember
[724]
to drop a like on the video I'd really
[727]
appreciate you my friends thank you guys
[729]
so much for watching as always I'm the
[731]
humble trader and I'll see you guys next
[734]
week
Most Recent Videos:
You can go back to the homepage right here: Homepage