And once you can see this thing runs below V-wap it's staying extremely heavy. Heavy means the stock can barely bounce so every single order is going through on the bit side. everyone's selling on the bid to get out. and you can see with 2000 shares short.

I'm up I'm realized around 700 800 that's a day trader I Believe that price, action and risk management are the key to consistency in today's live trading commentary. I'll be using my recent Gap of Short strategy on this low float small cap stock. GCT You're Gonna Learn How I Lost three times in this trading session, but I still ended up profitable on the day. So yes, even with a low win rate, you can still become profitable.

You're gonna learn how to do so in this video. As always, I'm really honored and grateful to see so many positive feedback on the live trading videos as well as any other series on my channel. So as long as you guys like the videos and comment your questions and most importantly, smash the like button hard enough I will be here to follow up and fulfill your Lamborghini orders like button. Here's the stock we're talking about today: GCT It's a small cap sock, relatively lower float and a gapta on this particular day on The Daily Charts over here you can see huge gap up from prior day's close of uh, we're talking about 580s to all the way pre-market 1160s.

So yeah, this thing pretty much doubled overnight. Now to trade this particular setup I'm usually more short biased. this is what we call the Gap up short strategy. And yes, while I'll show you the live trading and all the executions later on, there's three important criteria you must know in order to trade a strategy.

Number one, you need to see a downtrend in daily chart. So let's look at a daily chart in Focus Over here, this is the daily chart of a stock. If we reset the price scale, we can see this thing. You know right now it's trading at around eight dollars.

The day of the Gap it went to 1160s. but if you went all the way back to September of last year 2022, missing IPO around 15 went to, you know, twenty dollars saying eventually the next couple days. This, in spite to 60 dollars a couple of days after IPO As you can see, ever since then, the stock is kind of failing. lower highs you know, falling even more a little Spike here and continually just selling off, breaking down to 16s and eventually to single digits Five dollars.

Now this is what we call a bag holder daily chart. and every time I see this kind of dating chart. It reminds me of my ex-husband Mike bag holder You see Mike backholder used to love buying these kind of stocks he'll buy it at, you know, 36 dollars thinking it's going back to 56 and next day it sells off to 16. So he's down 50 percent and he still doesn't sell to him.

he just cannot accept taking on losses and realizing it like that. Once you realize they lost, it becomes real. So if you don't look at it, you know eventually it's gonna come back up to fifty dollars. Sixty dollars, right? Wrong, you see Mike Bag holder Just like many many the other investors were Traders bad coding the stock, they didn't cut their losses so that's the reason.

Every time the stock spikes like like this one, you can see the spike with 15 to 28. That's a nice Spike but it never lasts the next day. gap down, sell off even more. And that's a reason on this particular day when the stock gapped up from you know, five dollars to eleven dollars pre-market I'm more short, biased because of all the bag holders, all the mics, all the ex-husbands that's trying to get out of their losing position.

Sorry, that's a very long story of explaining what I see on the daily chart. So essentially you can see this resistance over here around 13 around 11, 50 12 Here there's a lot of resistance from all the way from October of last year and same thing here. you have another level here around the 950 10 mark. So these are key levels or key resistance on the daily chart that you must respect in today.

That brings us to Criterion Number two: You want to see a huge overnight Gap up on this kind of small cap stock. So this is what we see earlier. Uh, priorities close. This thing was trading around.

you know, less than six dollars overnight doubled. So this is a huge gap up and you want to know the reason why. And if you go back to Finviz, look at the news. This is a free website.

If you scroll down to this particular day, you can see the stock gapped up overnight due to earnings news. So they beat on EPS earnings Revenue sales. Oh that's great and including this overnight Gap up. But guess what? Nobody cares.

Here's a pro tip for you when you're trading large cap stocks which is like the Nvidia, the Tesla, etc. Those earnings news the Gap up. Yes, they are valid and they are very much tradable. Sometimes it's just stocks Gap up and keep on going higher.

But when it comes to small cap stocks I Won't say nine out of 10 times, nobody cares because what matters the most is a long-term daily chart. So that's a pro tip. and keep that in mind if you're trading these small caps, the low floats. Moving on to criteria number three, you want to see an intraday down trading chart.

So we talked about earlier. Yes, we see that the deity has a bad coded charge and we can confirm that you want to see some similar Trend as well intraday. So what does that mean Exactly Intraday? You want to see the stock Spike and reject these daily key levels at 1160s, 950s and selling off even more. You want to see it making lower highs and lower lows and a lot of these failed spikes, consolidate and break down even more.

That's how we know. This is a kind of stock you want to stay short, especially after a huge overnight Gap Up Now that you learned about the chart setup daily intraday that I usually look for when trading these Gap ups and especially on the short side I Want to share with you my thesis for this Gap Up Short trade on GCT and all the key levels I planned out before executing the trade. So this is a game plan from a particular day. This kind of low float stock they love to trap pre-market and that's the reason.

If you look at pre-market this can just continue higher even after 750 to nine dollars spoilers. I Tried shredding it here, stopped off for a loss. It went up higher to 1160s. So while yes it's a short, you will not be cautious because a lot of times they squeeze first at the open five minutes and then sell off much later after that.

So that's the reason I Said: if you're more biased, do not chase the breakout. And if you're looking to short like I was looking to short it. if the key levels break down on the dating chart, the pre-market watches and the game plan is posted in Humble Trader Community every single morning, but just a reminder. You can also get a free weekly watch list emailed to you every single.

Sunday In the email, you're gonna see four to five stocks to watch in upcoming week as well as the key level analysis. so make sure you subscribe to the free watch list if you haven't done so already or you can comment watch list down below and I'll reply you with a link to get a free watch list. Okay, as you can see, the recording starts about tier about five minutes after the market opened as you can see on this particular stock over here: GCT I've already taken one last pre-mark kit. As you can see, I realized a loss of 59 and now I have an average 1050s on the short side with only 500 shares.

Stopping out in time and keeping the loss is very small and manageable is very important because pre-market shorting is very risky and I didn't think that it was ready for the spike and breakdown. So that's the reason. I waited till after the open I had a small little scalp over here that was also a starter. Um, I only started looking at this once again.

Uh, 500 shares short at 1050s right here? That's why I got in once again and that's an area we're looking at right now. You can see on the top of the frame over here. I'm looking at the stock z u r a I also started a short at 726s. Um, so they're both starters at this time so zero on the top GCT at the bottom I'm letting Gcp consolidate and work and see if I can start adding into my short position.

you can see over here I'm trying to add another 500 shares at 10 46 over here. So now I have a thousand shares at 10.48 average. but once again, these are very small positions that I plan on building into once I'm proven right. You can see um GCT is consolidating nicely above view app.

it looks like it wants another. Spike So if that's the case, I'm going to stop out for a loss first and then re-enter short and at the bottom over here. GCT it's forming. Technically, you know it's having trouble breaking out so still holding lower lows and lower highs which is part of the criteria for the strategy criteria.

Number two: you want to see the stock make an intraday lower lows, lower highs essentially down trending on both the intraday chart and the daily chart so it as you can see on top I stopped out of that stock for a loss on zero realized 250 dollars lost remember I Do not bag hold instead of back holding like my ex-husband on the way up. I would rather close up and realize the loss and then re-enter when the timing and entry is correct. Oh oops, sorry guys, it's my Tesla stock price alert I've been waiting for this key level to close on my Tesla swing trade and this is MooMoo a trading platform that I've been testing out on my phone for months now. I Started to use Momo because of the extremely low fees.

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Check them out guys! After all, it's free to use. So fast forward though, you can see GCT is trying very hard to consolidate, but the thing with these like low float small cap stocks is their consolidation. Play a lot of games so in this case the consolidation earlier looks very very bullish. It looked like it was getting a lot of bids and a layout.

bidding in a stock up higher. That's where you see that failed little Spike here. But guess what? That little spike is just a way to trap the lungs getting to buy and at the same time get the shorts like me covering their shorts so that's when you get a little failed Spike over here that you see and then once everyone covers, boom you can see the scene just Rock Post City And since I had only started of a thousand shares I wish I didn't cover. but for me I want to make sure that the timing is right for me to stay longer and not get trapped.

Um, but obviously in this case you can see I covered right before the drop. but that's the reason I really quickly added backing a thousand shares as you can see at 950s because that tape looked Heavy after that drop. So at this point I've taken the third loss on the day GCT Two losses and one loss of zero and I realized 99 dollars lost on GCT 250 on zero. So together that's 350 dollars last on the day.

but I'm not panicking. Do I wish I didn't cover that soon. Do I Wish I wasn't that conservative? Yes, of course, but it doesn't matter sometimes with these small cap games, they squeeze it up and hold up two three dollars. So I didn't want to take that kind of risk.

And once you can see missing one's below V-wap it's staying extremely heavy. Heavy means the stock can barely bounce so every single order is going through. On the bid side, everyone's selling on the bid to get out and that's what you get. A waterfall of red prints over here like you see and the starters cannot bounce to 950 940s and this time around I'm staying with my shorts.

A thousand shares so far at 9.50 and I plan on adding into the position and this is the way I Trade I Don't mind taking one, two, or three in this case initial losses to make sure that on the trade that I do take and start adding into it I want to have a bigger size and I will not be right after confirmation. So in this case it has confirmed all the criteria we talked about: Downtrending daily chart backholder charts um, overnight Gap up and number three down trending intraday with a lot of failures Underneath V-wap you can see lower lows, low highs. The stock just cannot bounce. fast forward a little bit.

You can see I'm adding 500 shares to the breakdown confirmation over here. So I added some more at this. What? Nine thirties now I have an average of 943 1500 shares short. So again, now that a trade has confirmed I Want to stay with a trade and the stock has tried to bounce multiple times.

This time, you know, 940 950 return? Yes, but these are very, very weak bounces and unlike the last time, I'm not worried I'm just watching the stock and want to sit and let it play out. You can see another attempt to spike and they drop the bids. You can see it's at lows of the day 9 17s and watch and drop the bid. right now.

that's a way to get a rug pull when you have a huge order going through on the bedside. I'm still holding my 1500 shares short. 9 43 average I Want to see if the stock can get to 850s or below? Fast forward a little bit more. I'm using a five minute chart.

Over here you can see the stock is trying very hard to bounce off that Nine Dollars area. Struggling with that, you can see all these little Wicks on the top. Wigs on the top means every single little bounce is sold into right? so you can see on a bigger time frame five minute chart. this stock is very weak.

That's when you see this. you need to stay with it short so you can see I'm staying with it I'm being patient with it I'm actually looking to add so you can see I added 500 more shares of Nine Tens and now I have 2 000 shares. Shorts at 9 33 is average. Once again, the reason I'm much more patient with the third trade on GCT after all the previous losses is because the stock has confirmed to be extremely weak.

After all the breakdown, all the criteria that I met. Um, once the price action confirms your thesis, you want to stay with it. You want to make sure you're maximizing your profits and that will in turn minimize and erase all the losses you've taken prior. Most new Traders and the traders who are unsuccessful, they do the opposite.

They'll hold on to Winners very short so they see a profit. they sell it, but with the losers, they'll keep on holding for a lot longer. That's why you should analyze your trades and making sure that you are doing the opposite. You want to let your winners run.

So in this case, nine dollars breaking down. Right now we're about to see another breakdown. Another rock pole on GCT and you can see with 2 000 shares shorts I'm up I'm realized around 700 800 if I just realized this when then I'll break even on the day it raising the 500 losses I already took before this trade. but again, we're not trading our P L here.

We're making sure that we are trading well so you know I want to see if I can maximize this profit. This is a really good example that a trade like this requires you to really practice your patience and control your emotions. Do not let the previous losses uh, make you lose control and start trading randomly. with Revenge trading your ability to stick to a price action and understand what you are seeing on your live charts is a crucial skill to have as a day trader.

I Believe that price action and risk management are the key to consistency. Do you agree with me on this? Let me hear your thoughts in the comment section below. I've also made the free crash course on price action trading so you can watch that after this video. So fast forward a little bit.

This is like what 10 50, 11 o'clock you can see I already covered 700 shares earlier at nine dollars and now I 1200 shares 933 average and I think I'm about to cover in the low eight at 8 30, 8 20 that area you can see I'm trying to cover some covering 300 shares at 8 18 a 19 area. Let's see if I get it. So I just took some more profit, realized about four hundred dollars green on this GCT trade. remember that's from taking two losses before this.

fast forward even more you can see I'm trying to cover everything around. Um, seven dollars ish 780 790s so just covering all my shares you can see I just realized fifteen hundred dollars on GCT after the loss from zero that netted me about eleven hundred dollars green on the day. So here are some key takeaways on this trade: What I could have done better is I could have waited longer before covering all these initial started sizes like you guys saw earlier I got a little bit spooked out by the consolidation and the price action when the stock is kind of looks like it was trying to squeeze and Spike but there's really no reason to get spooked out where I only had a thousand shares starter. So yeah, of course I wish I held all the position sizes.

but remember hindsight is 20 20. nobody makes money from Trading hindsight. But to recap what I did really well on this trade I had really good risk management which is always something that I preach and I talk about on this channel I had some really good risk management, especially pre-market If I didn't take in that initial loss, I would have get unsqueezed for a thousand to a thousand dollars before the stock market even opened. and remember I took a total of 3 losses of the day I was down negative 500 earlier but despite all of that losses I had one profitable trade that still allowed me to end my day very green with eleven hundred dollars.

so that's the reason I Always talk about your win rate. Really doesn't matter that much. If you're bad at risk management, you don't want to be winning 99 of The time and have one percent of the trade to be a big loss that blow up everything else. Remember, risk management and price action is the key to becoming consistently profitable in trading.

I Hope you learned something from the strategy video. Don't forget to gently tap the like button if you want to see more strategy videos in the future. If you want to become more profitable then you should definitely check out my live trading videos with price action analysis. All the videos are in the playlist over here.