By The Dip Strategy: This is a highly highly requested trading strategy video. The last time I made the video Lesson On this strategy, many of you guys actually followed step by step and picked up the setup for your own trading in this video today. I Want to teach you a set of refined criteria for this particular Buy the Dip strategy that works best in a current market environment. This strategy has allowed me to make almost $5,000 on Nvidia and another $55,000 on Microsoft.

That's a combined $10,000 in profits in a span of just a couple of days with this one strategy. and I'll be teaching you exactly how to do so in this video. So are you ready to trade better in the New Year Make sure to smash the like button and get ready to pay attention to the strategy lesson. If you seen my video lessons before, then you know that a good strategy must have a set of straightforward criteria and a repeatable pattern for you to time your entries and exits.

In this video, you're about to learn how to identify the correct chart pattern for this strategy. for simple criteria to buy the dip, the technical analysis and psychology behind this setup, and last but not least, I'm going to show you a live trading demo of how to execute this Spider Dip strategy. The best part is that you can apply this setup to any stocks above 500 million market cap. So even though you see me trading a $400 stock in this example, this is still very applicable to much cheaper stocks like Sofi or even Palente Tier.

If you enjoy these kind of step-by-step video lessons, then make sure to drop a like down below. All right to properly trade this by the dip strategy. I Always follow four important criteria. Number one is a stock uptrending on the daily chart with multiple levels of support areas.

That starts by going over the technical chart pattern that you must be able to identify to enter trade. So on the charts over here you're looking at Nvidia I Know this is a more expensive stock, but once again, this is applicable to any stocks over 500 million. whether it's $5 or $10 so you can see on the daily chart, this stock has been on a tear. um, pretty much since the $400 held on.

The Daily Support Here the stock has climbed up $100 per share to testing that $500 area. So you can see this stock has been setting higher highs day after day and higher lows. so you can see once it broke through that recent resistance around here. 473 The stock Tus 500 had some small pullbacks here and there but you can see this range on The Daily every time you dip to the around this area 480s, 490s Over here you can see these like small little dating Wicks candles.

The stock has been getting bought back up so you can see. There's a lot of support around this 4 93s area and down here 490s and then over here you can see these areas around 484s as well and below that you have will have more support down here at 478 then later on 473. So this is what I mean by you have multiple levels of support. After the stock has started consolidating, you can see a lot of highs did back down to lows bounce back off again.

This is the multiple Le levels of support that you want to see if you're picking a stock to buy the dip. And it's not just this month, the stock has done that around the same levels you can see all the way back in. August Over here the stock has tested very similar levels before and each time it's bounced off over here, broke, above, it bounced off that same levels, retest the highs and came back down. So this is a kind of chart you want to see in order for you to pick the stop to dip by.

You don't want to see the kind of stock that just goes straight up and straight down. so a good example of a stock you want to avoid to buy the dip on is something like this. You can see a lot of straight up and down the next day straight up, no consolidation on The Daily at all and you just go straight back down to where you came from. So this is not the kind of chart I would buy the dip on for this particular strategy.

So a deadly mistake a lot of Traders make when buying the dip is that they're trying to catch the folding knife. Again, the key difference is that you're trying to buy the dip on uptrending chart on The Daily time frame and you're buying a very established intraday support before you continue on to the next. Criterion For this buy the dip strategy, let me really quickly tell you about a free tool I Highly recommend! I've been making these strategy video lessons for a long time now. A very common question I Get is how to start trading and follow along my strategies and find these ideal stocks to trade if you're not ready to spend on expensive platforms.

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There's no minimum deposit requirements. you can deposit any amount to get started. Now that you've access realtime stock charts, you should set out a screener to look for Gappers to trade. You can copy my scanner criteria right here to find stocks with high volume and highest percentage Gappers.

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Weeo is offering you free fractional shares. If you deposit any amount of money, each share could value up to $3,000 You can sign up for free today with my link down below. Thank you Weo for sponsoring this portion of the video. So now looking at the intraday chart on Nvidia you can see there's a lot of support around that 4 93s 490s area.

Um, you know this day particular that we traded it 493 sold off. Bounce had a nice bounce. You can see once again that same support areas tested here the previous day and the last couple of days before. So just make sure that whichever support area where, whether it's 490 or 493 that you are using to trade this particular strategy.

it's been tested intraday in the past couple of days before moving on to criteria number Two For this buy the dip strategy is the stock forming consolidation or reversal patterns near the key support area that you identified. Remember earlier I Mentioned that you're not trying to catch the falling knife, you need to wait for consolidation or confirmation. Now, what does that look like? There are a couple of different ways to identify potential reversal. A very simple one is you are waiting for the first green five minute candle to form after multiple red selling off candles.

So in this example, I also took this trade on this day, you can see the stock sold off from 497 previous um, preite highs area to that daily support at 493. So you can see consecutive red candles selling in into the open and once that first green candle forms, that's when you actually have the bounce and you can see the exact same example. the next day the stock spiked to 505s pre-market levels. Then you sold off to that same five uh, sorry, 493 support area, multiple red candles selling off.

Then you have the first green candle to finally form around that daily support 493 key level area. Then you got a $5 per share bounce. A couple other ways to look for reversals can be higher lows and higher highs on the 2 minute or 5 minute chart or some people even use 10 minutes. That's fine too.

Or another way is to see whether the stock really quickly bounc off the support area and that would be price action. And don't worry if you feel a little bit lost right now because I'm going to be showing you step by step later in a live trading example for the Spider Dip strategy. All right, we're back to criteria number three is the market stabilizing or uptrending instead of selling off all day. I Think this is such a simple concept to follow as a Trader regardless of what kind of long strategy you trade.

if you are generally long buas, you should concentrate most of your buying power with trades on days where the market is uptrending or consolidating green on the day, and at the same time, that means avoid going l long when the market is just selling off all day. You can see the market sentiment really simply by going to the market tab over here on Weeo, you can see Market Tab and you can see a heat map of the overall Market condition across different Industries. You can also see globally how the Market's doing over here as well and as well as how many gappers are holding up on the day the percentage change as well as how many stocks are making new highs a lot of times. these are the strongest stocks in the market.

Just by doing this very simple thing, we'll increase your win rates drastically if you're long biased. Criteria number four for this particular strategy, this should be a given, but you don't want to see negative news that's causing the stock to sell off. It's fine if the stock has no news or positive news but you don't want a very negative Catalyst that's pushing the stock down heavily. and luckily for us on today's did buying strategy examples, the stock had very neutral to decent news but obviously would be even better if the stock a very positive catalyst.

So now that you learned the four very important criteria for this B the Dip strategy. The next step is trade planning as a Trader you should understand the technicals and the psychology behind a strategy only. then you can manage your entries and exits with proper risk management. So we did talk about earlier that the daily support area we're looking at is around this 493 Zone You can see that daily support a lot of little Wicks on The Daily the stock is getting bought back up around that key level.

so looking at the intraday chart you can see the stock spiked and later on sold off to that support area. So for me, what I'm looking for is okay. stock is selling off. where is the previous low day if I looked at the previous day which I also did bought this this particular stock at the exact same price area you can see 493 is bounced off nicely and then the previous day you actually rally to like $500 So on this particular day, if I bounce this here I want to see if I can get you know around that at this Vwap area, that's a nice price Target or even 500s if we get there.

So we're talking about potentially you know, three four5 per share. Upside: But at the same time when we plan out RIS risk for this kind of Entry You want to make sure you are risking at least a dollar a150 for a stock like Nvidia because it's considered a high beta large cap stock. meaning it's very very volatile. So any if we look at the previous day, you can see the exact same Level 492 493 area that's been tested the day before.

So when I long this area I need to be okay with risking yesterday's lower day of around 4 92s. So about a dollar per share. and if my price Target is the pre-market highs $496 that means I'm risking a dollar per share to make $3 or even more. You can see it went all the way to like $4.98 Um, but you're risking at least a dollar to make three and potentially higher.

And these kind of price targets is the beauty of this particular strategy. You can often get really outsized reward that's more than one to two, one to three, or even more because your entry is waiting for the stocks to sell off to the support area. Remember, you're not buying the stocks breakout at the high of the day. In this example, if you're buying the breakout all the way up here, that's say at you know 4.97 your risk to a downside is a lot greater and sometimes you have very limited upside like this one.

The one caveat of this strategy is that you have to be very patient and wait for your entries to buy the dip. You can see Lat Atreon in the two live trading examples. There was one that definitely got in way too early and that made me sell my position for a profit way too soon and missing out on almost $5 per share. Upside: If you've been following Along on this strategy lesson, please remember to drop a like down below and feel free to ask any questions you may have in the comment section.

Okay, so now that you've learned the criteria for the strategy including the entries and exit and the stop loss area, let me show you my live trading executions using the St buying strategy. Okay, to start you can see I already traded a lot of different tickers for about an hour. You can see the realized and unrealized down here. But I want to bring your attention to Nvidia Um, on the on the chart down below here I currently have zero Precision in Nvidia Even though I traded a long and a short side, you can see I have that 4.9 2 area drawn out on the intraday charts.

that's going to be the key level I'm using. so note I'm using 5 minute charts on the top in 15 minutes. At the bottom, you can see I just got in a th000 shares of Nvidia at 493 20s back at the 5 minute chart Nvidia I'm waiting for the stock to bounce. This is definitely an example where I'm kind of more anticipating my entry instead of waiting for confirmation.

but you see later on I'm going to add after the stock has started to form um, the 5 minute candle for confirmation, you can see that 493 is holding up nicely on Nvidia Yes, you did like sell off a little bit to like 49250 but that's like what 50 cents? Unrealized. Um, so you want to give it room to breathe at least a dollar to A150 you can see after a couple minutes Nvidia is finally starting to show a bounce all the way down here. The first 5 minute candle that I was looking for, you can see I'm looking to buy 500 shares more of Envidia 493, 60s, 493, 70s. So I added how much? Uh, 500 10 shares? Um, 493 average.

Now that gave me an average of you can see down here 4934s 1,500 shares. Again, we're buying a balance right? I think earlier I mentioned that with this I'm looking for a bounce as close to Vwap area as I can get to or potentially higher so you can see Vwap right now is $4.99 but if I can get to that previous High intraday that 498, you know that's still like $5 per share. That's pretty good so you can see the first five minute candle closed green down here Again, that's a very simple and Technical way to buy the dip with a confirmation you can see. Fast forward a little bit I Sold.

You know, just 500 shares locking in at 495 300 shares? at 495s, that's what I meant 1,200 shares 4934s Average stock is now back all the way close to 496 and this is like what just a spend of less than 10 minutes you can see two five minute candles have formed. So this is a very, very, uh, quick trade. That's a really good thing about trading these high beta um stocks because the balances are huge as long as you're comfortable risking a dollar to a $150 Fast forward I definitely sold this one too soon 4 94s sorry 495s I sold another like 200 shares. so I'm keeping just the 900 shares left on Nvidia Um I have a good average at this point I'm going to I'm not going to risk, you know, a dollar per share at this point with the remainder shares right? I sold 600 shares with the remainder 910 shares I'm going to set my stops break even on those you can see on the two-minute chart you're holding up very nicely.

higher highs, higher lows. same on the five minute chart. So at this point the trade is risk free. It's either you know yeah I realized $1,000 on Invidia and have this unrealized go back to zero or it actually bounces to like you know, 4 97 498 for me to lock in a even bigger profit.

So I'm really trying to let this winner right out longer so you can see I'm trying to sell a little bit at 497 if we get there I like to put an order out. sold a little bit, probably a little bit too soon. You can see I sold 300 shares at 496 close to 497. definitely could have held longer.

so I sold pretty much all of it. Besides that, 300 shares at $4.97 so you can see lock in $2900 on Nvidia Um, by the dip strategy and I'm keeping the unrealized $1,000 with 300 shares. so I actually didn't keep recording. but I did hold on to Nvidia all the way to about.

You can see over here 498 as close to that as I could 4 97s. Um, but regard is that's like you know a $4 per share on the final sale and all of that is risking a dollar per share on Nvidia around the 492 area. So I just want to show you one more example of the same Nvidia did by strategy this is actually the day before so you can see I got in a th000 shares at around 492 99. just call it 493 area that's also lined up with previous.

St close this little dotted line area that's a prior day's close so that's multiple supports lining up together. So since this is like an opening trade, it's almost like a scalp. Um I treat almost all my trades within the first 20 minutes of the open a scalps just because of so much volatility. Um, usually when I trade these I don't add to it.

you can see I you know I have a th shares with one entry and that's it. and I'm just looking for a bounce. Uh, ideally you know I was looking for that pre-market highs area which is what 495s 4 97s those two will be good price targets to aim for. You can see stocks wicking back a little bit, but again, if it breaks down low of day, I'm out risking that a dollar per share.

Taking that $1,000 loss, you can see we're already bouncing so that bounce happened way too quickly. 4 94s Nice little bounce you can see the opening is is very volatile which is why I treat all my opening trades as like little scalps I rarely add to my opening trades. um I only start adding after about 10:00 But yeah, you can see this one 495s if I get it I'm going to sell into that. So I'm up about a dollar per share on Nvidia on the two- minute charts also holding up nicely reclaiming Vwap.

As you can see fast forward a couple minutes later, you can see what. testing at 495s I sold 300 shares in the 495s realizing $600 No, let's see if we get higher day which is like 496 497. that'll be great but I have a feeling I uh I didn't have the patience to hold that long being again being that it's still like within the opening time I know how volatile things can be. so I always prefer to sell into that opening breakout you can see I sold into 495s lock in $1,300 I still have unrealized 850 Um I don't think I get to sell that.

Maybe I did Okay I'm selling all of it at$ 49799 you can see it did look like it was forming like a long Wick um around here and a lot of times these like Wicks that means it's a false breakout. so that's why I want to lock it in say M O out you can see lock in two $2,000 you know within the first what 20 minutes of the open at 495s And by the way back to the intad day chart. Um, even though I didn't keep on recording I you can see on this chart I basically got out all the way here 495s I got out here but the stock later on continue rallying past the pre-market highs 497 go to$ 4.99 then eventually at the end of the day went all the way to 505s. Um, obviously I left a lot of money on the table.

As you can see this very simple buy the dip strategy can be very profitable and repeatable day after day if you can truly Master it and learn the four criteria we talked about earlier in just the last two weeks. I've traded this particular set up many, many times on expensive stocks to very cheap stocks. If you learned a lot from this video, make sure to drop a like and leave me any questions you may have down below. I'll do my best to answer them.

Don't forget to check out Weeo down below. They have a lot of cool features I personally use myself such as the scanners, charging and a lot of free data as well. It's very useful, especially if you're trying to get started available for US Canada and many International countries. If you want to learn more of my trading strategies, feel free to check out the strategy playlist over here.

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