There's a reason I've made this many videos on Gap Up or Gap Down Trading because these gappers are literally what day Traders Live for in order to profit from Trading You want to trade stocks that have momentum and volatility. Otherwise, you might as well be like my ex-husband Mike bag holder holding on to a stable dividend stocks and Dead penny stocks. Welcome back to another humble Trader video today I'm sharing my live trading footage and commentary on the hottest stock of the Year Nvidia This stock recently had a massive Gap up to new alltime highs over $500 after a highly anticipated earnings report and of course artificial intelligence hype I made close to five figures profit on this one trade and you'll learn my exact strategies trading this huge gap up. I Always appreciate the amount of support and comments you guys have shown me in my live trading.

Series So in this video you can expect to learn my trade, planning and execution process, the key criteria of the strategies, risk management for the strategies, and how to read and react to price action in order to maximize your profits. It does take me a long time to make these kind of videos, so if you appreciate them and if you want to see more, make sure to drop a like down below. thank you very much and share this video with your trading partners. Okay, you know the drill.

We always start analyzing the stock we trading in this case Nvidia on the daily chart because the daily chart contains important information about all the key levels, your potential entries as support, and your potential profit. Target So that's why, instead of going in straight to your intraday chart, you know you want to start from the daily chart. So looking at this Nvidia daily chart, you can see that the stock has been on a tear ever since the last earnings it had in May 25th and the most recent one that we are talking about about the trade today, it's this particular one over here August 24th. As you can see in the last two weeks prior to this, earnings Nvidia pretty much ran into it.

Um, even though it sold off a little bit with a market down to $400 um, in the middle of August So whenever you have stocks this strong leading into the earnings we're talking about last four or five days, it went from $420 to $500 That means the stock was highly anticipated to perform really well for the earnings. So whether it's investors, retail Traders analysts or Elos, they all had really high expectation for this stock to do well. and a lot of times well. Yes, that's really good for the stock price as Traders You want to be aware of this concept of buy the rumor, sell the news news.

However, if you're a Trader it's very important that you utilize technical analysis that's still your key to profitability. whether you are short-term swing trading or day trading because you don't want to be fundamentally right, but technically wrong. So what I mean by that If we zoom out a little bit looking at the last couple times the stock has, you know, rank up into earnings. The last recent time was this one right.

You can see stock definitely rang up into earnings and created a huge gap. and you can see the stock on the day after the earnings release actually spiked and sold off. and and same thing over here. If you look at this particular day right, you had earnings.

you had a little little Spike You can see like this little candle here. you had a nice little Spike but the stock definitely pulled back a lot. so it's not like a very strong all day Green Day like you see in some of the strongest days that Nvidia ripped everyone off. So even just doing a simple technical analysis on the chart for NVIDIA you can see that has a tendency of running into the news and selling off after the positive news despite a huge overnight Gap up.

Okay, so now that we've gotten that analysis from the daily charts, it's finally time to look at the intraday chart. This is the particular day that the trade I'm talking about over here so you can see after hours a stock ripped from 470s all the way to like 520s. After hours. The next day it like faded a little bit.

Next day opened around uh, 511s pre-market and since then it faded off into the market open. Now when I was planning to trade the stock I was looking at $500 as a key level $500 a nice little round number psychological number that's also the pre-market Support over here as well as some after hours levels right and you can see premarket. The stock you know had a little high here premark High 51s but ever since that little Peak at 7:00 it kind of faded down to like lower lows below vwap and lower highs. So the stock in in during premarket is definitely already downtrending.

So seeing that along with what we just talked about on the daily chart that made me become more short biased on this overnight Gap up that we're seeing on Nvidia So we identifi the key level as five $500 So what does that mean? If the stock after the open breaks below 500 then you have like a nice little Gap from 500 to where it came from around like 475 480s. So we're talking about a 20 point 25 point gap down, right? So that's the amount of downside there is to profit from if I short the stock. Now let's talk about the upside because I could be wrong at any given time if the stock reclaims over 500 right 500 being the key level if it reclaims and start heading back to highs. On the long side, the stock has upside to 5 07s, 512s it's not bad, but the the upside is definitely not as big as the downside.

So since I was more short buyas, let's line up some of these uh, potential levels here. So let's take a look at these levels here. So under 500, there's some small level down here at n, uh, 490. you cannot get that from the daily chart from, but from the daily chart, you can definitely get 480s over here because that's a previous highs from two days ago before earnings.

Remember we're looking at this one day over here. Okay, so if I'm short below that $500 key level, I'm going to use Vwap as my risk. That's kind of the way. I Trade if a stock stays below Vwap such as this.

Obviously, when you're trading, it's not as clear as it is. Now that's the way I Trade I only use Vwap and volume indicator and then like support and you know demand and Supply Etc Um, but if the stock stays below Vwap and the further it pulls away from Vwap, that's a sign that's really weak. So I want to stay short along the trend. The downside: Trend So this is how I roughly plan out my trade, my thesis, my profit Target and risk area during pre-market Give me a thumbs up if you're following the process so far and we have this kind of pre-market trade planning process every single day in the community.

So if you're interested in joining us, live with myself and the trading coaches, you can check out the link down below. As you probably already know from all my YouTube videos, most of my strategies involve scalping momentum and shorting. All of those things will require a very fast broker platform and I have an exciting promo from one of the premium. Brokers I personally use Centerpoint Securities If you're trading with over $30,000 you can use Center Point to day trade with zero commissions for6 60 days.

And that's not all you also get access to Dash Pro for 1 month for free. That's the trading platform you see in all my videos. That's another $150 value for free to get this offer with all the freebies. I Just mentioned you can sign up to Center Point Securities down below and now let's get back to the video.

All right, so let's see what happens to Nvidia After the Market's open, you can see it's 9:30 right now. Market hour you can see the stock at the open. it's already selling out of that $500 key level. Now you can also see that I took a little loss already pre-market I took a short here at a $500 key level I think I had like 300 or 500 shares I shorted that I was wrong and immediately covered for a loss of $2,400 That's my pre-market trade and you can see at the open it's selling off the same area so I had a right idea but wrong timing.

but it's okay. I I always pref prefer to just cut the loss so I can have a really clear head to execute once again after the Market's open so you can see it's already staying very heavy after that key level $500 flush down. you can see I can barely get filled I'm like oh I I need to short the bid but like the bids just just get smacked down way too fast. You can see I'm struggling to get filled I Really okay, this thing is not bouncing.

You can see it's already down at 495 Again, if I didn't cut my loss at premarket, I'll be up decently right now, but once again, you cannot think like that in trading. So I realized I have to chase a little bit. It's not ideal, but I want to make sure I'm chasing with the size I'm comfortable. Um, risking.

Man, that was a huge flush at the open. We're talking about 500 down to 42 92s already in 1 minute. Okay, this is one minute of the open obviously I wasn't happy about missing the entry, but things just happened way way too fast. You can see it's bouncing a little bit so I shorted some at 494 average.

Again, it's still not ideal because know like I I I was trying to get in at 500 but it's an okay starter. So I shorted 1, shares you can see very volatile at the time. The stock is already trying to bounce a little bit, but again I'm shorting with the amount of size I'm comfortable. Even if the stock bounces a dollar $2 dollar, it bounced up to like 4.95 so a little bit.

So it's down like 50 cents for just a little bit. but you can see it couldn't hold that 495s and a lot of times people ask me Shay how do you hold through such volatility? It's because I'm using a share size I'm very okay with withstanding a dollar or even $2 moves. So if you find yourself you know, having trouble with holding on to a stock and letting it work like in this case I recommend sizing down so you can see I'm trying to cover just a little bit at 492 trying to cover 500 shares because it does look like it. You know it wants to bounce a little bit.

let's see. yeah. so I covered some around 4 9260s. so up about you know two $2 But the idea is that I cover a little bit.

but I want to add on the bounces on confirmation. Remember that 490s level we talked about earlier. that's a small small levels not the strongest support because there's no daily levels over there. So fast forward a little bit you can see it's now 935.

the stock is trying to bounce to 496 is so I'm down on realized about like1 $200 and realize negative 800 on the day. but once again you know you can see I zoom in and out of the 2 minute and 5 minute many times just to see how it's reacting to Vwap. You can see that it's still really far from Vwap. it cannot even bounce and Vwap once again it's my stop out area.

so at the back that 500 shares same average 4 94s. fast forward you can see I added a little bit on the two-minute charts here at over here around 495 is now I have 2,000 shares because I zoom I keep on zooming in and out to see the strength of the stock. you can see a barely can even test Vwap so that's the reason I'm staying in I even add it doubled up and the stock is back testing low day covered a little bit 492 exact same execution as earlier earlier I want to make sure I'm you know, saving the majority of the shares for the huge flush down. That's what I'm looking for.

you can see even though I'm trading Nvidia at the bottom on the top I'm usually looking at some other other stocks that's relevant. So I'm looking at Meta you can see very similar price action. The stock you know gapped up overnight and then sold off. No news right? It just up with rest of the tech stocks gapping up.

So the fact that it's selling off kind of gives me you know an added sense of okay, like other tech stocks are selling off, then Nvidia is also likely to do the same again even though my average isn't the best and I have unrealized loss while the stock is chopping around. I'm okay holding it because I already taken some small profit earlier and now I'm ready to add if it bounces or add lower if it confirms you can see. Fast forward down here. on the 2 minutes.

Nvidia's bare flagging right on the 5 minutes, there's still no green candle to be found. so I think this is something you can use. This is a pro tip over here: use at least two or three time frames to to confirm your thesis, so on the 2 minutes it's bare flagging. On the 5 minutes, there's still no green candles in sight.

So that tells me the stock is still very weak. The bottom or the reversal hasn't formed yet. So that's why you know I'm continue to stay in on the short side. Um, being very patient here.

We cover stocks like Nvidia and other smaller stocks that we're watching in our free Sunday watch list. So if you're interested, you can sign up with the link down below. Again, it's a free watch list. you get every single.

Sunday You can see it's bare flagging right lower lows on the 2 minutes and now you're going to crack the low of the day you can see I'm trying to add probably not fast enough. When this thing flushes, it flashes down quick. You can see at the sum 2,000 shares 4393 average and the stock is Flushing You can see we're down to 490s that small little support we talked about earlier and I'm realized 6,000 on this trade. Let's see we're back at 491s again.

I'm looking for a another leg down on the flush here. I actually made a mistake of stopping out a th000 shares. Okay, that's interesting I actually forgot about this. This is interesting for me to review as well.

Actually stopped out 1 th000 shares so you can see I'm actually still net negative realized on Nvidia So I stopped out at 494 so I think I got spooked out. Okay because I think the stock flushed down for a little bit but really quickly bounc I thought it was going to reclaim, but you can see. let's see if this reclaim actually lasts a long time. If that was a true reclaim, a true reversal.

the stock should like continue the bounce. so let's see that 495s area still holding up here. You can see once after I covered a little bit, the stock can barely hold that area. A couple minutes later the stock is back to the low of the day.

Yeah I did stop out a little bit early a th shares. Okay okay Switching to a 5 minut down here you can see stock is back a low of the day 5 minute candles, all red 490s and now I'm trying to slam the bit to get short. Sometimes when you like try to chase the like with flushes like these kind of large cap socks. they flush so fast it's hard to get in.

So I got F 500 shares at the low of the day again I would only do that slamming a bit at the low of the today if there's still a lot of downside so you can see. even though I slammed it I chased it. Definitely at 489, there's a lot of downside to like. You know, we're talking about another 10 points possible for the stock.

so only if there's enough profit Target to make sense of the risk, then I'll chase the entry. Yeah, of course, but definitely looking at this. I wish I didn't cover that th000 shares earlier at 493, but you can see the stock is flushing down remaining pretty heavy right now. So I covered 500 shares or 1,000 shares.

Rather like looking at this footage makes me realize I need to work on my exit I I think my my if my entries are okay like I'm okay with the chases but I think I Do cover too much too early. like that 493 we talked about and over here 486 there's still more downside. There's no reason to cover a th000 shares should have covered like 500 Max or like 300. So I even I still find things to improve on regardless of whether it's a win or a loss.

Let's see if we get one more leg. So downside on Nvidia you can see I covered a little bit more now I have a remainder of 300 shares I covered some more at 484 on the short side, so locked in $55,000 realized and I believe I'm all out on the short over here I'm all out. you can see my position box is zero on the on the short, locked in about 7 7600 on the short side. So one thing you should remember about these large cap stocks.

especially these like volatile tech stocks like Nvidia AMD or even Tesla they tend to Trend after an very important daily level is broken. Whether it's to the upside or downside, if it's broken out of to the upside, then it tends to Trend Now that's one of my favorite, um, longan strategies we talked about on this channel before as well. Um, but in this case this is an important level that $500 level over here. it's broken down right.

So once a stock like this breaks that key level, it tends to sell off all the way to the downside tends to Trend down. So that's why you want to. You want to stay with the trend, don't fight it. The reversal usually comes, but it's a lot later you know I do usually wait and see if it's going to form.

um, a reversal likely around that 480s area cuz I'm looking at um, a meta I'm trying to cover up all meta on the top here. Um, but on the Nvidia on the long side I think there will be a bounce, but I'm just not sure when. Remember that previous area 480s is a daily level we talked about. So that's the area I'm looking at for a potential um, reversal long.

Essentially, you're bouncing the stock after a very aggressive selloff like this. Um, from 500 down to 480. So that's a 20 point downside, right? So we're looking for a small bounce on the reversal move. That's also a strategy I've talked about in my previous videos I'll show you that in just a second.

So um, right now, the only position I have is Meta. But yes, I am looking for a reversal. You can see me trying to gain a th000 shares at 484s trying to see if that's the area it's going to bounce. I've come to realize that psychologically, it's a little bit hard for me to Long the stock and trade it well after I just shorted the same stock.

so for me, it's It's actually a little bit hard for me to execute the long side correctly. not making excuses I'm just saying I do find that I usually don't trade the opposite side that well after I just closed out. Um, one bias so you can see 484s is struggling to hold I still have the same 1100 shares just trying to like see if it forms a green Candle on the five minute chart or even the two- minute charts rather for it bounce. So basically, while trading this, trying to find the long side, I was essentially seeing a potential Gap up reversal long on this intraday chart after the stock has already sold off 20 points.

This is one of my go-to strategies that I use to trade large cap stocks on the long side. For those of you who have not seen my previous video lesson on this particular strategy, let me give you a quick breakdown of the key criteria. So number one, you need to see a pre-market Gap up on significant fundamental news. So we just talked about this: Nvidia did have a huge gap up from Privay close all the way to $500 and the fundamental news is the earnings beat, right? Really, really positive, really significant.

and number two, you want to see huge volume I mean there's no jokes about it like this day. Premarket I believe Nvidia was already trading 2 million shares so that's a lot of volume. That's how I was able to get in and out really quickly with my uh, losing trade that I showed you earlier pre-market and number three, you want to see an uptrending on the daily chart. So we also talked about this earlier.

you can see leading up to this particular day: the earnings Nvidia was on a tear, right? We're talking about a move from 405 to 420, 4, 440s and all the way ripping up to 500s in the last one week. So it's definitely a very bullish and uptrending daily chart And criteria. Number four For this particular loan strategy, you want to see a retracement. So basically a retracement is like profit taking or sell off on this huge overnight Gap after the open.

So the reason this is not fitting for the longan strategy is because it did so much of that sell off right? 5 $100 down to 480. So essentially the long strategy is to find an entry to go long for that bounce after this kind of huge retracement. So that's the thesis of this long setup. This Gap Up Long strategy is a very beginner friendly strategy, mostly relying on technicals, but also really profitable if you are really timely with your executions.

So you can comment Gap up trading down below and I'll send you a detailed video tutorial for this particular strategy with even more live examples. Okay, so now let's return to our long setup on Nvidia You can see previously I was already long 484s again I'm looking for that bounce towards the 490s if we get it. Oh W that happened quick. So I already sold some that I sold 400 shares on my little bounce to$ 485 so only made about a doll per share on the long side you can see I realized $400 but I was looking for a lot more for the bounce so that little bounce turned out to be a scalp.

But scalping, you know can definitely help in this situation where the stock is still remaining very heavy. To a downside and it's not really giving us that big bounce that I was looking for. Okay I had to skip ahead and fast forward a little bit where I've been kind of going in in and out of the Longs side on Nvidia so you can see I'm back in with 1100 Shar starter at 484 so the exact same levels but this time around you know I used five minute chart at the bottom. five minute chart here is starting to form a hammer.

as you can see long Wick at the bottom means the stock is getting bought back up so that's the reason I did re-enter with an average of 484 over here again we talking about that 485 490. This level is kind of want to see the stock to to hold for it to get continue the bounce. so let's see if we actually get it. You can see I'm down a couple hundred dollars with my average here.

I'm also not adding because uh for I I think the stock overall is very heavy and I didn't feel comfortable adding. We talked about this that when I'm trading the other side after the short, when I'm trading along I'm very conservative with my sizing so I almost treat it just as a scalp. Okay, so scalp sizing only. All I'm looking for is a balance of a couple dollars.

If we get it, you can see the stock is remaining extremely weak. I'm down about a dollar per share a170 per share. so not fun. But I'm really trying to let it work on the two-minute chart and 5 minutes you can see I'm trying to reduce my exposure at 400 shares.

Um, so I sold 400 shares at 484. Very small profit again. I'm want to reduce my risk exposure in case this thing falls off the cliff once again and at the same time a lot of other tech stocks are selling off. so I want to make sure Nvidia get doesn't get pulled down.

So fast forward: it's almost 10:00 now and the stock is still not bouncing. I'm pretty sure I'm going to bail soon. Fast forward here: I'm still holding that same 600 shares. All I want is a small bounce.

You can see it's hitting at 485 FES area I'm up like a couple hundred, you know 486 I Really want to see if I can get like 490 but uh, it's definitely having a lot of trouble. This is how you read price action by the way. I you switch between the 5 minute and the two-minute charts and see how it reacts to those price levels. and with this, every single time it tries to bounce, it gets Slamm back down.

So that kind of worries me a little bit for my long position. So 486 50s I was up a little bit like almost two points per share I Want to see if we can hold this bounce? You can see I'm waiting at 490s to get out I'm up, you know $4 per share. Nice little profit on the long side so you can see I'm trying to sell 200 shares at 488 so 200 shares I only have 400 shares left 489. Okay, very nice.

Let's see if we get one more pop to the 490s for me to get out all this long. This is the remember: this is a gap up reversal long. Essentially, you're selling towards the Vwap area. You may not get it I don't think Nvidia gets that Vwap? Um, but 490s will be like a nice little bounce.

This felt like so long ago even though it was only like two days ago. All right I actually added 400 shares. So now I have an average of 486 even I'm impressed by how long I held the Longs side. I Thought I would have built ship a long time ago.

So fast forward you can see this is the two-minute chart. once again that 490s, you see a lot of Wicks around that area. that area is holding up really really well as resistance I mean okay yeah, you can see stock is breaking down I'm now red I realized I think I'm just going to bail. Would have been nice if I sold into those little pops, but clearly that 490 is holding up and I think the stock is going to continue the downtrend and sell off.

so that's why I just decided to GTFO get out Y and I just got out. you can see at$ 485 I got out of my remainder 800 shares so locked in $1,300 on the long side for the gapa reversal long the balance essentially and on the short side locked in 76 $7,600 so not bad I think I could have done better on both sides, but not bad for like what you know, 40 minutes of work. I Hope from this video so far, you're getting a better understanding of the reality in trading. Through this liveaction commentary, it's very easy for people to teach you a chart pattern and find a perfectly fitting example to show you the ideal entry and exit.

In hindsight, however, as you learned from the video we just talked about, it's very difficult to time the perfect entry and exit. However, with experience and reading price action, you can get there slowly. Remember, execution is key. Now that you learned two of my strategies in this video, make sure you practice them in paper trading or trading live in small size if you enjoy this video and want to see more in the future, please remember to drop a like And subscribe if you haven't done so already.

And if you're serious about trading then I Highly recommend you to watch this. Gap Trading crash course over here in this free crash course I Shared over five Gap Trading Strategies on the long side and the short side that you can use to trade these overnight gappers like I just did on Nvidia So if you're ready I'll see you in the next video.