This was my favorite long strategy. I used to grow. My small trading account while working a full time job, and these are the three criterias to follow - stop buying these hi of the day or hold all the breakouts. You hear me say that all the time I personally prefer to buy the morning panic, buying a dip or buying the bounce, it's all just different names for the same trading concept, it's one of the oldest tricks in the book or DS, and that's because this strategy Provides you higher odds of making money from the trade a much better risk reward if you have a small account under PDT and you cannot short or if you're working full-time may only have the time to trade in the morning, then this video is perfect for you, As long as you follow these three criteria and also remember to smash the like button for the YouTube algorithm go ahead, did you lose money getting jumped up by chatroom alerts this week, then destroy the like button? Did your wife or girlfriend or boyfriend nag at you? This week then destroy the like button and then call them back.

Of course seriously though, I should call him back right now, hey Mike, I know it's been six months. I just forgot to call you. I've just been so busy watching makeup tutorials on YouTube. So, what's new what you bought a penny stock breakout and you didn't sit a stoploss, oh my god, I knew I shouldn't have called you back.

Wait. What stock was it, so I can short it tomorrow. So the first criteria and look out for when looking for a stock to dip buy, is the daily chart and not just any daily chart. It has to be a parabolic daily chart to the upside.

Let's take a look at the stock clvs. If you look at the daily charts, you can see, the stock was going straight up up from mid November, all the way to beginning of December. That's two weeks right there. Yes, there's a few red days down there at the beginning of the trend, but near the end of the run.

It was up for six days straight this kind of chart, setup or pattern. If you really want to call it, that is what we call the parabolic daily chart. When a chart looks like visually, it means there's a lot of emotional and greedy buying the traders - investors, big funds, they're just pouring their money into the stock after the company, announced better than expected earnings and guidance in the beginning of November. So, knowing that there's positive news for the stock, a lot of emotional buying on the daily, not so great at all, but you do not want to buy the breakout like that guy Mike I just called earlier.

His name is now changed to bag holder Mike on my phone: don't buy breakouts, sometimes it's okay, when you're trading, mid-cap and large cap stocks with a higher float. But if you're trading low float, penny stocks, like C /, SNC a and C etx a lot of these breakouts turn into fake outs, these low flow stocks will sometimes pop for, like 10 or 20 cents and immediately dump 50 cents. I'm not saying you can't ever make money buying breakouts, I'm just saying the risk reward to that kind of setup. It's often terrible to me that kind of strategy is not consistent and very risky, especially if you have a small account under PDT.

I prefer to buy the dip at support level on stocks like clvs, with a strong parabolic daily chart. Now you must be wondering okay, but how exactly do we find those strong support levels to buy the bounce? And that brings us to the second criteria, which is to click the like button at the bottom of the video, and please be gentle with a like button. I really appreciate your support, but please do not break your phone. The second criteria to this buying a bounce strategy is to draw your support levels from the daily chart.

You can't just buy the bounce at any support level on any given stock. The strongest support levels are almost always going to come from the daily chart, so using our parabolic daily chart example clvs. You can see that this stock has some support levels on the daily around 11:00 60s. That's a support area from October of 2018 and you can see that area of support was later broken down in July of 2009 ting and when the supports area is broken, it becomes later resistance, which is why that's the top tick for clvs.

On this day, the stock hit the daily resistance level and sold off intraday. Now, what if we want the stock to break out more on the second day and buy the dip after the breakout has confirmed? You can see that clvs broke out of previous day's highs at 11 60s with high trading volume early on in the morning and then a stock rent to a high of 12 65 and, like we talked about earlier, when a resistance line is broken. That later on could become support and that's why, after the stock reached the highs and pulled back it bounced at this 11 67th level, and that also coincidentally aligns with the support area we were looking at on the daily chart. Yes, I am aware that the intraday levels miss the daily support line by like 7 cents, but these daily support and resistance levels are never going to line up exactly to the cent.

These are indications of areas of supply and demand, and if you are waiting patiently for your dip levels to long, then you will put your stop-loss under the support level, make sure to always give yourself some room to risk like 10 cents or 15 cents. You never want to put your stop right as support, because, if that's the case, then you're always gon na get stopped out, and you can see that same 1160 support level act as the bottom for the next few red days as well, and here's another example of Areas of resistance and nice 60s, and not also marked as a top for 4 days straight in August of 2019, and once a nice 60s level is broken on November 25th. That daily resistance now becomes intraday support. You can see that's where the stock bounced off on this day and the next morning, early on at 10 a.m.

which would make the stock the perfect candidate for the morning panic bounce setup. If you're working full time, they only have the first one or two hours to trade before going to work. This is a perfect strategy for you, but of course the setup is only going to work. If you are patient, waited for your entries and you had drawn the support levels from the daily charts beforehand again, I cannot stress this enough.

You have to wait for the setup to come to you, but you will grow to adjust your entries and your risk and give yourself some wiggle room, as you become more familiar and comfortable with a setup. Now that we have criterion number one parabolic daily chart to daily support levels, the next criteria is gon na, be the icing on the cake or, as we agents co-eds, the Japanese chili spice on the ramen seriously, though you have to try it, it's so good. Please stop putting sriracha big spicy sauce on your ramen every time. I see that I get very offended.

I call those third factor, the amazing, Japanese spice of ramen, because, while it's not required for you to buy the dip on the setup, it's an extra factor that actually strengthens your thesis of a particular stock and making the setup even more favorable and have a higher Chance of success rate and that bonus criteria is high short interest. Remember when we talked about criteria number one from earlier now, the stock has to have a parabolic daily chart. That kind of chart means that the stock has gone straight up for a couple of days with no major pullback and, at the same time, every time. There's a stock.

That's running straight up to the moon, there's always funds, big money and people trying to short it, because, yes, technically speaking, a stock that looks like this chart is really extended on the daily. It should pull back a little bit right at these pullback to nine dollars. For eight dollars, but when a stock should come back down to earth, but doesn't actually do it in reality, you bet there's many many short sellers piling on and they are all trapped in pain for multiple days and that's essentially the kind of emotional pain that you As a loan trader looking to buy the bounce morning, sell-off want to take advantage of these short sellers piled on near highs. The last few days, thinking that the stock is up too much and it should tank back down right and many of these traders are holding on to the short position as a swing.

Trade thinking that a stock has to go back down to single digits and how exactly do you find a short interest of a particular stock? The best way with a most updated data is with trade ideas scanner. I have the scanner set up to show the short interest on the pre-market Gabor's and the midday momentum scanner. You can also see the short interest data in a stock details as well. Alternatively, you can also use short squeeze calm and fin this.

Both of these websites are completely free. The data is a little bit delayed, but overall it gets the job done besides clvs another tip by candidate stock that meets all our criteria is our ad rite-aid. After the company announced strong guidance and earnings, you can see the stock is going parabolic on the daily chart. Now, if we draw these price levels from the daily chart, you can see that these daily levels become intraday support levels for you to dip buy in the morning or mid day.

Now are the price levels always going to work? A hundred percent? No, nothing is 100 % guaranteed in day trading. Like I mentioned before in this video, the only way that's going to guarantee you profit. A hundred percent of the time is keeping your 9 to 5 job, but, looking at our ad, you can see the stock has a high short interest of 27 %, usually any number greater than 20 % is why I consider Heavy D shorted, but even better is When it's over 50 %, like clvs and the reason, the highly shortest stock with a high short interest, is extremely favorable to you as a lone trader buying. The dip is because these short sellers are stuck upside down shorting a stock for multiple days.

They will most likely look to buy to cover in order to get out of their short of any major pullback, so a short sellers buying to cover and the fresh buyers coming in to buy the stock and a discounted price. It's the kind of volume that you can use to your advantage for a potential upside to retest. The highs, with a pretty good risk reward this buying the tip strategy in a swing over night long strategy are the two core setups that I used to build. My small account, while I was trading part-time while working a full-time job again.

The key to both of these low strategies is patience and planning ahead. You have to be ok with not taking setups or missing place if the criteria and the setup isn't optimal. If you want to learn more about all the other strategies, I've mentioned that's suitable for you to grow. Your small account make sure to check out these videos.

If you found the video useful and you want to see more in the future, make sure to always remember to drop a like on the video I'd really appreciate you, my friends. Thank you guys so much for watching. As always, I'm the humble trader and I'll see you guys next week.