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Learn how to day trade gappers and stock opening gap ups in this video. Some penny stock and large cap stock gap ups will sell off while others will run higher. I'll be going over basic stock market psychology behind these stock gappers, and how day trade these strategies with a trading plan.
Time stamps:
02:00 Trading psychology behind bag holders
05:17 Penny stock gap up short strategy. $RNN $BPTH
07:37 Large cap gappers long strategy. $DIS $JPM
10:11 Large cap gap up short strategy. $JMIA
11:48 Summary
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How to Buy Penny Stocks Overnight strategy
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How to buy penny stock gap up long strategy
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Psychology behind the penny stock gap up short strategy:
Small cap penny stocks gap ups are some of my favorite short set ups as a day trading strategy, especially if the stock has a lot of bag holders on the daily chart. Bag holders are investors who's been stuck in a diluting penny stock for months or even years. And these are the people who will sell out of a penny stock when they see their stock finally gapped up 80% overnight. These buyers will be quick to either cut their losses or breakeven. That's why $RNN stock had little to no chance of holding its gap on April 16, 2019.
How to short penny stock gap ups technically:
The short strategy is very simple for beginners. I like to draw out premarket high as my risk, That will be my scale in entry with small size. Once the stock breaks premarket low and starts to sell off, then I add into my short position full size. I'd be looking to gap fill the short position and covering on the way down of course.
We saw the same with $BPTH stock. People started buying the penny stock after some news release on April 15, 2019. However, this stock trapped many bag holders from only weeks ago. Those buyers would look to get out at any bounce possible. That's why $BPTH sold off it's entire gap premarket.
Why do large cap stock gap ups hold and go higher?
As for large cap and mid cap stock gap ups. I like to buy the stock gappers up with positive news that will benefit the company's earnings near term. $DIS stock released details about their streaming service Disney Plus. $JPM stock released positive Q2 earnings report. Those are amazing news overnight therefore the gaps would be likely to hold and the stock would go up higher.
How to trade large cap stock gappers?
When I day traded $DIS stock gap up. I bought the premarket high breakout higher. If you're not fast enough at the market open. You can also look to buy the stock during the consolidation period if it proves that it can hold the gap up. Which was the case for $DIS and $JPM.
How to short large cap stock gap ups?
As for $JMIA stock. This stock gapped up overnight for $10 points not because of fundamental catalyst like $DIS and $JPM, but because it was a recent tech IPO that was really hyped up just like $LYFT. Therefore, I would be shorting this gap up at the break of premarket low and gap fill it down.
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By Stock Chat

where the coffee is hot and so is the chat

30 thoughts on “How to day trade gappers and stock gap ups – day trading psychology for beginners”
  1. Avataaar/Circle Created with python_avatars S-TRAVEL says:

    .

  2. Avataaar/Circle Created with python_avatars Alexandr Bormotin says:

    Thank you! I really love your style of storytelling.

    I know it could be a bit late for that, but I definitely would love to hear your view on the gap up long setup for penny stock.

    All the best!

  3. Avataaar/Circle Created with python_avatars SAVAS FATSA says:

  4. Avataaar/Circle Created with python_avatars Tronghung Dao says:

    ❤😎👍

  5. Avataaar/Circle Created with python_avatars Hola! Mitchell Lee says:

    I got too addictive watch your videos. Simplify and absolutely clear cut to the points .

  6. Avataaar/Circle Created with python_avatars Arvind Wagle says:

    I love your video's. They are very useful as I am just trying to become a day trader. Please keep making more.

  7. Avataaar/Circle Created with python_avatars Sithu Win says:

    I prefer the videos of you made.

  8. Avataaar/Circle Created with python_avatars porky says:

    Nice chart how can I get one

  9. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    Not just China's Lisecensed business in the United States.. there are many nations who have those liscenses… and as just stated about tax paying and or liscense fees assets of US holding, is debted to me, owed to me.. so.. think about it.. and do not limit the scope of the properties and assets to be siezed… All of them.

  10. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    I love you.. ❤️, nothing personal, it's just business.

  11. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    And filing a lawsuit by them to take from me to attempt to pay their debt to me is a frivolous lawsuit to say the least..

  12. Avataaar/Circle Created with python_avatars Ellen Teddy says:

    They fully admitted to insurmountable debt, more than once… so, the Mechanics Lien/Lean is to be turned over in full ownership and those males to be ejected from those properties owed to me as well.
    And yes, their operation and or holding while not being restored to full value, nor paying their debts, citizen or not, is criminal vandalism.. and highly unconstitutional… and as well, much corporate espionage as well as much military defense espionage activities going on along with that, and has been for a long while.. and the Court and Supreme Court of the States and well as the Supreme Court of The United States and the FBI and CIA have also been aware and part of the criminality and failures and intentional violation of due process of law.. seizure is demanded, not just " legal" and the criminal males and their dogs and felines are to be forcefully removed and deported and or ejected forcefully from my properties… wtf is the fcking problem ?
    Do the fcking law as is demanded.

  13. Avataaar/Circle Created with python_avatars Holtergeist says:

    I appreciate your explanations of these tools, signals and instruments.
    I thought I was saavy, but I'm not. I am a dork bag-holder.
    I lost a lot of money and I am starting over in my humble pie.
    So, I'm learning from this wise gal from the Pacific Northwest.

  14. Avataaar/Circle Created with python_avatars Eli Adams says:

    Hey Chat GPT, can you make a joke about how Warren Buffett is not a bag holder? Sure, here's a joke for you: Why is Warren Buffett not a bag holder? Because he knows the difference between a diamond in the rough and a lump of coal in his portfolio!

  15. Avataaar/Circle Created with python_avatars Annie says:

    "How to buy penny stock gap up long strategy" the video cant be watched 😭😭😭😭

  16. Avataaar/Circle Created with python_avatars twinquist says:

    I’m struggling to understand how you call a $7 or a $40 stock a “penny stock”

  17. Avataaar/Circle Created with python_avatars Ricardo Heisinger says:

    Hi, I'm interested in the GAP UP! long penny stocks setups. Tks! by the way GREAT VIDEOS!

  18. Avataaar/Circle Created with python_avatars hifisumz says:

    may I know exactly how you trade on pre market from Think or swim? i need to put a limit order for that which never gets fulfilled.

  19. Avataaar/Circle Created with python_avatars Andy Leung says:

    Extremely simple yet the most useful psychological analysis.

  20. Avataaar/Circle Created with python_avatars Ashley Hockenberry says:

    Smash Like Button!

  21. Avataaar/Circle Created with python_avatars Mark J says:

    Great comon sense approach

  22. Avataaar/Circle Created with python_avatars NDL AK says:

    I don’t trust anyone who is trading without level 2. It’s like driving a car with both eyes closed. She is talking al that nonsense. Show us your yearly gross profit report.

  23. Avataaar/Circle Created with python_avatars Vincent Ruocco Art says:

    how can I find the gappers?

  24. Avataaar/Circle Created with python_avatars Vincent Ruocco Art says:

    how do you find the gappers?

  25. Avataaar/Circle Created with python_avatars waterman says:

    Love how Humble Trader makes everything easy to absorb 🙂

  26. Avataaar/Circle Created with python_avatars Hector Huertas says:

    Thank you very much for all the information you are providing. With out you we would be in the limbo, lost with out a north!! I am looking your past videos from previous years, penny stocks and “gap ups” is what i am learning now.Thank you again.

  27. Avataaar/Circle Created with python_avatars Andras Szerencses says:

    this is my all time favorite

  28. Avataaar/Circle Created with python_avatars Md. Chaman says:

    How about $ QH. ?

  29. Avataaar/Circle Created with python_avatars 王自強 says:

    厲害,希望講話能慢一點

  30. Avataaar/Circle Created with python_avatars Felix Lucanus says:

    Nice video, but does anyone actually understand this? For example, how can "risk of 50 cents to potentially make 2 dollars" be estimated in real time? You don't know that the stock will fall by $2 a-priori. So anyone can convince themselves of a good trade with a 20/20 hindsight. It is doubtful that traders that make these videos really understand what makes them profitable, and just attempt to rationalize their success a-posteriori. Further they use imprecise lingo to convince themselves, and others, that there is an actual scientific method here. But anyone who tries to follow their "strategy" is doomed to fail. The traders don't know how to describe the real strategy, since they are not really aware of how they are doing it. It is not luck either, but just years of failures and successes that has trained their nervous system to what works. That's the real strategy. But videos are nice.

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