All right today we're going to talk about shorting and specifically, i think, the best short selling setup and that's that late day fade and let's talk about imp. So, first of all, i want to kind of break it down why i think this was a solid afternoon. Fade and then, ultimately, what we want to look for, so you know right off the bat we look at the daily chart. Okay, this is uh recently started trading just a couple months ago, and i mean you can see absolute disaster, okay, okay, so let me actually i'm gon na get rid of my oracle lines here.

Just give you a little better view: okay, so this started trading back in december got destroyed day two day three day four day, five days, six day, seven day eight day, nine then had like a a three cent red day on or green day on day. Ten and then proceeded back and then, as recently as january, gapped up got destroyed beautiful doji candle on day two, which we have a doji candle today, doji hammerstone, doji gravestone, something to look for um anyway, went straight back to fade big gap up today. Back to that fading again today and you know, listen markets in our favor. You know the day, i'm recording we got more um saber rattling.

I guess you would say in russia and ukraine, you can see the markets getting ready to take out the january lows ugly day s p 500 down over 1.5. Today. So remember i i do this a lot. I'm checking off those boxes so right off the bat you got it, you got a brutal chart.

Okay, uh the stock ran on no news. Yesterday did have a decent gap up today, but you know you could say: got overextended, especially when you look at the daily chart, no news, as i mentioned, and then an overall short friendly market. I mean there's a lot of fear out there: okay um. We look at a lot of long setups, a lot of buying setups when we look at float rotation, these big low flow runners in hot sectors.

You know that that's a fear and greed situation. That's that's a situation where you know people are willing to chase the stock up because they're like oh, it's a hot sector. Oh it has news. Oh look at the volume, so those stocks beget higher moves higher.

Ultimately, imp had nothing other than it was, is loosely very sketchy stock, loosely tied to the petroleum sector, which i don't even know what these guys do again terrible financials, terrible, terrible, terrible everything about inp is terrible. Okay. So that being said, i'm gon na drop on v-app and we're gon na talk about what we look for to short this. So many of you know my love of view.

App i mean vlap is a bullish and bearish indicator that we use to determine. You know where the sentiment is and i'm going to zoom in specifically on today and then i'm gon na grab jump on the whiteboard and show you what we would look for to fade this here stock. So we had that continued move today, so we set a top basically at 125.. You know i like to fixate on those whole dollar half dollars.

I know 125, isn't a whole dollar half dollar, but when you're talking about these, you know lower price stocks. We do like look at the intermarry intermediary increments, such as quarter dollars, etc, and it's just that key psychological level. So you can see i'm looking at a five minute candle here we had a top. Let me actually let me delete some of these lines, topping here at 125, topping here at 125, tapping here 125, so you can see that resistance has been formed at 125, tried to break it.

About 10 30 tried to break it. About noon couldn't break couldn't break then we kind of come into that breakdown and that v web fail right here at 111. So that gives us that sentiment shift as we as we like to look for so once the stock can't break can't break can't break. We now have a place to risk off of so we're typically going to risk that hard area.

Okay, that's our you know our our exit point. If we take that view app fail, which keep in mind, you can also click below for the stocks to trade advisory um, i often bring up the top 10 trading patterns, ebook, okay, five long patterns as well as five short patterns, and, if you don't have the Ebook yet please check out the stocks trade advisory because you get the ebook and you get stock straight advisory where i'm live. Every day, 8. 30 eastern.

You get a monthly report, research report and a weekly watch list for basically the cost of the ebook. Really i mean to me the e-book's worth at least 50 bucks stocks, the trade advisories 50 bucks. You get the book you get daily webinars week, weekly watch list as well as a monthly research report, uh detailed research report where we're looking like hot sectors so anyway that v wap fail pattern is, is the number one short selling pattern? It was my favorite short pattern from 2007 to 2015. You know when i'm low mentioned or recognized the market shift in 2016 and then 2020 things went completely crazy, but anyway, so do we look at that entry, which would be that basically, 112 um? I know it's 11 78, but we'd.

Look to short at that 112 we'd be risking 125, which means we got 13 cents of risk. So and we've got a clear. You know clear risk reward. I mean i mean that would be a good place to stop out.

Gives you enough range, i mean you can see, the stock did bounce did bounce but didn't get anywhere near the stop. I mean listen if you're trading, these big movers, this thing ran like 40 plus today. You can't have one cent stops? Okay, if you have a one cent, stop you got two biggest size. Okay.

I know you'll see these guys on twitter. You know they they 75. 000 entries on their chart, they're risking, you know one cent here or there scalping in and out it's very, very difficult to do as a newer trader and it's impossible as a part-time trader. I mean listen if you're trying to scalp for one cent.

Two cent a share at work: good luck, not blowing up and not getting fired; okay, probably both you'll, probably blow up your account and you'll get fired. Great great. Imagine telling the wife about that or the husband about that tonight anyway. That being said, you've got a good risk to reward 13 cents on a one dollar stock.

So if you do get stopped out, you know it's an acceptable loss. It's reasonable! You got a clear entry to stop out and then you're gon na. Look. Excuse me to cover into that three in one risk to reward now.

Are you gon na get all the way down to 80 cents today, tough in this bull market, but maybe you get a washout below a dollar. It hits 90 cents and you just now made 20 cents when you're risking 10 ish, that's two to one risk to reward which, in the land of short selling penny stocks, two to one risk to reward is actually pretty good. Um and again, i'm sure you can hear my enthusiasm. You have to have crazy discipline.

You have to cover quickly, yes, the market's ugly. Today, yes, we've we're on the cusp of world war. Three, but still i mean, i think, still focus on two to one wrist reward cover the washouts don't get greedy and if you've got good good discipline. That is a consistently repeatable strategy risk.

The high day cover the washes, have realistic goals. Don't aim for home runs and do not do not hold o slash. N. Okay, uh imp was rough last night gaps up at 4am.

Okay cover the washes in the late day. It's 3 30 p.m. It's consistently repeatable. Don't get greedy, that's the biggest thing, and that might be the number one lesson of this video.

If you are gon na look to short penny stocks in 2022. Discipline is always number one, but you see green. You take green okay. I'm gon na write it in green okay, see green.

Take that green baby nail and bale don't hold for 50 cents, don't hold for a penny and don't hold overnight, but if you can be disciplined set up the chart based on the high day trade. Those v web fails trade, those key levels, all things we look to do on the long side. It can be a consistently repeatable strategy, all right, my friends - hopefully hopefully you're not watching this from you know a cave on. You know on on on a burned out.

Cathode ray tube tv because world war three happened, but if you are, i appreciate it like subscribe and share with your friends and we'll see you on the next video.