all right guys i promised to do a video about my setup and methodology and process for a long time now and it's the most common question i get asked to explain my process and method and setup selection and uh i promised to do a video for way too long and uh yeah so enough is enough uh it's time to actually do it instead of promising things so i have a few uh basic setups that i trade over and over and over again let's start with the parabolic short what is the parabolic short let's let's take a few examples it's a stock that gets very extended in a short amount of time so there's two components to it you have a percentage move preferably it's you know two three hundred percent or maybe even a thousand percent plus in a short amount of time like three days five days uh two weeks or something uh it's updated goes up a lot in a short amount of time and preferably it goes up on nothing you know some speculation or hype or just a pure pump uh let's take ino for example recently this thing like this is what you're looking for something that's just straight up straight up with no dips this thing went up 300 percent in one two three four five sessions on the fifth day now this is important you have to wait you can't short on the first or second date generally sometimes it's work it works shorting stocks on the first or second day but i prefer to wait the ones that go up for three four even five days those are the best ones uh because you you want to be in a position of strength you don't want to start shorting it down here because you think it's a piece of pump and it's up too much you don't want to short it on day one or day two okay and this is the trade i actually did real time in on the stream so those of you been following my stream you you remember this trade i know several of you they traded with me the fifth day it's a big euphoric gap up and then it just tanks okay let's look at the um now i don't have the intraday five minutes short available right now i think nope i don't have the five minute chart where let's look at the 10 minute chart uh or maybe 15 minutes short yeah let's see here okay so 15 minutes all right still i need the five minute but pretty much what you saw was it had a little bit of push out of the gate and then it took out opening range lows now this is key like i talk a lot about opening range highs and opening range lows and i trade them all the time if i want to short opening range highs sorry opening range lows is usually where i wanna short it and the opening range can be the one minute chart like a one minute candle the first one minute candle it can be that five minute candle first five minute candle or it could be the first hourly candle like like this these charts here i use the one hour short a lot uh and it can also be like for example on ino the opening range lows on the 60 minute chart was 1620 on this day here but on the one minute chart it was up here in the 18s and also in the five minute chart it was also here in the 18th i really i don't have the five minute and one-minute charts right now on this platform um i should have prepared better for this stream it was kind of sporadic i didn't really prepare but yeah let's look at an uh look at the recent example um mrna this one wasn't an opening range lows play it was more of a it was still a range break like i also talk a lot about long uh tight ranges so mrna was another candidate it's been up 500 percent it's it's a large cap stock 500 in six months for a large cap stock that's a big move that's a very big move a lot of hype and speculation with their uh vaccine kovi 19 vaccine etc etc uh and they had kind of decent data on this day here the stock was already extended they uh released some decent data but it was only from eight patients which is kind of irrelevant so this one i was stalking for a good risk watch set up now it did have i i think i even shorted it i don't remember if i did i i think i shorted on the opening range lows and took a loss on it this is like last week i really don't remember i'm so bad at remembering trades but i may have taken a loss on the first trip and in late day just went in a tight tight range and late date started fading and that's that's where you got a tight tight range on it two dollars raised two dollars to make potentially 20 25 on a downside that's exactly what happened just straight down from there so this was another extended stock uh but it wasn't up like three four days in a row it was yeah it had just been flagging for a week and then it gapped up a date on this uh on this news but it was already pretty overextended so it's kinda similar setup to the ino setup i was talking about but it wasn't straight up as violently as this ino but the key in both of these you don't randomly short them you wait for them to actually start going lower you don't stop uh you know start randomly picking tops you wait for weakness so that's why you wait for this opening range lows or uh mid late day fades so it's kind of the same trade but that variation of of the same trade pretty much and ino had a exactly similar setup a little bit later in april also it went up 100 in just five six sessions and then you had this a little bit of a peak day you you pretty much count the days you know it's up one two three four even on this steven even if it the candle here is red the stock was still higher on this day the candle here is red because it closed lower than it opened but it still closed higher than the previous day so it was still an update so how what one two three four five six on the seventh day you get this uh little bit of a reversal but it actually was a pretty big reversal where are we i can't find it on the five minutes or oh okay i have to look at a 10 minute chart and it's the same thing exactly same thing opening range lows was the key now in the 10 minute shot the opening range lows is here 15 17 or so but i think on the one and five-minute uh charts it was higher like mid or high 15s so you wait for that opening range lows because the stock has been straight up then it triggers it tried to bounce and i'm gonna introduce you another concept the vivap this is an indicator i use a lot when shorting only when i'm shorting stocks pretty much or when i play me in a version trade sometimes i do use it on the long side too but only when i like do bounce plays i'm gonna go through that later so it tests viva can't get above it holds below viva midday similar to what mrna did it built a uh range for several hours and then it breaks below that and then it just you know fade straight down then it went sideways a little bit for a few days and then it had another leg lower uh and i should also mention i'm mostly a swing trader i don't do trades for day trades when i do a trade i do it to hold for several days or weeks if i'm short and generally for weeks and months if i go long so let's look at some mean aversion long trades um i'm gonna see one that i remember i had a really good trade on was on gbtc this is a bitcoin etf back in december 2017. now you should already already recognize this setup here you have something that's up hundreds and hundreds of percent in in a short amount of time you know has a leg higher it goes sideways as a leg higher goes sideways another leg higher then it goes up a bunch of days in a row it pretty much doubles in in a week and then you had this blow-off day and i don't have the intraday shot for it right now but it was a similar shot to what i showed on mrna and i know you get vivap fails and then it just starts fading and you have this you have a set risk reward uh but i'm gonna talk about this bounce now this is uh similar to the short set up the median version of parabolic short this is the parabolic loan the same concept you have a stock that's down 40 50 60 percent in in this uh case it's down almost 70 percent in one two three four sessions the fourth day gaps down big has a washout a little bit of a washout goes a little bit lower from the open and that's the same thing it starts it reclaims v-map it holds above viva puts in opening range lows and that's when you go long when it once it starts proving itself and it bounced the total move higher was 110 110 in two days actually you know what i'm gonna look at i'm gonna find the intraday short for you um let's see here uh okay let's see gbtc i'm gonna find the introduce short i'm gonna find the shot for both the short and the long this was such a perfect trade you want to find these stocks with big big ranges that's where the big money is let's see here so i'm gonna show you guys okay 19. so i'm going to show you this is evernote i have a huge database of shards and stocks that i've been building for years and years this is how you build an a edge so chibi dc was actually a little bit shopping now i'm gonna show you guys on this this day here when it peaked and when it started the big decline okay so it was a little bit choppy intraday it was weak at first it gapped down but then it went straight up reclaimed vivap i don't have evap on this short but uh it reclaimed evap actually took out the previous day size and then midday it peaked it started uh it went below viva app retested viva app and then it started fading and that's when you have a set risk reward because you know a lot of stocks they start fading in mid late day especially these momentum stocks and that's where you have a set risk you would you know you don't have to guess where the top is gonna be and then it faded seventy percent almost in four or five days and now this day here this is the five minute chart okay uh so this day here is the day it bounced this is that day so it's it's like you switch this uh like you flip the short right it's the same trade but on the long side it's extended to the downside and it starts putting in it puts in the first green candle like this is also something i talked about the first green and the first red candle like if you have something that's going straight up or straight down uh you wait for the first like let's say in this case it's something that gets three that's getting really overextended on the downside you wait for the first screen five minute candle okay before you buy then you can use that lower that candle as a stop so in this case you get the first screen candle and this is a trade i traded i i did trade but i didn't stream at this time this is like a year before i started streaming uh so you add a little bit then it takes out the opening range highs that's where you add more and go straight up unfortunately i sold this thing way early i don't think even i hold it held it overnight and then the next state went up another 20 30 percent so these are the mean aversion traits the parabolic short and the parabolic longs i'm just gonna do a quick overview i'm not gonna go into details there are many nuances to these traits but these are like uh you know the most important concepts of these trades then another uh important setup i use are the breakouts and the earnings gapping gap versus earnings breakouts i'm going to show you some examples of ones i have traded recently uh this delicious t-doc i traded this on the stream they had good earnings report they beat both the eps revenue they got it higher and the stock gaps up and goes up on big volume okay it takes out a long range a multi-year range i'm going to show you guys the short on the weekly chart um i'm going to show you the weekly chart so this is where it broke out on high volume you have a stock that's been building higher lows for over a year took out the range this is a growth stock they're in the right sector right business things are going well this is where the stock is up straight up since 2016. things are going well for them and then a gap up on a good earnings report this is what started the big move unfortunate you know hop went up 160 percent in a few months unfortunately i sold this thing i think in the like 105 or something i don't remember exactly i sold it way too early it doubled after i sold it pretty much another example would be the xcm this is another one i traded very similar short you wait for a long range break it needs to gap up on good earnings speed analyst estimates uh have good growth numbers uh it the eps grew by 261 percent year over year and the revenue grew by 49 this is a growth stock the estimates for the next year were 156 percent or the same year this is 2019 and the estimates for the next year which is 2020 was 54 so they were going to keep growing and it went straight up now they don't all go straight up obviously i'm gonna i'm just showing perfect examples obviously to take a lot of losses in fact about 60 percent of my trades are losses um even more i think i think even 70 percent i think last year my 70 almost 70 percent my trades were losses or breakevens and yet i'm wildly profitable and that's because you have to have small losers big winners anyways dxcm this is the weekly short similar setup you have a higher lows for six months you have a range like a year-long range then it gaps up on good earnings beats analyst estimates guides higher etc etc things are going well for this company and it more than doubles it had a big shakeout here during the corona crisis where it bounced perfectly off the rising 200 day um so i'm going to show you some examples from my own portfolio of these setups let's look at mrna like mrna i went over i'm still short this thing i'm still short from this stay here now i've been adding on the 60 minute ranges for example yesterday it gapped down while the market was gapping up it showed relative weakness this is also a concept i talked a lot about relative strength and relative weakness if you're stalking a short stop for a short and it starts showing relative weakness that's a good sign and vice versa for if you're stocking something on the long side so an opening range lows here i added to it yesterday and went straight down and it's gapping down today while the markets are gapping higher spies are up like almost one percent overnight oh more more 1.3 so mrna ibio this is a stock i've been long for a while um this is also like a range break this is like a small tiny piece of stock i'm long because it's a theme stock uh like kobe 19 is right now the theme the kobe 19 vaccines are very hot theme right now so technically what did i see i saw a range break several months this is a former momentum stock i had a big move back in february on corona this is a corona related pump and then here had a big volume day or not that big but you know above average volume so i thought hey why not it's a good risk award why can't this thing double a lot of these things are doubling w uh this one is a range break from yesterday i shorted it this thing is up it was up 840 percent in like a few months so very overextended name this is just a variation of the same setup you wait for weakness on a very strong stock and yesterday lost the rising 20 day for the first time since this whole big move and today it's gapping lower even though the markets are gapping higher so it's showing relative weakness i think next stop for this thing would be maybe 130 120 area livongo this is an earnings related trade it's a recent ipo i bought it a couple of months ago had a multi-month like six months sideways move recent ipo they sold it off you know it went straight down from the ipo it was you know kind of expensive stock and the market wasn't sure if they could sustain the growth etc etc but then it you know guided higher stock gapped up on higher on volume if that didn't have big volume but i i did a small position because it just looked really good ipo breakout the ipo breakouts can be super powerful and it's straight up since and i'm still holding about half of my shares fastly another one i bought like a couple of weeks ago another ipo breakout this thing has pretty much gone sideways since the ipo and then suddenly they had a good report 38 no no no profits but 38 revenue growth good guidance etc big big volume by far the biggest volume then you it traded like in the first five minutes you saw the big volume coming in it traded average daily volume which is about one and a half million shares in like the first i don't know five or so minutes 10 minutes so it was fairly you know pretty it was obvious pretty early it was gonna be a high volume day so i bought it and uh yeah i'm gonna show the p l on everything later i'm gonna show you my portfolio at the end of the video on all of these stocks i'm in right now these longs and shorts and vacs another one i've been talking about i did short it this day here another one of these over extended names up fourteen hundred percent in a few months and then he had the first states just you know getting extended first day it showed some weakness took out opening range lows started testing vivap failed at viva app and that's where i shorted it this is the 60 minute chart i shorted it here at 56 saturday i remember correctly melee and other earnings play i'm long same concept you know big long range break year long range break and uh big volume big volume on the earnings day earning speed uh guides higher et cetera et cetera arctic is a small just a small hype kobe 19 vaccine play i bought it here and inside of this flag when when it was obvious it was building higher lows i think i bought it here 40 low 45s this is another type of setup like high tide flags pdd also another high tide flag i bought here it's a china growth stock very good earnings numbers um i didn't buy it on the earnings report but i did buy it when it bounced off the rising 20 day after coming out of a long range and had a clean breakout here and it's straight up since shag now obviously all of these trades are profitable because i sell my losers i keep my winners and it's a concept i talk about a lot small winners big sorry small losses small losers big winners okay that's why i i i can be widely profitable with while being wrong seventy percent for the time shake another one another earnings breakout which sold you know over a long year-long pace etc it's the same concept sc uh same concept here uh had a flag uh where did i buy it yeah i did buy it here on this day here came out held up very well uh during the corona crisis flagged and it broke out of this little flag and it was it's it's like one of the fastest growing stocks in the market right now you want to be in the growth stocks the ones that have bright futures you don't want to be in something that's you know as negative earnings or or very slow earnings revenue growth you want the stocks growing 30 50 100 fmcid it's just a pump play i'm not even gonna talk about it it's just a thin piece of one this is another one uh it's a kobe 19 related name um it's a thin name i bought it on the flag break here had good earnings they sell some kind of uh respiratory devices to hospitals which is you know something that's a very hot product right now with the corona emph i'm short this is an example of an overextended trade straight up we had one leg up second leg up third fourth and fifth leg up on the third day opening range lows that's where i shorted it or i need short opening range though i showed it here midday with a 60 minute chart you can clearly see you have a multi-hour range and then you have this breakdown of this range so you have a tight tight range here you can your risk is like a dollar and i still i'm still short like half size just trailing it pen another example one i did on the stream yesterday i'm gonna show the intraday chart you had the opening range lows it failed that view app not once but twice and i i showed it opening range flows and i was thinking about adding it when it add a failed viva another time midday uh but i never did uh vt iq a perfect example of amino version short i unfortunately took a 125 000 loss on it i was a little bit too aggressive too early and then i didn't add back when it showed some weakness and yeah it worked out well it went down over 30 40 and then i played the bounce i'm still along it i i bought the bounce on this day here the 60 minute chart took out a little bit of a range but it's just a variation it wasn't like a super clean setup it's a variation of the bounce setup uh bldp breakout momentum stock it's in the right sector fuel cells fuels there's a super height right now uh and it had a bull flag tie type bull flag and it gaps up on big volume and that's you know where i bought it i bought opening range highs 1040s or 1050s i think mark this is a pump stock um but it's the same concept you have a flag and you buy it fas had a breakout yesterday it's a triple financial etf it's been pretty much flagging off the lows building a tight tight range over the past week and then it capped up on high volume and opening range size was the entry i actually took a loss on it first because it i bought it here near the open and then it faded it actually didn't take out the lows of the day but i had to stop a little bit higher i could stop that and then i re-bought it when it took out the opening range highs a little bit later and it's straight up since the markets are gapping up a lot and clh the same thing here it's also again it's a variation of the same setup you have a range break breakout i'm not gonna talk about it much it's just a c cell the same thing um a range break set up on a momentum stock like these things are super beaten down they have a lot of range the key is to trade stocks with range i see a lot of people they trade stocks they have no volume there's no range the middle of a range there's nothing going on and they're getting super excited about their stocks and i'm like no just know trade stocks that have volume and range that's where the money is all right i'm gonna show you guys my p l and this is why i focus on swing trading and update trading because the big money is in swing trading this is my portfolio screenshot taken about 15 minutes ago since i'm at swedish time the market opens in 35 minutes nine nine third it's sorry 8 56 u.s eastern time and the market opens 9 30 eastern time so it's in 34 minutes uh you know some of these positions i've had for months livongo i talked about this one this is my oldest position sc is my also very old position uh and this is how my portfolio looks like right now i i sold a bunch of stuff pre-market i sold some pldp this we have a big gap up and i just wanna light i'm heavily heavily long right now i'm short a bunch of stuff but i just wanted to you know look into this euphoric little open here we're having uh some nclh so some uh covered some mrna because like i talked about earlier in the video mrna is showing relative weakness it's gapping down well the markets are gapping up so it's locking into weakness i'm always looking my lungs into strength and my shorts into weakness and then i train my stops uh and i also sold some fas and i'm probably gonna get rid of more stuff and the reason why everything is green in my portfolio is again i sell my losers okay you get rid of your losers you keep your winners and i've been building this portfolio over the past six weeks or so my oldest position is levongo like i was all cash at one point during the corona crash and then in vongo let's see i bought it 7th of april so about about seven weeks or so this were the time i've been building my portfolio all right i hope you got value oh no never mind i actually have more things to go through uh never mind uh quick about my scans uh i scan for stocks that go up a lot uh like i have this watch list today today's momentum watch list this watch list 271 names i get these stocks from these scans so that's what that's my nightly scans right so i scan for stocks that trade 60 million dollar volume 60 million dollars in daily volume average daily range is the percentage range during a day that has to be at least 2.4 percent and it has to be among the seven percent or so strongest stocks if i do this scan right now i get four items i don't know why i only get four items there should be more i think there's something wrong right now with tc2 thousand there should be like 40 names let's do the one month scan again 60 million dollar volume average daily range past 20 days 2.4 percent and among the seven percenters of strongest stocks and i only get four always because i'm including pre-market data i'm shutting off the pre-market data i'm gonna okay let's see now okay now it's yeah 47 stocks okay all right so i have these for different time frames one and a half year one month one year six months three months blah blah blah etc then i also scan for five day gainers 60 million dollar volume up 25 at least past five days so i'm pretty much scanning for stocks that are strong because that among the strong stocks that's where you get the best shorts and the best longs then i also scam for losers you know stocks that are down a lot the past one or two years then i have a some intraday scans it's the same thing pretty much scanning for stocks that are strong then i also have watch list with the best and strongest growth stocks strongest are my the best or the best this fastest growing and the best momentum stocks then i have strong strong air and strong so these stocks these get these ones i also go through every every day every night and also scan them intraday like this is very big among these stocks is where the big money is made right now there's a lot of software technology stocks in there but depending on you know year and market cycle you can get a lot of like commodity related stocks or cyclicals you can get a lot of biotech related right now we're in a market cycle where technology and software are dominant those are the fastest sectors and have the best momentum so most of these stocks in those watch lists are technology and software all right this is uh pretty much pretty much it and then i compile a watch list every night look through my scans and start stalking stuff and it's always nice if the stocks you want to go long showing relative strength and the stocks you want to go short are showing relative weakness um all right um i think this is a good starter video maybe i'll do a longer more detailed video later this is a very unprepared video um and i hope you got the value from it this you know if you learn these concepts you can make millions you can make millions per year for the rest of your life but you really need to do your own you know do your own research i've done my i've done my research like i've i've studied thousands tens of thousands of stocks look at this this is my evernote database like i have breakouts from 1980 right i have like tens of thousands of uh stocks here these are just breakouts you have to train your brain to recognize not only the stock patterns but also the news and how they move relation to each other and the market these are like earning scampers let's look at saunders this is like 2005 i think capped up on big volume 2005 and then it went up over a couple of hundred percent in like six months uh anyway you gotta do this work yourself no one no one can help you with this like this is how you build build mastery instead of following people and uh begging for stock tips and just unfollow these stupid day traders that are you know pumping stocks on twitter or you know having some paid chat room where they tell you what to buy what to sell they're not help they're not your friends they're not helping you you need to do the research yourself i have a free stream where you can ask questions where i gave trading give trading ideas it's not entertainment i'm not selling anything i'm doing my own trading i i'm quiet most of the time since i'm busy trading but when i get a few minutes over free time i ask i answer questions and i provide feedback to those who want it all right i hope you got some value out of this video and take care