hey Traders this is Travis from Master the market today I locked in over 1200 in profits trading
the stock view this was a gap and go setup that I traded within the first 30 minutes of the market
open and that's what I love so much about trading and that's honestly one of the best things about
trading is the ability to make these kinds of profits or even more in profits in such
a short amount of time and then have the entire rest of your day to do whatever you prefer to do
okay so I wanted to break down this trade show you why I took the trade and give you an idea
of how you can find these trades yourself and how you can make these types of profits
so if we go over to the trading chat room here this is the market Master group Down Below in the
description you will find a link to this group we have a free section as well as a premium section
but this stock was actually called out in the free section today so you would have been able to lock
in some money on this trade as well um just go ahead and join us in the free Discord down below
now what I posted today at 9 16 a.m Eastern Standard time is the gappers for the morning
we're looking pretty weak I was looking for the stock Epix to hold the four dollar area for a
dip Buy in reversal setup and additionally I was looking for an opening range breakout in view for
a move up towards 150. ultimately view ended up going much higher than 150 as we can see right
now at the time of this recording it's actually up near two dollars per share but that was posted in
pre-market when this was actually trading below 1.20 per share okay so the setup that I was
looking for again was the opening range breakout this is something that I've talked about several
times on my channel already because it is such an effective way to trade stocks that are gapping up
in the morning and the reason for that is really because these stocks gapping up tend to either
crash at the market open or they tend to continue running at the market open and obviously we want
to pick the stocks that are going to have the highest likelihood of running uh so that way we
can ride that momentum we can see view is actually starting to sew off pretty big right now but still
uh this would be a profitable trade even if you were still holding into this big sell-off now what
the opening range breakout trading strategy is is if we go ahead and zoom in here we're looking at
the five minute chart and realistically you can use this strategy on any different time frame
um the one minute chart even the 15 minute chart my preference happens to be the five minute chart
and what we do is we wait for that first five minute candle to form for this strategy that's
another reason why I actually like this strategy so much because one thing that most new Traders
tend to do is they get a little bit anxious at the market open because that's when all of the
volume starts to flood into these stocks that's when they start to have a ton of volatility they
start to get fomo and think that they're going to miss out on a big trade opportunity and then they
kind of just jump into a trade without having a plan or without actually utilizing a strategy but
with this opening range breakout trading strategy it forces you to let that first five minute candle
actually form in its entirety before you take a trade so you let that candle form and then
what you're going to do is You're simply going to draw a line at the high and the low of that first
candle the high for this one is 1.37 cents and the low is going to be one dollar and 20 cents
okay so that is now going to be our opening range from there we're either looking for
a breakout to the upside in order for us to buy into that momentum or you can even look
to short a breakdown below the low to again ride the momentum but that time being to the downside
and we can see we get that opening range breakout here in the second candle at 9 35 a.m it breaks
through that 137 High it immediately pushes up to the 160 area consolidates a little bit over vwap
and ends up going kind of parabolic almost hitting two dollars per share now obviously I didn't
capture the entirety of this move but I still made a nice profit of a little bit over twelve
hundred dollars on this very simple trade setup that was called out in real time here in chat
so let's go ahead and take a look at another Gap up that happened this morning this was stock kzia
um you can see if we go ahead and clear out some of these levels here just to make this a little
bit cleaner we can see in this case we have an opening range with a high of 1.32 cents and then
we have the low down here of 1.22 cents so that's going to be our opening range for this trade now
again we're either looking for a breakout to the upside to go long or we're looking for a breakdown
to the downside to go short this would have been a really great short opportunity because we can see
that it cracks down below that 122 low and then it sells off all the way down to one dollar per share
now I know a lot of people that watch my videos are newer Traders and because of that most newer
Traders tend to avoid Short Selling because it can be considered a little bit riskier than long
trading but that's going to bring us to the topic of risk management as long as you're managing your
risk and you're cutting losses at the right time no type of trading really is any riskier than the
other short selling for example we would just look to cut losses as the stock is breaking out above
resistance because obviously in a short position you're going to lose money as the price Rises so
you would want to cut losses on a breakout so for this trade for example if you're shorting
into this breakdown of the opening range your risk level is then going to be up here at the
high of the opening range in case this happens to be a false breakdown in case the stock ends up
running to new highs okay so if we apply this same strategy to spy for example the S P 500 ETF we can
see that this not only applies to small cap trades but it also works for large cap stocks as well and
even higher priced ETFs so we have our opening range here the high up here is going to be 384.33
go ahead and draw our line and then we have our low down here of 383.06.
that is again our opening range we can see we get our breakdown here so that's going to trigger us
to open a short position on this trade and you can see we sell off here it bounces briefly up
to the 38.50 level and then sells all the way down to about 380 50. so there was a nice quick three
dollars per share profit potential on this breakdown trade from there we get a bounce
back up and it's currently testing the high of that opening range but that goes to show that
even if you're an options Trader this strategy can be very useful because spy has the options
chain with the most volume and the most Traders every single day so this would have been a good
opportunity to lock in a quick profit on some puts here during this breakdown below the opening range
okay so that's how I locked in a quick twelve hundred dollar profit today while
trading utilizing this very simple strategy we have winners like this every single day in the
market Master group so again make sure to join us chat with us and make some money with us by
clicking the link Down Below in the description and if you enjoyed this video please make sure
to give it a like And subscribe to the channel so you don't miss out on future uploads but anyway
thank you for watching I hope you enjoyed and good luck with your Trading [Music]