A good s/s setup for beginners

Any questions/comments please post as a comment to this blog-post, however if it's a generic question about my trading, try my website's FAQ first

I highly recommend watching @Investorslive Textboook Trading to beginners and intermediates as well to educate yourself about momentum trading

And the obvious disclaimer - I am not a trading/investment adviser so please be smart and consult a certified financial adviser before making any investment decisions

A good s/s setup for beginners:

This is a good example of a good s/s setup for a beginner, using $DATE as an example.
While usually you'd want to be shorting pops, that requires some skill and practice.
Sometimes the market throws at you opportunities which are more straightforward.

Firstly look for overextended daily charts:

Ideally at least three green days, with some serious range.

In the morning of the 4th day you have 3 scenarios:
1. It gaps up and runs - a great setup for intermediate traders, s/s into the spike or a lower high
2. It gaps down, let say a big gap down (5%+) - you sit this one out, you lose your edge on a big gap down
3. It opens slightly down or flat - this is the setup you're looking for as it has the best r/r and it's easy to spot and trade.

In scenario 3 you short at the open or in pre-market, and set red/green as your stop. It's a pretty tight definable stop, so you cannot lose much, however should it flush and give back some of the gains of the previous three days, you're in for a big pay day

($DATE intraday on 6/1/15)