Shorting on Day1 Example

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

Shorting on Day1 Example:

Firstly choose a beaten down chart (sometimes suggest many eager sellers), not a stock making new highs on the daily if you're a beginner. 

I will use $CNIT from last week as an example (alas I didn't have the kahunas to take the trade, I merely commented on it as it was happening; I know a few good traders that took that trade and executed it perfectly)

In any case, here's what to look for:

Note the gradual uptrend, on relatively light volume, yet the stock has risen by $1.
It starts hitting % gainer scanners everywhere and as the uptrend continues, traders are eager to chase, until the climax, highlighted by the yellow ellipses: This is the sign that emotions are in control, traders fear missing out, huge volume, huge candle. 
Now of course, it could carry on, especially if it's a Day 1 bio announcing FDA approval. But this isn't your typical Day 1 short trade. It's a beaten down chart:

Traders who have averaged down since the 7s would be selling into this pop, and day traders who've chased for the 4 breakout are running out;
The big candle and volume is your signal to short, setting your risk at, or just above the high of that candle.

You can then add on each failure to break the downtrend, and certainly once it drops under VWAP.

-- UPDATE 17/06/05 --
Adding $DSKX as an example - this one I actually traded, very small size though as I'm not proficient at this yet

-- UPDATE 24/07/15 --
Adding $NTLS as an example; not a day1 runner, but same intraday setup

Any comments/questions please post as a comment to this post.