Facebook - $59,000 Profits Shorting at Earnings

I am super happy and excited when I first saw this profit from this student of mine. All the things I taught him from the profit taking, distribution to the fine subtle details like what to do before earnings were all put into use in shorting Facebook before it's earnings. He just made like $59,000 in Facebook from trading options and short selling the stock before the earnings. It's a 1-2 days short before the results out and how did know it's a short and not a long?

It's actually all in the chart when the stock gap up in the 5 minute chart. Normally before a stock had a major event coming, should it gap up 1-2 days before hand near the supply zone or if it reaches all time high, I would look to short than long while the reverse is the same. If it gaps down at demand zone in the 5 minute chart, I would look for long entry when the volume picks up. The daily is not so obvious but the fine details were from the gaps and angles as drawn. Study the speed of increase and how it got fatigue at the peak before the stock gap down 20%. Also see the bottom back in April when Facebook gap up after that steep sell down at demand zone.

I believe that's how he got the job done and made the $$ he wanted. While it takes confidence and courage to do so, everyone has the ability to spot these fine details like him and then execute and finish the job. Just remember that when trading US stocks, it's very important to study the volume to give you that one extra winning edge in predicting the right direction. Congrats and looking forward to invite you to my elite team and my US Stock trading program soon.

Ronald K - A Game Changer