Hubert Senters here.

Let’s go through a couple of things that are pretty important for you to potentially make some more profits. Number one they’re gaps.

So in the stock markets gaps are fairly easy to understand. Stock market opens up at 9:30. It’s going to close at either 4:00-4:15 depending on all market trades.

So when we’re looking at this a gap is simple. It’s pretty easy to understand. It could be a bad news announcement. They could miss earnings. Or it can just be bad news in general for the stock.

You just never know what it is but it’s usually a lot of emotions are tide to it. A bunch of greed and a bunch of fear.

So in this situation we have some fear and some greed. In this example, I’m looking at a chart of FGEN and in this example it used to be trading at around $34.45.

Now, it’s trading at $21. That thing got lot in half almost. Not quite but close. So we’ve got a bunch of fear and greed built up in this gap formation so here’s how I deal with it on stocks.

Number one, I’m just going to let it do what it’s going to do here on this day. I’m not going to trade it right here.

Now, that would be for more advanced traders if you’re already profitable. If you want to play a high stakes game of hot potato like grab it let it go scalp to your heart’s content. Just be careful.

But for the most part I’ll leave these things alone for the first day and then after they’ve closed which this trade is still actually live today so it’s not close.

But let’s pretend that it was closed. Then what I would do is I would bracket the gap. I have no idea what’s happening with this equity nor do I care.

But if it trades or closes above on the next day. If it trades or closes above $24.02 it’s got a real good shot of going back about halfway of what it has following to about $29.

Now, if it trades or below $21.09 it’s got a really good shot of putting in new price lows and going substantially lower. So that’s how I look at it.

We call them gap trades. And they are also called bracket trades. I just put a bracket around the fear and the greed. And then I figured out which is the weak party which is the strong party.

I’ve been asked to speak at the Wealth 365. I’m going to be covering this type of information over there when I talk on how to find new trend trades with three simple click of a mouse. Two simple steps. Three simple clicks.

Very easy to do and also I’m going to show you how you can scan for strong or weak gaps at the open. I’m going to HYPERLINK you to the registration page.

Good luck. Hope it helps. See you on the next video.