Every time I see a good trading lesson for my E-mini Future s and Stock trading students, I try to capture it on video live.

And today I wanted to post two live trades for everyone so you can see how to profit by trading on the opposite side of hype.  In other words, theres a lot of money to be made by trading against the herd

JNS The Hype & How I Made Money Shorting Against The Herd

A few days ago, Bill Gross, co-founder of investment firm Pimco, announced he was leaving to work with a smaller rival, Janus Capital Group.  Investors saw this as a huge win for the company, which sent it from about $11 to $15 in the pre-market.

Since then, the stock has been making lower highs on the daily chart, which is a signal that the hype and emotion behind the announcement was fading.

Thats when I became interested in trading against the herd Looking for opportunities to short against the emotion and profit when everyone else panics out of their longs.

This strategy is the same methodology thats lead me to have an incredible track record with my Bitcoin trades, primarily because theres so much emotion and dumb money in the crypto-currency markets.

The idea was to find a high-reward, low-risk entry level that would give me high odds of a panic in price if the level snapped.  You can see on this chart that $14.40 was holding as support, but the market was making lower highs.

I was initially risking about 5-10 cents to make a minimum of 20-30 cents.  So when I combined a high likelyhood that people would panic if support broke with a good reward-to-risk ratio entry price, it made for a great setup

In the live trading video youll notice that I scale out of the position when we hit a price where the trade could bounce.  Granted, I dont know for sure if the stock will bounce there.  I just know theres a high probability that buyers would try to hold the stock up at daily support around $14.20.

I like to scale out of my trades because that helps me do 3 things:

1) Take profit

2) Adjust risk (in this case eliminate risk altogether)

3) Leave myself open for more profit if the panic continues

I find scaling in and out much easier to trade ALL markets, because it gives you flexibility instead of worrying about getting the perfect price, which we all know is a fantasy.

This is something I talk about every day in our E-mini Trading Programs live trading room.  We talk through all the possibilities and probabilities of a trade, rather than just focus on being right.  Trading is all about thinking like a chess player having a plna of action no matter what the market throws at you.

VOIL Inflated Penny Stock Primed To Panic

Although I rarely trade penny stocks, sometimes you can find huge reward setups with good probability of it working.  And if youre willing to put up with the difficulties of trading on the OTC (over-the-counter) markets, then it might be something to add to your trading plan.

Heres just a list of things I do NOT like about trading penny stocks:

• Hard to find shares to short (if you dont have the right broker, forget about it)
• Difficult fills, and easy to get trapped in a losing trade
• Stocks are easily manipulated by stock promoters, front-running gurus, and irrational bullish trading behavior

Some of things I LOVE about penny stocks:

• Massive profit potential if you get your timing right (and can find shares)
• Like Bitcoin, theres a lot of dumb money in the market, so youre not competing against professional traders or algos

Today VOIL set up with a beautiful triple top on the daily chart, then showed a double top on my two minute chart right after market open.

Why is this important?  Simple, we had multiple time frames showing that $2.20 was massive resistance and the first sign of weakness was likely to lead to a panic in price.

But just like JNS, we dont know how far the panic will fall.  It could be a short trap where stubborn buyers will prop up the price and squeeze those shorting too early.

I scaled into a full position at $2.18, then covered about 1/2 at $2.11 when the market was stabalizing at key daily support.

After the market pulled back and showed $2.15 was strong intra-day resistance, I went ahead and scaled back into full size.  This was because the odds were higher at that point that the stock would lead to a panic, and my average price was good enough to minimize risk.

I identified $2.00 and $1.95 as strong daily support, which was a nice place to take partial profits since the stock could have bounced from there. However, I wanted to leave some of my short open in case if panicked down to my next target of $1.70.