Trade review of an earnings gap down | Tradingsim Video Lessons

Jun 8, 2016

Written by:
Al Hill

✓ Reviewed by Kunal Vakil, Co-Founder of TradingSim · Updated Mar 31, 2026

This is Kunal from Tradingsim. We have received a ton of requests from you all on day trading education. I wanted to experiment by creating videos which include reviews of trades that we actually took and actually help you learn to trade. My goal is to walk you thru my thought process before and during each trade. Doing this actually helps me as a trader and forces me to study the setups that I take. It is thru study in which we can all get better. As we are just piloting this idea, I would love your feedback and comments on the videos.

The Trade Setup

ANF_logoOur first trade review is for ANF, which was a short trade we took on 5/26/16. Shorting stocks can be scary for some of you but if you have sound money management, it can provide very large and QUICK gains. The stock came out of with weak Q1 numbers and we saw a large earnings gap down to a big support level.

There are some key lessons that you should take from this video:

1) Trade volatile stocks – 90% of the volatility will occur in the first 60 -90 minutes. This is where you want to focus your efforts.
2) Look to take a day trade when you are seeing large support or resistance levels being taken out on the larger timeframes.
3) Try to wait out the first 15 minutes of the trading sessions to assess the early morning ranges and avoid the irrational movements on the open. Emotionally, you need to keep a calmness to yourself and it becomes difficult when you see a stock whipping up and down 5 to 10% in seconds. Let the craziness subside

If you like what you see below, please visit Youtube and LIKE our video! It will motivate me to continue producing them 🙂

 

 

Tags: Chart Patterns, Awesome Day Trading Strategies

About the Author

Al Hill

Al Hill

Co-Founder & CEO, TradingSim

Alton Hill is the Co-Founder of TradingSim with over 18 years of trading experience. He completed the Design Thinking Bootcamp at Stanford’s D.School and brings expertise in Product Development to create the best trading simulation experience. His strategy focuses on trend-following systems, targeting high-volatility stocks with strong primary trends using the 15-minute chart.

View all posts by Al Hill →
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