How to start day trading Penny Stocks | Jay P | Skillshare

How to start day trading Penny Stocks

Jay P, Learn.Implement.Profit

How to start day trading Penny Stocks

Jay P, Learn.Implement.Profit

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13 Lessons (45m)
    • 1. Full class

    • 2. What are penny stocks

    • 3. How do I Start trading penny stocks?

    • 4. What is the Breakout Strategy

    • 5. Breakout Strategy Criteria

    • 6. Taking A live Penny stock Trade

    • 7. What is Technical Analysis

    • 8. Basics of Charting

    • 9. What is Level 2

    • 10. What is Time and sales

    • 11. How to Place a Order

    • 12. Building watchlist for breakout

    • 13. Breaking down SCKT

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About This Class

If you clicked this Day Trading course video, you are wanting to learn and understand to Trade ,and not only that, but how to make money from Trading, and even a living out of this. This Day Trading course has been designed to take the mystery out of Trading Technical Analysis, and the confusion that comes with it. whether learning from You-tube or some guru, A lot of people are scared of the Day Trading markets because they don’t feel entitled to be there, and think you need a degree to Day Trade Stocks, when in today's modern society of being able to make money online that is not at all the case. I have broken down this Day Trading course to tell a story from beginning to end. each section is in the place it is to help you understand and take the previous information from every Trading lesson to be put all together in a simple and understanding way. Most videos are kept to a 3-5 minute time where it gets everything you need to know with your attention and focus still in tact. I show how to Trade Stocks and use Technical Analysis live without beating around the bush to help you finish this course being able to Day Trade the Markets, and even revert back to it when you have Trading questions. For every intricate video that takes longer than 5 minutes to go into more detail, I place a Trading summary video that recaps everything. if you are a learner that wants all the knowledge on hand right away. I also add Day Trading Resources, and links That will connect you to Brokerages directly, Day trading Books, Technical Analysis Books, and much more! there is Trading quizzes that Summarize a whole Trading Section, And also a Mid-Term to make sure your memory of the most important things Will be Refreshed over, and over again.

Things you will learn in this course:

  • What are Penny stocks

  • How to start trading penny stocks

  • Strategy to use

  • Trading Penny stocks live

  • Technical analysis

  • Level 2, Time and sales

  • How to place a live trade order

  • Finding stocks to trade

  • Live trade on SCKT

  • Breaking down live trade on SCKT

Meet Your Teacher

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Jay P



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1. Full class: Before starting this course, please watch this video. I'm here to tell you that whenever I make a course, I make it very, very simple and not too long as well to actually help you understand the basics of how to actually trade and trade alive strategy slots times whenever we get to, of course, it takes about eight hours, four hours, a lot of time to actually just want to learn how to trade. I'm gonna give you the very basics of how to actually get started just trading penny stocks. How do you actually open a brokerage account? How do I get into trading? What I need to do and what is the strategy so I can actually trade, right? I break it down. Very, very simple, not overcomplicate. So even if you're a beginner or you're an experienced trader, you can understand these concepts very, very simply. So it's not too complicated. Whenever gate into a stock, I made it very simple to get you from a to Z and everything in between is filled in to help you understand the basics of how to actually just get started. And from there you can go into advanced courses and you can take a lot more time to understand more specific indicators or things like that as well. But to help you understand this, to start off, this is a course that's going to help you understand how to even understand a penny stock, how to have a strategy to treat a penny stock. How much money can be made and what it looks like live to actually trade what key things we actually need to get started. The basic, basic key themes to where you can take this course, watch it, and implement that into the actual live trading markets so you guys can start right away. And like I said, there's more advanced courses you can take to help understand more in-depth things. But if you want to get started and he started just trading, this is how you do. This is the best way to understand in a very simply put form, how to start trading. So I hope you guys enjoy this course. 2. What are penny stocks: So when starting off this course goes, what even are penny stocks? Lots of We always hear what penny stocks are, but let me break it down for you in a very simple way. Penny stocks, according to the SEC, which is the Securities Exchange Commission, prices, penny stocks, anything under $5. So penny stocks or anything price under $5 according to the SEC. But a lot of bigger companies can actually be price under $5. So a lot of opinions actually very, etc, anything price under $3 is consider a penny stock or a stock that trades and not on the major exchanges like the NYSE or nasdaq, meaning that they trade on the OTC, which is over-the-counter markets, or the trading stocks on the pink sheets. That's what people consider the penny stocks or anything price under a dollar. So a lot of opinions may vary. But of course the SEC is anything price under $5, so that's a base standard of what a penny stock is. Now, why do people love penny stock so much? Because there's a lot of money that can be made in penny stocks Y, because they're such a lower price. So you're actually able to take more share size. Share size, meaning the monasteries you can buy and sell in a specific company or in a stock. So if I'm taking a 1000 shares on the stock price at $3, the only cost me $3 thousand to actually place that trade. Now that's thought goes from $3 to $4. I just made it $1000, right? So people love penny stocks because you can make more money on them, but the same amount of money you can actually make, you can equally lose if you don't know, you're doing. A lot of people love penny stocks because they know much they can actually gain from a specific stock. But they always fail to recognize the actual loss that can be taken from a penny stock. But this is why it's so intriguing for new investors because they can take a lot of sheer size and make their account grow from a $1000 to $10 thousand a lot faster, or even 10 thousand to a $100 thousand a lot faster of using penny stocks because a lot of new investors account sizes aren't big. So who actually even traits penny stocks? So a lot people who trade penny stocks are first off professional penny stock traders, people who actually do it for a living where they only trade penny stocks. Hedge fund managers, hedge fund managers like to actually trade penny stocks because they can actually understand the price movement in action of a penny stock. And they know that a lot of them can actually be manipulated. So where they know that when a stock is wrapping up, they actually want to short sell a stock, meaning they're willing to bet against a company for to go down. So they don't actually want to buy a stock and sell it higher. They wanna sell stock, borrowing shares from a broker to actually buy a stock at a lower price because they know that it's false movement from newer investors. People who love to trade penny stocks are obviously new investors. Know investors love penny stock because as I mentioned, you can buy a lot more share size. And as I'll show you two other scores and a live trade, how much shear size you can get and how much when you can actually make. This is the intriguing part about penny stocks, because in a single trade you can make 505,000 as shown in this course on penny stocks, you can make a lot of money in penny stocks, what people fail to recognize the risk of penny stocks, but to break it down very simply, penny stocks or anything priced under $5 or not traded on the major exchanges like the NYSE or nasdaq, they trade on the OTC markets or the pink sheets. So that's what a penny stock is. So let me show you guys exactly what broke. You can actually use it. Start trading penny stocks, I actually recommend and every single one of my courses to help us understand how you can trade penny stocks and how you can trade lower price stocks using leverage and margin with the brokers see MEG, So we'll help you guys out get into that next before going into the stock terms, you need an understand. There'll be throughout this whole, entire course because the autosomes are course you'll hear a lot different terms actually being mentioned in this stock cores. So I'm gonna break down the most that you'll hear and how to understand them as well. And then we'll get right into the strategy that we're going to use for this 20 sought course plus a live trade using that strategy as well. So you guys can see and understand how much shear size can be taken and how much money can be made in penny stocks. So let's get right into it guys. 3. How do I Start trading penny stocks?: So you actually want to start shredding. How do you actually get started into training? First off, you just need a brokerage account to actually open and start placing buy and sell orders. Now think of a brokerage account just like a bank account when you have a BankAccount, there's money in that account? Correct. And when you have money in the account, you can go and buy stuff, right? You can buy produce, you can buy stuff on Amazon, you can buy whatever you want if you have a certain amount of money in there, just like trading or a brokerage account, you can actually buy and sell stuff this BankAccount. So brokerage account as just a bank account or you can buy and sell stocks. You put money in that brokerage account to actually buy a stock and then sell it stuck in the same day. But what they do is they give you actual regulated platform to be able to actually do this. There's actually desktop platforms. So you have a desktop platform, it looks something like this. On the left-hand side, we actually have dashed trader pro power by seeming G. And I've actually put all of these links in the resources, so you guys can actually download these directly from your resources. So on the right-hand side we actually have thinker swims platform. So this is just think about it like this, a BankAccount, we actually can do charting. So if you go right here, you can actually see charting. You can see Market Watch, right? Top gainers of a stock. You can scan for stocks, you can analyze them and stocks the risk profile, or this is more long term, but you can still have these as well. You also have trade to recur trade forex, or even an active trader screen for trading stocks. So this is what a broker provides for you. A broker provides you to actually have a charting platform to see what stocks are doing to buy and sell stocks in a regulated market. Just like if you go to any other produce store, any kind of online site to buy a certain item or specific item. A broker is just allowing you that. So picture broker like Amazon,, you can go to Amazon and buy stuff or even eBay where you can buy or sell stuff on that market. It's a regulated format. This is what a broken provides. A broker allows you to buy and sell. Stocks are actually tran, the NYSE or different exchanges and different markets and different places. So what I recommend is actually downloading thinkorswim because thinkers from is great for charting, a charting platform, meaning I can look at different charts of what a stock has done. So if I was a type and a stock like Google, right? I can see exactly what the stock is doing. I can see that plus the time in cells of a stock, also the level two of us stuck and different things that you need when actually looking at a specific stock. Now if you want to place orders and human accounts, they're only has $500 in it and you actually want to buy more stocks. That's where see MEG comes in. C major has a brokerage account allows you to place, buy, and sell orders with leverage. Leverage is just think about as credit. It actually gives you photo1, your account is under $2500. Now, I'll give you six to one of your accounts over $21. Meaning this, if I have a $1000 in my account and have 4-to-1, they'll give me $4 thousand to actually buy and sell stocks. Now if my count is over 2500 and it gives me six to one, at 250621 would be $15 thousand to actually buy and sell stocks with only having $2500 of my own money. So broker like CBG that allows that much leverage is a lot easier for a newer investor to actually buy and sell stocks with the smaller count and grow a lot bigger because you're able to enough share size on an actual penny stock, for instance, you can grow your count from $2500 to 5 thousand sometimes in a day, knowing what to do and what strategy to actually use. So that's why I recommend CMG for a lot of new investors to actually buy and sell stocks. Now if you have $25 thousand and you're wanting to actually buy penny stocks or whatever it may be, I'll link a bunch of different brokered is you can actually open an account with, and a broker's is just a bank account. So it's like opening any other bank accounts. So when doing this, I recommend using thinkorswim to start off with because it's free and I actually linked them resources plus C MEG has a brokerage account because only from the United States, India, Australia, Africa, wherever you're from, you can actually use the MEG has a brokerage account to help you get into start trading. So it was very helpful and a great resource to use. Because if you have a smaller count and you'll have say, $500 USD, you're able to actually trade with $2 thousand given the photo one platform they allow. So if you want to get started, I recommend downloading even Elise thinkorswim so you can follow along and see what I'm doing throughout this whole, entire course and also see MEG brokerage account. So that's gonna insert the stock terms you'll actually here in this training course. And let's get into the next lesson, guys. 4. What is the Breakout Strategy: So what is the breakout strategy and the breakout strategy? We use three different types of styles of trading when actually using this strategy. One is scalping, Suez averaging down, and three is momentum type strategies. We talked about breakout strategy, term a stock that is going to break a previous resistance level, to go higher to the upside, to rebuy before that level and sell after that level. So when using these three different styles, first we're about scalping. That means I'm taking small orders between the bid and asked him buying and selling and very fast movements to when I talk about averaging down, that means I'm gonna buy at a certain price. If that stock drops, I'm gonna buy again that lower price than changing my average cost. And when I think about momentum strategy, that means also I'm looking for volume in a stock. That means if people are trained that stock, any momentum being pushed in that stuck it, there's no momentum in a stock. There's no reason to actually get into a trait. And that is what the brca strategy is. Another key thing that we look for is Overview up, view up is a volume weighted average price of a stock which tracks volume plus price from historical data than to show a line, it's actually on a chart. Now when we go into the next lesson about going into charts, I'll be able to show you this exactly by one to help you understand exactly what different styles are actually in this trading scheme or a trading strategy when talking about criteria, when you're stuck full, that's actually under a 100 million. We need the volume to be over a 100 thousand. We need there to be news on a stock. We need to start to be a previous mover. Plus we also need it to be over the view up. So there's a five-part criteria when actually getting into a trade. There's a reason why we take the breakout trades. We don't just jump in at any stuff that's moving. We defined y, those stocks are moving. So the breakout strategy is simply put as this. When I'm in a stuck, I need to be kept up and hit a certain resistance level after it hits at low and ESA drawdown. And when it drops down a bind at that level, looking for the bright pass, that previous resistance level. And when it breaks set, that's actually I'm going to sell my position. That is what the breakout strategy is. So now it's going to look on a chart and how can I actually trade that? Let's get right into it, guys. 5. Breakout Strategy Criteria: So before games any single trade, there's a specific criteria that we actually have to get into that trait. The first step is that we need the actual volume in a one-minute candle to be over a 100 thousand, meaning that each one-minute candle has a 100 thousand and trading volume or shares being pushed in before going to a trade to measure the actual flow is under a 100 million float being the number of shares actually available to the public to be traded back and forth from buyer to seller. Whenever you have a company, there's always insider traders, but people who own shares of that stock privately to where you actually can't buy and sell those shares. Now the remaining shares out of those outstanding shares is the flow. The flow is what the supply and demand of a stock. I mean, it's actually available to the public to trade mean us, we're actually able to trade shares of that specific stock, and that is what the flow is. Now three, we also mentioned there's news on a stock. Is there a reason why a stock's actually getting up or down and why is it doing that is a good or bad news. That's number three in the criteria lists, also needs to be over the view up, meaning the volume weighted average price. Because as we know, the volume weighted average price treks historical data, volume and price. It's different from an SMA, which is a simple moving average plus an estimate, a moving average, buffalos can track a trend more closely, but the V up as well. A lot of day traders used to actually buy and sell stock. It shows minor trends in a movement. So if it's below the view up, it means some minor downtrend. If it's over the view up, it's a minor upturn. So a lot of day traders actually look at this indicator. And so one of the most popular indicators you'll hear in training. So that's number four analyst. And these would be over the view up level, the volume weighted average price and number five. And lastly, it also needs to be a previous mover, meaning that the stock is actually gapped up 234 $5. And previous dates, meaning of today's October first if two months ago to the stock have a same gap up moment to where it kept up three to $4 in a single day or even 2.50 has actually been a previous mover that shows momentum in that specific stock or specific company. And those are the five things on our criteria list. Before actually getting into a stock, we need those five things to match up to actually get into a trading position. Let's get right into it guys. 6. Taking A live Penny stock Trade: So in this quick video, I'm gonna show you guys exactly what looks like a place alive trade and this has no strategy to it. This is just showing you the amount of share size that you can take to actually make a significant amount of money on a penny stock or a stock price under $5, or in different opinions may vary under $3 or even a dollar trade on different markets. But this talk is actually trade on the main exchanges. So we're gonna go to a live tree of actually how I made $2200 in this one trait and spent about four to five minutes. Show you guys exactly how much money can actually be made by taking bigger share size on a lower price stock. So let's get right into it guys. Where people like pretty sucks so much is because they are low price, it's easier to get a bigger amount of shares. So let me show you what that looks like. So I'm gonna take a big amount of shares. I can take a good amount of size on a $4 stuck. If I was a biased dip right here, I could by close to 8 thousand shares on the sky, which means that every $0.10 MOOC is $800. So that's what we would like penny stock so much because you can buy a big amount of shares and sell for a higher amount of profit, but not really. And you can have more risk as well. But as you can see them in the stuff for about 8 thousand shares now bind these dip trades. And so as you can see, my profits are higher because I'm taking a lot more size. But as you can see, as I'm taking the straight people like penny stocks because as we know, Princeps or either price under $5 or under $3. Lovely prototypes are just pennies, but people like penny stocks, especially these won't because they have a $10 thousand account, $20 thousand account with leverage, they're able to bigger size and make a ten hundred, two thousand, three thousand dollars a day. And as it dips are here, I could buy 10 thousand shares. 10 thousand shares means that if it moves up $10 thousand, now if it moves only $0.10, that means I'll be up a $1000 every $0.10. So as we see, a stock started a gap down a little bit. As I'm holding this stuff, you can see what my P&L is doing. Using a P&L wants to push higher and higher and higher. So people have penny stocks because you're able to take this higher size and we'll talk about shares. Shares are just pieces of the company. So taking when I buy a stock into CBT ALI CLI is just accompany that's traded publicly on the actual exchange. So when we know that we can understand, we tend to own this stock for a limited time. So for its for the next 102030 seconds, it's for a limited time that we actually own the stock. So as you can see, as it starts to push up about $890. And think about penny stock. So is just as you can be up that much, You can also be done that much as well. As he says, my Pinto's moving up and down. This is the hype about penny stocks because penny stocks, you're able to buy more shares to make you more money. People love more money, but they don't realize there's actual risk that comes with that. That's why people love penny stock so much because they can feel they can handle this certain risk. But in reality, a lot people can't handler risk because just as you can as a close with ten hundred, two thousand, three thousand dollars on one single trade. It can also go against the US. And what if you have no strategy? If you're just jump into a specific stock, hoping it is something that's what people become gamblers and that actual day traders. So as you can see right now, we're up closer $1200. So right there were about $2 thousand if I were to take off all my size. Right. I'm up and that single trade, $2240, right? And that one single sphere that we just took up $2240. And so obviously you could say, Why do you keep holding it? I could keep holding it, correct. Right. Is you can't keep holding it. There's no point of honing stock if there's no actual strategy and I fall very specific strategy. But the thing is this is what people love penny stocks because they're so low price I can take more sheer size plus I'm get more for my money. But I think people fail to realize is the actual rates that comes in training penny stocks. So that is without a strategy, how to actually place traits and what it looks like to actually make money on a lower price stock taking higher share size. Now I've taught us want our course, let's go into actually take in traits live using the real strategy we actually got into, which is the breakout strategy. So let's get right into it guys. 7. What is Technical Analysis: So let's break down what even is technical analysis. There's a lot of different opinions about what technical analysis is because people believe that technical analysis should look like this. They believe there should be a bunch of indicators like the RSI, a Mac D. They need a view up level, they need the estimate movement average, the simple moving average. All these different things pop onto one screen to predict how to buy and sell and one little level. Now when it comes a day trading my charts and look like that at all. Charts are very simple. I use these main indicates. Whenever I'm placing a buyer sell order, I'm looking at the volume, the time and sales level two m using the view up level as well plus previous resistance levels. Now, let me also say that's too simple to actually be able to buy and sell a stock. But if I'm looking at is a day trade, I'm looking to get in a small price action movements. That is exactly what technical analysis means. If you look at the definition for technical analysis, technical analysis is just a way to predict the future price movement. Do probability from past data that's actually on a specific chart. So when we say that it understand all these indicators like Mac D or RSI all use them or types of indicators, even the SMA and EMA. These are all different ways to actually track that price action and volume and past data put together. So we're using these different indicators for alters the same exact thing. Slot people believe that they need to have all these different things on our charts to actually be able to place one by itself ordered. And I'm here to tell you that's not true at all. And people say, oh, what do you mean? I don't have to use an estimator and EMA, No, it's effective. You're using price action, you're using the time and sales and level two, because of the level two tells you what people are buying and selling in order for the supply and demand or market depth of an actual market or a stuck that you're actually training, which we get into all of these in the whole, entire lesson. But it shows you the exact price movement where people want to buy and sell a stock. We can look at the exactly the market depth of an actual stuck, the volume that's being pushed in, plus the actual price movement or the price action or this stock is doing. So, we're able to actually have a higher probability of success because we don't have what is called technical analysis paralysis. Too much things on our charts and willing to line up in order to actually place a trade like I need the RSI, it'll match it with the actual SMA at this certain level, at this indicator. That is not what I do as a day trader because we personally, I even use hotkeys. Hotkeys allows me to buy and sell in the span of seconds. If I hit shift one that buys a thousand shares, if I hit control one that says 1000 shares and span up seconds. And we'll, my strategy indicates is that I'm going to buy and sell. And very fast movements are a breakout type strategy on that dip level. So when we're talking about technical analysis and what it even is, go now. So this is just a way to actually forecast what a stock will do to previous data on a chart, which we use it looking at the view up level plus the price section, volume and historical data of support and resistance levels. And that's what we look at as when it comes to technical analysis and trading tsunami sugars exactly what looks like to actually break down a chart so you can understand what took about one minute keynotes sticks, two-minute Kino sticks, five-minute canto sticks. What even is charting volume price action. What does it look like on a chart? And I'm gonna do is gonna have a chart first. And I'm going to add the level to determine at the time sales and altogether see exactly what that looks like to actually buy and sell stocks and how you need to be set up to actually buy and sell in order. So let's get right into it, guys. 8. Basics of Charting: So let's get into the basics of what charting is. On the right-hand side, we can see that we have the thinkorswim platform, which I've actually put in the resources. So you guys can download this platform plus on the left-hand side, which is a dashed trader probe powered by Samy G. This is what the charts look like. Now these are both the same stuck. Now, Think or Swim works a little differently than see MEG, but it's a lot easier to navigate both of these. So winter about charting systems. Why do I want a one-minute candle, a two-minute candidate, five-minute kin, or 15-minute candle. If you go up here to dash at a probe, you can see it has one minute here. That's a one-minute cannot means that this candle right here represents one minute at train time, meaning price action volume, buying and selling back and forth, back and forth. What does kinda represents now there's two minute means that each of these Kindles represents two minute of trading time. Two minutes I've been traded in this one stock. So if it's nine thirty nine thirty two is when the next kinda will form. And then 934th, 936, each candle forms every two minutes. Now if you go to five minute candlestick, same thing. Each one of these candles represents different timeframes, right? This is a five-minute candlestick. So if I was looking at this, you can see there's a five-minute candlestick. Each of these cantos represents five-minute of train sign. And the reason why we liked looking at different timeframes is because just because on the one-minute chart it might look good. On the five-minute chart, there might be an indecision in the markets that we don't know about. Because look at the one minute candlestick. Now if you go to thinkorswim, it's a same thing if you dropped on r here as day traders. We are intraday traders. And if you type in the timeframe and you go to two minute, the same thing will happen. Each of these candles represent two minute of train time. Now if you go to the same timeframe and do three or five minutes, if I click OK, each of these cantos represents five-minute of train sign. So you put these side-by-side. The scraper is a pre-market and this is actually open up a stock right here. As you can see, these first five minute cantos represents the first five minutes of the trading, say, because our one minute candle sticks. So candlestick show us what an actual trading and shows us the price of a stock, the volume that's being pushed in, plus which weights actually going. So the candle sticks determine the price action or movement of an actual market. And there's different patterns we can look at, right? So different panels you'll see in the actual market is things like the flag patterns or the Head and Shoulders pattern, or even a double bottom or doubled up. These are different patterns that are created from canto sticks. Now that candidates have their own variation to them, K6 and also have things like a DOJ candle, a topping TO canto, which indicate different things that help us understand how we actually buy and sell a stock. Now this actual tagline you see right here is the view up level. The view up is a volume weighted average price. Now a lot of day traders uses indicator to determine minor trends in a market when it's over the view up level, actually want to buy or get into a stuck when it's under the new AP level, it's showing signs of a minor downtrend. So they don't want to actually be in that stock because as you can see, when a stock open a gapped up and tap that view up level holding as support, then it kept up from there. And as a broke under that V up level, as you can see right here, is now making a minor downtrend which might never, ever recover. Because under the view up we're not looking to actually buy into it stuck, but when it's over the view up, we're looking to buy into it. And now when it comes to charting, this is a very basic of it, right? You can actually see the price right here. You see 615, six hundred, six hundred 5-6, $1.505. This is a price of a stock when the stock is trading live. You can see right here at the price right now the stock is at 345344. This is the price of a stock. Right now. There's very minimal price movement because of its low slowing. The day's about 1135 right now. And so as you can see a new cantos forming on this one minute candle. And as you can see, the prices moving up and down, 347346, it's very slow right now. But as you can see, this shows a price of a stock is actually traded at. Now below here is the volume. So in the previous scanner you can see there's about a 100 thousand shares in volume. As you can see and thinkorswim it has volume as well down here, there's a different volume levels. So these are the volume levels were actually looking at when getting into any specific trade. So that's what the volume is of a stock. The volume is the amount of shares being traded in that one minute candle. So now that you understand the basic basics of charting platform is what we're looking at. Let's now actually get into the level two and how a stock market actually moves, what moves these prices up and down? Let's get right into it guys. 9. What is Level 2: So first off, what is level two level to show us the buy and sell orders, at what price and amount of share size and also the routing that's actually used. So level two is actually the bid and ask as well. On the left-hand side here we have the bid, and on the right-hand side we have the Ask. The ask is a price that the sellers are trying to sell to the buyers of, I actually want to buy a stock. I'm going to buy two the ask, right? Because whenever i'm going to any other grocery store, wherever I'm going, I'm going to buy at what say Wal-Mart wants me to buy it at, say assures press at $3. That means that warmer son that shirt for $3, and that's the seller's price. Now if I want to buy that actual shirt, I had to buy at the ask, right on the left hand side is the bid. Bid is a presser, buyers or wanting to buy this stuck. So as you can see, they're wanting to buy it 3.3.4. And in order for their actual already executed, the actual sellers need to agree on that price. And as you can see, this level two coincides with this chart. So wherever the level two is doing, that's what the chart will show as well. Because as you can see, when the price is at 325326, the same thing is on the chart. As you can see, the counselors are more the same price because these are connected. If I was a type and a stock like Google, for instance, you can see that whatever the price on the chart is, that's the same prices on the level two because these two work together. These two plus the time its sales all work together, which I'll add an X, which is a time and sales. But what the bid and ask shows us is, let's go back to AST sees we have a smaller price with the bid and ask shows us is, as you can see, there's nasdaq, ARCA, EDG, x BAT S. These are all routing system. So when you have a brokerage account, these are what's placing your orders. A market maker, right? Somebody who, when you buy, they're actually executing your orders to a seller. So this is what these routing systems are. Now you can see right here is a price. This is the price of the current stuck, 325.63. This is the price that buyers want to buy a stock at. Right here is a share size. Shares, as we know, are how we actually trade a stuck. The amount of shares we take determines how much money we actually make. And as you can see, there's 51518. You need to add two 0's to that. That means that a 100 shares are being placed at this specific price. So what we can see right now is if I was read it very simply are very basic. I can understand that there's more buyers. Is sellers. What's going to happen? This stock is obviously going to get pushed up. Why? Because there's more people wanted to buy the stock and there is sellers willing to sell down lower and lower and lower. Now as we can see on the right-hand side is the ask, which is the same thing. These are all the sell orders. So as you can see, it says, it says ethics, nasdaq, right? Batnas are good. These are all the market-makers because when I wanna hit by and so that's who's actually executing or when to place an order before it does get executed. Now same thing, that price plus memory add two zeros to the sheer size. And so that's what the level to actually shows us this, the level two dictates what the price of a stock is because these are all the buyer and sellers back and forth. But these are just order people are placing because just because I placed this order doesn't mean my order will actually give film. This is actually the parts I wanna get in on a stock but actually haven't been filled yet. So now we're gonna go into time and sales. And as we go into time and sales, I'm actually going to place a live order using all these things and understand exactly what it looks like and how you do that using this montage window or the level two. And when you watch all these videos, you'll understand exactly why we use a time in sales plus the level two and how they work together. So let's get right into the time and sales next. 10. What is Time and sales: So as we can see, the time and sales coincides with the chart plus the level two. So when you add all three of these together, what does it tell us, As we know, the candidates themselves should amount of shares being traded, which is the volume down here, plus the price and how its stock is actually moving, right? The stock price, we can see the price action. And all that price action means is the price movement of a stocks. As you can see, it's moving that 3.3.1, 3.3.2, that's the price action. And this is dictated by the level to which is also considered the market depth. This is how a stock market moves. So when someone wants to buy and sell and ordered, like us, we want to buy to the asc at 3.3.2 and we want to sell to the bid, correct? After this lesson, we're gonna go into how to buy and sell a stock, right? How to actually place an order using all three of these. But to do that first we understand what these even are and how we actually look at them. So if we're looking at the time and sales now, what does it show us? The time and sales just at the level two are very, very similar because the level two is where people want to buy and sell stocks at the time and sales is where the actual orders are getting executed. So if I buy a stock and immediate gets executed mean that the market maker actually fills that to another seller. This is where it goes. It goes to the time and sales. So you can see the price, the quantity, what time that order was filled, at, what exchange actually feel that order. So you can see the exchange rate here. You can see that same exchanges over here as well. So we talk about time and sales. Thomas. Sales is just showing the time that sale was actually executed, at what price and how many shares were taken. So if we can see the price at 328329, these are orders that are live getting filled or these are live orders getting filled right now. Now you could say it goes very, very fast because this is what moves a market. Is these time in sales, as you can see, it's moving and moving and moving all the time. And sales is the Thomas sales shows us the price that a stock was executed at, the quantity that it got filled at that time, plus what exchange or market maker actually filled those stocks to be executed. So as these are actually getting filled, this is what's moving the market. Because as we know, the monasteries are being pushed in right here and this volume candle, the volume as a monastery that being placed right here and a little too. And the actual, what moves them market is executed orders or the execution orders, which goes to the time and sales because as you can see, if you see a bunch of red or is going through, what does that mean? You'll see right here, the stock will go down lower and lower and lower because the ores are actually getting filled or read. So I just see a bunch of green orders. These are buyers wind actually hold a stock, but as a red orders rushed through, we can see on the actual candle sticks that's pushing a stuck down lower and lower and lower, or lowering the price of that specific stuck. So that's what time and sales. So now let's get into how to actually place an order live before we actually go into live training. So you guys can see exactly how you can buy and sell stock and how much money can be made in between and what shares even equates to when it comes to the price movement of an actual stock and how much money can be made from having a specific amount of shares to buy and sell, and how we actually do that, and what it looks like when you actually execute that order. So let's get right into it, guys. 11. How to Place a Order: So this is just to show you guys how to actually place an order. There's no strategy actually used to you. This is just showing you guys how to actually buy and sell a stock and what that looks like to actually want to get into a stuck and how do we even do that? So me personally, as I talked about before, I use hotkeys, meaning I hit shift one to actually buy 1000 shares and control one to sell 1000 shoes. Now if you wanna manually place an order, you to understand order types, right? There's market limit and there is a stop order. Those are three main orders we can go with, especially as day traders. We need to understand at least those. A market order will fill your whatever price, no matter what it means, whatever the market is trading at. So if you actually want to get an essay 50 to, as you can see, are fine with three. If it jumps up to 510, it might fill you at 510 or 57 or random order that the market wants to. Now a limit order is what we always use ninety-nine point nine percent of the time. A limit order actually lets you place executory when to buy and sell your stock. So if I want to get an exactly at 504, it will actually go to my order winner here, which I'll show you. So let's get running to a limit order stuck. So in order to want to place a limit order, you to understand how much share size you want to take. So let me put this on a chart for you guys. If you want to take a 1000 shares every Tencent move. But the second was from $5 to 510 is a $100. If you would take a 100 shares, every $0.10 move is $10. Now you can do the math from there. Now if you wanna take 10 thousand shares, right? 10 thousand shares from $5.510 would be $1000. So that's how the sheer size works. The higher the sheer size, obviously, the more money you make. Now let's do a 1000 shares for this example. If I want to get 1000 shares on the stock, as you can see, this dot BP th is up here in the ticker symbol, a stock. Like I said, it's just accompany where's traded company on the actual regulated markets. And this one is traded on the nasdaq markets. This is just a top gain on the nasdaq. So as you can see, that stock is stepping down for 97. It's moving a little lower. If I wanted to buy the stocks, say at $5. As you can see, there's a thousand shares. This is where you would place the quantity if you want, take one share, this is where you would put it. You wanna take ten shares. You can put ten. If you'll take a 100 shares, you put a 100, it would take a 1000 shares. You can put a 1000 shares in this order window. Now, when it says right here, you see it says price. I can put exactly what price I actually want to get into the stuck. So say I wanna get stuck only if it hits $5. So hits $5. I want to buy into this stuck. Now right here there's a drop-down and as you can see, it says limit market stop only when you worry about is a limit mark and stop it because like I said, 9.9, 9% of the time we use a limit order. So I'll hit limit order. So if I hit a limit order, that means I want to get in and what I wanted to get at the stuck. So let's say I want to get in, I guess $5. As you can see, as soon as as $5, what I wanna do is I wanna hit the buy button. So as soon as I click Buy, you'll see it goes into this order winnow as fast as I got executed. Now it's a livestock. So as you can see, I bought 1000 shares at my average cost being $5. So it got me in this, I got $5. So as you can see, now, if you go to my order window up here, you see I have a 1000 shares and the sell order actually pops up as well now. So if I wanted to sell a stock because I just got in a stock and as it's moving, say it gets up to 510 or it sells off and I'm actually going to lose and position to already get out of a stock. I can place exactly where on a summer order as well. So say I want to sell my stock at 508 because as we see on the chart that stocks moving up 55 and just move a little higher. I can at 508. And then as soon as I hit fiber eight, I can hit cell. And as you see if I sell, it will actually pop up in my order window right here. This is my order winter. This we're actually orders go until they get filled. And so until its stock actually hits 508 on the bid, on this left-hand side, my order will not get filled. So as soon as you can see, it hit 508, the oranges got filled now. And now in that stock, I just made about $90 or 1000 shares on a very small dust taken a buy and sell order, right? That's how you do it though. When you're wanting to buy and sell a stock, you want to put them on a share size, you want to get into the stuck, then you want to put it in the price that you only get into stock plus the actual type of order you're going to use. So like I said, limit order allows you to place a whatever price you want to place it at, whether it's buy or sell order. And this day plus an any, always have on day plus and enemies, any routing system that goes through wherever actually gets filled, whoever fills order does not matter I'm putting any right. And so I'm able to actually buy and sell executive where I wanna get in stock. And I guess I was in a very fast time periods. So when I'm actually placing orders, I use hotkeys so that you can understand that. Let's go into the next lesson while building a watch us to actually close this course off to understand how to actually build a watch list, taking a trade live, breaking Dennis same stock, then to give our closing thoughts. So let's get right into it, guys. 12. Building watchlist for breakout: So now we're gonna get into how did you even find a stock? What does it look like to actually build what is called a watches? How do we actually find stocks we want to trade? And what does that look like? So as you can see, we've added these two scanners. And what is a scanner? On the left-hand side, we have the top gain, right percentage wise on the NYSE, which is a New York Stock Exchange. So these are the top gainers are biggest stocks moving in volume and percentage change, as you can see right here, this change, percentage change on the NYSE and on the right-hand side we have the same thing, but the nasdaq, we have the top gainers of the nasdaq. So this is how we actually find stocks. And if you were actually to bring up, if you've downloaded CME G and the dashboard approach, you can actually go to quotes. As market viewer, you can actually open a new one. And as you can see, a blank screen pops up. You can right-click that and sea view top list. So you have the nasdaq gainers plus you have the NYSE gainers and the actors as well. So if you were to click one of those, you can see that all the top stocks moving today, these are previous stocks moving, these are actually today's stocks moving. So when you want to open that as how you do it, you go to your platform, you open a new market viewer. So now you can actually see stocks that are moving. Now when we want to actually search a stock, we want a stock that has volumes. So if you go to the right, right here, you can see where it says volume. I want to click the highest volume one, right? So as I can see, z, d, g, GE is a highest volume as of right now. And what you can do is grab a sticky note and you can just start typing and stocks that you wanna see, they're actually on watch. A lot of times I'll have multiple screens. So I actually put these stocks on different monitors to where you can see something like this. If I pull my other screens because he different stocks moving on a multiple timeframe, you can actually build a watch this a c exactly what stocks you want to trade and put them to the side. Now if I want to build a watch AS I went the highest moving in volume. So as you can see on the NYSE top gainers, there's not a lot of stocks moving volume, you can see that's low volume right here. Eighteen thousand, two hundred ninety four thousand On the day, which isn't a lot. But if we go to the actual nasdaq scanner, we can see that already SC Katie is a top mover on an Aztec. So I'll actually type in sc KT. So now I'm building a watch us. I'm finding socks. I actually want to trade. And then also I want to do is I want to go into the flow is on a stock so you guys can do it for free applets and the resources. So I'll go to SC Katie, I'll type in that company on phi1 Viz, which is a free charting platform. And I'll see exactly what the flow is on a stock. So as you can see, the short float is 4.7 million. If it's under a 100 million, that fits our criteria. So that's why I put it on an actual watch list. So as you can see, a stock is moving up higher and higher and higher. So this is a stock that can already tell wants to move. And then while undoes only gotten my daily chart, and as we can see, it's a previous mover from about $2 out of 420, so it has moved before, which fits our breakout criteria lists was a five-part list under a 100 million and float plus, and these have a 100 thousand shares in a single one-minute candle. So if you've got a one-minute chart, we can go right here to the volume and see that it's over a 100 thousand and a single one-minute candle. And then also needs to be Overview up V up is this line right here, so it fits that criteria as well. Posits a previous movers. And now we wanna see if there's news on a stock could go to fin because again, we can scroll down and see if there's any news. And today is October 23rd, 2020. So as you can see, mobile struck on heavy volume after reporting up profit jump. So it's good news on the stock. So I'm gonna put that on my actual watch list. And as I continue to scroll down and I'm clicking through these stocks, I'm not really seeing anything else that's really moving. And with that, I want it to be honest, like icy moon right now is SC casey. So what will I do as soon as I know that actually want to start trading this stuck, right? I want to start actually placing trades. I wanna get my position ready. I want to understand where I want to get in and out of my position, how I actually want to take the trade. And that's where strategy comes in. Because right now we're gonna do is we're actually going to trade that strategy. So not scan to the next lesson and show me actually train the stock live. Because as we know, if it's under $5, it's considered a penny stock. So I want to actually be trading this stock to actually gain more profits because it understands the low price stock and it's spinning my criteria of the whole entire breakout strategy. So let's get right into it, guys. 13. Breaking down SCKT: Slow breakdown broke quake where I took my trade and how it looks when I actually bought and sold and where did I buy it? So as we know, it took 8 thousand shares if you're Washington live trade. So let me skip to our took my first trade. What's the first thing we need to remember? I was looking for to hit that previous resistance level at 305, as we can see right there. And look for a new candidate form it as a new kindle forms down right here, you can see me, I'm taking a 1000 shares and I use hotkeys, so I'm hitting shift one shift, one shift 18 times. So as you can see, as it hits through 81, look in my order window, you see 2 thousand shares and you see 3 thousand shares. And you see 4 thousand shares, and you see 5 thousand years. I'm keep buying into this stock, 6 thousand shares and eventually I get all the way to 8 thousand shares actually on the trade. So as it's getting down right here, I'm looking for that $8 thousand position. And you can watch the P and L, which has a price and loss and you can see how it moves. So why did I buy into that stuck right there. If fit the criteria, everything we needed the criteria lists, right. Flow under a 100 million had volume in a woman at kinesic, over a hundred thousand, a hundred thousand shares traded back and forth. It was over the top level, the volume weighted average price, as we know, it's a minor mood to upside dangers look at that as a minor moved to upside. So they want to buy into the stock plus the head news. And it was a previous mover. So I went to bind that dip as a new kindle formed referred to push past Three 85. So as I do that you can see that the stock is playing back and forth these levels. So usually I want to hit that break and this was a breakthrough 85, I want to get out of the stock. But in this case I knew that if it passes 380, it's closer to likely to get all the way to $4. So I held this stuck completely. And also my stop-loss on this was 371. So if we wanna know where I've actually gotten out of, if the stock went against the me, I'd be at 371 at $0.10. Stop lesson, we're actually entered at 381. So not skip ahead and see the stock actually performance. So as you can see that break that happens. We can say My unrealized that has three hundred sixty. Three sixty it's unrealized mean I'm still in the stock for 80 thousand shares till I take my shares off. I'm still in that stuck. So technically, I don't have $360 yet. I've actually makes I haven't taken any shares off. If I took off all my shares, I'd be up 360. But my profits are Gate was closer to getting to that for dollar level. But I knew that I wasn't take off right before $4, at least 4 thousand, which actually took off 5 thousand shares before $4. So let's get to that point because Simon was playing back and forth playing around the whole entire time, right? It was it was penalties levels going back and forth, back and forth. And as you can see, the penile keeps going higher than dropping, higher than dropping. So what I actually start selling my position. So right here, as it broke the 396, it broke that resistance, love I was waiting for it to hit at that 393 level. When you get past that level, I told myself I wasn't takeoff at least half of my sheer size, meaning it had 8 thousand shares, I'll think of at least 4 thousand. So 4 thousand left because I know that the whole darn level at $4 is a huge resistance level. So what I'm doing is I'm being very patient and I'm actually just watching this stock. So what I'm doing is I'm way and take off my half size. So as a stock as you can see, it's getting to that 397 level. I took off a 1000 shares, so now I have 7 thousand shares. I think of another 1000 shares and are headed next order in kilometers and hotkeys take up another 1000 shares as well. So now I'm at 5 thousand shares and now I'm at 4 thousand shares and eventually it's o to 3 thousand shares. And if you can look right here, the realize means the actual money I'm made, the profit, that is mine, it goes directly to my account. So I made $655 by taken off those 5 thousand shares. My unrealized is still through 75 minima. I still haven't stuck until it take off my shares. So where I take up the last 3 thousand shares. So I guess I knew I wanted to break the $4 level. So I don't mind Hindus little micro dips right here. So right here. As I can see all these green orders on the time and sales rushing through. And I can see all these orders on the level to getting wiped out, right. Seventy one, seventy seven, thirty nine, really, really fast. I'm looking for to break closer that for dollar level, but before I take my last 3 thousand shares off, so I slowed down, you can see as a hits $4, you can see we take off as at 300 shares, 2 thousand shares. I think my last 1000 shares right here, right as it broke afford our level slightly. So now I'm completely out of my position for 1000, $180, right? That's my complete position out because I took all my shares off and that is how we're looking at this stock. Because I knew exactly where to get into the trade, how to get out of the trade, and what my position would be in exactly what profit loss I wanted. So that's me kinda breaking it down. So you guys can see executor, I bought and sold in slow motion type form to have you guys understand exactly how I actually got into straight as we saw in the live trait as well. So that's gone into closing thoughts to actually wrap this course up, guys, let's get right into it.