Mastering Day Trading | Stock Market Trading Course | David Eaves | Skillshare

Mastering Day Trading | Stock Market Trading Course

David Eaves, YouTube, Trading/ Investing, etc.

Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
36 Lessons (2h 50m)
    • 1. Introduction

      0:55
    • 2. What The Stock Market Is

      1:27
    • 3. How Much Money Do You Need to Get Started

      2:13
    • 4. Cash vs Margin And The PDT Rule

      3:53
    • 5. How To Use The TD Ameritrade Thinkorswim Platform

      13:29
    • 6. Trading Styles and Types

      3:26
    • 7. What Stocks and ETF's Should You Trade

      9:56
    • 8. Penny Stocks

      2:50
    • 9. What Are Pump and Dumps?

      10:54
    • 10. What Are Bluechips?

      3:25
    • 11. How to Read Candlestick Charts

      3:58
    • 12. Market Hours

      3:43
    • 13. Order Types

      5:19
    • 14. The Golden Ratio

      1:53
    • 15. Cutting Losses

      6:32
    • 16. How to Use Indicators

      8:19
    • 17. How to Use Level 2

      3:36
    • 18. Bag Holding

      3:32
    • 19. Averaging Up vs Averaging Down

      2:40
    • 20. Stock Splits and Reverse Stock Splits

      2:24
    • 21. Support and Resistance Lines

      4:41
    • 22. Bull and Bear Flags

      5:53
    • 23. Bull and Bear Pennants

      6:37
    • 24. Ebb and Flow Sector/ Sector Rotation

      8:37
    • 25. Sympathy Plays

      4:46
    • 26. Mid Day Lull

      3:57
    • 27. Gap Ups and Parabolic Shorts

      6:18
    • 28. Morning Washouts

      5:28
    • 29. Trading News Earnings Reports

      7:14
    • 30. What Are ETFs

      5:53
    • 31. Inverse ETFs and Futures

      7:01
    • 32. Should You Short Stocks?

      1:51
    • 33. Tracking Trades

      2:35
    • 34. Should You Use Leverage?

      1:03
    • 35. Class Project

      3:04
    • 36. Thank You!

      0:46
142 students are watching this class

About This Class

There are many courses on day trading out there, many of which will set you back quite a bit. So I wanted to make this course here that can provide all of the knowledge I have learned from various courses I have taken and the ~5 years of trading experience I have. 

Hopefully, by the end of this course, you can go out and get some experience of your own through the use of paper trading and eventually transitioning to live trading. 

I hope by the end of this course you have learned the following: 

-  How to Trade Using the TD Ameritrade Thinkorswim Platform

- How the stock market works

- How to chart stocks

- How to take advantage of irrational trading

- How to manage risk

- How ETFs work 

- The psychology behind patterns

If you guys need any help to be sure to message me on Instagram I can walk you through any additional questions or set up a free consulting call.

Transcripts

1. Introduction: welcome everyone to the mastering stock market. Trading course. You guys don't know who I am. My name is David Eves, longtime day trader and YouTuber. And in this course, we're gonna be going over pretty much every single thing you could possibly need to begin day trading, swing trading or even just long term investing. I'm talking everything from how the stock market works to indicators to the psychology behind trading. So by the end of this course, you guys should be pretty well equipped to begin day trading, swing, trading or really, whatever style of trading it is that you want to adopt. And at the end of the course, there's gonna be a few live trading examples there, so I can show off some of the things that I'm telling you guys and show you guys within the course. That way, you guys can get a better idea of how to go ahead and begin yourself and what it is that I look for when I am day trading is, that's what I generally do is day trade. But a lot of the things will apply to swing, trading or any other forms of trading. So with all that being said, I hope you guys do decide to enroll in the course of becoming master of stock market trading. And with all that being said, I will catch you guys inside the course. 2. What The Stock Market Is: So in the short first lesson, we're gonna be talking about what the stock market is. So if you guys are a little more advanced, you might want to skip this lesson. But the terms stock market is really just a term. There's no actual stock market per se. The market itself is made up by around 80 or so exchanges, the two largest in the U. S. Being the NASDAQ in the New York Stock Exchange. You've probably heard of these in the news or things like that in the past. But these are places where buyers and sellers come together to buy and sell any type of security. Really. And when I say security, I'm not just referring to stocks. And when I say securities, I'm not just referring to stocks. There's actually stocks, options, bonds, futures in a lot of things like that. And we'll be going over a few of these things within the course just because they do pertain directly to stop trading or what I normally dio e t f. Trading, but that's pretty much it. I mean, the terms stock market is really just a term to refer to all of the exchanges and nowadays , with technology, you're not really going to notice a difference between each individual exchange, so it's not a huge deal. If you guys want to learn a little more in depth about what the stock market is. I do have about a 10 minute course here on skill share that you guys could check out. But it's very beginner and a lot of it is honestly not relevant to actually trading or even investing. So with all that being said, I think I pretty much said everything I need to say in this very short lesson. So we will get into the meat in the bones of the course pretty much starting in the next video all the way through video 40 or so, so I will catch you guys in the next lesson. 3. How Much Money Do You Need to Get Started: all right, so I get this question all the time, and I think the best placement of this is video number three within the course, and that's how much money you need to start investing or trading within the stock market. So my opinion on this has changed over time. Just because it's actually become pretty much free to day trade, invest or really do any kind of order flow on the stock market here in the last 2 to 3 months. Before, I would have said, you know, 56 $7000 before I would start trading Just because if you're making 1% on $5000 that's 50 bucks. But if you're paying $15 commissions to get in and out of a trade, and that's 30% of your profits are going to commissions nowadays, this is not the case. Pretty much all of the best brokers out there, the ones you're really gonna wanna work with are completely free, and therefore you don't really need to have, you know, 5 $6000 to go ahead and start trading. And really, when it comes down to how much you need to get started, the answer is actually $0 okay? And that might sound a little weird, but and that might sound a little weird. But you guys are probably not aware that a lot of these brokers especially my favorite one TD Ameritrade as well as my other favorite, Weeble, both have a paper trading software. And this is basically where you can actually get an account with them and everything. It looks like a real account. Use the real software you keep up with the real market, everything about it Israel except the money. So you can actually just partake in the actual market with fake money and try to, you know, learn over time and gain some more experience before you start putting your actual hard earned money into the market. But outside of that, honestly, with commissions going to absolutely zero at a lot of the best brokers, I would say you could start with his little is $100 when you're actually going to start trading. Personally, I would prefer to have 500 to 1000 when you first start just because And if you start with $100 if you make 1% you're gonna make a dollar, you know? So that's not incredibly encouraging. That being said, you know, if you are just starting out, you're not gonna want to put your life savings into this by any means. So, you know, as little as $100 could definitely work. I would probably do 500 to 1000 before you really get started. Now, I have another caveat about this in another lesson. Just because there is a much higher amount that if you're gonna be day trading, that's ideally what you're gonna want to have. But you certainly don't have to have it. And you can definitely get started with just $1000. So with all that being said, I will catch you guys in the next lesson. 4. Cash vs Margin And The PDT Rule: all right. So I know I was just talking about there being a higher amount of money that you might want to have if you guys were day trading and that number is actually $25,000 now. The reason for this is not even monetarily. Base is not a reason you need to have $25,000 in terms of actual trading. But there's this thing called the PDT rule, which stands for Pattern Day trading rule. And it's developed by the SEC, which governs the overall stock market in terms of rules and regulations. And what the PDT rule basically limits is that you cannot take more than three day trades within a five day period without having at least $25,000. If you were to take more than threes, if you took four day trades within a five day period, you would be marked as a pattern day trader, at which point your account would actually be locked for 90 days from day trading so you wouldn't be able to day trade at all, which I have to tell you is a little scary just because you say you were gonna open a swing trade in that 90 day period. Get $5000 on the line and all of a sudden, you know, you think this is a terrible idea? You decide. You know not to do that because earnings are after hours today you're stuck. You're going to sit through the earnings and potentially lose thousands of dollars during earnings because of this. So when it comes to this, $25,000 is really what you need to not be a Pattern Day trader. Now, at the beginning of this video, I said that that was, if you were on a margin account and a margin account is basically where when you buy shares . If you were to sell them today, they don't actually clear in your account. Kind of like if if I make a credit card payment today, it's not gonna show up on my bank for probably a day, maybe two. With the stock market, things don't actually clear for two days. So with a margin account, if you guys took a trade at 10 o'clock in the morning today and you sold it at 10. 30 and it was your entire $5000 in your account as soon as you sell those shares on a margin account. That money is actually credited back to your account, and you can take another trade two minutes after if you want, but the money is not actually there. You're borrowing that money from your broker in order to go ahead and trade. You know, second time before the to day waiting period for the stock to actually settle in your account. There's another type of account that you can get, and it's just a simple cash account. And this is where this cash is your cash. Now the thing here is, if you have $5000 in cash account and you take a trade on Monday, it's gonna take two days for that money to settle in your account. Basically, meaning you have no available funds to buy any more shares on Tuesday or Wednesday, so you wouldn't be able to trade until Thursday. And this is the reason people use margin accounts. It just doesn't make sense to go ahead and tie up your money for multiple days when you could be using that money to trade. But the SCC's PDT rule limits you to three day trades per week, so you're kind of stuck in limbo position. If you don't have a T least $25,000 in your account, there are some ways of getting around this. There are one or two brokers online that you can actually sign up with them, and you're actually trading with their money and they're getting a percentage of your actual profits. That's one way I know. People have gotten around it the other way to get around that is just creating multiple accounts to us at $15,000 you were looking to take $5000 positions. You could put $5000 into three accounts, and you get three day trades per week per account. Now you've got non day traits per week instead of just three. But the easiest way to get around this is to just have $25,000 in your account. When it comes to the stock market, that's honestly not a lot of money. That being said, I definitely understand the typical investor from doesn't have that, especially just starting out. I didn't have that for quite a while and it was definitely a struggle for me and actually, my personal life just made it a goal of mine to just make enough money to put into my account so that I would be able to get around the PDT rule just because it can definitely be a big hassle and get in the way of some potential profits on your end. So So just keep that in mind that the PDT rule is definitely a thing. And you guys don't want to make the mistake of getting your account locked. I've actually had that happen to meet two times in the past. It's not fun. So with all that being said, I hope this video was helpful and I will catch you guys in the next lesson. 5. How To Use The TD Ameritrade Thinkorswim Platform: Welcome back to this lesson where we're gonna be going over how to use the TD, Ameritrade, Think or swim platform. So when you guys first load up the software, this is what you're going to see it go up here. You guys can actually take a look at your multiple accounts were currently in my retirement account. I'm just using this for the example. But if you guys go ahead and look, um, you're not really gonna wanna worry about this screen. This is just kind of the home screen. You can go ahead and watch the TD Ameritrade network a swell, a CNBC, all these different stations. You watch that If you want, you know, it will give you a countdown to win the markets closed. We've been overall here. You know, current positions and things like that. I currently have not traded anything today, but you can go also. Go ahead and add some widgets and it gives you this information down here. Um, but as of right now, I don't generally use this. I'm almost always gonna be on this section. So if we look here, we're going to see all of these charts. I generally will be trading natural gas. I'll have mind set up like this and only top sections. I have the futures and on the bottom sections I have the actual E T efs. So in this case, you guys is the bully. TF de gas would be the berry TF. But what I like to do is go ahead and start up my watch list over here by default. I just have these two default list set up, and then I can go ahead and click in personal and switch it over to some of my other list, some of them being quite large, some of them being smaller. But for the purposes video, where you can keep it on default, I have these actual watch list tacked. And what this does is basically I can put red on this. And then I couldn't read on this. And now if I click on Tessa, it's gonna go straight to Tesla automatically by me just clicking on this. So that's how you do that with these little tags, you obviously use more tags, reds pretty much the only thing I ever use. But anyway, after this, if you guys want to get four strings like this. You guys can click up here. This is gonna give you the four screen waffle cone options you can actually get, like, pretty much as many screens if you want. I mean, I could do this right? That being said, I don't have any interest in doing that. I generally keep it on four here and then the flexible grids. You can actually also add more screens here. It's a little bit more difficult. You have to go here and click customize, and you can add one. I don't really use that. I generally will keep the flexible grid just on one default thing. That way I can do more technical analysis on a singular charge rather than having toe looked through tiny chart on here. So that's generally what I do with E. Flex crew to just keep that is kind of a big chart and then have the regular charts as my four charts that I'm kind of looking at at all times. But you guys are probably wondering how exactly I got the software to look like this. So I'm going to go into my settings just because the general default charts don't actually look like this. They actually probably have a grid. They look entirely different and things like that. So first off, we're gonna go into settings, and I'm gonna let you guys just go ahead and you can pause the video and look at this and actually, just copy these if you want, just because I'm not entirely sure exactly what's changed and what's not from the default. So just go ahead and take a look here. This is also just my preferred settings. You guys can obviously keep them how you want, but I know the default. Definitely under Ah, One of these has a almost grid going in the background. I'm really not a fan of the grid. So actually, take that off. It's somewhere in here. But these are all the settings that I have, some just going to slowly go through these, and you guys can go ahead and copy them if you would like. And here's this grid section. If I go and click this and click apply, you guys will see this grid in the background. That's how it is by default. I'm not a huge fan of that, so I always keep it off. I just like to see a plain gray background, but you can obviously go in here and change the background toe, You know, some crazy things if you wanted, but I don't really have a big interest in doing that, so I kind of keep it here. Um, you know, you can do black. You do a lot of things. The overall program is very customizable, but for the most part, I keep a lot of things kind of default. You can also take a look at all of these things. Options. I will trade those here and there. And the futures and forex. I don't really think I've done anything with, but, you know, you can take a look in case I have, but I'm pretty sure I have not done anything with these. Once you're done with all that, you can go and click, OK? And it will pretty much looked like this for the most part. Now, at this point, you probably don't have all of these lines and things like this, though you also probably don't have this in the bottom. So I'm gonna go and show you guys how to get that. Now I want you to keep in mind that on this chart I have the RS I down here. But if you guys look at my actual regular charts, I don't just cause it's a lot of stuff to put in one place and I don't generally use. They are Assad nearly as much as the Mac D. So if I ever do need to take a look the arse, I'll just throw it in here and then look at it on this charts. It started pulled up here, but you could go ahead and add the RS I to these charts as well, if you wanted. It's a little bit of a pain, because I believe you actually have to go through all of these and individually at all of the settings that I just showed you. But it is worth it, in my opinion, after the long haul, and you can actually save it so that it will stay like that once you have it done. So in order to get all of these lines and studies and things like that that you see, we're gonna talk about these in a later video. But in order to go and get these. You want to click right here at this little ah, beaker, I believe, And you can just go out and copy what I have here just by searching up the name. And these in the parentheses are the settings for each one of these. I generally will always have the 180 day simple moving average as well as the Mac D on the default settings and then the V wop on the default setting the exponential moving average. I will definitely change here and there, just depending on what's going on. But for the most part, 10 is probably gonna be fun. You know, I don't use that Aton either. So and you can actually go and save these as I set. So I have a default set, I believe. Um, see, yes, I've made, and then I have made no V wasps. So I'm not going to say this as I already have this done. But once you guys do have this set up, you can go ahead and say this. And then all you have to do is click right here and click you set, and, uh, it will just work, and then you don't have to go in and actually change stuff every single time you restart the program or something like that. And if you were to get it on another computer, you guys will still have those options saved. You can just go and click real quick, and it will show up quick and easy. Now, once you've done that are highly recommend going up here to set up, including on application settings and also under look and feel. The reason mine looks like this also is because I have the old school T o s color scheme set up. If you guys are just getting the program, you're probably just on dark. So if he did want it to look like this, you can go ahead and put old school t o s on it. Or you could just keep it. How it is that's completely up to you. It's just cosmetic. But after this I've gotten click apply settings and then what you also want to do is go back up here and click save workspace. As so mine is already titled Default. That is what I named my default Ah, workspace. And whenever I get this program on a new computer or even when I load it back up, it will automatically open under default and have all my stuff already saved correctly. So that's pretty much how you use the software in terms of actual trading. Obviously, there's some more stuff you can do appear so if we were looking at Tesla's stock, for example, we can go up here to analyze, and you can look at a lot of fundamental data here, like earnings and things like that from the last 45 years. And, ah, for a lot of companies. You can come down here and it will actually give you a division estimates and things like that and kind of give you a good idea of what people are valuing the company at in terms of analysts and things like that. Obviously, Tessa is far higher than this right now, so analysts aren't exactly so. Currently, Tesla is much higher than what analysts are estimating. But you know that is here for you to take a look at, you know, if something's way above what analysts are estimating that you might want to not invest in that just cause it could be overvalued or certainly look into it much more then you would otherwise. But this will kind of give you a good idea of a lot of things that they do and tell you about a company. Obviously test was something that you know a lot about. But if we were to go pick up some random company, like by do or something, you might not know what that is. And you come in here and take a look and see, You know what this company does, Why they may or may not be a good investment. And, of course, appear you do have some economic data and probability and now assistant things like that. I generally don't use thes tools, but you know, they are here if that's something you're interested in doing. And if you guys want to trade options, this is where you're gonna want to go to trade and click on all products, and it will basically give you the options contracts. So if I wanted to trade the 21st of February's Tesla contracts up going click here and I have the calls on this side the puts on this side, and I could go to spread and it will create me automatic spreads here. So it's pretty simple to use. And you can actually also copy this copy. And this is actually the contract that I just picked. This is the graph of that contract, and as we'll also talk about in a future video level two is here. If you just click this little show up, you can also, I like to keep time and sales on when I'm on the flexible grid. So have time and sales over here. Cut that off just by clicking here. But on the level two is here, I usually will keep this off for the most part, unless I'm actually in a trade and I want to get an idea of where I want to be setting my orders as well speak about in another future video. But there are a lot of other things when I do have an open trade. Also often open active trader, just cause it will tell me my current profit loss based on current prices. And as for actually trading the last and most important thing is gonna be how to actually execute an order. So if I want to go and click, buy on, Do you guys on the right click Click Buy and it's going to go ahead and give me a default order of 100 shares. Obviously, I don't want to trade 100 shares of this so I can click Edit, and I can pretty much change this to whatever I want. So maybe I want five shares and I can click, confirm and send now. Obviously, I don't want to go out and purchase this right now, especially in my retirement account. But at the end of the day, that is what she would go ahead and do. Something doesn't click. Delete on that, and once you were actually in a trade, it will show you on the active trader. It will tell you your profit loss, your profit loss for the day as well as your overall position, size and average price. And if you wanted to get out of that trade, you guys could right click above and click cell edit and a cool tool. Here's actually just go and click right here. No, you can put 100% and that'll just sell the entire position that you currently have automatically go to click, confirm and send. And once you guys have a trade, you can also it'll show up with a line right here. I don't know how to really explain that right this second. I guess I could go and click this and will do one share. So my buy order is right here. And, you know, if d guys were to ever go down to here, I would get filled. It works the opposite. There will be a red line that looks just like this up here and whatever gets up to here, it will go ahead and get filled. Now TD Ameritrade is a little weird about oh, CEO brackets. It doesn't entirely work, right? So I usually like to click by custom with Ocio bracket, But some of these it might take a little while just to actually learn how to do this. I don't generally use a lot of ocho brackets, so it's not a big deal for me. But that is here. If you wanted to use that and the software will glitch out here and there and not edit things when you go ahead and tell it to do so and you have to go and it manually do it. It's a real pain, but But then today, that is how you doing, oh CEO bracket, if that's what you want to do. And you can also, when you go ahead and create an order. If you wanted to buy when you click edit, you can actually go ahead and change the price. Here, you can see whether or not it's gonna get feel filled or the likelihood of it getting filled, as well as changing the actual side as well as the order type. If we were looking right here, so you go and make a market. You can make a no CEO brackets. You could make a lot of things like that. So if you want to stop, you know that's how it works. So it's pretty simple once you get the hang of it and you guys would have a better idea of the program once you watch the live trading examples at the end of the course. But that's pretty much TD Ameritrade's think or swim platform. Obviously, you can use another broker, but I don't have a ton of experience with too many other brokers, and therefore it wouldn't really be of much value for me to go ahead, make a video showing you how to use the software, as I really just don't know how to use any other software than this for the most part, So that's that's pretty much it. One last thing. There is a cool feature that TD Ameritrade offers called on demand, So if I click here, this will actually open up like I paper trading account and Aiken go here and set the date to whatever I want. So February 27th at 9 30 a. M 2019. That's about a year ago, and I could actually sit here and fast forward through the market, and I can take trades and really play with the market. Now I will say this is a great tool to practice with, but if you use it for a while, you will figure out that the Phils on it are just wrong. It will actually show up like I could put in order like right here, and it will fill me sometimes. And all of a sudden I'm filled right here, even though the market's up here and I'm like $200 in the green when in reality that would not have happened if you were live trading. So just keep that in mind when it comes to actually trading and you'll be fun. But that definitely can be a great tool to go ahead and use. So I think I pretty much covered everything that you need to know to go ahead and get started and become familiar with the software. You're definitely gonna want to play around with it a little bit here and there just to become more familiar with yourself And yeah, so with all that being said, I will get you guys in the next lesson. 6. Trading Styles and Types: Alright, guys. So in this lesson, we're gonna be talking about trading styles because before you start trading, you're gonna want to figure out what trading style is gonna work better for you, whether you want to be day trading, swing, trading or scalping. Now, scalping is technically day trading, but I like to put it in its own category just because it is a little bit different than what I would generally consider to be day trading. So those are really the three trading styles that we're gonna be talking about. So day trading and scalping both tend to take a lot of time and focus within the first hour of the market. And that's pretty much the only time you would want to be trading If you are adapting these strategies just because that's when the market is most volatile in the morning, in a little bit before the clothes in the afternoon, we'll talk about that in another video. But you're gonna want to be there between 9 30 and 10:30 a.m. Eastern time that what you guys were there, and you're able to give a lot of attention and take advantage of some of these opportunities that present themselves during those time periods where they won't really present themselves that you know 1 p.m. or two PM in the afternoon. But with both of these day trading, you're probably gonna be taking a position at maybe 9 45 And you might sell this at, you know, 10 15. Or you might sell this that 1 p.m. or something like that. But generally speaking, you are gonna be buying and selling within the same day. Which of you has recall back to our margin trading video That does count as a day trade and will apply to the PDT rule over. This is what most people think of when they think of trading stocks, you know, is the guy sitting down in his computer with 13 monitors, and he's make four cents on that one. You know, that's kind of day trading, All right, Now, if we're talking about four cents on individual stock or e. T. F or something that I would refer to that more so a scalping where you know you're making very tiny percentages on each trade in your take and maybe 30 40 trades a day in some cases and a lot of times each trade sometimes are 2030 seconds long. That's kind of more so what I refer to as scalping. Ah, where is day trading? You know, they might be 10 minutes. They might be 30 minutes. They might be four hours, and your percentage gains are gonna be much larger than scalping. But the real point of this is that day trading is going to require you to be at a computer , really? Right there, looking at the market for an hour, hour and 1/2 every morning starting at 9 30 Eastern standard time. So if your schedule and goals in life don't exactly revolve around being able to do that than day, trading may not be the best option for you. And if that is the case, then swing trading may be better for you. And what this is is basically you say, Hey, you know, I think based on, you know, maybe some fundamentals and maybe some technicals that Tesla A is a good purchase right now . I think it's really low overall, and I could probably buy this right now in in, you know, maybe 34 days or even 23 weeks. I could resell these for, you know, maybe a 10 15% gain. But generally, with swing trading, you're going to want to have more money If you want to make the exact same amount that you would day trading just because you're not gonna have that many positions open at one time and over the course of a month, you might only make 15% swing trading compared to, you know, maybe 5 to 10% per week if you were day trading. But it requires you to kind of adjust your schedule around it, where swing trading can be done much more passively. You could easily work a regular job and still swing trade on the side. So that's really what you guys have to consider. What are you able to do right now? Do you want a day trader? You want to swing trade? Which one you can you fit into your schedule when you're just going ahead and getting started. So that's not something I can exactly answer for you guys. And we're gonna be covering a lot of things that apply to both in this course. So with all that being said, I will catch you guys in the next lesson. 7. What Stocks and ETF's Should You Trade: what's going on? Everyone, welcome back to another lesson where we're gonna be talking about how you guys confined stocks to trade just because in some cases this is actually kind of difficult to do, especially when it comes down to trading penny stocks. Now, I don't generally trade penny stocks, but I am pretty aware of how to find some good penny stocks. So first off, we're gonna start on the TD, Ameritrade, think or swim platform, and we're gonna go up here to scan and then to stock Hacker once you're here. If you guys have these filters, you guys can set these different filters honestly, like a 1,000,000 options for different criteria. I generally like to just put 3% up on the day so far, as well as a market cap of at least a $1,000,000,000 just because that's what I look for. Obviously, if you were looking for penny stocks, you might want to put a max market cap of a certain amount. But that's not really what I do. So we're just going to go over what I generally will do when I'm just looking to see what's up big today in terms of blue chip stocks. So this is general what I'll do, and it's given us 920 results. If you're looking more so for large changes, you can go ahead up here. You can see you know, affiliated resource is Corp is up a ridiculous amount. Now, when it comes to looking for blue chip stocks, I'll actually generally leave my market cap on Max up here. But then my percentage change. I'll actually reduce this quite a bit oftentimes to 18% or so just because that's gonna take away a lot of stocks. And in some cases, most of the stocks that are up over 10% on the day are gonna be fairly unknown companies. You know, this company right here is only a $14 million company, which begs the question as to why it is showing up on this results. Just because I do have a filter off 1000 which should be $1 billion. But at the end of the day, it is showing up on this result. So we've gotten click here and refresh. You know, we still have stuff showing up that probably shouldn't be. And I'll tell you Right now, these scanners and things like this are not full proof. They're not always gonna work perfectly. But a lot of times you can just be pretty realistic with what you look for and you know, So now I've got 500 results. You know, we can keep looking, but most of the time I'll just go and click this toe. You know, look at the bottom. Look at the top and most of time that's gonna hit some of the companies you might want to look into, And you can just go right here and click copy and go ahead and paste it into a chart and just take a look at the company. This company, for example, is definitely a penny stock. I mean, it's down in the sense. And I believe this company was valued at $14 million so Okay, actually, this company was only valued at $360,000 so obviously a penny stock. And if you were able to buy $10,000 worth of this stock and it went up to, you know, even just a few cents here, you're looking at 1000% gains. So that's kind of the game plan here is just looking for stocks. It's kind of a very boring process. You just sit here and look through these and try to find things that look good. You can also go ahead and put on Mawr filters. So now one thing that's very useful is to actually go and click the volume filter. And I like to put this up. Um, usually somewhere around here just to go ahead and exclude some of these results. Um, sometimes you might want to go even higher, especially if you guys were trying to trade options. You're gonna want something with very high volume. So, you know, maybe we go all the way up here. You can play around with it some, but I'm really looking for to filter out some of these companies that I know are not something I would be interested in. So now it's starting to look like we have some decent results. Obviously, they're still companies like this and this they're showing up. But you know, this right here is a $1,000,000,000 company, so we can go ahead and take a look at this to see if it's something that is interesting. Um, yeah. So, you know, this is something that would be interesting. Especially if we could have caught it before this earnings and maybe done some research and figured out something, or if we even caught it intraday during the earnings, we might could say, You know, hey, this is pretty obviously overvalued. And, you know, this would have been great short opportunity of 4% on the max in. Now, I encourage people to be very realistic. You're probably not gonna buy this at the very top and sell it at the very bottom. So, you know, while it is close to 5% you're probably looking at maybe 2% of what you're actually gonna lined up catching. But at any rate, 2% in my opinion, is pretty good. But at any rate, this is definitely something I would have been interested in if I had caught it this morning before this giant drop. But overall, you can go and keep on playing around with scanner here. There's a Brazilian options you can choose, you know, and you really just have to figure out what it is that you want to do based on your criteria. whether you are not you're trying to trade penny stocks or you're looking for blue chip only, or you know things like that. So but outside of this, I actually also like to use the FINBIZ scanner, and what this is is basically generally what I'll use when I'm trying to find options. So if I'm looking for companies, that might be a good opportunity for an option straight. I'll come here, go appear to the scan, and then here we can set all of these. So when it comes to options, I like to go with over $10 billion. We need to find the option herbal filters optional, and we'll also you can play with these gap up filters and change from open and things like that. You can even set things for studies. Ah, lot of things like that. I generally won't play with that stuff too much, but I will definitely look for things that have options. They are at least $10 billion lastly, I will almost always set a current volume filter of at least 100,000. Sometimes I'll go even higher, so it just depends how many results we get. So Obviously, we have a ton of results here, so you might want to consider being a little bit more selective. So, you know, maybe we say over a 1,000,000 especially when it comes down. The options just because those or something that you definitely are gonna need a lot of volume and floats. What I also do is set a float filter, and sometimes I'll set a change filter of up 2%. You know, just toe potentially limit out some companies that aren't really incredibly volatile today or don't really have anything going on today. So I don't actually see the float filter anywhere on here, but there used to be a float filter that would tell you won't relative volume. We can actually set, um, over 1.5. It is generally good. That means it's gonna be a little more volatile today, So a BBV this one will almost always show up. I'm just gonna let you guys know A BBV almost always shows up on my scans. I'm not entirely sure why. It's a pretty good pharmaceutical company, in my opinion. But, um, we look here, you know that earnings today, So that's definitely part of the reason they are showing up. Um, you know, volume is definitely higher than it normally would be. You know, if you had to call this in the morning is definitely potentially. Could have been a good trade. As you know, there was almost 2% margin there. A swell is even higher if you were looking to hold it throughout the day. But if you look right here, you can actually see a chart of what the company is done over the last few months. So most of these companies are actually pretty known companies. And part of the reason for that is the relative volume of 1.5 as well as our market cap fielder. That means, you know, large companies are very rarely gonna have over 1.5 relative volume unless they've had earnings. So, you know, my guess would be that almost all of these companies have had earnings. Uh, you know, within the last little bit. Um, so you know, it looks like Kraft Heinz has not. But we did have this huge spike in volume. So that's why that's showing up. You know, I'm not entirely sure what caused that, but he must. That is Ah, T Mobile. I've invested in them in the past. Let's see. So they had earnings yesterday. So that's part of the reason they're Volume is quite high in comparison to normal. Um, you know, if we go look at the one day chart volumes definitely higher than it normally has been in the recent past. So overall, you can also play around with this. It's really not that big of a thing. I'm not going to use this every single day. It's actually pretty rare that I'll use this. Aside from swing trading here and there, I will definitely use some swing trading filters that all set. But, I mean, those generally look pretty similar to this, except for um, instead of using these filters, I'll keep these pretty much the same. Oftentimes, I will leave the optional on, even though I'm not looking to trade options just because companies that have options are oftentimes gonna be more so. Companies that I want to actually swing trade current volume. You know, I would definitely keep at over a 1,000,000 but at this point, you guys can actually for swing Trading can actually select patterns here, so maybe I want a TL resistance strong. Um, you know, that's gonna give us a pattern, and we can take a look at at these companies. And maybe there's some names that you recognize, like, uh, this company. I really don't have a say the name, but I'm very familiar with this company is one of the largest healthcare companies out there, you know, honestly. Looks like it might be a good bye right now if we take a look, let's see. Yeah, so, I mean, this is actually something I would be pretty interested in. Um, probably do some more research after I finished recording this video, but yeah, you know, this definitely looks pretty good. In my opinion, it looks like they had a bad earnings call. And that's the reason for this fall have being said That's definitely still on opportunity . And if we look on this 180 day simple moving average pretty much every single time, this comes down and touches this, it bounces. So, you know, if we look here, we're getting pretty close to this estimate again. You know, we could wait out for a confirmation to see if we think it's gonna do that again and potentially by in there and hold it for, you know, a month, two months and make close to 10%. That's pretty good. So that's really what I'd be looking for in terms off swing trading. And yeah, I think I pretty much covered everything there is that I do in terms of scanners. I don't personally use scanners too often. So that's why I don't have a ton of, ah information here for you. But scanners definitely can be useful here in there, regardless of your trading style. So just keep that in mind. And just remember, this website is called FINBIZ. You guys can just google it completely free. So with all that being said, I hope you guys did enjoy this video, and I will see you guys in the next lesson. 8. Penny Stocks: All right, so in this lesson, we're gonna be talking about penny stocks. You have probably heard of Timothy Sykes, or you know, someone like that who are big Penny stock promoters. I'm not a huge fan of those people, but penny stocks or what people think of when they think of day training in a lot of cases is a very popular thing to attempt to trade. Just because, you know, Apple, if Apple goes up 10% in one day, that's a absolute huge day for Apple. And that probably only happens to three times every 45 years. Whereas if you guys have watched The wolf of Wall Street, this is a fictional company. But Aero tiene International. That's what Jordan in the movie was talking about arrow time. It's only worth $37 million they just got a huge contract for $5 million. Arrow time might go up 20% today and next month they might go up again, or they might go down. So penny stocks are generally going to be much more volatile than blue chip stocks like Apple or Facebook or Google or really any of those companies, which is gonna allow you guys to profit much more from these companies if you are able to successfully trade thes now. If you read Timothy Sykes is book. He's actually made most of his money from trading penny stocks, but he was mostly swing trading, you know. He was buying positions and sometimes holding them to three months kind of based on hunches back in the nineties. And that's really something you could do back then. But it's much harder to do now. It's not as if you can't do it, but you know, he was buying a lot of health care companies that he knew they were working on something, and announcement of some likely success was probable in the near future, and he'd have, you know, 10 $20,000 invested in that company. All of a sudden, a company like Pfizer comes out with Viagra, something that revolutionizes the industry. And all of a sudden, you know, this company went from $30 million to being worth $300 million like that, and all of a sudden Timothy Sykes is position goes from $40,000 to $400,000. So it wasn't as if he was just day trading constantly and doing things like that. He really took advantage of news and potential opportunities, which is something that's definitely a little bit harder to do nowadays than it was back when he first started trading. Not to say you can't do this, but overall speaking, penny stocks are gonna pose much more risk and with that much more reward than if you were trading blue chip stocks or, you know, some commodity based E T f or, you know things like that where you might make 23% in the day. If that was a good day in comparison to penny stocks where you know every two months you might make 100% on something, or even sometimes in single days you could make 40 50%. But you could also lose 40 or 50% you know, tomorrow as well. So just keep in mind that penny stocks are much more volatile than pretty much anything else on the market. Aside from options, and, you know, if you guys are making money, then that's great. You're probably making a ton of money doing it, but if you guys are losing money, you're probably losing a ton of money doing it. So with all that being said, I will get you guys in the next lesson. 9. What Are Pump and Dumps?: What's going on? Everyone, welcome back to another lesson where, in this lesson, we're gonna be talking about pump and dumps. So if you guys have ever seen the wolf of Wall Street and you guys probably have a decent understanding of what pump and dumps are, they explain it pretty well in the movie. But it's basically where somebody essentially buys up a large portion of a stock, and then they pitch it to a lot of other investors. They get a lot of hype around, and oftentimes there's gonna be bogus news stories about it down here. You know how this company, you know, has the opportunity to make trillions of dollars, and they're the next Amazon when in reality, they're penny stock. That's worth pretty much nothing. I took the Liberty to do a small scan here where I got a few companies that may be pumping dumps. Now I will say, just sitting here looking at this last one that I was looking at, this is actually probably not a pump and dump, as this is Richard Branson's Virgin Galactic. However, this is very much so what a pump and dump will look like in terms of a stock graph and how you can recognize when something maybe being manipulated and even if it's not being manipulated if a graph looks like this, you know, in this case, Virgin Galactic is probably not being manipulated. But even a stock case like this, you know, I wouldn't invest in it for the same reason. And the reason for that is, you know, for months the stock was trading at almost nothing, you know, $10 a share, and it was going up on average, you know, half a percent of day give or take, you know, maybe a percent on a big day here, you know, over the course of two days, we had 1.6% and all of a sudden we have a big shoot down, and then it shoots way up and were up almost 300% from its low just two months ago. So, you know, this is what a pump and dump will look like often times I honestly was not able to find some really good examples. Um, although I do have a few in mind. So in this case, you know, this showed up on my scan here although I will say this is definitely not a pumping up. They just had a good earnings call and that's why they had a big shoot up. And that's why it met the criteria of my scan. Um, but if we look here, you know, this is, ah, $400 million company. That's definitely possible. Especially here. If you look at these blue graphs, these air the volume charts every time we have an earnings call like here and here and you know, here a lot of time, do you will Seymour? Ah, volume going through. But then all of a sudden, out of nowhere, no earnings call or anything, we have one of the highest volume days ever. Ah, in the stock is up almost 20% in just one day. So I'd really question what's causing that. It's probably something to do with news in this case Canopy, which is one of the largest. We'd companies actually had a very good day. And I'm pretty sure this is a weed company as well, and it's likely that they benefitted from canopies. Ah, large day. And that's part of the reason there's more volume here, so a lot of times, things can be explained. Maybe there isn't a guy like Jordan Belfort behind the scenes, pumping something up and and manipulating it. But even if the graph looks like a pumping up, you probably don't want to mess with it. Really? For the same reasons. You know, just cause just cause someone is pumping it up behind the scenes doesn't mean you can't make money off of something. And it doesn't mean you can't lose money off of something. And, you know, it works the same way if if someone is not really manipulating it all, but it's shooting way up at times, and it's really unrealistic. So, you know, if we look at this last company, this is very likely a pump and dump. Um, here, we'll type this in. Yes. So, you know, this is a very good way, Teoh. Realize what a pump and dump is is Ah. If we look down here, there's really no volume, you know, here and there they will be volume, and then all of a sudden shoots way up. This is days after earnings. All of a sudden, we have a huge volume. Spike shoots up almost 100%. So I would I would very much say this is likely a pump and dump. And there is some manipulation going on with this, especially here. I mean, look at this. You know, all of a sudden, huge volumes spike, huge price bright by over 100%. And then the next day it shoots right back down. So you know, it's not something I would invest in just because you don't wanna have a case of foam Oh, which is fear of missing out where you know this company. If you're trading an intraday and it's up, let's see, Let's go to the four hour chart, your trading an intraday and it's up, you know, 20% here. You don't want to be like all men. You know, I could go up another 30%. It definitely can go for another 30%. But at the same time tomorrow, we could go away, back down. So you know, if you invest up here because you think it's gonna keep on going higher and higher, then you know you just lost 40% in one day. So that's really the main reason that you don't want to mess with pump and dumps here we have one of the most famous pumping dumps that I've ever heard of. Really? And that is Helios and Matheson. H m N Y. You know, this has really been a big pump enough ever since I ever started investing in the stock market. Um, you know, here we are all way back in early 2018. Um, you know, the company's trading it like almost nothing, almost nothing. And then we have a huge shoot up by 1300%. Yet this is a week chart. By the next week, it was down almost 60%. So, you know, you don't want to find yourself in a case of foam. Oh, and buying up here when you know, this stock was literally trading at $9000 a share. And yet, today, or at least at the last trading day, it was trading at 90000.2 cents. So that represents a 99.99% loss. Um, you know, this is really the main reason you don't wanna mess with pump and dumps. And the thing is, if you look right here, these volumes we likely had a spike somewhere, but it's literally gone down so much in value that I can't even see the candle charts on this. So if we go back to the 1 80 day, you know it back in September, all of a sudden, you know, volumes really, really, really flat. There's no volume down here. The price isn't moving that much. All of a sudden, we have a huge shoot up in volume and the stock goes up by over 400%. And yet the, you know, within 2 to 3 days it goes back down over 60%. And, um, you know, here, over time it slowly gone back down to the same price of about 0.2 cents, and then here recently, it actually shot down even lower. This, I think, was not really manipulative. I believe the company may have announced some form of bankruptcy or their main product was movie past. That was kind of what I put them on the map and everything. And I think they're spending off movie past. They're selling movie pass or something like that. And, um, that is likely what's caused this drop right here. So, you know, That's probably not manipulation. But if we look here, I would almost guarantee that this is some manipulation. If we go to a year chart, Um, this is likely minute. Well, actually, it's the same thing. Um, you know here. Okay, I can't even see it. So it's pretty much impossible to even see on this chart because it's just been manipulated so bad. Um, and then there's plenty of other examples you guys may have heard of in Io. They're kind of like the Chinese Tesla. This is certainly not a manipulation case. This company has not been manipulated. It's actually quite large company. However, there's a huge amount of hype over it, and it shot way up at the beginning. Yet, you know, over time it's going wait down. So, you know, this is a company that was kind of hyped up for a little bit. And, um, you know, nowadays it's really not got a lot of value on it. Could this company be worth something one day? Certainly. So test was doing quite well now, but, you know, that's just something to keep in mind that pretty much every day there's gonna be some company that that's just shooting up big time. And a lot of times there's gonna be some level of manipulation. And even if there isn't manipulation, you probably still don't want to mess with it just because you're gonna have a chance of of you trying to get in right here because you think it's gonna keep on going up yet you know , flatlines and then goes way back down again. It's a far lower than what you were able to purchase the shares that in the first place. So whenever a stock chart looks like this, you probably don't want to mess with it. Now, if you're trading intraday, you know, they're definitely can be some potential here and there. I mean, if we go back a few days, you know, there might have been a good day here. So you know, you might have seen some opportunity here when this touched the middle v wop and you decided to purchase it and you made 3% on your money. You know, in the course of our that's not very bad at all. But in terms of ah, swing trading, don't don't get caught onto the hype, and that's the exact reason that I don't really have a lot of Tesla's shares right now. Um, because I really see this is a lot of hype. And, you know, while Tesla's a large company and there isn't any kind of manipulation going on with it, In my opinion, the stock chart still doesn't look incredibly favorable. And even though the fundamentals do, the stock chart just just isn't there. You know it's shot up out of nowhere over the last little bit out of these two very good earnings. And, you know, it's just not something I want to invest in because I think it's very likely that Tesla's gonna go back down to around ah, 4 to 500 next earnings. If that doesn't work out incredibly well for them. And overall speaking, I definitely think I could get the shares at a much lower price if I were to get into the position right now, I would consider that to be foam Oh, and really just a overall mistake. So that's really what I wanted to highlight in this video is, there's gonna be companies pretty much every day that somebody is trying to tell you is gonna be the next Amazon. It's pretty much always not true. And you really want to rely on yourself more so for what it is that you want to invest in. And you certainly don't want to invest in any of these penny stocks. Long term speaking. Now, in the case of D G L y. If you wanted to trade this intraday, you know, that could definitely be a great opportunity. If you were toe purchased some shares in the premarket, you know, you could made 50% but in terms of long term trading and holding this for, you know, maybe a month, two months, because you think there's gonna be scenario like this again, where you make 50%. Um, you know, it's it's probably not gonna happen, and it's probably a pipe dream. So that's really what I wanted to highlight in this video is, you probably want to stay away from any kind of stocks that have some level of manipulation or just very unrealistic movements. If you were to take the case of Tesla or Ah, Virgin Galactic so overall speaking, I generally if I'm gonna be trading a stock, I'm likely going to be looking at something that I think is a overall good company and has some decent fundamentals. You know, I might be trading Netflix tomorrow. That's a company that I think has some. Okay, fundamentals. I'm definitely not as big of a fan of Netflix is. I was in the past, but no, this is something I might be more inclined to trade rather than h m n y. For example, because, you know, if your trading this you're probably just asking, lose money, especially even. Look at this. Look at the intraday spread on this. It's literally 80% on individual seconds. That's really what I wanted to highlight in this video is you probably want to stay away from low volume stocks like this and things that are gonna be very manipulative over time because you're often not gonna come out of that. Um, you know, in the green. So with all that being said, I hope you guys did enjoy this lesson and you found a lot of value out of it. And I will catch you guys in the next lesson. 10. What Are Bluechips?: our guest. I'm gonna try and make this lesson a little quick, but I wanted to go ahead and make this lesson just to explain to you guys what blue chip stocks are and how they differ from penny stocks. So as we spoke about in the penny stocks lesson, penny stocks often trade on the OTC markets. And what that means is the over the counter and they're not actually listed on a large exchange like the n y S e or ah, the NASDAQ or something like that. Whereas companies like Google or Apple or Microsoft Tesla, you know, these companies are gonna be listed on the N, Y S e or the NASDAQ. I believe Tessler is listed on the NASDAQ. I could be wrong about that. And I think a lot of these other companies are listed on the n y s e Point being though these air large companies that you've heard of and they're likely going to be very safe bets if you were toe you know, swing trade or something like that. And really, when it comes down to swing trading, these of the type of companies that I like to swing trade you're not gonna see me swing trade? Ah, penny stock or something like that. Obviously, if you wanted to do that, you certainly could. But, you know, that's just not something that I see a lot of value in. And therefore, I'm not gonna be the person to go ahead and swing trade some random company like Helios and Matheson. You know, if I'm swing trading, I'm gonna swing trading things like Facebook. Google, John Deere, Um, three m ah, Wynn Resorts. You know, these are companies that I'm gonna be swing trading. Currently. I think this is in my retirement account, but I have to shares that I bought of Wynn Resorts right down here. Got pretty lucky in terms of getting one of the best price points right here. So, you know, im up 56% on that, but that is just for my retirement account. So I'm not really planning on selling those shares any time soon. But just overall speaking, you know, right here, That actually could have been a very good trade. You know, if I saw win and I wanted to take a swing trade on this on this day and then all of a sudden, you know, as of tomorrow, I'm up 7.5% on that position. So, you know, it's 7% I could've made in the matter of two or so weeks. You know, that's not bad at all. But these air generally the type of companies that I like to swing trade. You know, obviously that is just personal preference, but, you know, that is what I like to do. John Deere is another example. I actually did swing trade, John Deere. Oh, my Robin Hood account. I believe I bought most of my shares right around in this area, and I sold them right around in here. So I made about 10% in less than a month on John Deere stock. You know, quite good, in my opinion, I actually took a position on Facebook pretty much about every 2 to 3 weeks. I would buy shares of Facebook as it was going down on here. I think my average price was around here, and I think I sold those shares at, like 1 85 or so. So you know, in that swing trade that was a little longer is probably 4 to 5 months. But I did go ahead and make you know, probably around 17 to 20% on that Facebook swing trade. So, you know, these are the companies that I like to swing trade, and obviously, you could have your own approach in your own strategy. But, you know, when it comes down to swing trading or long term investing, I generally will stick with blue chip stocks that I think are undervalued. I'm not gonna be messing with stuff like Helios and Matheson. And in Io and things like that, it's just not gonna happen. So, you know, that would be my personal opinion. Um, with all that being said, I hope you guys did get some value out of this lesson, and I will catch you guys in the next one. 11. How to Read Candlestick Charts: our guys. So in this lesson, we're gonna be talking about candlesticks and how you guys can read these and really, what they mean because it can be a little confusing as to what? You know, all these individual things mean so basically what this means is, um so this is actually gonna be a pretty quick lesson, because it's actually very easy. It's just gonna take me a second to go ahead and find an example. So in the case of this chart right here, if we look right here, we're going to see that this is a green candlestick, and what this essentially means is that it opened right here. It went all the way up to here within the day, and this is where it closed at. So if we were to look at this red one, that means it closed lower than it open. So if we look here the previous day, it closed right here. It opened the next morning here, and it went as high as here throughout the day. But then it eventually went as low is here throughout the day, and it eventually closed at this price level within the day. So I'm trying to think of a way to better explain this, but it basically means, you know, the little tail is as high as it went or as low as it went. And if it's green, then whatever it is that the top is where it closed on whatever it is that the bottom was where it opened. Whereas if it is red, then wherever it is that the top is where it opened and wherever it is at the bottom is where it closed. So that's pretty much candlesticks for you. There's not really Aton else I can say about them. I hope that explained it for you guys. If you guys have any other questions, I would honestly just recommend Googling. We're just looking at it on Investor PD A. It's it's pretty self explanatory, but it definitely can be a little confusing when you were just getting started. And that's why I went ahead and decided to make this video. Now, obviously, on the TD Ameritrade platform, you can go ahead and change the appearance, and instead of having candles, you do like bars on it. Pretty much looks like this, um, you know, kind of means the same thing. Anything higher than this bar is as high as it win. Anything lowers as low as it went. And, you know, this is where it opened this work closed. Sometimes these air a little bit easier to get used to when you're first starting. But overall speaking, I like the candle charts. Mawr. Um so that's what I generally will use now, Intraday. You will sometimes see what we call a Doje, and this is actually displayed and white as we can see through our appearance of your look . Doje is in white, and what this basically means is that it opened at this price point. It went as high as here throughout this time period. But it closed at the exact same price point. So in a minute to minute, it didn't actually move in terms of, you know what, it opened and closed that. So this is actually kind of important in terms of trading because you'll actually see some of these sometimes in cases like this, and it can be a decent signal of a switch in direction just because there's some indecision . Ah, with traders. And you know, this right here is a pretty good example because we had a Doje little movement and then we shot way back up throughout the day, you know, nearly half a percent. So they definitely can represent reversals in some cases. And we will go over that later on in the course. But yeah, you know, that's what a Doje is when it comes down to what each candle represents. Ah, that's up here. So in this case, I have the one day, one minute chart. So each one of these candles means one minute and the whole time for him that I'm looking at is one day of trading. If I go to the one year one day, each one of these candles represents, one day in the entire chart represents one year, so I can actually go here and change this toe three years. And now we're looking, you know, more data is here, or I could go here and I could change instead of a day. I could have two days. So now each stick represents two days of movement. So that's really how you can read candlesticks and how they work. And yeah, So with all that being said, I hope that was helpful and answered some kind of questions that you guys may had and yeah , I get you guys in the next lesson. 12. Market Hours: what's going on? Everyone. So in this lesson, we're gonna be talking about market hours. So for pretty much everything that we're gonna be discussing in this course, the market is gonna trade between 9 30 and 4 p.m. Monday through Friday. All of these times there, of course, in Eastern time. That's where I currently live. And that's generally helping market works since it is on the east Coast of the United States. But if you're on the West Coast, for example, I believe not in 30 is like 6 30 in the morning. So you have to get up much earlier if you want to be there, you know, four. Win the market opens, which is really when you're gonna wanna be trading anyway. However, before the actual market opens at 9 30 there's what we call the premarket hours. This actually starts at 4 a.m. However, like with after hours, there's generally very little volume in this time, and it's not gonna be a time in which you want to trade. There's gonna be huge spreads, you know, normally during the day, you can actually get a stock in an exact sent price. Where's in after market in premarket trading. The this stock could have been at $140 instead of getting it a 141 cent or something like that, you know, seconds later you might have to pay $141. So it's much more volatile in a sense that your spreads, they're gonna be much larger because there's way less people trading. However, I do want also mention that options. While that's not really the focus of this course, options do not trade in the premarket or after hours. So, you know, if you want to close a position within, you know, the day of Tuesday, you have to do that before 4 p.m. And while the premarket opens at 4 a.m. After hours, trading generally stops at about 8 p.m. Every single night. Personally, this isn't something that I really worry about too much is I generally, pretty much always will be trading within the market. Hours of 9 30 to 11 generally will not be trading after 11. Sometimes that will place an order here in their closer to the end of the day. But for the most part, 9 30 to 11 is really what I like to call the sweet spot, and that's where I prefer to trade. And it's where a lot of people like the trade. That's why there's so much volume at that time. Because all of the orders from the previous night and times in which the market was not during standard operating hours, there's a lot of people who wouldn't want to submit an order for after hours or premarket trading. And therefore they will set those to execute at 9 30 all of a sudden you have this huge spike and there's a lot of volume from 9 30 to around 11. However, I will say when the market closes early and this is generally after or before holidays or, you know, some special cases here and there. It will close at one PM pretty much every time. This is what we call like 1/2 day. However, on these days you actually will see a much larger amount of volume up until around four, just cause there's a lot of people who don't really want to stop trading, you know, they might not consider this to be a real holiday or whatever it may be these days, you actually will see much more volume in after hours trading than you would normally. So that's pretty much everything I wanted to cover in this lesson, really just going over the market hours. And when I like to trade as well as times in which you actually could go ahead and submit orders, it's really 4 a.m. to 8 p.m. is the time in which you can submit an order if you are looking to trade equities or stocks. But if you're looking to trade options, you have to do that between 9 30 and four PM But generally speaking, a lot of this isn't gonna matter that much, because the times that you're really gonna wanna be trading eyes, not in 30 to 11 a.m. In my personal opinion, everybody has their own different trading styles, and you'll develop this over time. But that's what I like to do as well as many other traders. That's why they're so much more volume during that time. Is that pretty much everybody sees that as the sweet period in order to trade. So yeah, you know, that's that's really when you're probably gonna wanna be trading. But you can always develop your own strategy and what it is that you like to do and what works with your schedule. And, you know, if you find success doing that, then great, you can go ahead and do that. So with all that being said, I hope you guys did enjoy this lesson and I will get you guys in the next video. 13. Order Types: what's going I saw wanted to make this quick lesson to go over order types. I think I covered parts of it in other videos. But I do want to make a dedicated video just to go over the specifics of order types and when you may or may not want to use different orders. So if I would want to purchase these shares at $336.3360.2 on the TD Ameritrade Self, where I'm going to click by right here and then we go and click edit, and by default, you're gonna see a limit order, which means $336.21 is the most that you will possibly pay. You can obviously adjust this up and down, and that's really you know what you're willing to pay at the most. So if you can get it for lower, the software will automatically fill it at a lower rate. That being said, you know this is kind of your your max amount per share that you're willing to pay when it comes to buying. If you guys were to click market than it's just going to go ahead and purchase the shares at the current market price, Whatever that is, three next order will be yours or, you know, the next available order as fast as they can put it in will be yours due to technology. If you click a market order, you're gonna get feel pretty much instantly in most cases unless the volume is just incredibly low. And I'm not sure about TD Ameritrade, but I do know on Robin Hood that market orders are really just limit orders that are set 5% above the current price. So in this case, you know the way up here and that essentially is going to guarantee that you get filled in most cases, unless something is very, very, very volatile. And then we have stops. You're not really gonna use these too often when it comes to buying these air more so sell orders. I really can't think of a single instance in which I have used a stop order for purchasing . Um, it's usually closing a position. You will usually use a stop order if if you do want to. Um, generally speaking, I just use limit orders everywhere, but every now and again, it can be useful to have a stop order and a stop order is basically going to sit where you said it. So if I were to set it to 3 36 then nothing is gonna happen until he gets down to 3 36 at which point it will fill me. So it's really more so the lowest amount that you want your position to fall to eyes what a stop order is gonna be used for in terms of selling a stop limit order is essentially where you will set this at a certain price. And instead of its selling your shares, it will actually go out and buy shares based on a limit. So, you know this were the limit. This is the maximum amount you're willing to pay in the stop price that you said here is what's gonna trigger that order to go ahead and get filled and generally on TD Ameritrade? These orders were gonna be linked, so just keep that in mind. A trailing stop is going to basically give you almost a percentage or a certain amount that as it goes up, it's actually gonna follow and keep you, Um, you know As your position rises in value, it's gonna keep you at a certain percentage loss for the most part, or really a a certain amount from the current highest price. So, you know, if it goes up to here and you maximum want to lose 10 cents at a time, then you would set this to 10 cents. And if it were to go down, say that cell, then it's gonna follow that. So if it goes up to here, then all of a sudden you're stop is now here rather than where it was just a second ago. That could be helpful. In some cases, I don't generally use those trailing stop limit works the opposite way, generally on the buy side. And I've personally never used either of these orders. I'm not really sure what they even mean. I've never found the use case for them or ever been in a position in which I may want to use them just partially because I don't know what they even mean. I've never even heard of them. In fact, I'm pretty sure these were not even on the T E Ameritrade software for quite some time because I honestly don't recognize that I didn't recognize them until I just opened this up so I wouldn't worry about those pretty much In all cases, a ah, stop. A limit or market order is is all you're gonna be working with. Sometimes you'll use a trailing, but that's that's about all you're ever gonna use. Limit is probably 90 95% of your orders. The only time you're really gonna be using a stop or trailing stop or something like that is if you are intraday trading. But you're also preoccupied and you feel the need to go ahead and limit yourself in terms of risk while you're not gonna actually be able to sit here and watch the stock. But for the most part, limit orders are gonna be your main thing. If I were to set a limit order down here than it obviously would be the maximum amount that I would pay and the stock would have to reach this part before it would go ahead and get filled. That's only by side. And then if you were selling the order would actually be up here. And that's basically the lowest amount that you're take, meaning that If you currently own this position and the shares air here, you know it's not gonna get filled until it gets to the price to say you said that to 337 in this example. You know, it goes up to here. It's still not gonna get filled. It's not gonna get filled until it goes all the way up to 337 in. In most cases, unless it teeters there something like that, then you'll definitely get filled. So that's pretty much everything you're gonna need to know about orders. They're pretty self explanatory in the most part, especially the market order. That's basically just gonna go ahead and purchase the shares at the current market price and then limit orders. That's primarily what you're gonna be using just so you can limit your overall risk to the actual stock volatility within, You know, intraday seconds and things like that, that's a course of your day trading. If your swing trading, then you're probably also going to use limit orders, but you're not gonna be worried about individual seconds as much. So with all that being said, I hope you guys did get a lot of value out of this lesson, and I will see you guys in the next one 14. The Golden Ratio: welcome back to another lesson. This one's going to be a very short lesson, probably 1 to 2 minutes, but it definitely can be one of the most important out of this entire course. And what this is, is what I like to call the golden ratio. And what we're gonna be talking about is what I like to call the golden ratio. So let's say you find a stock and you think it has good potential right now and you think you know, you definitely want to trade this stock. You might want to ask yourself for one second before you actually go ahead and submit in order. How much do you stand to profit from this trade? For the purpose of this example, I'm gonna go and say 6% because when it comes down the trading, you're not always going to be right. In fact, your win rate is really not gonna be too much higher than 50%. However, if you can keep your losses much smaller in your gains, much larger than you will exponentially grow your account over time, pretty much if you have any kind of edge at all. Even 12% so I like to call this the Golden Rule, but I basically like to keep my potential for profit at at least three times my potential for loss. So, for example, this stock is trading at $22 it's let's say this is a really volatile stock. I would like this stock to really have an area where you know, if it falls below this, I don't want to be in the straight anymore. It's gone bad on me. I don't want anything to do with it. I want that area to really be $20. So you know, Max losses $2 per share. However, I want my actual max profits to the area in which I, you know, would really like to sell this stock. I'd really like it to be a 26 minimum, ideally, 28. So you know, 1 to 2 ratio is really the minimum I will take. And a 123 is definitely where I prefer to take positions. So that way, whenever I do actually have a good trade, you know it might make $60 whenever I have a bad trade, I only lose $20. I still net $40 at the end of the day, so that's pretty much what the golden ratio is. And yes, so with all that being said, I will get you guys in the next lesson. 15. Cutting Losses: what's going on? Everyone, welcome back to another lesson where we're gonna be talking about the idea of cutting losses. Now, this is something that I find people often mistake when they are attempting to make trades and what that is we're just going to use to spy for today. But let's say that right here you thought there was a gonna be a balance and you thought the stock was gonna continue up. However, that didn't occur here. If you wanted to lose a maximum of 1% of your countless, so you have $10,000 that is $100. A lot of people have this idea that they're going to set a 1% stop loss within, You know, this individual stock, and that's where they're going to do it because they don't want to lose 1% of their account . So 1% the maximum loss. They're willing to take his $100. The problem with this is the fact that this stock does not care how much money you have, how much money you're willing to lose. This is a ubiquitous market. It's gonna do whatever it it's gonna do, whatever it is, that it wants to do in the fact that there's tens of thousands, if not hundreds of thousands or even millions of investors trading any given stock at any given time. Those people don't know or care how much you're willing to lose if you decide you wanted to lose 1% and I'm actually going to switch this example just cause this might not be the greatest example. We're gonna use Tesla just cause it's a little more volatile and might support my 1% a little better. You know, 1% is right here. If you were to take this position right here and you decided you didn't want to lose more than 1% on this trade, if you were to get in there is about right here. So this is where you would want to set your stop loss, right? Wrong. You will want to set your stop loss based on other criteria. And what I mean by that is here. In this case, we had a bounce here at the pre market and we might say that you know, if it goes below that by more than 1% that's where I'm gonna want to stop loss out at. That's where I want to go ahead and cut my losses and just, you know, take the $100 loss and that be it long problem with. That is, if you get in here and you want to go a percent below this, that's gonna put you all the way down here. That's a 2.73%. Whereas you would have stopped out all the way, you know, probably right here. And then the stock actually went on to recover, and you lost out on potential profits. So that's the really case. So that's my riel case of why people mess up a 1% stop loss. They think that things matter. They think that the individual stock cares about what their account value is or that you know, they don't want to lose 1% which is $100 therefore, you know, that's where they're going to set their stop loss. Your account value, the amount of money that you have is absolutely and 100% irrelevant to what the market is doing. So in the case of Tesla, this is a little more volatile. You're Max lost based on What criteria I laid out was 2.7%. So if you don't want to lose more than 1% of your account, then you should adjust your position size. So instead of going into this position with $10,000 you might want to go into this position with just $4000. Now, if you lose 2.7% if we go and do the math on that, so 4000 times 40000.973 is a 2.7% loss, you're gonna lose just over $100. So you really actually want to have your position size somewhere, you know, just below $4000 instead of the $10,000. That way, when this does actually go down to where, you know, we think it may potentially continue down or actually bounce. When it does go down to that point, you guys are covered, and you're only gonna lose 1% of your account rather than you know 2.7 or 3% of your account. So just keep in mind that, you know, when it comes down to managing risk, you guys don't want to set any kind of parameters based on your account size or how much money you want to make or anything like that. Just on the opposite side. Right here. We had a peak in the morning, and then it's very likely that we're gonna actually bounce. When we get here, we're gonna reverse back down, okay? If it's right here and you think that this this is gonna form a resistance and you know it's not gonna continue to go up past this based on other criteria that we will cover later on in the course. But say you're at $38 profit and you just want to get the 40. The market doesn't care if you want to get to 40 it's that's completely irrelevant. So you don't really want to focus any of your decision making or anything like that based on your account size or what you feel like you need to do. It really comes down to the market, is gonna do whatever it does, and your individual position is completely irrelevant. So if you want to lose 1% of your account, which in this case would be $100 than on a volatile stock like Tesla then you probably want to take maybe a 38 $100 position rather than a $10,000 position. Now, if we were to go back to the SP, why, this is much less volatile. And in this case, you know, maximum throughout the day was half a percent. In this case, if you had the money and you wanted to risk as much as 1% of your account, then you could go ahead and actually trade with $10,000 if you were purchasing here because 1% is all the way down here, which I would find to be unlikely based on the previous patterns throughout the day. Now, obviously the market conduce whatever it wants. But you just don't want to set a 1% stop loss based on where you entered the position. You want to set that based on what reasoning you have for, you know, creating that in the first place. Why you think that if it goes below that point, then you know your original plan that caused you to take this trade is now obsolete and does not matter anymore? You want to set that below that point, not below you know, just 1% of your account that makes no sense at all. So that's really what I wanted to explain in this video. I hope that made sense. You want to base your positions on the patterns rather than your account size, or what it is that you want or need to make, because the market doesn't really care about that at all. Obviously, it can't know what your account sizes. There's no one to care and really that there's no feelings in the stock market. Your feelings are completely obsolete. And if you want to be a successful trader, you're probably gonna have to get rid of feelings. And that's part of the reason that I recommend having a lot of experience paper trading before you go ahead and get into actually trading just because feelings can get in the way , people can get married to a stock they can get. You know this idea that it's just going to go back up and and that leads them to bag holding and things like that. So just don't do that. You have to really do this in a very structured way and that remove all feelings from your decision making. So with all that being said, I hope you guys did learn something and get some value from this lesson, and I will go and see you guys in the next lesson. 16. How to Use Indicators: our guys. So in this lesson, we're gonna be talking about indicators and how you guys can use these. So to go ahead and start out if you guys saw the first video where I was talking about setting up TD Ameritrade, that's what we're gonna be talking about our guys. So in this lesson, we're gonna be talking about indicators more specifically, ones on the TD Ameritrade software. If you are using another software that I can help you so much, All of these indicators are on most advanced trading software is like e trade and things like that, but the exact way to set them up and things like that will likely be different. So this is currently what I have set up on this software some of these you can play around with here and there. But these are what I like to go in half. So we're gonna go and talk first about the RS I and what this is is the relative strength index. And this basically measures how strong a stock is in comparison to the overall market except parameters on this. But I generally will leave this at the default settings right there and basically, you know, if we look right here, it's shooting way up. We go above this red line, and that could be used a little bit as a cell signal. You know, if it's in the red, then there's a good chance there's gonna be some form of a correction, as you saw here. And then here. You know, it's not 100 foolproof, and that's what something I want to say is that indicators are not foolproof. You should never trade solely based on not even a single indicator or even multiple indicators. Indicators are just a little bit of a what I like to call flashlights. You know, they give you a good idea that, you know, maybe this is a good trade, but they should never be the only thing that's causing you to get into a trade, because that will not work out long term. If we look right here, this was actually blew all through this period. But if we look at the stock, it was continuing to go down, causing some definitive losses. And if we go look at Tesla's stock, it's gonna be even more apparent. So if we look throughout the day, obviously right here. We had a big red shoot up, and then it fell back down some. But overall, speaking throughout the day, it did continue to go up. You know, this scenario right here could have been a good signal. That being said, there will be times in which that is not the case Justus we saw with the S P. Y. And it actually appears looking back on this throughout the day, that the arse I actually was a very good indicator, you know, right here we had a dip to the blue, and then we had a big reversal up over 1%. But if you look right here, you know, it was giving the cell signals, and the stock was continuing to move up over the next 10 to 20 minutes. So, you know, just don't take this, you know, as 100% or anything like that. Next, we're gonna be talking about the Mac D indicator. I also leave this on the default settings here, but that is essentially this right here. And ah, the blue line. And basically, whenever the blue lawn converges with this, it will basically trigger a cell signal I don't have these signals themselves displayed here. But if you leave these on the default settings, that actually will have, like a red little arrow, and then when it gets down here and it crosses right here, it'll have a green arrow almost triggering a by. So whenever these two lines converge, then it's considered to be a buy signal or a cell signal. However, this is not really work incredibly well when there's not a lot of movement as we see here. You know, it kind of flat lines that converge is a few times and doesn't really do a lot. And that's because the stock itself wasn't really moving a ton. And the problem with this right here this is one of the best examples is if we go ahead and look so if we look right here, you know it really didn't do anything, even though is converging multiple times. The stock itself did really nothing. So this doesn't really work. Well, when there's not a lot of volatility in the stock isn't moving up in town big in different directions. The Mac D is not gonna be a great indicator in scenarios like that, so just keep that in mind. And the problem here is that, you know, you might have seen this and said, All man is about to converge, And then it just did nothing for almost a C 28 minutes. It did absolutely nothing. And you know, eventually it did. However, there's gonna be plenty of times where, you know, you think it's gonna converge. It looks like it's crossing. It might even cross a little bit and then all of a sudden it just does nothing, And then it continues to go down. Even Mawr. That's happened to me hundreds of times. So just keep that in mind. You know, I can't say it enough throughout this video, but these are not foolproof by any means at all. And you know, when it comes down to taking a trade, you really should have 10 20 different reasons for taking a trade. Little indicators. Things like, you know, Hey, there's a shoot up on volume right here. You know, the RC looks good. The Mac D looks good. The overall patterns of support in the resistance, you know, you should have a lot of different reasons for taking a trade solely than just indicators. Next up we have the V wop, which is this yellow line, this purple line and this white line And what this is essentially going to tell you in a lot of cases, if it touches all the way down to the bottom view up, then it may be a good trade. If it goes all the way up to the top, it might be a good time to sell. Now that's gonna be kind of rare. But what I generally like to do is see a stock that is pretty much trading over top of the Purple line throughout the entire day. And what I want to see is it really bouncing in between the purple in the white line throughout the day? And whenever it gets to the Purple Line, I consider to be a good stock, whereas if it's hitting the yellow line that it's probably gonna be down trending most of the day. So even if you do catch a good five minute period here, the overall pattern is not in your favor. And if you keep trying that you're probably gonna come out on the negative side of that, so just keep that in mind. You probably don't want to mess with stocks that are, you know, in between the yellow and the middle V wop. You really want to be trading more So stocks that are between the purple and yellow, the wop Next we have the S m A. I don't generally use this on intraday trading. This is more so for ah long periods like the 180 days. So I will usually use it on the 180 day chart. And it basically I use it like this whenever this touches down here. Then in the past, as we've seen here here, that triggered a reversal. And when we saw it right here, it got really close. And after hours, that actually went down. As we could see with the V walk a line here. It probably in after hours, went down for a second or something on this earnings call, and then it shoots way up, and then it gets even close here, and then it goes back up again. So, overall speaking, the 180 s and May is really more so for swing trading. But it is something that I like to have enabled pretty much at all times. Next we have this red line. I just haven't removed this. This is actually I believe a So this is a 50 day exponential moving average. I just haven't removed this. I don't generally use this, so you can just, ah, neglect that I'll go remove it right here. So it's not in our way. And then we have the standard. Uh and then we have the standard exponential moving average of nine. And how I use this is generally this is gonna follow the stock very closely. However, when you're watching this very close right here, we get a break above this and that kind of triggers a little bit of an up sell. Now, in this case, that didn't really pan out. It just went right above and then went right back down. So a perfect example of indicators not working out to your favor that being said, you know, right here it did. It shoots above, it comes back down, it tests the Emma and then it shoots back up, and it continues to go up for almost 1%. Same thing here dips below the M A it goes up, it tested, it goes right through it. Then it tested as a support, and then it shoots up even more. So you know, this was a good indication here. But, you know, just just keep in mind that just get something is a good indication on one of these does not mean it's a good trade. You probably want to see 34 indicators telling you this is a good trade as well as have some supporting resistance lines and a lot of reasons as to why this is a good trade right here, right this second. So that's pretty much all of the indicators that I use. I hope I explained those pretty well. They're really not that important. I know a lot of people will spend a lot of time talking about indicators, but you really don't need indicators that much. They're really just a visual aid, in my opinion, and they essentially give you a flashlight in the dark as to whether or not something may or may not be a good trade. But you certainly should never trade just based on an indicator or even multiple indicators , you should have multiple indicators and multiple outside reasons based on price movement, whether that be volume or supporting resistance or, you know, whatever. So with all that being said, I hope I explained this well, and I will get you guys in the next lesson. 17. How to Use Level 2: What's going on? Guys, welcome back to another lesson where we're gonna be talking about level two now. This can definitely be one of the most important lessons while at the same time won't matter that much in the scheme of things, but it's also very simple to understand. So essentially, what this is is on TD Ameritrade. If you go over here to the right and you click this, you can enable it. And this is going to tell you what the current prices are on different exchanges. So if you're looking at futures, it's only gonna give you one rate. So we look at the natural gas future, there's only gonna be one rate. But for the most part, if you're looking outside of that on any kind of equities or E. T. F s or anything like that, you're going to see sometimes multiple exchanges. So if we take Microsoft, for example, these are the different exchanges that it is on, and these are the different prices at the different exchanges. And when it comes down to actually setting orders, there is a way that you can actually go ahead and set an order for a specific exchange, You're pretty much gonna want to get filled with the cheapest or the highest price on either exchange. And what I mean by that is, if you're buying, then you want to buy it at the lowest price, which in this case would be on this exchange. And if you are selling, you want to sell at the highest price, which in this case would be on this exchange. And this right here means that the orders that people are trying to buy this stock at our right here at these price points and people are trying to sell on this side at the ask at these price points. So there's gonna be a slight discrepancy between these prices. So people are trying to buy at 81 87 35 people are trying to sell at 1 87 70 The market prices generally gonna be in between these two. So if you were selling, you're gonna want to sell on this exchange. And if you are buying, you would ideally like to purchase on this exchange because this is the lowest price that people are willing to sell their shares for. And this is the highest price that people are willing to buy shares for. There's a lot of people who have the idea that you can actually like, look at, you know in real time and say, You know, there's a lot of sellers right now very few buyers, and that means that the stock is gonna go down and on the opposite side, you know, if there's a ton of buyers and their few sellers than the price is gonna increase, this is somewhat true in intraday seconds and things like that. But that's not gonna make a huge difference. But when it comes down to something like De Gaz, this is something that will have a large spread in which people are trying to sell shares at 2 35 50 people are trying to buy at 2 34 50 So there's an entire dollar spread here in where people are trying to buy and sell. And it's in cases like right here where there really is not a lot of ah orders going through in which you really need to be able to see exactly where it is that people are buying and selling that way, you know, you know, should I move my limit order up. Should I move it down? What should I do in order to get the best deal for myself, But on a lot of large companies, it's not gonna make a difference just because it's gonna be plotted very well here. And there's not gonna be as big of a spread. So on Tesla, you know, there's not gonna be a big spread at the price is right here. That's probably where it's gonna be selling at. So you know, it doesn't really come into handy that much when it comes down to large companies like Tesla or Facebook or Microsoft or any of these companies. But if you are trading some niches stock like De Guise or something like that, then you may want to go ahead and click over here and bring up level to just that. You know, where should I be setting my orders? I want to get a purchase in right now. Or where should I be setting my orders if I want to sell right now? So with all that being said, that pretty much explains level two. It's really just a a live view of the market and and what you may want to set your orders, that at that instance, So I hope you guys did learn something in this lesson, and I will get you guys in the next one. 18. Bag Holding: What do you guys? So in this lesson, we're gonna be talking about how you can avoid blowing up on account because it's no secret . Most first time traders do end up blowing up multiple accounts. And when I say blow up, I mean pretty much taken account from, say, $1000 or, you know, whatever it is that you start with all the way down to pretty much nothing, however, you don't need to go ahead and blow open account in order to become successful. The main reason people blow up accounts is because of bag holding, which right here in front of me is a great example of such. If you guys were trading this in the morning, you might have seen this dip right here to be a good opportunity. It's a bounce down to the SM. May you know it's likely oversold down here. The RSC right here. It looked like the Mac D was gonna increase and just the overall movement of the stock. You know, this looked like a great dipped by opportunity and that you'd be able to go ahead and, uh, buy those shares, especially considering the fact that it was not only had a resistance here the previous day , but it also was up trending in premarket. You know, as I've stated in one of the previous videos, I really like a lot of flashlights. This trade right here had a lot of flashlights, actually did trade this this morning and I did not back hold. I actually wound up taking a small profit on it, but, you know, it's very obvious that this could have worked out very badly for me. Now, if I held it throughout the entire day, it probably would have worked out well for me. But the odds of that happening are quite low. And quite frankly, this could've just continued to go down for the rest of the day. However, I got into the position right around here. And then I added a little bit to my position right here. And then I got out right here. Or so I netted about $2030 profit. Which is quite good when you consider the fact that overall this was a down trending pattern all the way from here to here. You know, this thing was down trending very badly, but we were able to still take a small profit and, more importantly, avoid a large loss. And this is especially apparent when it comes to stocks. People will look at this and say, You know, we got resistance here. It's so low throughout the day. You know, this looks really low when you're actually in the heat and your trading. This this looks like a really low time. It looks like this would be, You know, there's no way that this stock is gonna go any lower than this. Yet throughout the day it continued to go down by almost another 7% so you would have lost nearly 1/20 of your account from this one trade. You do that another 20 times and your accounts blown up. So that's really the problem that we have here is. Is back holding the people basically saying that all you know it's so low. There's no way it's going any lower than that. It can't go any lower than that, and so on. When in reality, it always can just is. It's incredibly possible for Tesla to go through the moon and hit $1000. If we go and look, you know, it's definitely possible for Tesla to go ahead and shoot way past 1000. It's also a good chance that being this high test was likely gonna come back down. So you know it's simple supply and demand, but you have to keep in mind that the market can do pretty much anything at all. And, uh, you really need to work on limiting risk. So just make sure that you don't find yourself in a position where you just keep telling yourself that you know it's not gonna go any lower, and then it goes a little lower and you add more to your position because no way is it going any lower, and then you add a little more here and that shoots down even more. And, ah, there's absolutely no way it's going any lower when it continued to keep on going lower. So just keep that in mind. Stocks can pretty much do anything at all. There's nothing that says they can't keep on going lower, and if you're on the wrong side of that, you can quickly blow open account in pretty much no time. I've seen people do it in less than a week or two so just keep that in mind. And yeah, So with that being said, I will catch you guys in the next lesson. 19. Averaging Up vs Averaging Down: I guess so. Just as we talked about in the bag holding lesson this time I want to talk about averaging up versus averaging down. You'll see a lot of people say that you should just average down. You never want to average up. And there is some math around that and the fact that, you know, technically speaking, the lower it is, the less it has to continue going down. But in the case of the stock market, generally things they're never gonna go to zero. So that's never particularly the case. But, you know, people will say, you know, it's not gonna go any lower here, and then they'll average down and then the average down again. And what I mean by averaging down is say you bought 10 shares here and then it went even lower. At that point, maybe you buy another 10 shares at a lower price. That means now you have 20 shares in the average price is lower than your initial price. Averaging up would basically be the opposite. You know, if you bought shares here and then it went up some right here, and you bought more. Now your average prices higher than your initial purchase. So that's really what I want to talk about here and really just give you guys the main tip that you probably do not want to average down. In most cases, averaging down means you are back holding a stock because it's not done what it is that you thought it was gonna do. It has not followed the plan of action that caused you to take that trade in the first place. And if it has not done those things, then you probably should not be in the stock, or you certainly should not be adding more to your position. Now let's say it does what you want to do to do. Let's say you bought some right here and it popped up, and then it tested this m a line and it was successful. Now you want to buy more right here. That might be a good idea. In this case, you don't want to, you know, watch it fall by something You all, man. Well, you know, it's just so cheap, you know, I just go out and buy more shares. That doesn't generally make sense because you don't know the future. You know there's no telling what this is going to do Going forward, there's only, you know, pretty much likelihoods and decisions. So in most cases, you are not gonna want to average down. You're gonna wanna be averaging up. If you're considering averaging down, you probably shouldn't be in the position in the first place. So that's pretty much all I've got with averaging up versus averaging down. You probably are gonna wanna be averaging up, not down. You know, here and there you got to make a judgment call. Sometimes it might be worth averaging down, especially when it comes to swing trading. If you were swing trading that I'm not nearly is big of a average up guy. In fact, I will rarely average up when it comes to swing trading. I often times will average down when it comes to swing trading. But when it comes to intraday trading, if I'm going to average down, I probably shouldn't be in that position. So I generally will only average up when it comes to intraday trading. So with all that being said, that's everything I've got in the averaging up versus averaging down lesson. I will see you guys in the next one 20. Stock Splits and Reverse Stock Splits: What's going on? Guys, welcome back to another lesson where we're gonna be talking about stock splits and reverse stock splits, so this should be self explanatory. But there is a few small questions that if you are new to trading entirely, you may have. So if we go and look at the graph, you will see that this has continually just gone down and down and down since being started . Now, the reason for this is when it was trading up here all the way $1300 this wasn't actually $1300. This was probably a lesser amount. And they have continued to trade shares induce a 20 for one in order to increase the price again. And that is because this is a three X leveraged E T f, which eventually goes to zero. They exponentially go down due to beta decay. You don't really need to worry about that. But point being, you know, this is accounted for a stock split so you won't actually notice anything here and there there will be a glitch where, like if they do a stock split than, like, you might be trading here and then all of a sudden the next day. These shares are worth $1000. They didn't actually go up in value. It's simply where if you had say, these were $250 even and you had a four shares and they did a one for four, they're basically going to take your four shares and give you back one share and that one shares now worth 1000 instead of 250. And that is a reverse stock split. That's what you'll see happening with things like this. And then when it comes down to regular stock splits, there is no way for me to give an example just because it doesn't actually reflect, as all of the previous pricing and data is backdated to that time frame. But when it does occur, they're going to say, Hey, you know you have five shares that were worth $20 apiece. We're gonna give you 10 shares that are worth $10 apiece, so they basically give you twice as many shares and reduce your value per share by the accompanying amount. So just look out for that. It's not incredibly important, but, you know, it definitely can be a little confusing, especially when it comes down to the software reflecting splits as it's hard to tell if there was a split or when a split happened or anything like that, because they all backdated based on the new pricing model. So with that being said, that's that's pretty much how stock splits work. You're not going to see them anywhere in a graph. They're just going to happen. Sometimes it will tell you down here at the bottom that they had a stock split. But for the most part, you know you're not gonna notice a difference. There is no material change on you or anything like that. So with all that being said, I hope you guys did get some value from this lesson and I will catch you guys in the next one. 21. Support and Resistance Lines: what's going on, guys? So I actually did not include this lesson in the original lesson plan, and I'm not entirely sure why. Because it is one of the most important, probably one of the most important out of the entire course. So what we're gonna be talking about in this video is support and resistance lines as well as the psychology behind these. So I've got Apple's chart here and currently speaking, the market has fell over 15% in the last little bit. That being said, we will be able to make some good examples out of this time to go ahead and put this on the 180 day for our chart. And what we're gonna do here is just take a look and analyze some of these stocks before some support and resistance lines. So, as you can see, I have this red line here. And if we go look on Netflix, you know, with one year, you're going to see that in the past, we've shot upto right around this 3 85 area and we shot up, shoot down, come back up, tested again, shoot back down. Okay, then we go all the way down and we go all the way back up. Just here. Recently, we were back at that 3 80 or so area. We actually went just a little bit through it. And then we're coming back down again as well as previously way before this. We also had a rejection here at this. So you know, we came up tested this three times prior. And now here's the fourth time we came up to this area and we're going back down yet again . Now, what this tells me is that investors generally find Netflix to not be worth more than 385 or so dollars per share. That's kind of the max that Netflix is worth, and it's really just simply supply and demand. You know, when things start to get that high, investors find it unfavorable, and then they start to sell their shares, and there's less people buying and therefore the price decreases in order to incentivize more people to go ahead and purchase these shares, you got to think about it like an iPhone on iPhone is worth $500. But if all of a sudden you know everybody out there, you know there's nobody willing to pay more than 4 50 for an iPhone than the market price of an iPhone is not gonna be $500 anymore. It's gonna be 4 50 cause that's what people are willing to pay. And if that were to go down to $10 than 10 bucks is worth that iPhone is worth. If I had an iPhone sitting here today, Ah, and I tried to sell it to you for $2000. You probably wouldn't do that cause that's kind of expensive for an iPhone. And that's the whole point. You know, these stocks get up to these prices where you know investors air, not looking to purchase these shares anymore, and therefore the price then goes down. And that's what supporting resistance lines are. Kind of used for is to indicate these areas where you know investors find these things to not be worth it. Because up here, this 45 level, that could be like me trying to sell an iPhone for $1200. Could I sell an iPhone for $1200? Sure. How many am I gonna sell them? Probably not a lot. But when he gets down here to say this to 50 area. That's like selling an iPhone for $400. A lot of people are gonna be interested in buying iPhone for $400. And that's why whenever we go down to this area, that's like $400 iPhones by one. Come on, when people do that, you know, there's a lot of people who want to buy that. IPhone has more and more people buy that iPhone. The price increases, and then it goes back up now. Now the iPhones $1200. Not a lot of people want to buy. That price goes back down. Now it's at 400 bucks. People. People love that. They're flying off the shelves, and as people are buying it, it goes back up yet again. So that's kind of what supporting resistance on are. They really just come down toe where investors are seeing value and where they think they're getting a deal versus not getting a deal. If something is expensive than it's gonna test that resistance line and likely not go through, And if something is cheap, it's gonna support on these support lines. So in this case that probably right around in here. And you have to consider the fact that these are not exact areas. It's not like 3 85 is incredibly expensive. You know, Obviously, the stock is gonna gonna vary a little bit, but we look back here. We had a little bit of a sell off down to this area right here. Same place where we bounced here and same place where we bounced here. So, you know, I would say the 2 50 or so area is where people generally are finding value in Netflix's stock. So, I mean, that's pretty much supporters. Isn't signs for you. They're just areas in which investors are finding, you know, deals. Or they think that, you know, this stock is worth that on the TD Ameritrade's software. You can also do like a triangles, so I could actually say like, you know, this is kind of the area in which I might want to go ahead and purchase shares rather than just a specific line. And, you know, this is the area in which I don't want to sell shares, so if I could buy shares here, that's great. And if that ever gets up to here I might want to sell if they were there, so I mean, that's that's kind of what you want to do. It's really more so an area rather than an individual line or very specific price. But yeah, So with all that being said, I hope this lesson was very helpful and I will catch you guys in the next one. 22. Bull and Bear Flags: Alright, guys. So in this lesson, we're gonna be going over what a bear and bull flag is and more importantly, the psychology behind these Because you'll see a lot of people talk about these patterns. But in reality, all these patterns mean are a, uh, a psychological aspect of the market behind it. The patterns himself don't mean anything. Ah, lot of people will be pointing out patterns and all of their holy there's a bear flag on Microsoft right now. At the end of the day, Ah, bear flag might as well be the same thing Is looking at a constellation in the stars. Okay, it doesn't mean anything at all. What it could mean, though, is the psychology behind the actual, you know, individual stock or market at that time. And once you start trading, you'll kind of get the idea behind that and you'll understand here and there that, you know, while there might be a bear flag here where a bull flag here, it's not realistically, you know gonna be a good trade and you'll be able to recognize that once you gain more experience as part of the reason that I say that you know experience is very, very important. But as you can see here, this is kind of what a bull flag is normally gonna look alike. So, you know, we're normally trading around this area. We get a big pop up, and then we have a slight pullback, and then we have a push up out of this range. So, you know, you identify this range, and as you can tell, you know, this is the stem. This is the flag. Once it breaks out of this top range, you could see a continued higher pattern. And what that really means is that there's continue to strengthen. You know, this big push up right here was a little over exaggerated, has a little time to pull back some. And then people start to see more value in the stock at that price, and then they start to buy again and breaks out and pushes up yet again. So I'm gonna try and go ahead and find some examples of this. Um, so you know, right now, the spies trading quite low. So, you know I'm not seeing anything here. What I'm gonna do is just go ahead and put this on 10 days, and we got to put this on in, like, five minutes. So this is sort of a flag here. So, you know, we have a push up, and then we have a push down right here, kind of in the shape of a flag, and then it pushes up. There's a five minute chart and it's a little volatile, so it's not as defined. But I imagine if we were to look at this on a one minute chart, it may B'more defined. Yeah, here we go. Here's a decent example. So we have a push up, and then this is actually a little bit more of a pennant, which we will talk about later. It kind of kind of exemplifies the same aspects, but, you know, it pushes up, it pulls back, and then it pushes up yet again. So on the pullback here, you know, this might be a good trade, and, you know, this is where your indicators, they're gonna come into play a little bit just because we pushed up way outside of this e m a line. And then we pushed back down into the M a line it supported at the M Aylon while still going down some, and then broke back out and pushed up even higher. You know something? In this case, you could have met it 0.1%. You know, obviously this is the spy, so it's not gonna be incredibly volatile, but generally speaking, you know, if that was another stock, there might be some good opportunities there. So this right here is one of the best examples that I have seen thus far. I've been looking around at some tickers trying to find some examples, and this is a pretty decent one. So we have a push up, and then we have a slight pullback here, kind of being more so the flag, and then we have another push up here once it broke out to the top. So this is the best example. This is what you're gonna want to be looking for when it comes to pull flags. And I think I already and I kind of already explained about the psychology here is that it pushes way up and then people, a lot of times, the people who bought down here start to sell out of their positions, causing negative volume onto the stock, which makes it push down some but overall speaking than mawr investors to see the overall pattern. And, you know, generally speaking, it is going to be an up trending pattern. It just has a slight pullback, often to the Iemma or, you know, sometimes the middle V bop. So next we have the bear flag. This is pretty much the same thing, but it's inverse. So you're going to see a drop, and then you're going to see it, actually try to push up some, but then it does not. And it continues to break down below this lower resistance level and, you know, shoots on down even further. So we sort of, in a way, have an example of that right here. If we were looking at this on a five minute chart, this would likely be a little more upright and further out this way. But what we see here is, you know, we have a overall downtrend and then we have it pulled back up some, but it does not hold, and it continues to push back down even further. So, you know, in this case, your you know, your flag body would be kind of here and then, you know, you kind of have your resigns here, you know? So I mean, obviously, it's never gonna line up completely perfect. In just like indicators. These patterns are just one of the flashlights that you guys should have. When it comes to taking a trade, you should never take a trade solely based on one pattern or solely based on one indicator or anything like that, you know, I mean, it's always gonna be multiple things that are making you, you know, decide that this is a good trade to go ahead and get in. You know, if your trading based off of one thing you are asking to lose money to have a little bit of an example here, you know, shoots down, you know, tries to pull back up some and then continues to go down throughout the rest of the day. You kind of have another example here. Obviously, these are not the greatest examples in the world. This right here is actually a pretty good example. So we shoot down, push up, shoot down, then we kind of have a flag here, and then it breaks below and it shoots way back down again. So that's probably the best example that I have seen thus far today. Eyes right here, you know, I mean, then that's a beautiful flag, in my opinion on, And that's the type of things that you want to look for when it comes down to looking for flags. But you really want to consider the psychology behind the flags and not just assume, you know, up there's a flag that means it's going down. That's never the case. Um, you know, there's a lot of things going on, and if you're solely trading based on one pattern or based on one indicator or something like that, it's likely not gonna work out well for you. So with all that being said, I hope you guys did enjoy this lesson and I will see you guys in the next one 23. Bull and Bear Pennants: What's going on? Guys, welcome back to the next. A lesson where we're gonna be talking about the bull and bear pennant. So I have this little graphic here That kind of explains what it is and kind of gives you a visual. And after this, we will go ahead and get into the actual software and try to find some examples of this. So what's going on here is very similar to the bowling bear flag, except for it's like pennant. And there's pretty much only one, you know, key difference here. And that is that volatility is huge. It shoots way down on the bear and then, you know, it shoots up on recovers a little bit. Then it goes down. But overall speaking, the volatility of the individual stock or ticker or whatever it is that you're trading slowly starts to collapse into a very small amount. And then out of nowhere, you will see it just kind of down, or, in the bull case, you will see it shoot up, and then volatilities starts to slow down, slow down, and then until it gets to, you know, very little peek here and then it will shoot back up again. So that's pretty much the bull and bear pennant. Feel free to take a picture of this. I'm gonna try and leave some of these graphics in the course documents for you guys, but, um, now we're gonna go ahead and get into some real examples. So this is actually something you can use when it comes to swing trading, day trading or really anything. This is a pattern that is somewhat relevant. I find it most relevant on a one minute, one day chart. Um, you know, something like of this. So here is kind of a pennant right here. If we look obviously like I've said before, you know, these things are never gonna be incredibly beautiful. They're never gonna look exactly how these graphics look. That being said, you know, this does have the components of one we shoot up and then we have kind of this. Obviously, it does break out here, but overall speaking, we do have this little range here that were forming. And when it came down to actually intraday trading, you know, it was going right here to here like that. And then we get a shoot up and it goes ahead and breaks out. So, um, that that is kind of the elements of a pen. It. Like I said, you know, it's not ever pretty much gonna be incredibly beautiful. Never gonna look like those graphics. Occasionally here in there, you will find an example that that's absolutely beautiful. But for the most part, you're not going to see a lot of, you know, absolutely perfect penance or, you know, even perfect flags or anything like that. You know, these are just a general depictions of what you want to look for. But anything close to it, you know, could or could not be considered a pennant. It might be a little easier to find these just for the purpose of examples on the five minute charts. So right here we have a little bit of a pennant. If you look here, we go here and kind of from here. You know, you start to see it kind of consolidate a little bit, and then it pushes up, you know, big, around 7% here on Facebook. You know, that could definitely be considered somewhat of a pennant. But overall, though I'm not really seeing a ton of examples. This is actually a little bit of one as well. If we were to actually look at this on a maybe a four hour chart, you might would see this a little bit more defined just because these tales maybe a little better. But generally speaking, when you are looking for pennants or things like that, you're gonna be looking for, you know, something that was very volatile now has a big push. And then it's kind of consolidating. So something that you might see now that I'm thinking about it is stamps dot com. You know, this could sort of be considered a pennant in the fact, especially if we go ahead and look on a shorter chart. You know, we have a big shoot up, and then we start to see it just kind of downtrend, some a little more of a flag at the current look. But at the end of the day, the point is still there. And, you know, if we were to look at this one, maybe a two hour or a one hour chart, this may even be a little more defined. Let's go take a look. Yes, I mean, it's it's still a little bit more of a flag, but I think the day we are seeing, you know, it's, you know, it was swinging up and down kind of big throughout the day, and then this last day here it's been pretty tight in training on the overall volatility has shrunk way down. In my opinion, you're probably to see this shoot downward just because this was such a big move. It's very likely likely you'll see a break downward on the next trading day, which is Monday. As of recording this, you know that being said, you know, that's just my opinion. That's just one flashlight out of the many flashlights that you should have when it comes down to trading. So take that as you may. But generally speaking, when it comes to penance, you really just want to go ahead and look for examples of where something is very volatile and then the volatilities starts to shrink and the overall moves are not that much. While they're still volumes and volumes kind of important just in the fact that there's a lot of volume and there's a lot of people trading a stock, but it's still relatively flat, and that means that's kind of an equilibrium point. Equilibrium points are very rare to find, and generally speaking, they are gonna break up or break down. It's gonna kind of what we like to call snap in a lot of cases is what I would say it's going to snap up or it's gonna snap down and you'll see a lot of people talk about Bowling Bear pennants. But I do want to say that from my experience, a pennant is a pennant and there really isn't a bull or a bear pennant. You're really just looking for a pennant in general. And honestly, what it's gonna do in terms of breaking up or breaking down is 50 50. It's gonna be different in every case. You know, pennants are not something that I use in a lot of cases, other than just to say, you know, hey, volume volumes, kind of high volatilities, almost none. This thing's gonna have a move here soon, but in terms of which direction you know, I don't know if the direction is gonna be up. I don't know if it's gonna be down, you know, honestly, you know whether it came down before doesn't mean it's gonna go down in the future. Whether it went up before doesn't mean it's gonna go up in the future either. So, generally speaking, just look out for penance. In general, I wouldn't worry too much about bull and bear pennants, because just from my experience, you know, I've tried to trade something where I said I was obviously a bear pennant. It breaks the other direction far more times. And it does the downward section, you know, say, if it were a bear pennant and many times I've traded a bullpen it where you know, it did this exact thing here. It was a very beautiful pattern. And then it broke to the downside. So, you know, generally speaking, the breakout direction is not gonna be able to be determined from patterns, but the idea of a breakout can definitely be determined from a pennant, you know, And sometimes it wont break out at all either. But generally speaking, you know, if the volume is still high and volatility goes down to nothing after being really high, then you know that's not gonna last that long. And there will be a break whether it be upward down. You know that That's up to your opinion on what happens in the future. So with all that being said, I hope you guys did get some value out of this lesson and I will see you guys in the next one. 24. Ebb and Flow Sector/ Sector Rotation: What's going on? Guys, welcome back to another lesson where today we're gonna be talking about the idea of sector rotation and flow. So the idea of sector rotation and flow is really that generally speaking, on a lot of days there's gonna be some companies that are down there, some companies that are up and a lot of times money is flowing from one company to another , or even one industry to another. So what I mean by that is we basically look today we know American Airlines is down. Delta is up, so you know, that's a bad example. However, if we go ahead and look when is down Las Vegas Sands is down. And if we go ahead and pull up the SP, why Over here, this is the overall market. You know, in the morning it shoots up, pulls back down, shoots up again, pulls back down to this middle v wa If we take a look at Las Vegas Sands, they kind of did a similar thing except for when they pushed up, they didn't push up nearly as much. They did pull down as much than they pushed up just a little bit and then they're back down even more so. The idea here is that, you know, early on in the day, money was coming out of Las Vegas Sands. People were not investing into Las Vegas Sands at the same rate as the overall market. However, if we look here recently, it appears that Las Vegas Sands is kind of consolidating. Where's the rest of the market? May potentially be going way down. And what that really means is that maybe some money is starting to shift into Las Vegas Sands and along with Las Vegas Sands is when a very similar company. However, in today's scenario, they do look a little different. You know, they're trading quite weak in comparison. The Las Vegas Sands Las Vegas Sands came down here and they're consolidating. Whereas if we look at when there we go, when is much lower than they were previously and are looking to continue to go down, However, there's gonna be some companies that are going to trade very, very, very close to this by pretty much constantly. So we might be able to find an example of that here. So, you know, Micron is up 3% while the overall market is only up 1.5. Ah, and as you can see, it would appear that there's a lot of money going into Micron. As you know, when the overall market died out in the morning, Micron died out. But then, when the overall market recovered back up to where it was in the premarket, Micron shot way up way past where it was in the pre market and is doing much better. So the idea here is that there's money going into Micron, and along with Micron, we haven't video, which is a somewhat similar company on the same thing is kind of going on here. They shot up a good bit pass where they were in the premarket, especially when you consider here all whipped here. And if we look at their charts, you know, they do look pretty similar. If we pull up in video right here, the Micron and NVIDIA chart looks pretty similar. Obviously, in the morning, my chrome was a little stronger, and then it died out while in video, had died out earlier and then kind of consolidated. But then at around 10 o'clock, both of these companies shoot way up and as of recently, their patterns are looking very, very similar. However, if you take a look and notice, it would appear that my Cronus starting to look a little bit weaker than in video as in video, is currently trading right where it was at this last tail. Where's Micron? Is a good bit below that at this point, which we look at this list of blue chip stocks that I have here. Micron is at the very top, which means there's a decent chance that some money can go ahead and roll out of that. Whereas if we look down here, JP Morgan, that's the lowest one on the list. Maybe some money can roll in the JP Morgan and some of the other banks, like Wells Fargo and Bank of America, which are all quite low in comparison to the overall market, which is currently up 1.5%. Whereas these air down almost 2% or you know, even 1.3 or 0.6 when the overall market is up. So they're kind of doing the opposite of the market, and as the day goes on potentially see some money rolling into these companies and them outperforming the market at that point. And that's really how you go about trading when it comes to sector rotation and ebb and flow is that, you know, you might be able to take advantage of some companies that are, you know, don't have the money at this point. And that's kind of how I like to refer to it is the idea that, you know, this company has no money. Right now, this company is not doing well. Investors are not flooding money into here, whereas if we go ahead and look at the top, you know, a lot of investors and a lot of money is going into micro. And currently, however, just like with regular supply and demand, the likelihood of that continuing to happen is much lower than you know, The likelihood off. JP Morgan potentially having some money roll in now. You also have to compare this to the fact that you know how much money is going in and out of the overall market. If we go ahead and look at the spy itself, you know the spies trending down, there's a good chance pretty much everything on this list is gonna be trending down. Question is, you know, is JP Morgan gonna be training down much faster than Micron or is micro? I'm gonna be going up. So that's really what it comes down to is that you kind of can look at the two opposite ends of the spectrum and kind of compare them and see where you know you think money might be rolling into, and ideally, you invest when money is going into the overall market. And there's money going into JP Morgan, for example, because all morning there hasn't really been any money going in. Once the overall market starts to pick up, JP Morgan might pick up at an accelerated rate in comparison to something like Micron, very likely, considering they're already up almost 3%. So I hope that kind of explains Evan flow. It's a little bit of a complex topic to speak about it. It's all ah, theoretical and relative. There are some studies and things like that that you can get from other brokers that will kind of show you the actual flow that comes in and out of a stock. I don't generally mess with any of that. You can usually just kind of kind of tell, um, when it comes down to just looking at watch list and things like that. But that's really the idea there is that, you know, money is gonna flow into certain companies and more importantly, certain sectors. And when it does, a lot of times, it's gonna be flowing out of other companies and sectors. So right now, my crone and in video as we've been recording this video have both fallen about half a percent, while the overall market has been somewhat flat. I mean, it's still at 1.5% so it's lost, maybe 0.1%. But my ground and video have lost over half a percent. So, you know, money might be shifting out of the chips while maybe some money is shifting into, you know, maybe the casinos like When and Las Vegas Sands. In fact, I think Las Vegas Sands is actually doing pretty well as a last second or two. Yes. I mean, they're looking pretty well, they've, you know, consolidated here, and they just got a big shoot right there. You know, there's a decent chance that money is going to start flowing in the Las Vegas Sands. And, as it does, some money is also likely to flow into when, just because of the current prices, I would say that it is more likely that more money is going to flow into when then Las Vegas Sands. That being said, as of right now Las Vegas, Sands says, They've had a little bit of a terror, and they're doing a little bit better than when, as of right now. But when did just turned green? So you know, this is the exact move that I'm kind of talking about, um, in really the idea that you know these companies and this is the exact move that I'm talking about. Money is flowing into the overall market. All of these companies are going up. But these companies that air that air down on the day or, you know, these individual sectors like when or the banks or things like that are more likely to recover quicker and ADM or to their gains and than companies that are all the way up here because you know what's realistic? I mean, you have potential for Wells Fargo to add 1.5% But is Micron really about to go upto 55 or you know, what would it be to go up another 1.5%? You know, they like to go to shoot all the way up to here. That's pretty outside of this top v wop line. You know, it's somewhat unlikely it certainly could happen, but much less likely than you know when Toe just recover back up to, you know, one of four. That's somewhat likely, that's, you know, within today's range and certainly doable. So that's really the idea is that you can kind of look at two charts and kind of seeing OK , money is going into the overall market, and, you know, it appears that that more of it is coming into, you know, this sector or this stock right now. Then you know some other sectors or stocks. And that's part of the reason I wanted to record this video during the actual market is so that we could potentially get an example like this right here, where we're starting to get a reversal here. And, you know, if we look over here, the actual overall market is trending down. As of the last minute and it appears when it's still pushing up, so you can take advantage of short plays like this throughout the day. And you know, it's very useful for day trading if you are trading blue chip stocks, and it's also incredibly useful. If you guys air trading options, I have an entire course on options on skill share. So if you guys want to check that out, you can. But yeah, So with all that being said, I hope you guys did get some value from this lesson and I will get you guys in the next one . 25. Sympathy Plays: What's going on? Guys, welcome back to another lesson where today we're gonna be talking about the idea of sector slash sympathy plays. And what this is is as we talked about in the last section, that a lot of companies are going to be trading very similarly you know, within their sectors. So, you know, if we look right here, here's a bad example. Delta Airlines is up half a percent, while American Airlines is down 1.5%. That being said, if we look up here at the top, my Cronin video and I believe by do is a chip company, I'm not 100% sure about that. But my gran and video are definitely both chip companies. They're both up, you know, at the very top of this list. If I were to go ahead and add a m. D to this list, I bet it would be up there with them. Yes, it is right here. So you know, Micron, AMG and Video. All of these companies are up a very similar amount, and they're all at the very top of my list. So, overall, the chips are doing well today. And if we look right here, Las Vegas Sands and when you know, they're not incredibly close, but they are pretty close in the scheme of things, when is up just a little bit here in the last five or six minutes Before that, it was actually down in Las Vegas. Sands was up. But for the most part, these two companies air trading pretty close to each other. This is especially apparent when it comes to the banks. JP Morgan Wells, Fargo City. All of these banks air right here beside each other in this list. Bank of America is right here. Goldman Sachs is right here. All of these companies are very similar in their business models and the things that they do. And they are all down currently mostly to the same degree. Obviously, you know, some we're gonna be doing better than others. In the case of Goldman Sachs and Bank of America, they're doing a little better than City Wells Fargo and especially JP Morgan, which is is down almost 1.3% now. This is very important when it comes down to trading options, which I have an entire course on when he comes to options. If there is earnings on, say, in video, for example, actually, let's go back. If there's earnings on a m. D. I've actually done this before. This exact trade earnings on a M D. A. MD's earnings come in great aimed ease, up 9% the next day. The previous day, I bought a spread on in video. Now the reason I didn't buy a M D is because when it comes to options, there's this thing called implied volatility. And this will basically cause option contracts to be very high in price before on earnings . And you basically have to have a huge move after earnings in order to actually make a profit. Otherwise, you still end up losing money. Even if the stock goes way up or weighed down. However, it was not in videos earnings and while in video, will have higher implied volatility because of am these earnings, it will not be anywhere near the extent of a MDS. In a lot of times, you know, it's not gonna be factored in as well, and you're gonna be able to, you know, squeeze some potential profits out of, you know, a different stock that benefits from another company's earnings. So you know, that's something that can definitely be useful because and that scenario, you really can't trade A and D cause the contract should just so expensive because of the implied volatility. But in videos implied, volatility wasn't too much higher than it normally was. And therefore you can go ahead and trade that. And when AM D shoots up 9% tomorrow in video is gonna be up for 5%. So it really comes down to there's gonna be certain cases in which you don't want to trade a specific stock because of some some outside source or some reason, even though that is really the company you would like to trade, you can trade a company that is very similar that is going to trade in a very similar way, like A and E and NVIDIA or, you know, when in Las Vegas Sands these companies are very similar, and they're gonna be trading pretty similar in most cases. Another example of this would be Visa and MasterCard. We can pull those up real quick, so if we look here, you know MASTERCARD is up 1%. Visas up 1.7%. And if we look that both died out in the morning here and here and then obviously it changed a little bit. Visa performed a little better after it. MasterCard has not. But generally speaking, you know, these two companies are very similar. They're gonna be trading very similarly. And, you know, this is something where you know, Visa had earnings and you didn't want to trade them. For some reason, you could trade MasterCard, and it's likely gonna benefit from their earnings anyway. That's really the idea behind sector and Sympathy place. Um, you know, it's not something you're going to use a ton, but if you're trading options, they can definitely come in handy. And if you're really doing anything, you know, there's definitely gonna be cases here and there where you're not gonna want to trade some stock for some reason, potentially. There's news coming out in the future, and you don't want to necessarily be largely affected by that. You know, you could work with a different company that's very similarly positioned within the market , and it's gonna trade very similar to that company. So with all that being said, I hope you guys did enjoy this lesson because did get some value and I will see you guys in the next one 26. Mid Day Lull: What's going on? Guys, welcome back to another lesson where today we're gonna be talking about the mid day low. So that's what I like to call the time in which you're not really gonna want to be taking a ton of trades because volume is so low and it's perfectly displayed pretty much almost every day. It's gonna be a little worse here recently. Just cause volume on the overall market has been about three times what it normally is. But I actually probably can go back, you know, in a second to a time in which that was not the case. But you know this right here. You know, we opened up in the morning volumes high. It shoots down a little bit, then it shoots way up on Ah, I believe this was a fed announcement, and then it comes back down. And then I imagine there was something here that or a lot of people just saw value at this price point. And, you know, more people were buying, and then all of a sudden it kind of fizzles out. So, you know, if we look down here, you know the volumes quite low until about 2 p.m. It starts to pick up again, and then right at the end of the day, it shoots up yet again. So I'm gonna scroll all the way back and show you guys a probably better example of this. Yeah, so I mean, this is a pretty good example here. Volume shoots up in the morning right at the open. And then it kind of fizzles out, shoots up here, you know. But overall, it's fizzling out. And then, you know, throughout the day, usually starting at around 11. 30 or so, you know, volume goes to almost nothing, and it really doesn't pick back up in this case until almost 3 p.m. And then it usually shoots up right at the end of the day. So if we go forward and take another look here, here it is again. You know, the volume's pretty high in the morning, and then it kind of fizzles out to nothing at around 11. 30 sits there until around 2 33 ish, and then it starts to pick back up again and shoots way up at the end of the day. And that's pretty much it. Now, The reason this is important is a lot of times you're not gonna want to be trading in this time period just because there's generally not any, like, big moves. So obviously, with the overall market, there's some moves. But especially if we look at any kind of like penny stock or something like that, you're oftentimes not gonna find a lot of opportunity in days like this. So if we go back and look so you know, here we are on A T and T stock, you know, volumes kind of high fizzles out and then, more importantly, starting at about 11 50 or so all the way until around 1 30 or so. This stock does pretty much nothing like it just sits here, does absolutely nothing. There's no advantages there. You can't really trade that, and you're probably just gonna give yourself anxiety just sitting here staring at it. If you were to take a position on that. So here's another example on Delta Airlines. You know, stocks moving up in the morning volumes kind of high, and then at around 11 50 or so. This is when a lot of people go to lunch in New York and That's part of the reason, but I don't. Around 11 50 or so, volume starts to go way down to almost nothing. And then you know, pretty much throughout all the way and told around 2 15 to 30 or so not a lot happens with this stock. I mean, especially right in this period. I mean, nothing is happening we're talking about, you know, 300.1% moves over the course of over an hour. You know, this is this is pretty useful. Um, you know, when it comes to saving yourself time because, I mean, there's just no point in sitting here and staring at a chart for, you know, two hours when really nothing is happening. And this happens pretty much every day. Obviously, there are days here and there where something is gonna be incredibly volatile all day. You know, in this case right here, this is yesterday. You know, there are some potential moves, especially if you were trying to go short on this. There are some potential moves you could have taken on this day, but volume is also much higher on the overall market currently than it normally has. Men. That's really what I wanted to explain in this video is at around 11 30. This 12 ish is when people go to lunch in New York. Volume on the market falls and there's really not a lot of opportunities until around 2 30 or so in the afternoon. And, you know, if you're sitting here staring at the market, you're probably just gonna give yourself anxiety and there's really not gonna be any traits that you'd want to take anyway. So with all that being said, I hope you guys did get some value from this lesson and I will catch you guys in the next one. 27. Gap Ups and Parabolic Shorts: what's going on, guys? So in today's lesson, we're gonna be talking about gap ups and parabolic shorts, and I have a visual of kind of what that looks like and how you would go about taking advantage of this. I believe this actual visual is a day by day chart, and I'm gonna show you guys a real life example of this. But this is especially useful when it comes to trading options or three X e t f or really anything that is gonna have much more margin available. Just because you know it is an opportunity to short now, At the end of the course, I will talk about shorting a little bit and why don't exactly recommend doing it. That being said, you know, this is one of the scenarios in which you don't actually have to take a short position. If you are working with options or three x et efs, oftentimes there's gonna be bare versions, so technically you can actually buy and still benefit from a parabolic short like this or options you can actually buy puts, for example, and still go ahead and benefit while not actually having to short, because I'm not a fan of shorting stocks in general. So with all that being said, you know, this is kind of what it looks like. And what you're really looking for is a a gap. So, you know, for something open up, way bigger. So for something to open up, much more than it was the previous second and really to just run up almost completely straight on. And then, you know, if you can get in here and essentially shorted or by an opposite position of it here, you could make a very quick amount of money. You know, in this case, this is You know, if you were to buy it right here, this 18 you could easily sell it at that 10 on, You know, that's almost 80% I believe. I'm not sure what it is accounting for beta decay, but, you know, generally speaking, that's gonna be a very solid return. Very quick. So with all that being said, let's go and hop into the software where I'm gonna pull up. Ah, stamps dot com stock, Which has kind of done this here recently. You know, it's the most basic example that I can think of So they had these earnings and then they shoot way up, and then they shoot up again, and then you kind of have this big tailspin. So you know, this isn't the greatest example in the world just because this actually didn't really fall down Aton in one day. But, you know, this is kind of the ideas that you're looking for, a gap where something just opens up way more than where it closed the previous day. Or even if you're trading minute by minute. You know, something runs up very, very quick. So something like that might be if you know, if we take a look at natural gas and we go back on a one minute Schardt, today is Friday. So if we go back to yesterday and go take a look, usually at 10. 30 there should have been a move. Yes, there was. And if we go ahead and pull up D, as you will see an example of what you could have taken advantage of. So 10 30 is here with a huge push up a small gap here. This is due to the natural gas report that comes out at 10. 30 on Thursdays and you know, then it starts to tail off and come back down some. You know, that could be an example. Or, you know, if we even go and look, if you were looking trade options or something, you know, here and there there will be some examples in some blue chip stocks. Where you right out of the open in the morning. They shoot up quite a bit and gives you a little bit of an opportunity. This is a little bit of an example, but not the not the best one in the world. Yes, I mean, apples somewhat of an example as well. That being said it didn't work out incredibly well. Here is Apple continued to trade upwards throughout most of the day from where it opened up . But and that's the thing. You also for a company like this, you know, they were trading downward in the morning, and then they shoot up. And the biggest thing here is that they built this nice support here. So, you know, it might not be the greatest position in the world. Um, something that I think might just thinking about it. Here's in video. I know they have a lot of of days. Like where this happens in the morning. Um, yes. I don't see anyone there in particular. I mean, this is somewhat of an example. Obviously, there's no gap. This is a one minute chart. But, you know, if we did take a look, I does shoot up quite a bit and then quickly died back out. If you could go ahead and buy some puts on this, you know, around here, and then write it down. You know, you're looking at 1.6% in the stock. I don't know what that is on the contracts, you know, would be different for every contract, but regardless, that is an opportunity. And that's really what you want to look for is a lot of times these things are gonna happen . If you're looking to trade in the middle of the day, you're looking for these things to happen right at the open, in the market. That's really when you're gonna find these opportunities. And that's why it's very important to be, you know, at your trading station. Or, you know, whatever it is that you do in terms of trading, it's important to be there right at 9 30 on the dot cause that's when a lot of opportunities will present themselves. It's before the midday low when there's not gonna be a lot of opportunities. So here's a little bit of an example as well. Obviously, this didn't happen right in the beginning. But you know, the stock is riding down in the middle of the morning and then all of a sudden it shoots up a big time right here, and then it kind of tails off a little bit and then continues to trend upwards again for a little while. But point being, you know, this move is just so overhyped that, you know, it's kind of unrealistic. You know, this is probably where it really realistically should have traded. But markets are not rational, you know. That's the biggest thing. I read a book one time the Newmarket Wizards or something like that is the name of the book , and the guy says, You know, a lot of people say you can't make money trading and he was like, You 100% can because markets are based on the opinions of thousands of people. And if there's one thing I know the dependence of thousands of people combined are not rational. That's exactly what this is Here were taken advantage of irrational moves. This doesn't make sense. For the most part, in a lot of cases, this is not gonna make sense. Especially if there's no news or anything, really contributing to this, which you will see happen in the morning. Sometimes, you know, if we go back and open up maybe 15 days of data and just go pick a random morning, you know, this is is not exactly rational. And it did come back down a little bit. That's a little bit of a bull flag there, but you do have the opportunity to short that right there. Um, here, this appears to be a pretty good example. You know, obviously doesn't have a ton of margin, but, you know, we shoot straight up in the morning, and then we come running back down. This is Ah, pretty beautiful example right here of the opportunity that you can take in to account right at the opening of the market. Obviously, I'd like it to be a little little more volatile and maybe come way up here and then you come way down here, that be better. But you know, this right here is the exact move that you're looking to capitalize on when it comes to parabolic shorts. So with all that being said, I hope I explained this quite well for you guys, and I will catch you guys in the next lesson. 28. Morning Washouts: What's going on? Guys, Welcome back to another video where today we're gonna be talking about morning washouts and dips. So I actually just fired up the software, and I actually found this example right off the bat. I believe this is from yesterday. Yes, it is. So I mean, this is a pretty good example. I haven't even looked for any other ones. This was just right here. So this is General Electric's stock. And throughout the morning, we were trading downwards, and we kind of slowed off on that and, you know, mostly stayed pretty flat throughout the early morning. And then we shoot up a little bit to this top resistance here, right at the open, and then boom, Right at the open, we shoot way down, um, see, almost 5% which is pretty volatile. That being said, General Electric has gotten a little volatile here recently. And this is a perfect example of what I would call a morning wash out. It's kind of the opposite of a parabolic short, but it's basically where you, right at the open. You're going to see a shoot down. And once that happens, there is an opportunity to go ahead and purchase down here just because, you know, this has fallen to a, uh, over exaggerated rate and, you know, definitely shouldn't be this low at this time. And, you know, you can go ahead and purchased the share somewhere in this area and then maybe cap 12% in profit. Obviously, if you're trading options or something like that, then there's gonna be more margin there. But, you know, this is really the idea of taking advantage of an exaggerated move to the downward side. Usually these present themselves at the open. They're going to be much more relevant. And you can really look for them and they're more likely to happen right at the Open. Obviously, throughout the day, there are other scenarios of this, like right here. But generally speaking throughout the day, it's not as much of a safer play in terms of buying the dip just because, you know, especially if we just look at this example. You know, if you bought the dip right here, you still lost a lot of money. Unless you wrote it out for the rest of the day and maybe got out, like, right here at the very top, you know, you still lost money and this happened right at the beginning of the day, but sometimes in the morning. In fact, I would say most of the time in the morning, right at the open. If you see something like this, then it's likely going to recover at least some. So I'm to go and look for a few other examples. But this is really the idea of taking advantage of an over hyped move to the downside, usually right at the morning Open. So here's another great example. This is on Ali Baba stock the other day. I'm not exactly sure which day this was, but were trading up in the morning. All of a sudden we shoot way down and then we have a little bit of a push up, and then we, you know, kind of taper off a little bit. But then we have this big move back up pretty much to where we opened that in the morning. So if you could get into this stock pretty much anywhere in this area, I'm gonna draw it out real quick for us. If you can get into the stock pretty much anywhere in this area right here. You still end up in the profit. If we go ahead and calculate the margin, say, even got in, like right here this price. You know, you still and you get out right here. You're still up 0.8%. And if you guys were trading options than you know the opportunity, there's probably 10 15 20%. Obviously, that does carry much more risk. But, you know, this is really the idea of taking advantage of these over hyped moves like this one right here in terms of what happened right after, you know, this isn't the most beautiful scenario. So, you know, this is exactly what you want to look forwards just right at the open, something just washing all the way out and just falling a ton and kind of in a lot of cases , doing the opposite of what it was doing in the previous day or earlier morning. So I mean, this was really bouncing here and here and then all of a sudden at the open, it shoots weight down, consolidates ever so slightly right here, and then continues to push down. At this point, that's when I would have called this a little bit of an over hyped move, especially when you take into account sector rotation and say the overall market was not doing this. Say, the overall market was kind of tapping out here and kind of chilling. Then you know that this stock is quite weak in comparison and is likely to recover as it did right here. So this exact morning actually think there was a Fed announcement right here? So it's a little bit of the explanation for this, but I do know that the overall market wasn't, you know, trading exactly like this either. So you know this stock. I would say it was definitely weak in the morning, and, you know, that presented some opportunity later on to go and cash out, maybe one or so percent. And if you're trading options and that's much more so here's a little bit of another example. Definitely not as good of an example. This is a little bit more of a flag, in my opinion, but, you know, we're trading up in the morning right at the open we started turned downwards. We moved down quite a bit. We consolidate, build a little bit of a resistance in a little bit of a flag here in terms of, you know, this shooting up like this and then, you know, say you got in, like, right here on this break. You know, you're still looking at 1.4%. This is on T Q Q Q, which is a three X leveraged E T F. So, you know, this is where you're going to see a little bit more margin. You know, if you were to buy right here and right up here, that's almost 5%. That's a whole lot more than you're generally going to see from an individual stock or something like that. That's really the idea behind morning washouts is just this drop straight out of the open. Here's a little bit of an example. Definitely not as good. This is actually the exact same day. Is that Ah, belief Baba, play that. I was just showing you guys, um, you know, we shoot down in the morning, and then boom, we got a big push up on the Fed announcement. Obviously, you couldn't know the Fed announcement, but this should follow the overall market, so, you know, taking that into account. We definitely do know that that baba position that I showed you guys was very weak in comparison because when this bottomed out right here for a little bit, that Baba position was way down here. So you know, that definitely was weak on the morning. And regardless of the Fed announcement, that likely would have been a good trade. So that's pretty much everything I have to go over in this video. If you guys have any questions, be sure to let me know on Instagram or YouTube or anything like that, and I will see you guys in the next lesson. 29. Trading News Earnings Reports: What's going on? Guys, welcome back to another lesson where today we're gonna be talking about trading the news reports and things like that. Things were going to be catalysts for the stock market to move or, you know, individual sectors or, you know, specific commodities. So first off, this example just happened the other day. So right here, we had a Fed announcement. This was an emergency announcement, and that's what's kind of shot the market up a little bit. Um, you know, this was an emergency once. It was a little bit, uh, unanticipated. But generally speaking, the Fed does have a calendar that you can watch and keep track of, And that's really gonna have a big effect on the market. You know, similar to this where you know, it just shoots way up in a matter of seconds and it comes back down to parabolic shorts and the washouts is You know, while this doesn't happen right in the morning, generally news items like this are gonna be able to be traded, and this is a perfect example. This shoots up huge within a matter of, you know, literally one minute. The overall market probably shot up about 2% on this. We could go take a look. Actually, yes, sir. Right here. This is the actual market. So if we just do a calculation here, the overall market shot up 2.24% to give or take, you know, the matter of one minute, and then it comes back down. And the reason for that is this is an over hyped move. It happens almost instantly, and it's more likely that it's gonna pull back and recover a little bit before it continues to push up. Now, in this individual case, it still did not actually push up. It just pulled back some and then consolidated and then pulled back down even Mawr. But generally speaking, you know, these are the moves that you're gonna want to take advantage of when it comes down to these anticipated reports. So every single week, there's a report on oil and natural gas. I'm going to start off with the oil report here, so this happens on a Wednesday, which is a C Wednesday. So right here. These come out at 10. 30. So 10 30 is right here. I didn't really see a lot happened this week. I'm not really sure why. Nothing happened on the specific report, but, you know, there really was not anything special happening. So what I'm gonna do is go on back to, um you know, the previous week when there was another report? Yes, sir. Right here. There was a report released at 10. 30 right here. And then we see a huge volume spike, especially from the previous minutes. You know, the volume was right around in this area, even dipped all the way down to here. And then as soon as this report comes out, volume shoots up a ton. The move itself wasn't incredibly drastic, but, you know, the volume did shoot up it on. The moves are generally a little bit more prevalent when it comes to natural gas. So I'm going to pull that up over here. And if we go take a look at Thursday, which is when those reports are released and we look at 10. 30 which is right here, we're going to see 10. 30. The report shoots this kind of up, and then it actually winds up coming back down. So when the reports do something like this, there's not a lot of opportunity just cause it's kind of moving in and out. But a lot of times there might be a huge move to the upside or huge move to the downside, and these are very easy to take advantage of. It really doesn't take a genius to toe trade thes and make money. Um, so we go back and look at another week. Let's see here. So this is Thursday. This is a good example. This is This might be one of the best examples I've seen in a long time. Markets trending down. That's generally not something I like to see when this happens. But in this case, it did work out. 10 30 comes volume shoots way up all the way up to here where previously was right around this area. The actual natural gas shoots down almost 1.5% consolidates for a bit, and then trends back up higher toe where it was right before the report. So if you can buy this somewhere around this area, or even when you know, you get this bounce back above the CME a line, you know, So you get in right here and then you write it up to you right here. You get out. That's 13 minutes. You make 130.75%. And if you're trading a three x e t f, then that's close to 2% or so. I guess it's Ah, 2.25%. I believe you know that's a very solid amount of money to make, you know, in a matter of 13 minutes. So you know, this is the opportunities that you want to take advantage of when it comes down to trading news or reports the natural gas and oil reports. I trade pretty much every single week, and then a lot of times I will trade a Fed report. But generally speaking, you know these or something that I'm up every single Wednesday and Thursday waiting for these reports, just sitting here waiting to take advantage of the potential opportunity. Obviously, sometimes I do that, and it's kind of a waste just because the stock just kind of teachers in one spot and doesn't do anything. But a lot of the time you will see a move either to the downside or to the upside. So right here. This is the previous week from that one. So I believe we're three weeks back from today's current date. Maybe. And right here at 10. 30 the volume spikes up, the futures go way up, and then they kind of flat line. This is a little bit of a weird report, and this is something that you probably would not have one of the trade and this honestly might have been something that you lost out on if he did trade that being said, you know, this big of a move, This is something that you might want to, you know, wait out on for an hour or two and then traded up here on an inverse CTF. So, you know, on an inverse CTF on de gas, for example, this is basically gonna look the opposite, so it's gonna be trading up. Then when this shoots up, this is gonna be down and you know so right here that e t f should have been on an all time low for the day. When this whole move down happens throughout the day, you can take advantage of that because that e t f will be moving up. So that's really the opportunities that are presented within natural gas and oil. In my opinion, there's plenty of other futures that you can trade, but these are the ones that have reports every single week that I trade. And I'm a huge fan of, and I think, honestly are probably one of the easiest ways to get in the trading and actually becoming profitable just because it's it's very obvious when something is an over hyped move and probably doesn't make a ton of sense. So but in the case of this, you know, this was definitely a weird move. A little bit of a fluke in the fact that it shoots up Flatlines shoots up again, shoots up again. Flatlines. It's another new high. This is a little bit of a strange day that being said, you know, right here when it consolidated and didn't really move down, you know, this could have been an indication, especially after hitting a new high right here. This could have been a good trade right around here to go and get into and the opportunities pretty big. If you're on a three x e t f. You're looking at 6% up to here now. Me personally I probably would've got out around here white right when we started having these red candles. So that's only about 3%. But, you know, I like to play it safe rather than sorry as we will talk about towards the end of the course. Yes, I just wanted to highlight the fact that, you know, it's very hard to trade news. Ah, lot of people will try to trade news on the fact that you know, three m announces X, and all of a sudden they want to go buy this stock because of what they announced. But the thing is, a lot of times that's already gonna be factored in pretty much instantly. That being said many times, it can be irrational. As you can see in this case, you know, this move right here's insane. So you'd really just want to look for these very irrational moves, things that just don't make sense. And that's generally where you're gonna be able to take advantage of something and make an easy profit, really, without doing a lot. So with all that being said, I hope you guys did get a lot of value from this lesson and I will see you guys in the next one 30. What Are ETFs: what's going on, guys? So in this lesson, we're gonna be talking about E T. F s. And that's pretty much what we're gonna be talking about until the ending section of the course going forward. So first off, I want to go and explain what an E. T. F is e t f stands for exchange traded fund And what? That basically is a collection of stocks that are put into a fund together, and then these are usually mimicking some form of index. So in the case of the SP Y, this is one of the highest traded E T ETFs on the market. This is actually mimicking the S and P 500. So here we are on the website for the S P Y E T f. And this kind of gives us a lot of information about the E t f and the things that are under management and so on. So this is essentially going to give us a lot of info about the fund. But I wanted to go and start down here, so this is basically going to tell us what the fund holdings are. So obviously we have Microsoft here at the top of an apple Amazon Facebook on all the way down. And as I said, this is mimicking the S and P 500. And if we look over here, they conveniently provide us with the holdings of the S and P 500. And you know, the waiting that these companies contribute to the S and P 500. So you know, the actual index that this is tracking has the current weights, and then this is the weights of the E T f. So this will give you an idea of how closely it's gonna track the index. In this case, this is very close. If you look pretty much, all of these numbers are the exact same. The only exception to that being Amazon at 3.3% waiting and the, uh, actual index having 3.29%. But for the most part, it's pretty much gonna be the exact same. Now these air also just the top 10 holdings. In most cases, that's what's gonna be listed. And that's what's gonna be easy to find. You can, of course, download some data. I'm not exactly sure where it is, but that will tell you, Mawr of ah, you know what's being waited into the, um, actually, TF. But if you go down here, they go and give us sector weightings. So, you know, 24.43% 24.42%. So, you know, this is very close. You know, it looks like there are little often financials there a little bit heavier, and then they're probably lower in some other sectors. So if you look down here, let's see if we can find anything So they're higher in real estate by 0.1 but they're lower in utilities and let's see, that's the only discrepancy. I see their little lower in communications services as well. So, you know, they're a little bit higher in some sections, a little bit lower in other sections, but for the most part, they're pretty much gonna be the exact same is the index. So obviously some e t s will not track an exact index. They're gonna be, you know, maybe tracking the index, but also have another goal associated with them. So in the case of SPL V, that is he ticker symbol for any TF. I'm not gonna pull anything up here. But you're gonna notice that in that it's actually low volatility. So that one actually tracks the top 100 lowest volatility stocks within the S and P 500. So it's not gonna track the S and P 500. Exactly. It's gonna have the 100 lowest volatile stocks in it rather than you know the exact stocks that are in the fund. And there's other types of E T f. There's Dividend et EFS. These are essentially gonna have some of the highest dividend payers or some of the best dividend payers that are within the S and P 500. Or maybe the Dow Jones or things like that, you know? So there's a lot of E. T s out there. A lot of them have different aspects. You can get internationally ts you can get the M g C. That is the Vanguard Mega cap E T F. That's pretty much gonna have every single thing possible in it. You know, there's video, which is the vanguard version of the S P y, um, things like that. So when it comes down to a long term investing, while this course is not really based on long term investing. I do want to go ahead and mention this because it is some useful information. If you are very new when it comes to funds, you know, premium discount. That means there's a discount on this. So this is actually trading at lower than what the core value of the fund is. So you're kind of getting 0.175% in free money on this now, and other times this will actually trade at a premium. So it's actually trading at a little bit higher than the actual asset holdings. So you know that can happen is a slight discrepancy because it is a traded fund rather than just an exact index. But generally speaking, that's not gonna be something going to worry about too much. Obviously, it would be better to buy something at a discount rather than a premium. But you're talking about a very little amount of money, so it's not a big deal. But what's really important here is to go ahead and look at the expense ratio. If you are long term investing, you're gonna want to pay attention to the expense ratio and generally speaking, you know there's a lot of companies that offer an S and P 500 track E T. F. For the most part, it's not gonna matter. You're really just gonna want the expense ratio that has the lowest. So in this case, I believe the VT I or V 00 b t eyes the Vanguard Total Stock Market index Um, that's essentially gonna have a little bit more than just the S and P 500. And then v 00 from Vanguard is pretty much gonna be the exact same thing is SP Why here, except in the fact that Vanguard's expense ratio is a little bit lower. So here we are, on bank guards site there. The management for the VO Fund Vanguard is generally known for having the lowest expense ratios. And if we go ahead and look right here on V 00 we're going to see that the expense ratio is only 00.3 In comparison, 2.945 for the S P Y fund. That being said, SP why is the highest rated and is generally regarded to be the best managed, so it is gonna be much more accurate to the exact market. As you can see, you know, they were very, very, very few discrepancies here. Where is the vanguard? You might seal, you know, maybe a little bit more discrepancy, but at the end of the day, it's really not gonna make a big difference. If you are a long term investing for the most part, Vanguard is gonna have the lowest expense ratio when it comes to long term investing. So, you know, that's where I personally invest my money. But you're certainly welcome to do whatever it is that you would like if you see more value in the different companies fund, then by all means. But I just wanted to go ahead and explain E. T s in this video because it's gonna be very important in regards to trading for the next few videos. So with all that being said, I hope you guys did get some kind of value out of this lesson, and I will see you guys in the next one 31. Inverse ETFs and Futures: what's going on, guys? So in this lesson, we're gonna be talking about futures three x e t s as well as the inverse version of those . So right now I have the natural gas futures pulled up, and this is essentially the value of natural gas over, I believe the last 20 years. Yes. So this is about 20 years worth of natural gas charting, and we're gonna see that, you know, this is mostly pretty up and down, up and down, right? However, if we go and take a look intraday at this e t f that I like the trade. It's called a you guys. This is a three X leveraged natural gas e t n. Okay. And what that essentially means is that whenever natural gas goes up 1% this is going to go up 3%. If natural gas goes down 1% this is going to go down 3% so it essentially accelerates the profits and losses that you could make. Now, I personally love trading. These is of my favorite things to trade. But there's pretty much no way to invest in these. And the reason for that is due to this thing called beta decay. And what that essentially means is that because this is an E. T n, which stands for exchange traded note, there's no actual asset behind this. So if this is at 100 and it goes down by 1% it's at 99. Now let's say this goes back up by 1% is actually not going to be 100 again. OK, so 1.1 it's at 99.99 So basically, when oil goes down 1% and then it goes back up to 100 the amount that it goes up is based on asset. It's gonna go up a little bit more than 1%. But because this CTN doesn't have any true assets, it's actually just linked directly to that future. This is only gonna go up 3%. So 97 times 1.3 is gonna give us 99.91 not 100. And the reason for that is beta decay, and it's essentially when you subtract an amount and then you multiply it by the exact same amount again, it's gonna go down just a little bit because it's multiplying against a lower base, so in this case it goes down by 3% against 100. But then it only goes back up by 3% against 97 which gives us 99.91 That's basically beta decay for you. I hope I explained that. But it's very obvious when we go ahead and look far out. If we look at de guys on a three year chart, this is the chart, so you can't even really see it. We go look at it on a one year chart. It's constantly going down, even though this should pretty much mimic natural gas. If we go look at natural gas futures for the same time period, we're going to see that there for the most part. Kind of flat. Okay, there, certainly down. But if we go look on the three year chart, we're gonna see natural gas is pretty flat. Whereas if we go look at it on you guys, we can't even see the chart. And if we scroll in, you still really can't see it because it was all the way up here. 3000 right here. And now that 29 So you know, the price difference is so big. When it was right here, it was that over 1800. Now it's down toe. 29 currently or 44 actually, but a low of 29. So that right there basically explains beta decay for you. These e t ends because they don't have assets are going to overall go to zero. They always go to zero. There's no way to get around that due to beta decay. Regardless of this, though, this is definitely something that you can go ahead and take advantage off. What I usually like to do is in the morning. I like to keep this chart on natural gas. So I'm watching the futures directly and futures allow you to actually watch it overnight and in the premarket, much better than the actual e t ends do. But if we go out and look here and we look at just during the day and just during the day, you're going to see that the actual charts are very, very, very, very, very similar pretty much the exact same. So we look, you know, we had a high here. We have high here, flat up flat up. Hi, here, shoot down high Here, shoot down. Thes pretty much are gonna look the exact same, But this E t F is losing a little bit of its value every single time. It makes a move in overtime. That value does make a big difference. If we look on the three year chart or if we even look on the one year chart, you know, it's it's definitely decelerating at a much greater pace than natural gas itself has been doing. And that's especially prevalent right here. We see that back in 9 16 This was at a new high and then on the E. T F 11 6 this was actually lower than it was on 9 16 However, if we look at the exact same dates on the actual futures, it was higher on 11 6 Then it was on 9 17 even though in the E. T f. It was higher here and lower here. However, these air definitely one of my favorite things to trade. They have reports every single Thursday at 10:30 a.m. There's often some very good opportunities that you can go ahead and take advantage of, but you just want to keep in mind that long term investing in these air. Really, anything aside from day trading in these is probably not gonna work out well, due to the baited a case of just keep that in mind. And aside from that, you know, that's really what I wanted to explain here is that there are futures and there are three x e t f. There's also a bear version of this which will talk about for a second here. This actually does the opposite. So I'm gonna pull up. You guys up here. If we look, you guys hit a new high right here on the day it hit a new low right here. You know, this steep selloff right here on you guys was a steep push up here on De Guise. This is pushing up in the morning. This is pushing down in the morning. So these charts are pretty much the exact same thing, but they are opposite of each other. So if you think natural gas is going down, what are you? Will usually do is keep the natural gas futures right here. If I think this move right here is gonna happen and I think it's gonna go down for whatever reason. Then on De Gaz, let's see, this is about 12 o'clock that I could invest in de Gaz and D guys actually pushes up at that time. So that's really the values that you can really make money when it goes up or down with these three x e t f. And because they're three extra natural gas only had, ah, 30.66% move here. But if we go and look at you guys, that was probably close to a 2% move. Let's take a look almost 2%. So that's pretty much the value of this. The actual move There should have been about 2.25 give or take a little bit due to better decay. But generally speaking, these are gonna move pretty much the exact same. And, you know, if you think natural gas is going down, then you could buy de guise. And if you think it's going up, then you could buy you guys and you know it's a very easy tool to trade with. It's one of my favorite things to trade. It's what I trade primarily his natural gas and oil. Sometimes I'll trade some gold, but I generally stay away from that. But there are futures for pretty much everything. In there are bull and Bear E T F four pretty much everything's their sore being futures. There's tattle futures. There's pretty much futures and et efs for almost any kind of commodity that you could think of. But natural gas and oil are generally my favorite things to trade. And yeah, that's what I generally stick with. But, you know, if you wanted to trade cattle futures for some reason, then you could go ahead and do that. I'm sure there's an E T f out therefore so with all that being said, I hope this lesson was helpful and I will see you guys in the next one. 32. Should You Short Stocks?: our guys. So should you. Short stocks. I get this question all the time, and my answer is pretty much always the same. And that is absolutely not. And the reason for that is think about it. If you go and buy a stock for $10 theoretically, that stock could be worth $50.2 or three years from now or even tomorrow. Or, you know, whatever it may be that stock could be worth an absolute ton of money. It could technically go up to a Ninfa knit amount of dollars. It could be worth a $1,000,000 a share. Is that likely? Probably not. But if you short a stock for you know, say it's trading at $50 right now and you get 20 shares your $1000 in if you short a stock , you were gonna make $1000 if the company goes absolutely bankrupt and has no money. So if you short a stock that's trading at $50 you get 20 shares, your absolute max profit possible is $1000. That being said your Max los if the stock were to go up is infinite, because if you buy a stock. It's still infinite. So the point here is really that when you short of stock, your max loss is infinite and your max profit is capped. Whereas if you buy stocks, your maximum profit is infinite and your maximum loss is capped. And for me personally, I generally trade commodity based ET efs, which have bull and bear versions of each other, and therefore don't really need to short anything. Because if I want to take advantage of a downward move in natural gas, for example, I'll just by the bear version, which goes up when natural gas goes down. And if I want to take advantage of an upward move all by the bull version, which goes up when natural gas goes up. So I don't ever have to actually short sell any kind of stock or anything like that in order to go ahead and take advantage of downward moves. Obviously, this is different for stocks. There are not bull and bear versions of stocks, but I mean, generally speaking, your maximum loss is infinite. When you go ahead and short something, and that's not something that I like. It's not a risk I like to take on, and therefore I do not short stocks 33. Tracking Trades: our guys. So I wanted to make this quick lesson to show you guys Trader sink. Now, the real purpose of this is to explain to you guys the actual value of going ahead and tracking your trades. That way you can go ahead and see. You know, what times are you most successful? What times are you not successful? You know, if you find yourself that, you know, at at 3 p.m. Every single trade you ever take, you wind up losing money on and at 9 a.m. 75% of the trade to take you start making money on, and it will give you your average returns and aton of things. This does cost money. So if you guys don't want this, I would still highly recommend that you just get yourself a notebook for, like, 23 bucks and just write down certain data. You know, write down a trade that you took right down your profit loss total invested as well as the time of day in which you took it. That what, you guys can go back and take a look, you know, and just see if there's any patterns within your trading and see if there's anything that you potentially failed on or you potentially were successful at. And as they have here, they have set ups. You might want to write something like that down. You know, what was the reason for taking this trade? I'm not saying to do this forever. I don't do this anymore. But I did when I first started, and I think it really helped me out a lot, So I would highly recommend doing that. I'm not even sure how much this is. We go and look at pricing, so I guess they have Ah, basic. I'm not really sure what that is, but it's Ah, it's 30 bucks a month. I imagine you don't need the premium or the elite. So you know, if you don't want to write it down and you just want to do it very quickly, then you know 30 bucks a month to get you this, I guess free actually gets you all of this. So I mean, you could use this completely for free instead. And then if you want the pro version, that gives you much more data. And then obviously there's the premium and elite I don't I don't really think you need this . Um, yeah. You know, I don't think any of this is that worth it? Commission and fees tracking most brokers or free I 100% go with a free broker anyway, so just just go ahead and try this out. The free version should do just fine. Maybe you want to invest in the pro version if if you're balling out over there. But as far as I'm concerned, the free version should go completely fine. But if you don't wanna mess with this or you don't give them your info or anything like that, then you can definitely just go ahead and get a notebook and write down your potential strategy. You know, when you're making mistakes, what mistakes you're making, what time of day they're happening and things like that and kind of get an idea of what it is that you're doing wrong and stop doing that and get an idea of what you're doing right and continue doing more of that. You know, trading is just like any other business and the fact that you know there's a lot of trial and error and seeing what's working and what's not working, and this is gonna be a very important way to go ahead and do that. So with all that being said, I will see you guys in the next video. 34. Should You Use Leverage?: Alright, guys. So should you use leverage? All right, So you see a lot of people, especially brokerages out there trying to get you to use leverage. They want you to use leverage. And the answer to that, in my opinion, is absolutely not. I've never used leverage in any shape, form or fashion just because the best traders on Earth are profitable, maybe 80 or so percent of the time, it's very unlikely that you're gonna be the best traders on Earth. I'm certainly not the best traders on Earth. My win loss ratio is around 55 to 60%. It's very, very close, you know, mean going out there making a profit is not guaranteed, but the interest and the leverage that I will oh, is always gonna be guaranteed. And therefore, I just don't see value in going ahead and taking out leverage in order to train when you know the risk and reward in the potential for profit is not that high when it comes to trading. If this were real estate, for example than you know, obviously I think leverage is a great tool to use. But when it comes down to actually day trading and things like that. I think if you use leverage, you are asking to find yourself in a lot of trouble, and that's the reason I will never use leverage. 35. Class Project: our guys. So for the class product, what I would like you guys to do is download a paper trading software. I'm personally going to show you guys the TD Ameritrade one. But you can also use software from Weeble. Ah, that's the only other company that I know that has it. I imagine e trade has paper trading as well, if that's what you'd like to use. But for the purpose of this, download a paper trading software trade for about one week and then post a screenshot of your results on the class project section on skill share. So in order to go and download paper trading software, you're just gonna want to type in, think or swim paper money. There it is. And if we go ahead and click here, register for paper money, I'm not gonna register because I have a real account. But if you don't have a real accounted you don't want to make a real account, you can just go ahead and click right here. No. And then it will give you all this information. You can just put in fake information that you don't have to put in your real information. Um email address does have to be, really, But I believe outside of that, everything else could be fake. And this will last 60 days. At the end of 60 days, this account will no longer work, and you will have to either make a new account or go ahead and open a real account. If you guys do have a real account, then you don't actually need to go ahead and open a paper money account because you actually get it completely for free. So once you have an account, you're just gonna want to download thinker swim. You could just type in, think or swim download link on Google. It should pop up. Um, And then once you do that, I'm gonna see if I can open up a second window here. I see. Yeah. So once you guys do that and you open up the software, this is what's gonna open up. At first, I'm not gonna plug in any of my information. But say you had a real account. You can just type your information in and click paper money. And then if you had a fake account, you would just by default, click paper money and type Any really count If you put live trading, it actually won't lock you in if you don't have a real account. If you do have real account, then you can you go straight to live trading just by clicking this back and forth. But at that point, what I want you guys to do is go ahead and go over, seem to go into my retirement accounts. Don't really want to show any real positions right now. Um, but you would go right here and then just go ahead and show us the ah profit loss and down here, and that's pretty much all you have to do. So with all that being said, I hope you guys have enjoyed this video. Hope you guys do Go ahead and make sure to do this. One more side note. If you guys want real time quotes, you guys can also get that. If you have a real account and you got a paper money, you're gonna be 20 minutes delayed in terms of your quotes and trading. But you can call TD Ameritrade and get them to switch it over to real time quotes. And then if you guys have a just paper money account. I've heard that you can do this, but I've never done it myself. So I can't say for certain. But, you know, doing that is definitely gonna be pretty important. Just so you don't have the opportunity to cheat yourself or anything like that. So I would definitely try to get real quotes. It doesn't take that long to call them and get that real time quotes. So that's what I would do. But with all that being said, I hope you guys did enjoy this video and I will see you guys in the next one. 36. Thank You!: our guys. Thank you for checking out this course. I do appreciate it a ton. If you guys have any questions at all, feel free to inbox meat or go ahead and hit me up on Instagram at David Eves official, I replied a pretty much every single message I get there, and if you guys need any additional help or anything like that, you need a consulting call or you have a question or anything like that asked me on Instagram and I can set up a call with you guys and we can go over some things in more detail that I may not have explained entirely perfect in this course because at the end of the day, you guys did spend your time watching through this whole course. So, you know, if I didn't cover anything that I definitely want to go ahead and make all of you guys as happy as I possibly can, and with all that being said, thank you for checking out the course. Be sure to check out my YouTube channel youtube dot com slash david Eves official, and I will see you guys later