Quickstart Guide to Stock Trading | Vytautas Mikelaitis | Skillshare

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Quickstart Guide to Stock Trading

teacher avatar Vytautas Mikelaitis

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

15 Lessons (4h 10m)
    • 1. Introduction to "Quickstart Guide to Stock Trading"

    • 2. Stock market














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About This Class

The goal of this online course is to simplify and compress information for the best learning experience and give you a practical lesson to start finding your own stock picks to build your portfolio.



  • What is stock market?
  • What do we really trade when trading stocks?
  • Stock exchange's main functions.
  • Who are stock market participants?
  • Various stock trading related concepts.
  • Technical analysis principles. Charting basics and charting concepts. Fundamental analysis concepts.
  • How you can protect your capital while trading stocks?
  • How to choose a stockbroker?
  • Practical lesson to show you how to set up a screener to find stock ideas.



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1. Introduction to "Quickstart Guide to Stock Trading": Are you interested to learn about stock market and how it works? My name is Vito does, and I'd like to welcome you to Quick Start Guide to stock trading online course. If your goal is to acquire principle information regarding stock market and gain practical skills to pick your own stocks. This online course is made for you. Let's look at what you going to learn in this online course. You are going to start by learning what is stock market and how it fits among other financial markets. Then I'm going to deep dive into explaining to you about stocks because stock is a traded financial acid and you must understand the features of it. You will learn about type of stocks and stock instruments and which wants to use when trading as well. We will touch upon stock exchanges and they're workings. Then you're going to learn about different stock market players and how they participate and influence the market. In the next lessons, you are going to learn related trading concepts that are must denote. We're going to look into differences between day trading, swing trading, and position trading. Then you are going to learn about various trading styles like trend trading, momentum trading, volatility trading. All these concepts will be covered with real-life stock examples. Well, we are going to look into discretionary and systematic training processes. And you're going to find out about popular free online tools to use when starting with stocks. Next, you are going to learn about technical and fundamental analysis and main concepts which constitutes those analysis methods. These lessons will be a great primer for you to understand the most important stock analysis methods. Next will be risk-management lesson. And in this lesson you will learn a simple yet effective ways traders and investors use to protect their capital. To top it off the theoretical part of the course, you will learn about stockbrokers, types of trading accounts, what to look at when choosing your stock broker. Now the last lesson we'll focus on practical applications and we'll help you start trading stocks. You will find out how to find stocks for yourself by building fundamentally sound screener that adds technical aspects to find fundamentally strong companies that show possible upside price movement that could be caught. This five steps lesson will really help you to simplify the process. So you could start generating your own stock bits to trade and invest. If I match your interests, they're not wait and enroll now and start learning about stock market and gain useful skills that will help you to build your own stock portfolio. 2. Stock market: So let's start our first lesson. And in this lesson you're gonna learn what is stock market, what this environment is all about. And in order to understand the stock market, you need to understand what is financial market, because stock market is a type of financial market. And so let's ask the question, what is financial market? And to simplify it for you, it is like any, any other market, like an example for used cars where there is a dealers that buy used cars. So and the buy the cars and sell them to customers, right? So the same is with any financial market. But instead of used cars, they buy and sell financial securities. So basically, it is to answer the question, what is financial market? It is basically a marketplace where buying and selling of financial securities take place. So now the question arises, what are these financial securities? So let's answer this question. What are these financial securities that is being traded on financial markets? Basically, a financial securities is a generic term to describe any financial instrument or financial assets. And you're going to learn about these do financial instrument and financial asset later. But for now, just remember when they talk about financial securities, the generic term, and when they talk about their financial securities, they talk about contracts traded for value. So basically a piece of paper that, you know, deltas, that there's some kind of value. There's a written, it is written in that paper. So likes your house ownership papers, right. So basically, There's your name, what you own, or flat or house, how much land does it have, and so on. So basically it is just a contract. It does have a value and because they are standardized, they can be easily traded between parties. So what financial securities? They tradable financial assets. Now that you know what are financial securities? Let's look at different financial markets so you could better understand the vastness of various financial markets. So first we got stocks, stocks, financial securities, and they create market which is known as stock market. Then we have bonds and example, government issue bonds. Companies issue bonds which are known better as he junk bonds. So basically it's depth security. Governments wanted to borrow money. Companies want, wants to borrow money. So the issue, these bonds, again, a piece of paper, right? Then we have derivatives. Derivatives are derived from underlying assets. So basically it can be from commodity, oil or gold, or it can be even derived from stock itself, right? And these derivatives, like more specific, better known in example, most popular futures and options. And you definitely heard maybe stock options or SMP few futures, right? So these are contracts that can be traded. Then we have another financial market, which we just currency market. It is not technically a security, it does money, but nevertheless it is a very big financial market, or better known as forex or effects. So now you get the idea. You know, various financial markets, but now let's, let's focus on stocks. So let's now dig deeper into stocks. So when we talk about stocks, you need to understand that stocks represent various companies, basically Amazon, Apple, Disney, Facebook, and many, many other companies that can be traded on a stock market. So let us now check the definition of a stock. So basically stalk, also known as equity or shear, is a form of security that represents an ownership share in a company. So when you buy stock, you buy a piece of the company. So you become a partial owner in the company, you buy. So by now, you should understand that what is talk, or you should understand what is financial security? What is financial market? Let's now answer another question. Where stocks trade it, where this, where trading is being facilitated. And simply answered this question, stocks are being traded on stock exchanges. So all the trading action is being done through stock exchanges. This is the organization that dies all players and allows for trading to be facilitated. So the most popular Stock Exchange and nasdaq and New York Stock Exchange, both are located in the United States of America. For the best trading experience, definitely choose these exchanges and stocks that are being traded on these exchanges. Before wrapping up this lesson, I just wanna give you a very brief history on stock exchanges. Stock exchanges are actually very old and the developed through time into very sophisticated organizations. Back in the days, people were organizing in one place and they were buying and selling securities. After that, these, these places where they gathered become stock exchanges. They became more organized and because of a impact from internet and electronic trading. Nowadays, these physical locations are actually non-existing, even New York Stock Exchange. Now, the one you see on the news on the TV is basically just a symbolic place where There's still some trading is happening. But the majority of New York Stock Exchange trading is facilitated Foo servers that are located somewhere, somewhere in New Jersey, I don't know where exactly, but somewhere in New Jersey. I think So these are the best, you know, these are the best times for every investor and trader to be alive because it is very easy to start trading. You only need computer and, or mobile phone, and you need the open online brokerage account, which is possible to do with a couple of $100 and start trading and learning, you know, how financial markets are working. To finish this lesson, let's answer the last question. So what is stock market? And the answer is, it is a stock exchange where buying and selling of stocks they place. I wanted with this lesson for you to gain the understanding how the stock market and stocks fit into the big picture of financial world. That stock market is just a type of financial or what are the, what are the financial markets? And the stock is just basically one of their financial securities that are being traded. 3. STOCK AS AN ASSET: It is very important for you to understand that stock is an asset, a financial asset. So let's first look at the definition. What is financial asset? So financial assets are a non-physical liquid assets. Those value derived from a contractual acclaim. So I think so the definition is a bit hard maybe to understand. So let's dissect it and let's look at it piece by piece so you better understand that how everything fits within the stock. First things first, financial assets are nonphysical. What does that mean? Basically, it means that these assets are in the form of a paper, basically just paper assets, you can say. But nevertheless, they have a value because they represent something. But nowadays, of course, everything is in a electronic, is in electronic format. So basically, buying and selling financial assets are very easy. So you can do that by using your phone or your computer and all these assets in electronic form. And basically this is why these assets non-physical. Another property of Fourier financial asset is that financial assets are very liquid. And liquidity basically means how fast you can exchange some thing to cash. And I will give you example, imagine a regular car and rare sports car. Basically the regular car will be way more liquid because there's going to be way more buyers for it. So it is way easier to sell it. And of course, it is a cheaper car. In comparison to a rear sports car where there are not so many buyers and the price is very expensive, so it's gonna be harder to liquidated. So when it comes to financial markets, in general, financial markets are very liquid markets in comparison to all others because it is easy to open your computer and open your brokerage account and to sell or buy various contracts, various financial securities. The next thing about financial assets is that financial assets value are derived from a contractual claim. Contractual meaning agreed in a contract. We already established that stock is a financial security. And financial security is basically a contract with a value. And what kind of claims there are when it comes to owning stock. Imagine Company had a great year and earn a lot of money. And managers decided to distribute that money through dividends. So basically because you own that stock, you have a claims to these dividends and when. And if you hold that stock during the time when, when the dividends, dividends are paid out, you will then receive these dividends. So this is your claim and the stock, and the stock contract allows you to get that money. So just to add here, when it comes to contractual claims, basically there are only a few things that comes with style contract. Basically declaim to dividends and possibility to vote during investors meeting. And actually this is it. And so don't, you know, be overwhelmed. Maybe there's way more about the about the claims. And maybe it's a contract you're gonna, you're gonna buy and it's, it's super hard done their stand. This was just to give you idea that what comes with a stock and the thing that I didn't mention and that wasn't included in a definition of a financial in the definition of a financial asset is that financial This type of financial assets, stocks basically include both tangible properties and intangible assets. So it's very important for you to understand when you buy stock, you buy a piece of a company, right? And to give you a better idea, you basically buying tangible properties like office space. So broad birdies, factory, a goods the company has in a warehouse gadget they have in the bank account, maybe the stalks that that company is invested in as well, fleet and various other tangible properties and assets that GMS. So with that company when you buy and in addition, you get as well they intangible assets. So basically when you buy stocks, you'll get tangible properties of that company. You know, tangible assets and intangible assets basically meaning patents, copyrights, trademarks, Trademarks, client list, and many more things. You know, that comes with that with that company. So I just wanted to give you understanding the why it does as well. Actually smart though, trade for longer term or even to invest, because what you actually buying and selling is a financial asset. Stock is a financial asset. 4. STOCK AS AN INSTRUMENT: In this lesson, we're going to talk about stock as an instrument. So you already learned that financial securities mean just generic term to describe any financial asset or any financial instrument. And what is financial instrument then? So basically, financial instruments are backed by financial assets that are made into contracts. So basically, that contract is financial instruments, so it is backed by financial assets. We talked about the tangible and intangible ones. And it is standardized. It is standardized piece of paper that has a value and that can be traded. So basically financial instrument to simplify, is that contract standardized and with a value in it, right? So now let's go a bit deeper when it comes to stocks, because when it comes to stocks, there are different financial instruments for stocks, right? So the first one is shear, which is a single unit of ownership in a company that can be traded. Because it's very important to understand that when it comes to stock, stock is just as well its a more generic term to describe traded company, right? So Let's look at another slide. That difference between stock versus shear. So when people talk about stock, they most likely are talking specifically about some kind of company, right? Amazon, Uber, Apple, this name. And when it comes to shear, they talking exactly about that piece of paper with a value. So basically when somebody is asking, you know, so what kind of stock, what kind of stops? So you do trade and you say, oh, I trade Facebook, I trade Amazon. And then the question arises, so how many shares do you trade? You know, so this is more specific now. So, so when a person is asking this kind of version, they're actually asking, you know, how much of, of shares of that stock do you trade? So basically shear is that, is actually that single unit that we trade. So I think so you are now clearly understand that stock just means basically trade tradable company. And when it comes to shear, it is an instrument that we actually trade when we trade stocks. So let's talk now about most common type of shares. And there are mainly due type of shares, which are common and briefer and preferred shares as well. Just for you to know, there are different synonyms for common stock. So it can be common stock or it can be called common share, ordinary share, voting share or voting stock and ordinary stock and same goes for preferred stock. Basically it can be called preferred stock, preferred chair or just preferred. And for you to remember from this slide, is that common stock is the majority of the dogs that are being traded on stock exchanges and preferred, I actually used for more sophisticated traders. But nevertheless, there's possibility to trade them. But if you interested in trading, you definitely wanna stick with the common stock which every broker or go offers to trade. And preferred stock is actually is more for sophisticated investors. Those who are interested in longer-term, longer-term trading, or they are interested to put money in a stock and just, oh, hold the stock because this different, different aspects about common stock and preferred stock, which we're going to look at, which we're going to look at the now. So let's now talk about common stock. Common stock is a most common type of shares that are being traded on stock exchanges. And the majority, I mean, majority, majority of publicly traded companies only issue common shares and everybody trade common shares. So definitely when you're gonna start trading stocks, you're going to trade common shares. And other thing about a common, common shares is that they have voting rights, basically, meaning that once year gives you one boat, so more shares, you got a more voting power you get. And you can vote on such matters like dividend distribution. So Board of Directors during investor, investors meeting can ask you to vote for and for that matter and with the shares, you can vote during these meetings. Then omens talk has a right to receive dividends. So basically, if everybody agreed on dividends, you can receive dividends for, for your, for your shares, for the amount of shares you have. Then another thing about common stock, possibility of capital appreciation. So basically, meaning prize gain. If you buy a ten sell at 20, you got done the dollar of capital appreciation. So basically $10 of price increase. So basically this is why it is possible to trade stocks because common shares allow of price fluctuation. So this is why it is possible to do, to earn as well lose money when trading stocks. Let's look now into preferred stock. So first, it is important to know that the preferred stock is or can be a hybrid security. So basically you can have a attributes of a Equity that basically meaning it can be a stock and a junk bond in one security. This is why these securities, these preferred stocks, are used by more sophisticated investors. Another interesting thing is that preferred stocks, preferred stock has no voting rights. So, you know, you can have as many as you want. You will not have any voting power during investors, investors meeting. But this is why, you know, investors interested in preferred stocks. If that company is interested in, in a company and they see the potential, possible potential in the company, but the company is very risky. Maybe they, they will try to buy preferred stocks because if the company goes bust during the bankruptcy process, they would be in front of Coleman stall holders when the bankruptcy is happening and there's maybe money left for that company. First in line, AA, bond holders of the company. So basically those that bought a junk bonds of that company, then there is preferred stockholders and only then common stock holders. So this is why as well, more sophisticated investors, you know, interested to use preferred stocks to get there, as it's called exposure on, on, on the company. And another important thing, and you need to understand that preferred stocks are mostly used for investors to get that higher dividend yield. And the value of these talks are way different and actually a preferred stocks way less liquid. So basically when it comes to trading, by default, everybody you know, trades common shares. But for you it is important to know that there are such stocks as a, such shares as preferred shares. Because imagine if you are trading, trading the stock and you see the news that the preferred stockholder would prefer chairs. Investors are selling their shares, it can give you alert that maybe something is happening that you did not know. And it can give you some idea that, you know, you should look more into what's happening with a stock. So hope you get the idea about preferred stocks. Just know about them. But remember that the Uganda trade Coleman shares. So, you know, do not overwhelm yourself with preferred stock, but know that they exist and what the robot. To finish this lesson, let's look into other stock instruments. A few are learning about stock market. You, I think so you have heard about stock options, which the second most traded stock instruments after a poem on shares. Then we have Lawrence of basically the bid different than options, but as well. Pretty popular but way less liquid than stock options. And there's even a single stock futures, which is like futures contract for stock. And there's even other ones that I will not even mention. But for you as a beginner, it is totally override to focus only on common shares and the price fluctuation, you know, that is happening with these stocks as well. If you wanted to upper your game, definitely look into stock options because I can make like separate online course just for stock options and warrants as well popular, but they are less liquid, but they as well influence, influence the stock price, right? So, so begin with, with, with the most popular or common shares. Because you know, everybody basically trade or started trading Coleman shears. So you're good with these and as well, if you want to update your game than the other instrument that you should look into is stock options. 5. STOCK EXCHANGES: So let's now talk about stock exchanges. And in this lesson you're gonna learn and understand what is the purpose of stock exchanges. Because a lot of people, I think So just because they did not understand, or it can look like it is just a type of casino. And this is why people do not know better or they do not understand what is the real purpose of stock exchanges? Because docket changes really old thing and the modern type of Stock Exchange was, the first one was in Amsterdam. It is, I didn't remember the year but it was something like, I think so 16 hundreds. And the concept of shares and exchanges is even why older. So you need to understand that there's purpose for, for, for, for various exchanges. And same goes for a stock exchanges. So let's first look into definition of Stock Exchange. So Stock Exchange, also known as bores, is facility where market participants buy and sell stocks. So basically various brokers, dealers at traders, do trade among each other and trade in stocks. So stock exchanges allowed them to do, do this, buying and selling. Let's now answer the question. So what is the purpose of stock exchanges? So in order to answer this question, we first need to understand that who needs the services of a stock exchange. And we have two parties that are represented by these icons. And one represents companies and another represents investors. So companies, they need to raise money. They need to raise money. So the Gan, so the company can increase production or open new branches or put that money into research and development though. So the Gan create new products and investors, and investors, they wanted to allocate money so they can make money from that money that they invest. And what do companies, and what companies do, they issue shares. They can take a piece of the pie from the company, from the ownership of the company and issue shares so that, so that these shares could be sold. And this is how they got, so this is how they can raise money. And investors, they come with money and the exchange that so companies, they issue shares and they sell these shares. So they get the money and put that money into the goals. For the goals that the, the, the taking that money in the first place and investors, they buying financial assets, right? So basically the buying shares in the company, and this is how they allocating money. So both parties benefit. And this is why stock exchange. This is the purpose of the Stock Exchange because it allows for investors and companies to meet an exchange. So basically, stock exchanges are here to make deals. So I think so now you get a clear idea, what is the purpose of a stock exchange? So let's rewind a bit and let's look into the process of how this exchange and deal happens. So companies. The company is raised money by selling company shares to investors. So basically the issue, shares that represents a piece of the ownership by, and they sell the shares to investors so they, the, they could raise money. And they do this by IPO or initial public offering. Basically, IPO is, is a broad, is the process by which a private company goes public by selling its shares, institutional and retail investors. And these two terms, institutional and retail investors. So we're going to talk about the difference between these two in the next lesson. So you're going to learn about these type of investors. But just know that company can raise money through what's known as IPO. So basically when the company is private and it wants to raise money and, and they use the services of stock exchange. They the, do the IPO and the Fru, the IPO, they can sell the shares to investors. And investor is basically the by the shears to earn from stock price appreciation or capital appreciation and paid out dividends. So basically these are due waste that investors and traders can earn money from stocks. So it is from price appreciation or capital appreciation, or just simply price increase and paid out dividends. So now that you know what is the main purpose of a stock exchange and you learn a bit about the process through which companies raise money and investors allocate that money. Let's now look more closely into what type of services do stock exchanges provide. So what stock exchanges like nasdaq and New York Stock Exchange do? Stock exchanges allow for securities to be listed? So in order for a company's stock to be listed on a stock exchange, company need to meet minimum requirements provided by stock exchange in order for it, it's thought to be listed. So traders and investors could find it and traded or invest in it. Stock exchanges here to provide a platform for buyers and sellers to meet. So trading could, could happen. And as well, stock exchanges responsible for clearing that transactions. So basically when buyer buys shares from seller, clearing is after trade, the process which guarantees that buyer will receive shares and the seller will receive money, and the transaction will be settled. So stock exchanges, you know, is a platform for grading to happen and buyers and sellers to meet. And of course there's more bodies data involved. But we would get in too deep into my stock exchange and microstructure. But nevertheless understand that stock exchanges is a platform for trading to happen as well. Stock exchanges provide other services like market data, research. And there are many others because stock exchanges, big and complex organizations, like an example, nasdaq. Nasdaq is a great exchange. It provides a lot of data for investors and traders for free on their website before finishing this lesson and just a quick dip. Always choose stock exchanges over OTC markets, especially when beginning to trade stocks. So basically always choose regulated a well-known exchanges like nasdaq, New York Stock Exchange, Toronto Stock Exchange, London Stock Exchange, and others. Instead of trading on these OTC markets, what it's called over the counter markets, OTC, right? Basically penny stocks are traded on OTC markets. And these are way less regulated markets. And there's a lot of frauds. There are a lot of fraud happening there. So definitely the better stick with stock exchanges and even a few more risky type of person. And you are interested in these small companies like Benny stocks, definitely nasdaq provides better alternative for the stocks because they as well allow small stocks to be traded. They, you know, they are prize jumping very, very high, so they are very exciting to trade, but as very risky. So better choose regulated, regulated stock exchanges like nasdaq or New York Stock Exchange. Instead of choosing these OTC markets, what is known in America. So this is just a quick tip that's a hop on to the next lesson. 6. STOCK MARKET PARTICIPANTS: Let's now look at market participants and we're gonna talk in this lesson about traders, investors, the ones that you're going to be competing with. Then about those participants that help traders to trade. So basically provide services. And then we're going to talk as well about other participants that influence stock market. So let's begin. So let's start with the first participant, group, traders and investors. These, these participants can be split into two categories, retail and institutional investors or traders. So let's now look first into retail traders or investors. Let's look into retail traders or investor. So basically retail trader or retail investor is average person, individual person that opens brokerage account and start trading on its own. Majority of people do trade on mobile phones, especially younger generation. But the few serious about trading you definitely need to have at least like dissent setup, screen, bigger one, preferably computer and Internet. And it is better to do hookup with cable instead of Wi-Fi, so you will not lose a connection during trading as well. Remember that retails are like more individuals that are non professionals. But anyways, they're broke. National retail traders or retail investors that do trade markets on their own. And I hope all these, this learning material will be the starting poor boy and for you to become one. So let's now look into institutional traders or institutional investors. Institutions, or institutional traders, or institutional investors are basically the wall street, the wall street guys, the people and funds than companies that do this professionally. Many of these institutions, banks like G and JP Morgan and Goldman Sachs, UBS, and various others. These, these banks into IPO process. They help companies to raise capital. They as well doing the as well trading from their own account and making money and as well are they doing what is known as market-making? Like the they provide market making services basically, that helps to provide liquidity for markets during trading hours. And other people, more well-known. Maybe you heard some of them like Warren Buffett, raid Valeo, bold, Tudor Jones. These guys, as they do not trade like individually. Definitely they have the institutional I like the institutions. The light represent institution of books of their own because they, they do have their own funds through which they trade. But nevertheless they add the brains and the faces of these funds. But anyways, these are the people that, you know you are up against. So definitely highly intellectual and very competitive people. So be aware of this that you know, you trading against really brilliant people. But nevertheless remember that these guys as well do, do make mistakes and big ones. The, the, they just know how to persevere through hard times. Well, there's many other funds like equity fund, satellite funds, like Blackrock and the ones that we should not even get into it because a lot of various funds and banks that trade as institution and which influence the stock price and which have a technological power, capital power. But nevertheless remember that they as well lose and as well when so they have their own struggles. Let's look now into other category of market participants. And I call them corporate. So basically these are issuing companies and insiders. I separated them because insiders, so which basically company managers, chief financial officer, and various other people that work in issuing companies. They can act alone, but in the group they act as issuing companies. So this is why I separated them. So let's now look into first, first category issuing companies. So let's now look into issuing companies. And basically these are various companies that are traded on a stock exchanges. And what can I tell about them is that companies, you know, people that are working, basically insiders now that working in your companies, you know, as a group they accompany, so basically they, they do make a decision as a group. So this is very important to understand because companies do or can do various corporate actions. The insiders can decide on embarrass corporate actions, which we're gonna talk about in the lesson about the fundamentals. And during the, due to these corporate actions that are implicated, a stock price can drastically even the change. So basically, issuing companies do have a power to influence their own share price. So this is important to understand that this is why it's important to keep a track on the company that you invest or trade. So insiders are individuals that are working in the issuing company. One that the company that is traded on a stock exchange. And insiders are individual people like Chief Executive Officer or CEO or Chief Financial Officer, CFO, EC50, or various other people that own shares in a stock. And you can actually analyze what they do because they need to fill papers with Security Exchange Commission and basically regulatory body that oversights issue in companies. And you can observe if insiders are buying or selling shares in the company. And just to give you like a tip, when insiders are massively buying, it's definitely something worth to note to notice because insiders, remember, insiders know more than the general public about the company. So you definitely need to look at their actions and you should not be very conservative. Individuals selling, you know, not a huge amount of shares because it can be just for a personal, personal gains. Because maybe they just need some money for their, in their personal life. So, but anyways, if they massively selling shares, it's definitely as well important to look at because as I said, insiders know about the company more than general public. So their action is needs to be observed, and it can be observed through feelings that are registered with the Security Exchange Commission. So let's now look in the other group of market participants, which is brokers and dealers. And this group, group can be separated into two categories. Brokers and market makers, or actually dealers. So let's now look into each of the category. Let's now talk about brokers, majority of stockbrokers these days, online stockbrokers. And because of the impact of technology and internet, because of that the very available for retail traders and investors. But as well. These stockbrokers scalar, for instance, institutional investors as well. But nevertheless, remember that as well, banks as well offering these kind of services. And in this slide you can see them, I think so the most popular online stock brokers in the United States of America. But nevertheless remember that Stoke stockbrokers, very important when talking about stock market because they allow for buyer and seller to meet. And it is very important to understand if brokers trade from their own account or do they act as an agent? Because if they trade from their own account, they will bet against you. So this is very important. And you definitely need to look into the brokers that act as an agent. So basically they just take your order and sent to this to the stock exchange. And like many other orders, are sent there as well, so they are being matched. And this is how the market happens. So this is very important, but majority of these brokers, as I know, they act as an agent. So I did not like, you know, give a favor for any of these, but nevertheless, I think so they are good to use if you're interested in trading United States of America stock markets. So let's now talk about market-makers. I think so the least understood by retail traders, market-makers, first and foremost, liquidity providers, and they trade in a particular securities. The members of a security changes and the need to meet the requirements that app provided by stock exchanges. And when stocks are listed, stock exchanges require for a company to have at least few market makers. So, you know, in order for a stock to be liquid, because sometimes liquidity dries up because there's no buyers or sellers. So market-makers I here to take the other side of the bed and they're trading is different. They actually trying to make money from this bread. You know, there's like bit bidding price for which, you know, the, the market is ready to, to buy stock and there's offer of for which the market is ready to sell. So basically market-makers quoting these two prices and they making money from this spread from the amount which is between bid and offer price. It can be a bit hard to understand, but nevertheless, understand that market-makers very computerized and they do tons of trading. So, you know, hundreds, thousands, even more like ten, thousands, independence, how sophisticated and how technologically advanced market maker is. And a couple of market-makers like virtue Financial, which is actually a publicly traded company as well, Jane Street sit that those securities up diver as well. Banks engage in market making activity. But remember that market-makers, our liquidity providers and they take other side of the bed. And they are here for a stock trading to, you know, to, to keep on going. And during the liquid times they are here, took both others aside and take other side of the bed. So, you know, whole, all trading in a particular stock could go smoothly. Another group or category is political powers. And I split these into two categories, which is government and fed, which is very impactful when it comes to financial markets. Let's learn about government as market participant. And when I talk about government, I mainly talk about institutions such as the Securities and Exchange Commission, wide house or better, or, you know, or to be more clear, I'm talking about Presidents and Congress. So why we should care about government and how they participate in a stock market. So Securities and Exchange Commission can enact different rules that can impact stock trading. So an example, no BDT rule. If you heard about it, it is pattern day trading rule that doesn't allow for a individual with less than $25 thousand account to trade more than three times per week engaging in day trading activity? I think so there's a lot of terms that you use still do not know, but I will teach you about them in later lessons. But now less alike BDD rule impacted individual traders who especially those that have small accounts, to trade less. And it is controversial rule. But nevertheless, it actually saves some, someone who is really a reckless with his or her money. So do so not to over trade. So this is just an example how, how a sec or security Securities and Exchange Commission impacts stock trading. Then when we talk about the presidents and the Congress in example, as well as a real-life example. In 2016, Trump was elected as president. And he heap as the law through congress which decreased corporate tax. And because corporate tax was decreased, stock market just boomed because it was very simple. Because corporations, you know, due to lower the tax rate, they received more, more profits from the revenue. So less taxes means more profit for the companies. Many of, of publicly traded companies bought back their own chairs so to increase the value of its shareholders, basically becoming the buyer of their own shares. And these issue in companies increased prices for their own stock and basically hold stock market like stocky indices just to end up with all the, with all of the stocks. So this is just a few examples how government is participating and impacting in stock trading. And the last market participant is fed, or federal reserve bank. The central bank of the United States. And technically actually it is not a government body. It is separate institution that creates its own rules actually. And in banks financial markets a lot. And it is the same for every central banks as there are in the world. It can be a Bank of England, the Europeans, European Central Bank, or Bank of Japan and all other central banks. Central banks impact financial markets a lot and you definitely need to observe what central bank, what central bankers do. Central Bank has few tools to impact, impact financial markets. And the one of them is lowering or increasing or decreasing interest rates. So they have a possibility to increase or decrease interest rates. So in example, when interest rates are decreased, that means that the borrowing costs decrease as well. So for you, for companies, the money becomes cheaper to borrow because the interest rate is lowered. So the banks as well follow suit and lower their interest rates on their loans. And this actually is positive for, for stock market because it allows for a cheap money, will find its way to stock market because in example, fund that can borrow money for lower interest rate. And if they can't find the spot where they can earn more money, they can actually use that money, borrow that money, buy the securities, the security may be bays, nice, you know, interest rate on top of that. And you know, they can give back the loan, the interest, and they can still earn the money. So this is actually very positive for stock market, but it can be different for different markets. But nevertheless, for stock market, decreased interest rate means cheaper money and cheaper money means it is easier for funds to borrow and put that money into financial markets as well when increasing, it is harder to borrow is so companies do, you know, can think if they wanted to borrow for higher prices. So you know, the higher interest rate is not so appealing as lower interest rate. Then send central bank scan the goal it like in example, stimulus packages or quantitative easing or various other ways. The old these programs, you know, but what they actually do, the just bring money plain and simple. You know, when you hear that, you know, a federal reserve bank increased its stimulus by 100 billions. That means that they just basically printing money and food, the banks, they just putting that money into financial markets. And as well when money is printed, it is most of the time positive for stock market because as well, the money floods into the stock market and example and into various other markets and they can increase and inflate the price of a stock market. So definitely you need to observe and watch what central bankers do because they do influence of financial markets and the stock market. A lot. 7. STOCK TRADING CONCEPTS: PRICE DIRECTION: Let's continue this online course and let us now look into stock trading concepts. This lesson will be separated into 44 separate videos and yes, so let's begin and lets look into stock trading concepts. Let's now learn about concepts are related to rise direction. So very simple and straight forward prices of any assets, of any financial security scan go up or down. But in trading, these, these directions as well can be called long and short. And remember, traders can earn money on both sides. They can make money when the stock price goes up and they can make money if the stock price goes down. Let's look into the first definition. Long position. Long position is when trader purchase shares of a stock and anticipate it will arise in value. So basically, if you are a buyer of stock, you are considered to be holding a long position or going long. And if you are interested and might be asking why it is called long. It is very simple because if you would observe any chart, you would see that most, most likely the price of an asset or stock does take a long time to do increase in value, but it takes a very short to crash. So this is where it comes, these two terms. So let's now look into other definition of short. So short position, or short, or going short, is when a trader short sell shares of a stock and anticipate it will drop in value. But in order for you to understand how, how it is possible to do go short on a stock. Let's now look into short selling. And maybe let's look into the term. Short-selling. Basically, short-selling is trading method to profit if the price of a stock drops. So how this, how this short selling works. So let's look into the mechanics of how it can be done. So let's look into how everything works when it comes to short selling. So first and foremost, you need to borrow shares and sell them into market. How everything is done, it is simply done through online stockbroker and you do not need to think much about, about how this borrowing the works because there are tons of funds and traders and investors that are happy actually due to borrow you are shares because they will be paid interest. Interests for that. And for you, the main thing is to know if there are shares that can be borrowed and what is the interest rate? Interest rate is shown yearly. So it will always, they will say, if you look at the online brokerage account and you will see that there are tons of sheers to borrow and there, and the interest rate to do that is like coupled percents, percents. So basically know that percent is yearly. So you if you would hold those shares, like if you would hold short position four year, you would be paying that amount of interests. So if you would be holding for a shorter time, you would be only being that interests for the time that you are holding short position. So when you borrow those shares and through the platforms of the broker, it's very easy. You just click cell and the amount and the price you're willing to sell those shares. You sell those shares. And if the price goes to the direction that you want, you will buy back those shares and close the trait. And you will as well on top of that, you will pay the interest rate of four that are holding time and trade will be closed. And the, if you, if you would be correct, you will earn money and as well it is possible to lose, of course, money if the price will go up, so you will definitely will incur losses. So, but anyways, you get the idea. You just, you just sell those borrowed cheers and then you buy back those shares and close the trade. So the stock market is a battleground that, you know, between a long traders and short traders as well. You know, remember that long traders can be called booths, and short traders can be called beers. And you know, you can hear that traitor is bullish on stock or trader is bearish on stock, basically. Meaning when bullish, meaning that they anticipate that they anticipate that the price of a stock will increase in value. And if they are bearish, you know, they considered for the value of a stock price to go, go lower. So the quick tip majority of individual stock than to follow general stock market direction, so don't fight the market. What does that mean? You should not be a short seller and example, when the stock indices are rising, because the general stock market direction drives all individual stocks, like majority of them. Of course there are exceptions, exceptions and there are some stocks you know, that might be dropping in value during the bull market. But you need to be aware of a fundamental story. Maybe the company is going bankrupt. But in general, you do not want to fight the market. And instead, you want to be a buyer during bull market or when the stock indices like down jones, S, and P 500 or nasdaq are rising. You want to be a buyer or bull. And when the stock market direction show is showing that the prices are going lower, you want to be a beard because it is a beer market and you want to sell stock or initiate short position. 8. STOCK TRADING CONCEPTS: POSITION HOLDING TIME: So let's now talk about concepts related to position holding time. When it comes to terms such as day trading, swing trading position, position trading. A lot of people, you know, mistakenly assume that these are strategies by, by, by the definition, but more with a dime and how long does the position is held? So when it comes to day trading, swing trading, remember one day, because one day is like a time point which you need to remember in order to understand the differences between, between these two short-term ways of trading. So day trading is when position is held less than a day and swing trading is when position is hold overnight. So this is the main difference. And with the swing trading, with day trading is very simple. You know, you need to close your position before the end of the day when the market closes and swing trading can last more than a day and up to a couple of days, couple of weeks, or even some traders considered couple of months. Let's now look into day trading, swing trading separately. So let's start with day trading, which is buying and selling financial instruments within the same trading day, such that all positions are closed before the market closes for the trading day. So know this, that USA stock market opens at 930 New York Time and closes at four PM New York time. So you need to close when a few a day trading, you need to close your position before 04:00 PM, right? So this is so it would be considered as a day trade and as well, you know, just for your for your information there as well, additional hours, pre-market hours that start before 930 and aftermarket hours that start after 04:00 PM. And the last four, about four for our four hours each. And during that time as well, you can trade. But remember one thing doing during these times, the market is very liquid. You know, it is very hard to trade. So for every beginner, have possibility. Do not denote trade during pre-market or aftermarket hours and stick with irregular trading hours. Let's now look into swing trading. So swing trading is buying and selling financial instruments and holding them for more than one day up to several weeks. And it can be up to several months. But there is no like agreement when swing trading ends and when position trading, which we're gonna talk about in the next slides and starts. So as well, I want to add here a swing trading is, I think so the most optimal position holding time for every beginner trader. Because it doesn't require so much screen time when comparing two day trading. And in addition to that, the trading frequency is way less. So you basically would incur a whale as costs associated with broker fees from buying and selling securities. And in addition to that, for my research, especially from the book serious market wizards, These are the books. With the interviews with professional traders. I found out that many professional traders are swing traders, position traders, so their position holding time is way longer. And I think so it has a lot to do with, with the idea that, that like, like short-term markets do not move much actually and they move sideways, sideways. So in order to catch a, you know, the price swings and price trends, you definitely need to hold your position for longer term. So this is why swing trading is, I think So with the most optimal position, position holding time for every beginner. So I think so you should consider it swing trading. Well try day trading and as well, if you are patient, try, try position trading. When we are talking about position trading, we're talking about positions that I held for 14 months or even years. And it actually is a very long time for position to be helped. And the whole trading can be very slow, but nevertheless can be very rewarding. And not too many people have patience and discipline to hold position, positions for a, such a Fourier, such a long time. But nevertheless, it can pay big because big price moves, big price trends happened. You know, they did not happen in one or two days. They happen for 14 months and four years. And if you can catch that whole hold price, price trend, you can definitely earn a lot of money and 11, great position trade can make like and make you so much for use of, it can make you so much money that you know, all your losses would be like basically nothing in comparison to the big when you got from one position trait. And when it comes to position trading and investing, these can actually, when it comes to o position holding time, investor and position trailer, again seem very similar. But remember that investors are always interested even for a longer term. They are going for a years and decades because they know that companies that they invest in order to build that company takes time. And the Fourier trailer, it's all about that, that, that price trend that they want to, they want to catch. And traders are sometimes even less interested in fundamental, fundamentals of a company on the stock that the trade, and they just want to catch that price trend. For investors, they definitely just mainly interested in fundamentals and they are interested in very long-term investing. But nevertheless, when it comes to position holding time, both of position trader and investor can look similar because of, of, of how long the hell they are holding their stocks. So to finish here, let's look at the definition. Position trading is buying and selling financial instruments and holding them for a long period of time, typically over a number of months or years. So this is the idea position traders here though, sit tight and hold them, hold their position of positions for long, for long-term. And you know, to, in order to catch that price trend. And of course, if something is changing with this dog had the trade, they definitely can the clothes that position, you know, after a couple of months and look for another trade. Or if they see that the stock is doing fine and the price of a stock is doing fine if they can't hold that position for even couple of years. 9. STOCK TRADING CONCEPTS: TRADING STYLES: Okay guys, so let's continue online course and let's continue with trading styles. And I think so this is going to be one of the more interesting, one of the more interesting lesson. I hope maybe you had your favorite one already. But when it comes to trading styles, we're going to talk about trend-following, momentum trading, volatility trading. So basically these are the ways to trade. You know, this is not, we're not talking about opposition holding time. What we're talking about, how? So? Let's start with trading styles and let's start with the trend-following. So that start with trend trading or trend-following. This is typeof trading where trader tries to catch trend. And trend can be shorter, shorter and can be longer. Most likely it's going to be longer. Trend because this, you know, this gives the most potential for fundamental story to develop. But nevertheless, there are many, a shorter term trends. And you know, you definitely can observe trends to various, various directions. Trend though, of course, when it comes to trend up or down. Because sometimes you're not, sometimes actually, a lot of times stalk can just trend, you know, in, in a, in a range and actually do not show any kind of trend. But when it, when it breaks the Bryce, it can go both ways. So, but nevertheless, you know, trend can be shorter, shorter term, or longer term. But anyways, Trend Trading fits with swing trading and position trading. These add up holding, position holding times that fits this type of trading. So let's now look at the definitions of a trend and the trend trading. So the definition for price trend is the direction of the price of a security or other assets. So you must understand that the majority of time security can trade in a range, right? So it can just price can go up and down, up and down. And it can trade in a range. But when that drainage is being broken and the price starts to maybe break higher, the trend the can start and it can last for, you know, for a pretty long time. And this is, this is what you actually want to capture one like you capture that direction when the, when the, when the price is breaking from these ranges and starting to trend up or trend down. Because you can play both sides of the market. So due to add here, Trend Trading basically is a trading style that attempts to capture gains through the analysis of an asset's momentum in a particular direction. And we're gonna talk about momentum because momentum trading it is in itself a style, but nevertheless, understand that these two are related. So let's now look at the charts. So you will understand. Oh, about trans more. Let's now look into current Down Jones index price chart. And as you can see, we can clearly see, do a short-term trends that were created because of the fundamental reasons. One of the fundamental reason was a pandemic that happened throughout the world. The hit the stock market or an old financial markets. And stock market started to crashing and sold off big time. And this was actually a great short term trend to catch by swing trading, right? So this whole movement happened, you know, from somewhere we can say February 21st to march, March 24, March to advent the free. As so basically a whole month was a trend to the downside, and this was a great time to catch those gains by short-selling the market. And then you can see as well, clearly, the upward trend, which was great, did not because of fundamental reasons, are actually fundamental reason, but because federal reserve just stepped in and started bringing money like crazy. And with that printing money, they started buying all kinds of financial assets. So there's no fundamental reason actually for a stock market and many stocks to be up. But because federal reserve just buying like crazy with its newly printed money, whole of various different financial, financial assets than the stock market went up. And this was as well a reason for this current, that current upward trend. And this is as well, great time to swing trade to the, to the upside, right? What will happen? We don't know, you know, because this is the idea of the stock market, the future's unknown, but that's why you need to use risk management, which we're going to talk about in later lessons. What I wanted to as well tell you about trends and trend trading is that this is actually just short term trends that actually great to go to catch because, you know, the price fluctuates really widely and this is great, you know, profit margins to date. But trends actually, the big trends are happening, you know, they are happening for a, when you look at the chart in a way, way longer timeframe. And you can see that current boom market happened from 2009. We can say up to here where, you know, there was huge sell-off that happened, right? Even here was huge sell-off which, you know, could could make every position trailer to just go out from the, from the, from the trade. But now let's remember when you wanted to catch trend, these trends actually happening in, in such a long time dislike patients is needed, but this is actually a great time to just buy more, add more, add more, add more. And if you catch this strand, this can be your fortune. So from trading that you would never even dream about. So as well, what I wanted to talk a bit about, you can see that here, the prize actually was trading in the range. And what happened? It again broke the range and started joining up with a help of, of, of price climbs, climbing up and created another trend up. So as you can see, these like given, even though trends to the downside, you know, bigger ones are great, that you know, like it happens in two years span. So you understand that trends at depth loosely. The big, the big place, which actually if you've captured and captured dry, you can make massive amounts of money. Alright, so let's now look into momentum trading. And when it comes to momentum, it is all about rate of change, how fast something climbs, how fast something goes down. And in addition to that, it's all about a volume. And you can see Moss. So it's a bit Physics. So let's now delve into, into, you know, whole concept of momentum. So we can end up by understanding the momentum trading. And then let's look at some charts so you would get a better idea about momentum trading. Now, momentum, which is physics now, let us now look into momentum. Momentum is the product of the mass and velocity of an object. So the object in our case is stock, right? Or any kind of financial security whatsoever. But we're talking about stock trading. So it stopped when it comes to mass, right? It's going to be volume actually. And we're gonna talk more about volume in the lesson where we're going to talk about technical analysis, then velocity and velocity is all about rate of change. So how fast something is changing? And we're going to put everything in perspective when we're going to look at the charts. But now let's look into momentum trading. And momentum trading is buying and selling securities according to this trend of recent price trends. So the most important word here is strength. Because you, other than the standard, the trend, you know, is the direction where the price is going. But when it comes to momentum or momentum, traders are interested to see this strength. So basically the increase of mass and velocity, right? So this is one of the ways to understand if the momentum is happening. So let's now look into the charts and let's put everything into perspective. Let's now again look at Down Jones stock index. So in order to understand momentum, you need to remember that it is all about strength of recent price trend, right? So it's all about mass and velocity and the rate of change, how something is changing. But just looking at the rate of change, we only can observe the trend actually. So this is why these things do. Can, you know, kind of fields similar. But let's look now here, right here, where the Bryce started to climbing up, climbing up, climbing up. So for a Bryce, it started though, you know, it started changing and it's changed at A to the upside. And we understand that the trend is actually continued. And now we need to understand, you know, so how we can find the momentum. And in order to find the momentum, we need to understand what this mass in the stock market or financial market. And it is volume. You need to look for a volume. And volume is these bars, as you can see, and we got to talk about volume more. But just to remember, volume is just how much, you know, stocks, how much of the shares have been traded during that period of time. So, and as you can see, this bar right here, I'm going to move a bit higher. Look at the, at the point are downright, so the volume bars are increasing, increasing, increasing. So what we got, we got the velocity for Bryce and velocity for, for volume for that, for that mass, right? So everything increasing, so everything is pushed up. So this is this great momentum and it's happening with the recent price trend. So this all comes into play and just remember, when it comes to long-term trends. When comes to long-term trends, momentum can give you the idea where that starts, right? So as you can see, everything just picked up, the rate of change price, price rate. A price started to increase, right? Volume started to increase and it started doing again and again and again and again. And it started big trend right here, right? And this is important for you to understand, but let's now look at other charts. But remember that when it comes to momentum, momentum is, is better observed on a smaller timeframes, daily charts, because we are looking right now it is, I think, oh, it's even monthly charge, right? So basically one this one bar represents one mile, one month of a price action. So, so remember. So remember, so remember that momentum, it definitely can be observed in, on a longer time frames. But remember that it is better suited and it's more observed on a smaller timeframes. So let's now check into different charts so, you know, to put everything into perspective. So for you to understand about momentum more, let's now look into this gold stock and let's now just go a bit back in time for you to see. Again, we're, is volume, sorry, momentum is happening, right? So let's now see here. And the charge no, after long down and a downward trend, the stalk, you know, suddenly found huge volume and there was a lot of buyers, right? And then if we would look in the context of smaller timeframe, like couple of months here. Again, look what happened. Momentum happened. Volume increased, Bryce increased again, the mass and the velocity, you know, and what did graded? It graded nice upward trend. And again, look what here, again, momentum picked up. So in order to, again, to increase that, you know, that trend and keep pushing that trend. And again, look. You see, and the prices went up and up. And this is why it's actually hard to, to trend trait. Because look at these swings, right? You would be thinking, oh man, I lost so much now from my earnings, I need to maybe bailout. But trend traders, these are the things you need to have, discipline and patient, right? In order to stand against these things and look again, momentum but, but, but, but again increased. Again bro, bro, helping to broke the levels right then volume here as well even more. But you know, it's, these are very simply observed just like steps, right? Price increase, you know, every day, higher, higher, closing, higher, higher. And with the help of a volume bars, you can pick up on momentum. Again. This was again momentum, but it's all down. But again, look, what was swing right here. It was massive. But if you would have a stomach as a trend follower, you would just go, would be keeping your gold stock because the Fed is printing money like crazy. So definitely gold is increasing in value as simple. And again, look here. Again, momentum picked up, you know, price increased, increased a bit, increased more with volume again increasing, you know, these things, you know, is not, the momentum to find momentum is not as easy. And sometimes, you know, you can think, oh, but this is, there was more volume than there. It's all about these, you know, it's all about screen time. And you need to put time on it. But nevertheless, you, I think so you, you understanding about momentum, Let's now look at other, other charts. So just, you know, just to repeat, repeat, repeat that bits so you would get better feeling and idea about momentum. So another stock, micron technology. I remember I traded it in 2017. And again, look, the price had a nice upward trend, nice recent trend. And again, look here, right? Again, prize just increased, increased, increased with the volume, right? And actually it helped again, just break these highs right here. We're gonna talk about the highs and lows analysis lesson. But now unless again, observe this momentum happened, right? So Basically just the rate of change of both of price and volume when you combine that, you get the momentum. And this is actually what I'm showing you. It is a Bryce Bazin and volume price and volume pattern by itself. So definitely you can use it because a lot of times it shows you the momentum picking up and it as well. You see in micron technology, it kickstart this, this trend, right? So. You need to understand that it's all about the rate of change and the strength. And when it comes to strength, you need to understand what kind of mass is moving. So basically, what kind of volume is moving and when the volume is increasing with the price increase, or the same goes with a downward momentum. Let's now look at, as well at Dow Jones. So you as well get the idea that this same can happen when it comes to dual downward, downward price pressure. This lesson definitely is getting a bit too long, but I just wanted to give you a couple of more examples and let's look at them. Down jones again and again. Look on the downside, right? Uh, you can see the volume is just increasing on the downside and the price is just, you know, daily price Shard just closed, lower, lower, lower. And combining with what, you know what is happening and seeing this on the chart, it is no brainer trade. So definitely observe this battery and put everything in perspective, but observe this pattern and then the standard, this is momentum, this is how you can find momentum. And now remember another thing which I told you that, that you can observe momentum even on a shorter timeframes, but nevertheless, observe momentum on a daily charts. It's definitely good when one disbar represent one day, right? So definitely you can use on a daily, weekly, and monthly, but momentum is more visible on a smaller time, time chart starting with the daily and even smaller ones. So let's now look at this, these small stocks. Because there's a lot of momentum happening in these talks and it's very easily observed if you know how to find it. So let's now look into this small cap stock. And as you can see, you see the price trend. And currently, like not currently, but the price was trading in range as well. But look, there's no volume actually, right? There's only just price change. And then boom, look, the size of the volume barring it just graded and what it created massive, massive spike in price, right? So let's now observe into intraday chart to just, you know, put everything into perspective and look again, you know, the, the, the price traded up and then just went down a bit. And again, the volume picked up right here, right? You can definitely observe the volume bars are increasing on the upside. Or remember that no price chart will ever be very great to understand. And you can definitely need to observe a couple of red bars in between. But now unless you can definitely clear, clearly see after whole, whole mid day session, trading very low volume, volume started to pick up, right? And again, look at it, just bike again. And it just created more upward trend. So again, the Bryce with volume strength, increasing, increasing volume, right? Grades these trends and you know, it. And if it is happening that these old things are happening in a, in a trend, in disliked small trend in this example, everything increasing, increasing volume, increasing price, increasing it. Mom creates momentum at many times, ends, ends up in a shorter or longer trends. And remember that this is y momentum trading is suitable for day trading and swing trading and even, and even Bobo position trading. So yeah, I think so. This is all about momentum. I think so you understood the idea, it's very simple, but I just wanted to show you just to give you ideas and examples, you know, so you would get better feel about, about this whole concept. So let's now look at volatility trading. So the last concept we're gonna, we're gonna talk about is volatility trading. And you're going to learn what this volatility. But when it comes to volatility, volatility is a prize deviation. So you know how far Bryce moved from its average price and volatility. And, you know, it can be maybe similar to momentum for you, for some of you at the beginning, but there definitely are different concepts. Volatility as well deal in price change, but as well include, you know, time, timeline. Was the change happened in a short time frame or long timeframe. So when it comes to on volatility in financial media, you will hear this talk is very volatile. What does that mean? It basically, what they are seeing that the stock price can jump up or down very, very quickly. So maybe, you know, some, some financial media host those telling, you know, Teslas doc is very volatile. That means that in this example, in particular, right now, the Tesla stock is very high up and the moves that are happening, happening at very fast rate. So basically the time, the time that the price change is, the time is short and the price movement is very high. So this is what makes stock volatile and as well remember Dow Jones index that I showed you in the examples in previous examples. Remember that chart for a pandemic. During the pandemic, right? This whole month was just that, just sell off, right? So basically it was very bold tiled time. So basically the movement down was very fast. And it is, the price went really fast for, for a short time, for like in the context of stock market, right? In a one month, it lost a huge amount of value. So this was time of volatility, right? So I think so you get a bit about volatility. Let's now look at what this volatility and what this volatility trading. Now, let's look into bullet good theme. And will it built the in finance is the degree of change of a security's price over time. So basically it is like a momentum as well. As well includes change write rate of change, degree of chain, right? It's basically the same. But what will it guilty as well include time. So basically, what is the time timeframe for which or the move happened? You know, because if you would look at trends, they are gradual. They gradually rise right through time. And will it guilty? If it spikes very fast and very short time, it becomes volatile. And we're going to look at the charts as well. Remember? So you know what? You're going to have, you're going to have examples and Uganda understand this volatility a bit better, but as well. Now, let's look at volatility trading. Now, while it took the trading, Actually this is a whole, another term because volatility trading in itself is a trading that bullet guilty of that price or our rather than the price itself. This can be a bit complicated, I understand, but just understand that stock market has another financial instrument that actually allows you to trade these big swings. If the stock market is swinging a lot, you can actually buy what that's called BICS, right? This is mostly distributed in futures contracts, but there's value in, it can be traded in exchange traded funds forum. So it is even ETM, but I don't want to be technical here, just, just, just don't don't overwhelm yourself with these things. Because I'm gonna show you like this is professional lingo. When they talk about volatility trading, they actually talking about not, not debug them. Bryce, the trading that volatility, but trading products that, that like mirror the volatility, for example, of a stock market. But volatility itself is definitely this degree of change through shorter or longer time. So if it's, you know, if it's if it just bouncing around us talk and it's not volatile. If you just sharply goes down. In very short time, it's volt that old all or, or, or the same if it goes up right in very short time. So let us now look into the charts and let us now learn more about volatility trading first. And then let's look into a wall tiles talks and molto stock chart examples. So when it comes to a vote 2pi trading, it is all about trading separate different financial instruments rather than. Trading the instrument where, where's the volatility is coming from. So in this example, I took again Down Jones stock index, but it actually would be even better to daikon S&P 500 index because the VIX futures contract is actually a S and P 500. Like how to say this is, this is volatility instrument for S and P 500 to be exact. But nevertheless, Oh, like USA markets correlate at big level may be nasdaq, sometimes just go different way. But when it comes to the trading and when it comes to these big, huge price swings, right? In a short time, you know, you can as well observe, observe this volatility spike in Vix contract, which we're going to look at right now. Now we are looking at SMP 500 VIX futures contracts. And as you can see him, during the same time when the volatility started to hit. Usa stock. Stock indices. Vix futures started as well, you know, showing a momentum signs and as you can see, it increased, increased with more volume being traded. These future contracts and with a spike of volatility in the stock indices, v6 as well went up. So this is why when traders are talking about volatility trading, the, instead of short selling an example, they just can't buy VIX futures, right? This is a fear index. This is how it's called Fear index. So it is very important for every stock trader to observe VIX because it shows, you know, if there's a weakness brewing in the stock market mix as well. We're going to show you and you know, just looking at the, at the S and P 500 down Jones indices, you can see that there was a momentum, downward momentum, and VIX futures contracts, there was upward momentum. So basically it's, it's inversely correlated instrument for stock trader. It is very important to observe BICS and if v6 is rising and stock market is going down, it can show you early signs of weakness and the increased volatility. So let's now look at volatility itself and volatile stock. What does that mean when the stock is volatile? So let's look now at volatility for a particular stock. And the first example that popped in my mind is Tesla. And let's look at testlet chart. As you can see, Company witnessed momentum. You know, there was a gradual increase in price and volume and the stock just picked up and started trending upwards. And then, you know, it started and then it just traded upwards and upwards and upwards. And then the price range for, for, for this period of time, which is one week. Started to increase, as you can see. So volatility means increased, and right here it even gapped up and volatility a hit that peak. And as you can see, it even traded up to $950 for a stock. And this is a time for huge volatility. And remember during these times, a lot of tops and a lot of market tops and bottoms are found. So basically, when the stock will go one direction indefinitely gonna bounce back. So this is actually a great time to day trade and swing trade. But now let's remember a volatility increased the risk. And because the price is, is, is, is, is, you know, running crazy. So, so this is as well increase the spread of the price of which, you know, can just kick you out of your position. And it is actually increased volatility means increased risk and as well increased a reward. But as you can see after this volatilities bike ended the stock or witnessed a huge drop in value. And then again, volatility or, you know, after this ball tile movement, it just started, it went up again. And this doc Tesla is do all of that for such company. This is actually very kind of interesting, an interesting chart and the interesting price movement. But this is like this pack of increase never ends. Well though, when you observe too many charts and you understand that just it just simple thing that is something that goes so quickly up, we'll definitely go quickly down one day. But we will see of course, definitely it can just, you know, just crash and, you know, the bottoms and again, maybe gradually rise because as well, there's too many of, you know, people just trading the stock and it's very popular. There's a lot of, you know, there's a lot of bulls that are that buying and there's a lot of short sellers that believe that the stock is overvalued. So this creates this really huge price, these huge price swings. So I think so you getting the idea about volatility, this is just, you know, this is momentum, right? Just gradually lifted the price and then the price spike, spike in very short time and the price range, you know, during the week, during this weekend example is very wide. You know, the price, you know, went from from, from opening, okay, from here from the 6670, right? And in hit 950. So for such a stock, it's definitely too big of a, of a price increase and this stock is very volatile, so I think so you're getting the idea and right here, you can as well observe volatility. It's getting as well, again, very volatile. So let's now look at another price chart and let's finish with S and P 500, just to put everything about volatility, a bit about trend and momentum in perspective so you better understand the differences. And we will finish this lesson. I think so you remember this chart and this is a great example of huge increased volatility because look how price traded in the past. And then the volatility hit, right? Of course we enterprise into intra-day price inside this bar. Inside this day, we can see as well, momentum buildup to two had a trend for that day. But when it comes to, you know, bigger perspective, this talk is very volatile and actually an actually a majority of these small, small cap stocks with what they are called are very volatile. We're gonna talk about small-cap stocks as well. And as you can see, you know, example, this is, this is Trend, short, trend, right? It's gradual. It just goes down, down, down, down, and there's a bit of volatility here and here and there, but as well here look, volatility, right here is volatility. It's piped up really quickly, really fast. You know, imagine if you are short selling. This position can go against you really quick. And right here, that will Turkey just went crazy and the stock went in very short time in just only one day, it gained a hundreds of percents. And this is the definition of volatility. It is both tile. And let's now look at S and P 500 TO finish this lesson. So to, so to put the, you know, the, the idea of momentum, trend and volatility into perspective. So you better get the idea about these concepts. And this lesson is a bit too long by now, but I, you know, I really wanted to take time and to really teach you these concepts because Australia like majority, majority of strategies that you're going to learn a year about or read about are based on volatility. They are based on momentum there, based on trend-following. And let's now again repeat what this trend. So basically trend, it is all about that prize direction. It can be up or it can be down. But nevertheless, it is all about that gradual increase in price and a clear direction of where the price is going. So in discharge of S and P 500 index, we can clearly see from 2009, we witnessed really, really great Bull Run bull market. It was, it was one of the, one of the longest bull market in history. And we can observe that price swings at some points. There was volatility between right here, right here, right here, and now it's becoming more and more volatile. But nevertheless, the trend, the trend kept going. And it is, when it comes to trend trading, it is all about, you know, long-term holding positions for a long-term and it is suited for position traders and swing trader. So if you are interested in trend trading, trend-following, Be ready to sit tight and hold position and hold your positions for a longer time, months and years. And when it comes to when it comes to momentum. It's all about that acceleration. It is all about that, that velocity and mass, you know, so basically it's all about that price increase and volume increase. So basically the acceleration, so we can observe right here. So basically the price increased and volume increased. And here William increased. So basically these are momentum. Just help us though to find where the, where the actually most of the time trends start. And it is as well. Great, great moment though, due to trade, short-term, short-term strategies and by day trading, swing trading. But now less momentum trading can be, can be fitted with, can't fit with position trading as well. And when it comes to momentum, Yeah, it's all about that exploration, about that mass, about that velocity. So, and during, you know, trends, we, we, the stock market than any market, any stock will experience volatile time. So as you can see, this time from 2018, it is actually in a, if you would observe the price chart, it is very, there are plenty of times in the market and there's increased volatility and, and volatility, you know, it is all about that sharp, sharp, fast price changes. You know, it can go up or it can go down. But nevertheless during volatile time, or you can big the bottoms of four for a stock or for a stock market. You don't because you can see when it just drops down really fast, it picks up really fast again. And volatility is suited, is definitely no fits with position trading. It's this great time for day traders and swing traders to profit. And yeah, we'll guilty as fast and as well remember that the increased volatility will increase risk and as well it will increase reward. So it's a double-edged sword, as they say. So I hope I clearly paint the picture for these concepts for you. And you can now, you know, try and understand what fits better to you. What is market doing, what kind of environment that we are in right now and can act accordingly as well. So, you know, by as well watching for at individual stocks, you can as well. If the stock is volatile, if it can, you know, volatility can increase, or maybe this talk is trending and you know, you see the momentum is picking and you know, maybe there's a great fundamental story. So you picking up or maybe you're a day trader and you just interested, you know, to see that stock with the great daily story that you know, that has momentum. And you just wanna trade that momentum and earn money from these price movement, from the short price movement. That's it for this lesson. Let's go to the next one. 10. STOCK TRADING CONCEPTS: TRADING PROCESS: In this last lesson, you're gonna learn about trading process. And you are gonna learn about two stock trading concepts related to trading process. And we're going to look into a discretionary and systematic trading, basically human versus machine. And this can as well ignite a lot of debate because a lot of people think that because of automation, because algorithms there is no possibility to trade for, for a retail trader. But it is not true actually. And we're going to of course talk more, but just know that, that like electronics and internet automation actually help stock exchanges to be more efficient. And because of it, we are actually now able to trade for such a low, for such a low commissions that it actually is one of the greatest time to trade for any individual trader. So let's now maybe start with discretionary trading and then we're going to look into, into systematic trading. So you're going to learn about these two different types of ways of trading. So discretionary trading, as well-known as Manual trading, it is the most popular I think so type of approach that is used by retail traders. And, and the reason is very simple. A lot of people do not know how to program, how to, how to write algorithms and backtest strategies. But nevertheless, remember that discretionary trading is still alive. It will be alive. And when it comes to, especially for a longer term trading, you can always count on your computer that is right here, uh, because, uh, you need to understand when it comes to discretionary trading, it is still rule rules-based because traders now and traders back then that you, that I used and I using discretionary trading, they still have rules, especially Risk Management. But now a lesser, understand that mine is nimble, very nimble, more nimble than the computer will ever be. When something's present, then something is changing. This type of trading is made by the human mind. It is human mind. Decision based trading. Remember that there are a ton of people, especially long-term fund, for funds that are employing discretionary type of trading. They're doing research. The research is done by, by, by, by humans and the making decisions based on the research that is gathered by human team and the making the beds. You know, just, you know, from, from what is gathered by, by humans, right? But nevertheless, remember these times as well. I'll allow us to do use more often automation, more computer tools. So this is actually a good thing and you should not shy away from it. You just, you definitely need to pick something because this way, actually, when you out and trading platform, right now, you actually already using, you know, program, right? It's, it's not like an old days, you're not going in stock exchange and chunking your orders. So this is already automated and this is what actually, you know, the, the, the, the innovation that technology actually made a stock exchange more efficient. And as discretionary trader, you definitely need to pick tools that will help you to, to, for you to be better trader. So let's now look more into a systematic, systematic trading. So when it comes to systematic trading as well known as mechanical trading, it is automated algorithms and computer based trading. So understand this, that if you actually have a great discretionary system, you definitely can customize it and put it and automate it and to make for computer TO execute it. And, but still, a lot of people think that if they just going to create this magic formula and you know, they find out that it's working on in real environment and the system make a, makes money. And if it will be the end of the story, it's just money started rolling in. Remember that? Like the systems and because markets change as well, they will no longer work. And it is always about doing the job, you know. Will it be discretionary trading with it'd be systematic training. When it comes to the systematic training and building these algorithms. Remember that sooner or later they will not work or, you know, you're going to find out that it's increasing your draw downs and you're losing money. You definitely need to tweak them. You need to research. You need to test them back, like what it's called backtesting. You need to back, back, back test, create new ones. And this is not, this is not as well. Isn't easy thing actually. And in addition, you need to have skills like knowing mathematics, statistics, as well as well computer languages. If you are interested, if you think you are capable, you know, just go ahead and try and see what you can create and definitely backed us before you put real money. But remember, when backtesting on demo, it's not, it's never going to be the same as backtesting as and when, when running the strategy, systematic strategy on, on, on in the real market. So it does have its advantages and disadvantages is definitely good if you are not really, if you do not like, you know, making decisions and you just want it to automate this thing in order, you know, just be out of the end decision. So definitely systematic trading is the way as well. I just wanted to. Give you here idea, like a bit of a rant. A lot of people, some of them like aspiring retail trainers, you know, maybe or, or those who are interesting in dabbling in stocks. Some of them can say all. Because of these oligos, you cannot trade. And there's a lot of fear actually falls. One type of 11 kind of type of traders that are called high-frequency traders. And these hyper or high-frequency traders, remember the I employed by market makers. And market may make, make ours companies. So when it comes to high-frequency traders, there's a lot of unknown by a lot of people about them. But basically what they do, they go in and out from trade very quickly. The, the, the, the, there to buy and sell quickly in order to capture, you know, fraction sometimes even all descent. And the do that in, in nanoseconds. And they do that, you know, 11001000 million times per day in order to make markets. And this is different ballgame, The dealing in very, very short time frames like seconds and at maybe minutes at most. Now, back in the days there were scalpers. You know, this is type of trading approach that people use to do. Maybe they're still scalpers. But this is why I actually, I intentionally didn't include that when it comes to position holding time less than because scalping, I think so it's scalping is all about taking advantage of very small price changes and, you know, holding position for, you know, seconds up to a minute and minutes, right? And this is very stressful cost and effective way of trading. So definitely you need, if you are interested in, you know, using algorithms and using speed, you definitely need to look into high-frequency trading. But remember, you will need to have these highly required skills like no mathematics, statistics, programming languages. And it is it has a lot to do, you know where the servers are located? In them from from Stock Exchange servers. So you know, the, the connect with better optic cables. So in order for, for orders to be to go faster, you know, so this is different game and this is actually, this is, this is the game where the market-makers are playing and this is not trading. As we retail traders understand trading. But let's get back a bit to systematic trading. So systematic trading is definitely is worth to consider. And even if you are discretionary trader, you need to systemized your trading approach. Because if you can't systemized in such extent that it can be, it can be programmed. You have a great trading, trading away. But as well understand that you can, you can use, you can use some automation and use some of discretionary trading in order to be better trader. And let's now go to the next slide. And I just wanted to give you. It's kind of a tip. What I actually want you to remember that all professional trainers in the end of the day, they have rules and follow rules. And all professional traders are systematic traders. It doesn't matter if you are discretionary or totally systematic trader. You programmed everything in the end of the day. Your system and you will follow rules and you will have a process or your system will have a process and everything's going to be systematic. Everything's gonna mean place. So remember this, because if you think that, you know, you, majority of you are going to be interested in discretionary trader trading. And if you think that you know, it just, you know, I'm, I will come up, will open the trading account and penetrate. This is gambling guys. This has nothing to do with trading. If you are thinking that way, you know, you need to start thinking about what kind of foods to imply in order to minimize risk. What type of process to have in order to make everything systematic. So you would know what to do when, before trading and you know, generating trading ideas and what you're gonna do when you are in the trade. So to finish this lesson, I wanted to talk about complexity versus simplicity, because when it comes to stock market, there are, there is a lot of data, there's a lot of information. There are too many stocks to trade and your job as a trader turn that complexity into simplicity. So you would know what stock to trade. And in order to do that, you need to use tools and various websites to help you to do your research though, DO help bring you ideas. And an example I use every day, Yahoo Finance, finiteness and trading you. When it comes to Yahoo and finish this, I use them a lot because they provide stock screener. They both have a stock screener. And I use so various stock screeners in order to give me a stock ideas, right? So I put inputs into the stock screener and accordingly, these inputs every day I get the stock ideas. And I take the stock ideas and then I apply my setup which gives, which takes from these ideas its filters. You know, stocks that I would be interested to trade, right? And I actually can, can program that. I can program these setups. And this is just a skill matter. Definitely, I need to learn Python. This is great language to learn if you are interested in these things. But I hope in the future for me, you know, I will, I will learn Python. But anyways, you know, when, when there's ideas that I get from the screener and I apply setup for, for stocks. I get few stocks, you know, an example that would be interested to trade. And then I wait for a trigger moment, right? And if I get trigger, I I I trade that. And as well before, you know, putting the I as well, you know, follow my risk management rules. So would know how much to bet, what does better price to trade, to know where my stopwatch should be, where I am exiting the trait, right? And this is hold, you know, process actually I told you and in the end of the day you want to have that trigger. You wanted to have what is known as stock color, right? So we wanted to have that alert and you want to have a process that gives you that alert in the end of the day and you just need to apply risk management before trading. So to finish this lesson, just use best of both approaches. You know, just if you are discretionary trader, Just think about the process. Think about what you're doing or what type of rules you need to follow. And if you can automate something like stock screeners are automation tools, mind theatre by default these days, you know, but when it comes to the bigger picture, if you again systemized something, do that. If you are knowledgeable, you have skills and your ready, you know, to even systemized hold, hold trading process do that. But remember, just do what is best for you and, you know, just don't shy away from one or another and use the best of both approaches. Discretionary and uses systematic. So you could be better trailer. 11. TECHNICAL ANALYSIS PRIMER: Let's now keep on moving with this online course. And these two lessons are going to be really interesting for you because we're going to talk about main, DO research methods. And it's going to be primer, it's going to be only at Department of an iceberg for these two analysis methods. And when I'm talking about research methods, I have in mind technical and fundamental analysis. So in this lesson, we're going to talk about technicals and technical analysis. And when it comes to technical analysis, it is all about framing things actually. This time, then it is price and volume. And we're going to look into these, you know, how, how these free relate as well. You know, we're going to start with free technical analysis principles to know and understand in order to start getting idea and alert about technical analysis. Let us now look into free technical analysis principles and let's start with the first one. Market discounts everything. What does that mean? That mean that technical analysts believe that all publicly available information is already reflected in the chart. So basically, all available information that's publicly available is priced in, and you can see that on the chart. So there is no need for fundamental analysis. And this is the first principle. And the second one is price moves in trends. And as you saw the chart of S and P 500, you saw the chart of like off of Dow Jones and a couple of other stocks. We definitely saw that there's a trend in the price movement. And fruit technical analysis. You can, you can observe and research these trends and trade accordingly and trade in them in the direction of where that trend goes. And this is the, as well one of the principles. And I think so for me, I think so this is the main one because I definitely believe and I can see on the chart that price moves in trends. And the third one is history. Then store repeat itself. And what does that mean? So as they say, history repeats itself and it is true when it comes to price, right? So what does that mean? I just gonna give you a quick example. So imagine the price is trending, right? And then it peaked. And the price, you know, and thus the stock is selling off, leaving, you know, this huge spike in the price. And then after some time, you know, the price will go down a bit. Then it's again going to pick up and then it's again going to go up. And that high point can be the place where the price will again reverse, right? So it's going to hit the same high point and it's going to reverse. So this is why technical analysis as well can, and you can see actually that, you know, exterior tends to repeat when, when you look at the price charts. And though on these same levels, the price can hit and just do the same what it did before. So these are three technical analysis principles. Let's look in the next slide. So let's now look and let's learn a couple of definitions. And let's start with technical analysis. So what is technical analysis? Uh, so technical analysis is an analysis methodology for identifying trading opportunities by analyzing statistical trends gathered from Boston trading activity, primary, primary Bryce movement and volume. So when it comes to a charting, the price and volume, these are the main ingredients for you to do this type of analysis. And what you need to do is local what price and volume did in the past. And see what, what is, and see the relationship though what it, what it is doing now. So an example may be you can observe that price is already starting to trend up. And you know, there's still small volume. But after some time, you can identify that the price as well starting to move up and the volume spiked up really big, which can give you early signs of a price trend and continue continuation in a price movement and price trend. So this is, you know, this is, these are the main things. So when it comes to technical analysis and charting, it is all about price actually and volume and see, and looking at the relationship, what is done in the past and what these two price and volume doing now. So let us now look into the second definition. And this one is very simple. Do not overthink what this price action. And I actually I think so I already used this expression in previous lessons. And price action is very simple. Price action is the movement of a security's price plotted over time. So why am I giving you this definition? Because you definitely don't hear about price actionable or price action trading. What does that mean? That basically means that it is like type of trading which concerns only about price. Doesn't use any, any indicators or nothing else. It just, just only it looks at price and trade and enter and it is the way of trading only that price action. So basically as well, I wanna give you another example. If you are somebody who will tell you there were, there was bullish price action. So what does that mean? Very simple, basically just price, price moved up, right? So basically the price action, you know what the price did, the action of the price. So this is simple definition. Do not over think as I said, but you're going to hear this expression on IE as well, going to use it. And the, you're going to hear others. And you're gonna hear that others are using this expression. And you just need to know it just, it is very simple thing. Its action on the price, price action. I already talked about it and you observe this thing in the chart. And I'm talking about volume, which is the second most important thing after, after price. Price gives us the idea for a prize direction or that direction for a stock, a movement. And as well Prize gives us an idea for what is the value of a particular stock. And when it comes to volume, volume, it can show us what is the demand for a particular stock and what is the definition for volume? Volume is the total number of shares of a security that we're traded during a given period of time. And it is important to observe volume and volume bars and see what is happening with a volume. May be you will observe that the price increased M bar spiked as well. It can indicate that there is a demand for that particular stock and for for that particular stocks, shares. And it can be the early sign or 44448 trend starting. And as well. When, when talking about volume analysis as well, you can observe that volume. It can be doing very versatile time and that can actually indicate tops and bottoms. So an example, if this doc arises and it becomes very wall tile move, move and it becomes very volatile and the price just shoots, shoots to the upside and the volume increase like really abnormally in comparison to past, past volume bars, it can indicate that price of that stock price peaked and the reversal is very possible. Same can go. Same can be observed during a bow when the volatility is to the downside if the price just crashes and the volume bar just spikes up, it can indicate that enterprise of, for that stock reached bottom. And it is actually a great time to buy stock because it is, it can show the reversal point. Okay, so let's move to the next slide, I think so this going to be the most interesting and of course, one of the most important part for this lesson. And let's look now at charting basics. And when it comes to charts, there are only two axis. One is horizontal and another one is vertical, and one represents time and another price. So when we're looking at that chart, would basically look at two axis and looking at the data plotted on, on the chart. That represents time and, and that represents price. So let's look now into price action. So imagine the stock or moved up. And after, after moving up, you know, with the increased volume and bigger volatility, stock, started to sell off. And by doing this, it created what is known as high, a high point. And it is very important to observe highest and lowest points for enterprise chart. Because in example this one, when it comes to high, you can then draw this level, which is called resistance level. And let's now move, you know, with the price action. And let's follow now what will, what will happen next? So imagine after Bryce sold off it bounce back. And then it created another point which, you know, looking at the chart will be a low point. And that low point that will create what is known as support level. So now we have a couple of definitions to learn. So let's now look what is high and low. What does high and low mean, and what does resistance and support levels mean? So let's look now into definitions. Let's start with a high and low. And high and low is the highest and lowest price at which a security has traded during the time period. So basically, these, these price points will tell you actually we were to draw a support or resistance lines. So when it comes to high, it will always, will tell you where the resistance is and when it comes to low price point in will always tell you where is the support, support line is. And when it comes to support and resistance. These price levels that have recently caused a trend reversal, right? So as you saw that price chart, the price went up and then it went down, it caused the price reversal. And that created a high point, which is now eight resistance level. And remember that these levels are always drawn horizontally so that it represents price. So you can tell, you know, at what price the support or resistance levels are. And these support levels, these resistance and support levels are important because it can give you idea where the future possible or reversal can happen. Not in film. It will, it will not tell that it will happen. But definitely you can look and observe what the price is doing at those levels. So when reaching, again. It can definitely cause for price to reverse again. So this is Y v. So this is very important to, to observe the recent high and low points and draw the resistance and support lines because it will, it can tell you what the price would do in the future when observing when the price will hit this level so you can treat it accordingly. So let's get back now to that charged example. So let's continue with this example and let's look at what price action will do next. So the price action in no cost for to new highs, bit smaller wants to be created. And you know, you can observe that the Bryce is still trading in the range for the highest and lowest point. So we still, you know, should be, should be observing these B-C that beat points of four for the price which we already drawn. Because price action is still now happening in the range. We can, from this chart, what you can actually observe that there is a slight increase in the price direction and price increased a little bit to the upside. And the price is, is actually never even the support level, which is the lowest level we drawn. So that can give us as well some inside that, you know, we can, we can, we can expect some upside. And let's look what the price action will do next. And in this example, Bryce trended up and started to trading, trading near the resistance level. And in this example, let's look what will happen next. The price is reversing again. So these, you know, as I said, these points, these are the levels where, you know, the buyers and sellers will always look to sell or to buy. Or when it comes to resistance, there's always gonna be some sellers that are interested to sell at the highest point in order to realize some profits. And in this example, the price never went untouched support. So it would be interesting to see if that will be the case. So let's look at them at the next, what will happen next to the price action? So in this example, price increased and broke that resistance level, and it broke for resistance level. And the price with increased volume, you know, broke for the level causing a breakout. And let's now let's now learn what is a breakout. So what is a breakout? Definition and breakout refers to when the price of an asset moves above a previous high price or a resistance level, or moves below a previous low price or sport level. Breakouts as well indicate the potential for the price to start trending in the breakout direction. And as well, I already talked about this by giving an example in the lesson where I talked about trends and as VR and as well in the example that I'm showing you now, that when the, when the price after it finishes trading in the range and breaks, you know, that break and indicate the trend. And this is why it is important to observe these breakouts. And in general, you know, it is important to observe a resistance and support levels because these are the levels where buyers and sellers are the most active. And these, these levels where, where two things can happen with a price. The price can reverse or it can break, right? Say, or you can do the breakout. So definitely this is why it's important to observe these levels, I think so resistance and support levels are really important to watch in order to observe Bryce reversals and price breakouts. So let's continue with our example. So after the breakout, which occurred to the upside, and let's look what happened with the price next. And we can see that sellers to control and pushed the stalk lower. And what we can see now that new high was created. And because new high was created, we can now draw new resistance level. And let's look at the price action, what, what happened next? And you can see that buyers bought bag the stock, stock again. And then just, you know, just above, just a bit above resistance level sellers to control and Bush the stock price again down. And now let's again look what happened next with the price. Then the buyer's again stepped in and bought the stock up again. And this is very important point because it's very important to understand that, that all the resistance level is actually now new support level. And the same goes with sport levels when, when the stalk of cells down bounces from new lows, creating new support, that all support now becomes new resistance level. And this is what happens when the price goes up and down. Creating, you know, from new resistance, new support, and from new support, new resistance. And let's now just finish with what happened to this talk. So we can see again that that resistance level held. And sellers against stepped in and sold the stock, stock lower and sold the stock lower. And this as well very important guys, remember that these levels, resistance and support levels are just guidance, guidance points. You know, the areas where the buyers and sellers can step in and where the price action with more active price action can happen and where these reversals and breakout scanner QR, so these levels are important to follow and you need to local the new development for, for high points and low points to understand where new resistance and support levels are being created. So before we look into stock charts example, just to sum up all these concepts that you learned. Quick tip for you guys. So the quick tip is use higher timeframes daily or higher for identifying important high and low price points. And they think so, some of you might do not understand what this timeframe. So just let's go and let's look at a stock chart example. Let's look at the chart for Netflix. And when we talk about a higher way, we talk about timeframes and we're talking about these bars. So right here you can see that this one bar represents one day. You can see right here like it's 29. Ok. Twenty six, twenty five, twenty four, twenty three. Right. So this is a daily timeframe. And you can see right here it's daily. And it is very important for you to use daily and weekly, weekly charts in order to find the strong, high and low points in order to draw a resistance and support levels. And as well use higher timeframes like weekly or monthly time-frame charts. And you can see right here, like when, when I pushed, you know, more, more price action to be shown, you can see that it changed into one week. So one, this one bar now represents one week a price action. So always find these high points and low points using daily, weekly, or monthly charts because it's going to give you the strong levels that you need to observe. And the level is that you can trade from. And let's maybe go back to the daily timeframe. And maybe let's just go here. And as you can see, that's okay, it's updated. So we can see that the trend that was clear, it moved up. And right here at 390, you can see that many of these highs were created. So basically this was a, this is a great resistance level at free of $390. And from that level, you know, the stalk sold down and bounce back just to be bought back to the same level. And then look what happened. It broke the level. And you can see with as well with accelerating volume showing momentum. And the breakout occurred with increased volume, which indicates a genuine breakout and it broke. Okay. Let's let's wait for it. And it broke the resistance level, right? And what we can see right here, now, that level at 390, right? And it's never, always perfect, you know, but you can see at $400, it was bought, bought back up, right? And you can see again from these levels, right, somewhere from $400. Again, it was bought backup. You know, the history tends to repeat itself as well. One important point, I didn't talk much about bullying, but in this example, it is great to see, look the volume bar really like it is really steep one that really, the bar went really high. And remember, I told you that these kinds of abnormal volume bar increases can indicate top and it actually indicated and the price went lower. But remember, we, nobody knows or how far the reversal will go because the trend, because it's important to keep in mind that trend and the trend was to the upside. So it wasn't a very sharp decline in the price and the, and the stock bought back from the old resistance level, that is now the support level. And stock again is breaking with a bigger volume, new, new highs. Again from you can see this is a clear resistance level and the stock again, broke, broke, broke these levels. And you can clearly identify that somewhere at these levels like at 470 from this high and as well from older highs, you can definitely think that this is going to be again, buyers can step in at like I could consider from 460 somewhere even for 70, you can say 2440. This will be the area for the buyers. And as you can see, it is not a clear levels, but you can start to identify that. If you want to be buyer, it is better to wait for the stock to just drop a bit, you know, starting from 472, starting from like four hundred forty four hundred and forty dollars up to $470. So this would be a great. The support area where you can think about buying the stock because the trend is clear for, for, for this talk. And yeah, just maybe let's look at bit into weekly chart. Just analyze it. And this is takes time dice. I really recommend you to just put ours in and just, you know, more screen time, more charts you will look into, more you're going to learn. You need to observe the price action, how, how the price is moving, where the levels, how the price acting when nearing these levels. And as you can see, very clear, high point. And as you can see it, it actually now is a support level right here. This resistance level now is a support level and you can sand, you can start to identify and remember, it's not like clear and easy, but you need to just observe and look what's happening as well. Look, if you're really interested in stock, Look what's happening in intraday charts, what's happening on a smaller timeframes because it can clearly shows you maybe it's nearing the support. And inside the daily bar. You can find, you know, if you would put it, you know, like an example, you know, imagine this is like five days, right? So we got to look what is happening here in this one bar. And you can observe, you know, the volume is like really increasing. Look like the bars year, like non-existing. It it just jumped up, jumped up. And now look, volume increased. Maybe just tells you that the momentum as well is happening and you know, it can definitely sell down, but the trend is clear and you know where trends is going and you can pick the trend and the trade according to the trend. But nevertheless guys, my recommendation for you and you just put dime, put, put more time into watching charts and observing how price behaves. Tried to put a resistance levels, tried to put support levels, and just, you know, identify high and low points and just observe charts, observe the price, observed the volume. And you know, with time you will learn and understand what is happening and you will be better trader and you will be better using these resistance and support levels and you will become better trader. Okay, so we nearing to the finish. Let's now talk about indicators a bit. I'm not a big fan for four indicators, I definitely use moving average, but when it comes to beer IS indicators, I just think that it makes chart very hard to read. And I'm more price action guy. I, I enjoy looking just at that naked price action. What is happening? What like drawing the lines and looking what's happening at these levels, right? And I only use moving average as well a bit. We wrap, it is actually a great indicator. But, you know, I can make like a whole different light hole separate online course just for indicators. But In my experience, you know, there's not much about using too many indicators. It's about using what fits for you and like moving averages, i'm using what's called exponential moving average and the simple moving average and just basic support and resistance levels. And that's it's basically and volume. The volume is for me is the indicator there is with the price, of course. But as well, one quick thing about indicators. All of these indicators are actually created from Bryce and volume. This like it's like a derivative. It is like a, it is the price and volume is the underlying asset like for a derivative. And these indicators, they just manipulate that price and volume data just to show, you know, the output for indicator. So definitely you can pick and use indicators. Fibonacci replacement definitely is used a lot. And, but nevertheless remember that all these indicators are only a derivatives for a price and volume. So why you need to, you know, why you need to use something that is derived from the source. Why not better to use source like price and volume. So this is my take on indicators. I'm not a big fan, but nevertheless people use various indicators and important factor is that do not use too many, just learned a couple of them, learn how to use them and apply them, and that's enough. And, you know, it's better just to look at the price action. Look at the trend, look at momentum, looking at the volume, will look at the volatility. So the famous chart patterns. This is going to be as well be a quick slide and the actually homework for you. Chat bar chart patterns definitely exist and they can tell you. It can help you predict, predict, stock price movement. And there is two type of like two main type of chart patterns. And these are classical chart patterns. So basically classical charting. And then we have what is known Japanese candle sticks or candlestick patterns. Just go Google it. You're going to find though, you know, I love Resources for free and just start learning about these classical patterns and as well Japanese candlestick patterns and observe them in the charts. Print, print them, just learn them because it's visual learning. And just read about every single pattern and learn what, what kind of pattern it is, you know, is it reversal is its continuation pattern. And just again, screen time, Screen Time, screen time, more charts, more charts, more charts. And just to observe that price action, because price action leave these patterns. Like price action creates these patterns which we can see and which we can observe and trade. And it takes time for actually for a normal pattern to develop. So it takes time. So this is where patients and discipline comes in. And I really big fan of the Japanese candlestick patterns. I actually observe just only a couple of them mainly. And you use support and resistance level with these, with these patterns, especially the reversal patterns like engulfing, engulfing bars. I really enjoy them. And if I see bullish or bearish engulfing bar and the resistance or, or, or support level. This is a great double conformation for me, you know, and it gives a great edge when trading. So this is homework for you. Just Google it. Classic chart patterns and Japanese candlestick patterns and just learn about them. What you like and observe and you know, and just look at the charts, look at the screen, you know, and you know, more screen time will more visual learning for you. Let's finish this lesson with the last slide and let's talk about modern technical analysis. Because when it comes to more than technical analysis, there's more things than support and resistance, but nevertheless, they used and will be used and these patterns as well. But when it comes to modern technical analysis, there's a new way, you know, like nowadays technical analysis as well look into sentiments. So what is happening on social media and what is happening on the internet? The modern technical analysis all about gathering a lot of data. It is about backtesting strategies. And as well, if you just gonna deep dive into, into, into technical analysis and trading, you will find new, new areas and as well maybe you will find something that will help you in your trading. So just be aware like about sentiment analysis. It's really big thing nowadays. Observing like social media networks what people are talking about and you know, gathering a lot of data, back testing, backtesting. But now let's, if you are more, you know, if you enjoyed this classical approach, it's alright. You know, just, just observe the price action. Look at what price is doing. Look at this fourth level. Look at the resistance level and you know, just be patient with your learning and be patients, be patient with the stock market and just learn and incorporate new things that you learned. And let's now go to the next lesson where we're going to talk about fundamental analysis. 12. FUNDAMENTAL ANALYSIS PRIMER: We've finished with technical analysis basics. Let's now move forward and let's, let's learn about fundamental analysis because this is very widely used research method of by traders and of course by many investors. And let's now maybe look into briefly into free things, what fundamental analysis is all about. And when it comes to fundamentals, you need to understand and research and to know that perform various performance metrics. Because you need to know such things, you know as a industry growth in example, right? Or the company operates in, in the companies that are operating in certain industries. So you definitely need to understand the industry potential. Is there a growth, Is there a huge growth in that industry or maybe that industries in the, in the, in the decline. And the same can apply to company, you know, on, on the micro level. Which is basically, you know, does the company increased its revenue or, or maybe their revenues are decreasing. And various other performance metrics that you can track in order to understand the fundamental story for a particular company, then it is very important to understand that you need fundamental analysis in order to value a business. Understand, is that business profitable? Because performance numbers, sometimes, you know, cannot say, is the company profitable or maybe that company burns gash, but the revenues is increasing, orders high increasing, but in the end of the day, company burns cash, right? So fundamental analysis helps you to understand value and profits. And this is, these are very important things to understand in order to trade stocks. Then when you do your fundamental analysis, always through research management, because it is very important for you to understand what type of people behind the company, behind the company's wheel. And, you know, you need to understand the leaders in the company. Do they have clear mission? Does the, is there a great teamwork among management and among employees in order to drive there for months, numbers up. And as well, fundamental analysis can deal with insider trading as well. So it is important to look into how, you know, management, what management does with its stake in the company. You know, you need to research should do entire US buy their own stock or maybe they are selling in huge quantities. As fundamental analysis deals with this. And definitely can give you edge when it comes to though trading stocks. So, yes, so these are three main things. Performance numbers, so growth numbers than profitability and value numbers. And of course, important thing when it comes to fundamentals, it is management. So. Let's now move forward and let us now look into definition for fundamental analysis. Let's look into definition for fundamental analysis. So fundamental analysis is a analysis method of evaluating stocks value by analyzing business financial statements and related financial and economical factors. So when it comes to fundamental analysis, fundamental analysis deals with with researching what is happening inside the company. And you can do that by reading financial statements where you will find those performance numbers, you will find that profitability numbers. And the comment, comments from management regarding, regarding future plans or may be some projects that are already done. And then fundamental analysis deals, deals, deals with this some more macro level, which is such things as an example, a country's economical situation as well. It can deal with researching industry specific things such, you know, to understand this. So such time there stand, is the industry growing or is the industry is in decline? Or maybe there's some law that are being passed that can influence industry, industry itself. So definitely it is very broad thing what you can do, you know, what you can research when it comes to fundamental analysis. But, you know, it's always a great practice though, to read financial statements and learn about, about the company itself. This is going to be a more like a quick tip. But if you wanted to buy great companies, if you wanted to buy great stocks, definitely you need to do find these two things. First, find companies with stories that you know, get everybody excited. But as well, it is important that that story might be combined with strong fundamentals. Because, you know, market sentiment can be so high that it can make, you know, companies stock overvalued. Because maybe there's just big frenzy, big publicity stunt that happened in order, in order to Lorin. Various investors DO buy stock. And this is definitely a great environment to trade. But if you are interested TO hold long-term positions, you definitely need to understand the, you know, is that story is backed up by strong fundamental numbers like performance numbers, profitability numbers and so on. So definitely find great story, but story. Then you need to find out if that story is backed up by fundamental numbers. And if you find these two, you definitely can't have a great, great dog to have in your portfolio. Portfolio. When it comes to stock trading, you will find out about various industries by conducting fundamental analysis. And there are tons of them on the stock market. And what I wanted to tell you with this slide is that you need to do or industry research as well. It is very important because you definitely want to understand what kind of environment you're accompany that you're researching is in. Because you definitely wanna buy industries that are growing and have a potential and you want to short sell in example, industries that I in decline. And this, actually, this understanding can help you a lot to make you great decisions by when trading stocks. So as you remember, there are a lot of them. So, you know, by, by doing various researchers to ever find out about various industries and maybe you will gravitate towards one or another. Anu will maybe do more due diligence on particular industries and maybe only trade particular industries. And that's okay because understanding industry is very important when trading any, any company's stock. Another very important thing that you need to find out is what is the size of a publicly traded company. And in order to do this, you need to look at market capitalization, which is a measurement of the size of a publicly traded company. It refers to the total value of all companies shares. Basically, in order to get market capitalization or market cap, you need to take current price and multiply that with a company's total shares in order to get market capitalization. And why it is very important to do to know the size of a publicly traded company. It is because there's a distinctive features when it comes to trading the stocks of because some stocks are more volatile and the other stocks are way more liquid and so on. So let's look at these categories so more closely, let's now look at a market cap sizes for companies. There a mainly four categories for, for, for, for stock size. And first is small-cap. And basically, when we talk about small-cap, small-cap companies, the smallest, of course, they have market capitalisation up to a couple of billion dollars. And in USA market it's still considered as a small cap. And as well, we can add the do another sizes, basically micro and nano cap stocks. Basically, these dogs are the smallest, smallest, and but I just wanted to put everything into one category. So small-cap stocks, basically they more volatile. The moves are way bigger and the stalks are less liquid. So these are few, few things that you need to consider when, when, when trading these stocks, they actually good to trade small accounts. Because, because you differently wanted to have that volatility when trading. But nevertheless small-cap stocks, especially these nano cap stocks and micro cap stocks can be influenced by promoters. So basically there are various frauds of fraud that is going on among these stalks. Of course, not all of them, but there are enough, you know, to consider this from an investor's perspective to go even though, you know, playing with these small cap stocks. But nevertheless, when we talk about stocks that can now start with a couple of billion snow stove small cap. You can find really great opportunities for companies that can really arise in value food dime. And then let's move on. We have mid-cap. Basically these are the companies that have a size from somewhere to billions, up to ten billions, up to $10 billion. And these are actually really great if you wanted to big those dogs that are older, deep, strong, have a strong fundamentals and have a great potential to rise. And definitely they are great to trade because they are less, less volatile than small caps, but still not so slow movers as bigger gap stalks. And let's look into large cap and we can actually add mega cap because large-cap stocks starts from somewhere from 10 billion and goes up to do 200 billion. And then we have mega caps. Basically, these huge, big, very known corporations that you know, starts from 200 to a 100 million and there's no end to what size it can, it can become. But now let's large-cap, mega cap stocks are very liquid. There's always market for them. But the thing is that the way less volatile. So they move very slowly. They are great to invest and earn dividends if these companies pay them. But now let's remember, you know, to find out what is the market cap size for, for that stock you are researching. Because you definitely need to look into that in order to understand what type of stock about to trade. Because you know, volatility and liquidity can differ, differ a lot. So, yeah, so this is it though, when it comes to market cap sizes. Let's move on. So the next thing I wanted to talk about, and I already briefly mentioned in the beginning, is performance and value. Because remember that performance and value differs because, you know, the company may be have a excellent performance and can have a record revenue centers, et cetera. But maybe the price is already so overvalued for that company. You know, that just doesn't make sense to pay that money for that company. So you need to balance these things because, you know, from an example from quarter to quarter example like revenues can be increasing. Integrate, integrate numbers, but mainly the validation for that company is as well like as they say, sky-high, right? So you definitely need to look into such things. Because you want to find the, you know, great performance, definitely gradual increase in revenue as well as good and the valuation that is great in order to buy that stock from investors perspective. And why I'm telling you this is definitely something more to consider for, for investors because investors care about valuing stock because trailers, they definitely into trading even that, you know, last, last price bump before everything collapses. Because trader assign interested, maybe more into what kind of sentiment there is and if the price is going higher or not. But nevertheless, if you, if you combine that, if you look at the story, right, maybe the performance story is great. But as well, you will find out that the price, the value companies undervalued. You can have a great long-term position and you can find out, you know, that you can find that great stock to earn big money from. But remember, performance is not value, values, not performance. And when it comes to trading, trading the sentiments definitely performance is interesting to watch and observe and trade. And o, when it comes to investing, definitely look into value because you are being for business and you do not want to overpay or, and you wanted to get the bargain for that dollar. But now let's look at earnings. And, you know, just to figure out how earnings actually great. You know, how earnings greatly impacting price and what you need to look when, when, when talking about earnings. Earnings, you know, they are at least every quarter. And what is the most important thing, you know, that can impact earnings is basically what is a consensus for? What is the consensus for, for the, for, for revenue or profits and what actual earnings are. So basically, these are the two things that you need to look in order to understand if there's gonna be some price increase because it is all about what kind of consensus there is among analysts, among funds, general market players and what actually, and what actual earnings Company is releasing. Because it is important to understand the, you know, few things. Do actual earnings, you know, oh, oh, I better than consensus or you know, that the consensus is was above than actual earnings. And this deviation from, like from Consensus and actual earnings can impact the stock price. Because it definitely when there is a sort of price, what it's called, right? Like it's cold but like it's a, as they say, it's, it's a sort of surprising earnings. So basically maybe they are seeing that the consensus was lower than actual earnings. And this can actually greatly impact the stock price. And from trader's perspective, earnings, earnings had definitely great time to do trade stocks. And maybe let's look into, you know, earning season. Because every quarter company, publicly traded company releases earnings and when in general it is happening, it happens. On December, then we have March, June, and September. So basically around these months, most companies release earnings and you will find that there is a lot of price action going on. And actually there's a great time TO trade stocks. And you know, it's, it's, it's a really interesting time to see the performance numbers in order to find out what stock price will do next. So, yeah, so this said about earnings. Let's look now into financial statements. Let's now learn about financial statements. And let's define first what is financial statement. So basically, it is a written record of a business financial situation. In financial statement, you will find all the performance numbers. You know, you can't find all about assets that company has, you know, all these intangible and tangible assets as well. You will understand how, how, how good they are with the money. Basically is the company earning money may be Company is burning cash and so on and so on. So basically, you need to read financial statements in order to understand how fundamentally sound company is. So let's learn about financial statements so that earnings reports that everybody I'm talking about. So basically in this example we have formed then q, this is financial statement from Apple. This is basically what people are referring to when the dog and bought earnings report their domain of earnings reports? Basically, it is. Thank you. And then Gay. Thank you. Made every quarter. And then k is annual report. And in and in these financial statements you can find out about income. And you can look at income statement though, to look at numbers associated with the revenue and the cost to generate that revenue. So we can find those numbers and comparison from quarter to quarter in income statement. Then we have balance sheet. On the balance sheet, you will find the situation regarding the assets and liabilities. So you can see if the company, you know, accumulates assets or maybe accumulates a Liabilities and various depth from basically that will tell you a different story. So in balance sheet, you will find out the all about, you know, assets and liabilities. And then we have a cashflow statement. When it comes to cashflow statement, this is where you will find out, is the company making money or, or is the company just burning cash? So is the money flowing in the company or flowing out of the company? So these are the main things that you will find out in financial statement, in forums, then Q and then k. And let us now look into other company fillings. And let's move to the next slide. What you need to know when it comes to accompany feelings. First. So it is very important to know that the company has a obligations to fill various documents with the Security and Exchange Commission. Because, you know, when your company becomes public, you definitely need to disclose a lot of information regarding various matters. So to find these company fillings use at gars database, security, it is on Securities and Exchange Commission website. Just definitely it is not hard to find. Just type in at gars, at guard and company feelings or something like that or SEC Edgar. And you will find, you know, click there. And then you can look for particular company or you can use company's symbol in order to find the, in order to find related fillings. And now maybe let's look into the main most important fillings that you will find there. It is definitely Thank you. Think k And 8K basically. Thank you. And then k these are financial statements for like thank you is quarterly for quarterly earnings. Earnings, the results. And then k is annual annual financial statements. Financial statement, which you can find that in our database as well. Uh, remember, you can find all these fillings in the companies that upside just go into the company website you are doing research on and check in. In the website, find that Investors page. And there you will find all the information that is needed in order to find all these feelings. And coming back. Eight K It, this unscheduled, unscheduled filling when there's some big changes happening or maybe there's some kind of event that happens and it is needed to be publicly announced. So definitely watch, watch for 8K fillings. So these are actually the main fillings you definitely need to read and at least look into, you know, to understand what is happening. Then there are different fillings like 13 f free 4-5 forums. Basically these these are various forms for insiders and for funds to report their holdings. So an example of a form for, you know, just gives you all information regarded insider trading and, you know, and free and 5-5 swell unrelated. So, you know, check this as well because you definitely want to know what maybe which fund holds huge position in this talk that you're about to trade or trading and defiling thing. You need to understand what insiders are doing. Maybe they are selling shares like crazy. That can give you some hints about companies maybe situation or maybe thereby huge chunks of their own stocks or maybe there's something good that might happen. Because as, as you learn, incisors definitely hold more information than everybody else. So yeah, this is, this is the The part about fillings. So let's keep moving forward. Another very important subject to a research when you are conducting fundamental analysis is to look at corporate actions. Let's look at definition for corporate action. It is an action taken by company at the corporate level which can influence company's stock price. We definitely not going to look into all corporate action, actions because there are many, there are three main categories. But just know that you definitely want to look into what, you know, corporate decides and what kind of action, actions they undertake because it can greatly influence stock price. And let's look now into few of corporate actions. So basically as you understood, the corporate action is made by i decided by mainly by board of directors as well investors in some cases. But, but what, what type of corporate actions there are. So basically that starts with the first stock split. This one is most well known corporate action. And when you hear a company is decided on a stock split, most of the time is it is actually a good sign because stock splits, stock split is done when the stock price is very high and they just wanna do lower the price for Fourier stock. So you're just going to get more shares. But this most of the time actually indicates a strong fundamentals. In Example, if the stock is priced for couple of 1000 and so definitely go, corporate can think to do stock split in order to lower their, their stock price. So more people would be interested to buy as well. Same goes for reverse stock split. A lot of small companies do that because, mainly, because a lot of small companies dilute their shareholders value and they do this reverse stock split because the stock price is so low. So basically they need to, to increase the, increase the price and they can do that for a reverse stock split. So basically, but the, what they are doing, the example for like ten shares, the give you now one, You know, so it's reverse. And it's actually never a good sign when you hear that companies do reverse stock split. So this is just simple, simple way to look at stock splits, then stock buybacks. This is actually very popular in recent years because you know that the tax cut done by president actually allowed a lot of corporate profits, you know, to be saved. And a lot of corporations took that money and funneled into buying back their own stock. And what is happening basically there, imagine there's a by full of shares and then the company buys back and you know, in shrinks that by so basically all shares that are left now becoming more of a valuable with bigger value. And add that with great fundamentals. You know, increasing revenue, increasing profits. You have a great story with great fundamentals. So basically this is another thing that a corporation can do to influence their stock price. And this is what happened. What happened a lot these in these recent years. Then we have mergers and acquisitions. This is as well, a lot of deals are happening because still we are dealing when it comes to stock market, we're dealing with companies that do a lot of deals. They merge, they acquire cargo, the salad, you know, and this can influence a lot stock price. So an example, if some company is being bought by another one, It's been acquired, right? That company's stock. If the company that's buying, buying that company is being premium, the stock price can shoot up to reflect the price that is being paid. So basically these are just a few corporate actions that are being decided at corporate level. Let's finish with macroeconomic variables. Because you definitely need to understand that. You need to read that those financial statements and fillings, or at least to look into them as well. Look for corporate actions. Then, you know, going out the bigger environment you need to understand industry that the company is in. And then you need to understand macro economics. So because it definitely huge cycles influencing how the economy's working and the economy influence how the companies are working. Or, you know, it can be another way around. But nevertheless, macro, macroeconomic variables are needed to be understood and the need to be research and, you know, looked at. So when it comes to a macroeconomics, it always deals with this big picture. You know, the, the country, region, and so on. And when it comes to two main macro economic variables, we can talk about interest rates. We talked a bit about interest rates, but definitely Central Banks with their decision on interest rate can influence greatly financial markets of, of the country, of that central bank or even bigger region like for European Union, the European Bank and definitely influenced a lot of countries. Or by deciding different interest rates, then an employment when things are getting bad. You definitely understand that from unemployment because more people are losing jobs, more bankruptcies and so on. So you definitely need to look into unemployment numbers. It can sometimes be early sign or it can be just, you know, byproducts from something that already happened. Then we can, as we'll talk about gross domestic product. Another variable, basically, what does gross domestic product is basically revenue for that particular country, right? So if the gross domestic product is higher than another country, maybe that countries doing better. So, you know, just a great, great way to find out, you know, the performance metrics for, for country. So you got the idea that there's definitely more into this subject, you know, to talk about this subject, but I already feeling that my online course is getting longer and longer. So I hope you'll gain a lot of information and information that will trigger your mind to do more research. And yes, so let's finish this lesson. 13. BEGINNER'S RISK MANAGEMENT: So this is next lesson and we're going to talk about risk management is going to be basic risk management. Because when it comes to trading, it is fun to big ideas, to research opportunities, to find great stocks to trade. But we, even with a huge conviction in, in our, in our trading idea, we never know for sure that it will work. So this is why risk management is a number one thing that you need to care when you are trading. Because it will help you to mitigate that risk. And you know, it will help you even to calculate risk to reward potential, which is very important, you know, if you know how much money to bet on on certain ideas. And yes, so let's start this lesson and let's start with a quote from Socrates. The only true wisdom is knowing that you know nothing. And I think so this greatly applied to financial markets because nobody knows the future. Even if you have like a 100% conviction, you will never know for certain what will, what can happen and how events can change and it can influence your trade. So risk management is very important in order to keep your losses and risks in control so you will not lose so much that you will not be able to trade. So let's now move to the, to the second slide and let us look into definition for risk management. So risk management is the process of evaluating the chance of loss and then taking action to mitigate that potential risk. So it is straight forward. Basically a risk management is a process and process debt from the need to have some kind of rules, you know, in order for you to apply those rules to mitigate that, that the trading risk. So when it comes to rules that are very important, because rules will help you control emotions. And those rules can be very simple. You do not need to, you know, make very hard rules when it comes to risk management. Because it's all about preserving your capital, finding those great risk to reward potentials, potential traits, and trading them. So let's now look into how we can limit trading risks. So how we can limit your trading risk. There are mainly two ways to do that. And you can limit your risk bird trade and as well you can limit your risk bird time. And let's now look at each of it. So basically, first rule of firms is to, is to risk or no more than 2% per trade. So basically, if your position will be at the loss, you only, you only in cure 2% loss from your total account, right? So on every single trade, US 2% right there, that trait or, you know, it is, this is a rule of thumbs for a, specially for shorter term traders. So if you swing trader, swing trading, use that 2% rule. And when you day trading a, you can go even lower. You can go at 1% portrayed. So only 1% of your total account bear or one stock idea and trade, right? So, And just to add here, when it comes to position trading, you can, you can make that risk to be higher, but just do not go overboard. And nautilus like 20% per, per one stock idea. So it would be foolish and limit as well, but you can. I, I only allow myself to go up to 5% if, you know, for long-term positions. And I am talking about positions that I'm going to hold for one year, two years or even more. So lets now look into how to limit risk per time. And like this is just an example, you know, like you can have a rule to do not make. Do not make no more, to make no more than two traits per week. So basically you can limit yourself how, how many traits you can do per week and example, because alive beginner trainers, same me. I was the same, you know, I was overtraining and alot of beginner traders. This is one of the main now problem, the over-trained. And you gotta have this simple rule. Do not, do not, do not overtrained and actually be more focused to great ideas rather than shooting like cowboy, you know, and trying to win all, all traits. And because in the end, the more you trade, the bigger the chance you're going to lose more. So we're going to talk a bit about the risk of ruin. But you get the idea how we can limit trading, trading risk. You can do that by limiting risk bird trade and you can limit risk bird time. So just figure out what, what works best for you, but have those clear, clear rules so you will not be a victim of your own emotions. So what is practical way to manage trading risk? And the simplest way to do this is to use stop loss orders. These are that before years that will close your position automatically. Without you need to do this manually. And stop-loss orders. You can put these orders with every stock broker platform, visa or these orders, default orders. You definitely will find those orders with every platform you will use. And you know, an example, you know why you should use stop loss orders. You know, if you are day trading in Example, eight gave filling comes, comes in and price action becomes very volatile. And instead of your life 1% risk per trade now you look at minus 3% better trade and you still need to close your position manually. So this is why, you know, stop-loss order can help you to do this automatically as well. It takes that, you know, overthinking from you. Because if your plan is to set the stop-loss at certain price level and say this price level, I will go out like exit my position because maybe I'm wrong. So it's good, you know, just to take away over thinking because sometimes when the prices go so you know, to the level at which you should exit, you can start being denial and say maybe it's going to, it's going to bounce back or maybe like the price will do, it will reverse. So this is why stop-loss orders will help you, you know, to mitigate that risk. So always use these type of orders to close your positions automatically. You might as well ask us where to set those stop-loss orders. And good rule is to set stop-loss below support level when buying and above resistance level when short selling. You definitely need to look at the safe areas where you can put the support, the stop-loss order in order to not be a whip sawed. Because in example, if you are buying stock at the support level and you placing those stop-loss order very, very closely to the entry. Without allowing for price action to happen, you can be a whip sought out of your position and just to see that you are out right about the direction of the trend. But you were just kicked out of the trade because you put the stop-loss order very closely and you didn't gave price action room to, you know, to make some moves. And this is like big, big thing that beginners do. They just, they just mentally thinking more about how much they gonna lose. So the squeezing that stop-loss order instead of setting that stop loss order in our example, right? If you are buying like below, so recent low, so I blow the support level below the recent Los just to have good margins for price action to happen. And this is sometimes, you know, the problem that you can make when trading. So definitely give some room for price action to happen. And, you know, put that stop-loss order below support level and below the loaves have sufficient price action area to happen. And the same goes men short-selling. Just use, put those stop-loss orders above the resistance, above the high and their recent highs of price action just to have that safety margin to not be sold and you know, just to be safe when trading, the price action turns against you. So I fought to give you a quick example of how to, how to set stop-loss order. And let's take this example, Electronic Arts, game games producing company. And as you can see right now, it just moving higher. And let's move to the past. And let's take an example. So imagine that after this sell-off, the prize starting to climb up. And you know, you, you find out, you know, after this bounce back. That you can identify some support area at the level of 11313, like right here somewhere because you can see it clearly leg them. Resistance, which was right here now becomes support. And you thinking, Okay, maybe I should make a trade and you would be interested to trade that stock at 113. And imagine at this, at this day, May 6, your entry was triggered and you, you enter the market at $113. So what is great place to go to place? Stop loss order in this example, imagine you bought here, right here on this day, right? Because you identify sport level. So the great place doest said that stop-loss order is below that support level, below the, below the lowest of here and here. And it would be great to set that stop-loss order, a 100 then or even a bit lower. And you know, because look, what would happen if you would step would set very tight stop. You wouldn't be whipped sought on May 27th because, you know, the price action became more volatile, the stock dropped and just to bounce back and move to the direction of the trend. And this is the idea, you know, when you're buying an example, you need to set those stop-loss orders of below, below support blows lows. And then you short selling. You need to, you need to, you need to be first extra careful. And the second thing is to place those orders, stop-loss orders above the resistance, above the highest about the recent high. So you would have that margin for a price action to happen and as well as trade that goes against you to have that exit, exit ready. So, yeah, so let's move to the next slide. So let's look into the concept of risk of ruin. And this concept is used in gambling finance, insurance. And what it is to simplify risk of ruin is the probability that you will lose so much money, you can no longer continue trading. And why I'm showing you this slide, why I'm talking about risk of ruin. Because, you know, to simplify here for you, risk of ruined tells us that more we bet, the more bets we make, or more trades we make as we increase the probability of losing too much money. So basically with more trades, we increase the risk. And with that increased risk, we increased the probability to lose a lot of money. So what I want to tell you with this slide, just do not overtrained, did not trade for sake of trading. And think about your traits, about your traits do due diligence, do now financial, financial fundamental analysis and technical analysis and keep that tourists can control by using stop-loss orders. So you will not, you know, increased the risk and, you know, in the end, not overtrained, do not trade for sake of trading. So I want to finish this lesson with another quote, which I really enjoy. We are all speculators because the future is unknown. And it is very true. You know, we can do our due diligence on stock or do as fundamental analysis or technical analysis and have great conviction and our trade. But in the end of the day, nobody knows for certain what future holds for us, what the future holds for our stock portfolios. So one rational thing that we can do is to apply risk management rules. And this is why, you know, when trading risk management is very important because we, we actually can predict the stock price and we think that we can predict the stock prices, but we cannot be certain. We cannot be certain for sure about the prize direction. So this is why we should always, always apply risk management rules when trading stocks. 14. STOCKBROKERS: In this lesson, you're going to learn about stockbrokers and what you need to know when choosing stockbroker. Let's start this lesson with simple definition. What is stockbroker? So let's answer this. Let's look now into definition of four stockbroker. Now, stockbroker is a person or financial organization that executes, buy and sell orders on behalf of clients. In majority of stock brokers that are operating these days, data suited for retail traders and investors are online stockbrokers. So basically you will, what you only will need is to have ability to sign with that stockbroker of your choice. And then open account fu your by using your computer. So majority of stockbrokers these days are online stock brokers, so it is easy to open accounts with them. Another important detail when choosing stockbroker is to understand if your stock broker acts as an agent or as a market maker. You do not want your stock broker to be, to act as a market maker. Because to simplify for you, if your stock broker is a market maker, you basically will trade against your stockbroker and vary. The conflict of interest can arise. It is a good practice to check if your stock broker acts as an agent or as a market maker. You definitely want for your stock broker to be an agent, basically taking your order and sending it to a stock exchange to fill it and match with other order at the best price instead of trading against you. But majority of USA stockbrokers acting as an agent. So you should not worry about just choose a reputable, a broker and you will be fine as well. For international traders, choose USA, Local bro, stockbroker that allows a door open, open account for international traders. Now, when choosing stockbrokers, you can have ability to choose between commission free stockbroker and stop bro and bade stockbroker, basically that charge fee. And let's now check what is the difference. And when you should choose commission three stockbroker and when you should choose stock broker that, that you need to pay fees for these days, you can invest and trade in the stock market for free. Basically commissioned three. And this has happened because past few years we witnessed on what is known as Broker wars. This happened when online stockbroker, Robinhood offered its clients a commission free trading. Then big stockbrokers like interactive brokers, others are followed suit and now offering as well commissioned three trading. But you need to know a few things about Commission free trading and investing. The first thing to remember, in order to use commission free online brokers, you need to be usa citizens. So sorry for those international terrorists because you will be, you will not be able to trade for free because these offers only available for, for USA traders. Another important thing is to choose commission free commission three online stockbrokers, if you are interested, though position trait or invest. When your time horizon is like very long and the order execution is not very important. But when day trading, you definitely should considered going considered fee based stock online stockbroker because for for for the fee that you will pay for, for your order, you will get the best or what is known. Routing technologies. Various brokers have various routing technologies. But these routing technologies will help you to execute your, your, your order very quickly and very fast, because during volatile time, You can have tremendous losses with commission free online stockbrokers. So it is best to use a fee-based stockbrokers mandate trading and when position trading or investing definitely go with commission free online stockbrokers if you have possibility. Now, let's talk about different account types. And I'm talking about margin accounts and cash accounts. So let's look now first though, what is the bras and causing a gallons for cash account? The first thing that you need, what you need to know about Cash-Account is that all transactions are made with available cash is very straight forward to understand basically, if you have $200 in your account, you bought the stock for $100. You can only, you know, you can only stock that it is, it costs no more than $100 because you're left with one at $100. Because with margin account, you can actually borrow more money than you have to buy or sell stocks. But we're going to look into the margin account later. So the second thing over the cash account is that you can only buy stocks. Basically, you can only go long with cash account and you cannot short sell. Now the third thing that you need to know about gash counts is that you can earn money from securities lending. Basically, you can lend a securities that you own or for short sellers and you can earn money from that. This is how you can earn extra money. And this is a great way for investors or position traders that only go long though, earn extra money because you will earn that money from short-sellers. And if these couple, maybe percent per year can add up really quickly or to overall bank account. Let's now look into margin accounts and what do you need to know about them? So first, with margin account, you can borrow money to leverage position. That's a go back to the example I gave you when we talked about cash account. So basically, if you have $100 left your account and if its margin account and you see that the stock costs $120 with margin account, you have a possibility to buy that stock that is worth more than you have cash available. Just to add here a couple, a couple of things. When it comes to leverage. Remember that leverage is double-edged sword and you can definitely increase your profits and, but as well you can increase your losses. So be very careful with leverage and actually, you should better just avoid when, when beginning tweeting stocks as well. Remember that there are limits when trading USA stocks. And as I'm aware, the stock limit, the leverage limit in USA is 50%. And as well it can different, differ from stockbrokers to stockbroker. But remember that use leverage wisely and do not increase your position size too much so you would not incur a big losses. So what is next? When talking about margin account? Margin account can, with margin account you can buy and short sell stocks. So basically you can go long and short. And in comparison to cash account, the additional value with margin account is that you can short sell stocks. Now, let's look into third, when talking about margin accounts. And with margin account, you will need to maintain certain margin ratio. And this margin ratio can differ from stockbroker to stockbroker. But to simplify, margin ratio is the amount that is needed to be left in your account in order for your position to not be closed by your stockbroker. Now when it comes to a broker's location, it is important for you to choose your local stock broker if you can. If you are from usaid deference the Jews, they're reputable local broker. If you're from Canada, you definitely are good to choose as value as a stockbroker or choose the Canadian one. Same goes for, for those that live in UK. For other people as well. First check, maybe your local bank allows trading USA, USA equities. But you need to as valid check the fees because it can be a bit steep. But if you will not find the stockbroker or, you know, that fits your criteria in order to trade the example USA stocks, definitely try to open USA stock. Usa based stockbroker that allows international traders to open account. Why is that important to choose your local broker or reputable brokers from USA or UK or Canada. Because of jurisdiction and jurisdiction laws, you can't have troubles, especially with stockbrokers data located somewhere and islands because you as Diction can differ. And if you would be caught by a shady stockbroker, you could send the money to different jurisdiction and if you would have some legal trouble, now, you would need to go to that jurisdiction to actually fight lawsuits in order, you know, to maybe get your money back. So always remember to never choose such brokers and best Jews. Usa's located stockbrokers, reputable ones or the local brokers that you know, that are reputable as well. I fought to add this to this lesson because you will encounter this BDD rule, which applies for day traders when trading USA stock markets. Let's now look into what is BD D rule. Now, battered day trader rule or BDD. Is the rule that eliminates trades to no more than a free day trades during consecutive five business days using margin account to explain you this, imagine you open a margin account and you want to date rate USA stock market. Now you made or one day trade on a Tuesday, basically you're open and closed position, same date that you and now you made one day trade, right? So because you did that, that day trade will be available for you again next Tuesday. So del that next Tuesday you only have two more data rates. Don't do. So this is how it works. And imagine if on Thursday, again you made another day trade that they trade will be available for you to do again on next Thursday. So basically you will be left with one till like on Tuesday, you will get the second one. And if you will not make any date rates, basically on next Thursday you again will have free day trades available. Let's now first look, how will you can avoid this BDD rule? Now the first way to do this is to have more than $25 thousand in your account. This is a bit strange rule that was created by FINRA in order to help unsophisticated traders and investors do not lose too much money by day trading. But somehow if you have more than $25 thousand, you will consider it as smart and you can a day trade without any PDD rule. This habit strange as I said, rule, but nevertheless, this is how you can avoid BDD rule. Now, the second way, in my opinion, is the best one. You can open multiple accounts. You can do that with different brokers, but for your convenience, you can as well do this with one broker. So just ask your broker, but majority a stockbroker and brokers allows you to open additional margin accounts. So basically, with additional margin account, you can have additional free day trades available. The third option is to use cash account. And the problem with the cash account is that it takes three days to settle, settle your transaction, that happens. So basically if you made they trade, that was worth like 1 $100, you will not be available to use that $100 for free days because it takes three days to settle your transaction. But definitely if you have more, more money, Uganda, a try, but the problem has developed with the cash count. You can only go along. So consider this as well. Now the next option, definitely the one that I do not really recommend, but it's still possible. You Gan open account with overseas broker. Definitely avoid that jurisdictions that you do not trust and open the account with a broker that is located in the countries you trust and know and as well choose a reputable brokers. So an example, if you have thrown USA, maybe check stock brokers from the UK that will allow you to access USA stock markets. And through that stock broker you can trade and avoid BDD rule. And the last option, the easiest one, just do not day trade Jews, longer-term trading strategies and holding times in order to avoid this rule. This is as well another advantage when it comes to swing trading or position trading, because you only need to hold your position opposition overnight in order to avoid this rule. Now, let's look how you can use this rule to your advantage. So the first thing is that it will help you to limit your risk because you will have only free day trades available. So it definitely will help you with frequency when trading. So you will not overt trait. So definitely use this as a advantage. Now, another advantage when having a BDD rule is that with a limited amount of data rates, you will definitely think about what stocks to trade and the ones that do not straight. So this is how you can increase your trading and trading accuracy because you will be limited with your risks. And this is how you can avoid of various bad decisions and focus only on good stocks to trade. 15. START TRADING: So this is the last lesson. And in this lesson, you're going to start trading. This is going to be practical lessons so you can start with trading. And I think so without further ado. Let's start this lesson. This lesson gonna include five steps to which you need to take in order to start trading and start practicing to trade stocks. So let's start with the first step. And it is open trading account. So it's going to be up to you to choose your online stockbroker. But you can definitely look into those that I gave in the slide where I talked about market participants. These are well-known, reputable brokers. I myself use interactive brokers, but it is mainly because I am International trader and I chose interactive brokers because they allow it to open an account with them in order to trade USA stock markets and as well, interactive brokers allows me to trade like 100, like 30 different markets, so it's great choice. But nevertheless, you can look into other stockbrokers and the ones that most fit for you. Now when it comes to trading account, I definitely recommend you do open thirst demo account in order to understand the platform on the stockbroker of your choice. And to actually understand how the grading works without committing any money and risking any money. Now, if you're still interested to open a real account, do that at your own risk. Remember to not put all your money into a trading straight away. A definitely maybe put 500 or $1000 or, and remember that, that amount of money needed to be the one that you are comfortable, comfortable to lose. And why I'm telling you this, because a lot of people, there are some small minority that just open account, put their old life savings and just start trading and putting everything like in one stock. And in most of the time the stalks are very volatile and they just lose a bunch of money, do not be that person. Now, let's look at the second step and let's now setup stock screener. I use this talk's cleaner for my position trading and for investing. So let's set up the screener for you. First, go to Finland.com. This is online stock screener for USA stock market. It is very popular actually, and it is free. I recommend you to first create your account. So it would be possible for you to save the screener for future use. After you've created your account with fin width, which is free, go to screener. And here you can see filter which is already opened. Now. Click on all. So these are the inputs for my stock screener. Maybe just pause this video and put all inputs for the screener first, my recommendation for you is as to select market gap and select bless mid overdue billion. So what was the reason for this recommendation to exclude small gaps, micro cap, micro cap and nano cap stocks. It is because I assume that you are beginner trader. These type of stocks sometimes can be risky even if the fundamentals, right? And because I assume that you are totally beginner trader, because you purchased and looking this online course, I want for you to have ability to only check every day for the best possible stocks. Now, on top of this, i as well recommend for you to select country and only go with USA stocks. And I recommend to do this because of foreign, foreign country accompanies that listing their stock on new York Stock Exchange or nasdaq. There, security exchange feelings are different, so it's gonna be harder for you to read them a, especially when you only begin to trade stocks and look into various fundamental aspects of stocks and companies. So definitely, this is my recommendation to only go at first with only USA stocks. Now quick overview for inputs that you selected for this screener. So first, industry, select only stocks because you want to exclude exchange-traded funds. These are different type of investment vehicles. They are really great for investment. I'm not against them, but this stock screener only focuses on stocks, on single companies and exchanged, exchange traded funds. They allow us to invest in broad basket of various stocks and various industries may be or commodity and so on. So it is a different kind of investment vehicle. And for now, and this Greener is made for stocks only. Now, the next two inputs is a EPS drove past five years and sales growth past five years. And remember, you can always check that the definition and what does that mean? And what is the meaning for every, every input that you can select. But let's get back. So EPS growth Abbas 5-years, basically, it will give us the idea. If the company is making profits, so we definitely want for the company to have positive 5-year growth of earnings per share, basically profit. Then the same goes with sales growth past five years. So basically, this is going to be revenue. So we definitely want for these sales to grow for that company. Because without sales and without profit, definitely companies are not fundamentally strong. So this is what we want. We want fundamentally strong companies now, free other indicators. Now basically these are performance measurement indicators. These are return on assets, return on equity, and return on investment to return on assets. So basically, this shows you how manage, how a company uses its assets to great earnings. Same with equity. This is how, how, how good the management and the company is with investors equity that they put in to generate earnings as so profit. And the same with the return on investment. It does how they efficient with their investments, how much return they get on their various investments. So these are really great performance measurement indicators along with sales and EPS. So definitely use those and all of them need to be positive. Now, the next two inputs, these liquidity ratios and to be more exact, current ratio and quick ratio. Basically, these shows. Do does the company have ability to cover its liabilities with the assets that they have. So basically, how liquid is the company if it will need to be closed right now, do they have more liabilities or do they have assets to cover those liabilities? And then these ratios will help you do as well, exclude that companies leaving the good ones. Then we have a long-term debt, debt, debt with the debt-equity. Basically, those will tell you if the company is over leverage, what does that mean? If it does the company to do much of a depth in comparison to its equity. So to simplify it for you as well, With these two inputs will exclude bad companies leaving the good ones that are not over leveraged and they are not a risky. Now, free other inputs, gross margin, operating margin, and net profit margin. These margins that will help you to understand if the company is profitable and how it is profitable with its operations, definitely everything boils down to net profit margin. In the end, this a bit. Technical from fundamental point of view. But remember that include all as well and select them positive. Because you definitely want for these margins to be positive, Erin, for company to have that margin in order to make profits. Now, the last indicator that you need to use is 52 week high. And select new high. What it will give you, it will give you a breakout signal. Basically, this is a long-term chart, breakout indicator and used for by many traders and investors. This will show you that that dog has upward momentum, can have upward momentum and then add that stock price of the price of a stock is moving upwards. And you want a for this talk to move upwards and have fundamentally strong company in order to catch that, catch that trend. So this is all what you need to, for you to have this screen there. If you want to have more, more results, definitely exclude these. Do annual get more stalks actually, and as you can see, we only now narrowed due free stalks that we can actually look now into. So I stopped recording and to break game back today to continue recording. And I saw that the screener picked up another stock. So this might happen as well, even its weekend. But majority of new stocks will come, come in every, every business day. So every day after market you can check new, new stalk ideas that dropped, that drops into stock screener. So we can choose this dogs that you wanna watch and analyze further and you get various talks. And like in this example, we have Advanced Micro Devices, those that those of you who are in computers and cryptocurrencies thinks. So you definitely heard about Advanced Micro Devices then as well, such stocks as dq2 interactive software. This is a gaming company which which grades games such as Red Dead Redemption, 2K, KB, basketball, serious, and others. So in general, remember that as well, stock screener represents the stocks that are going up. And actually, these past days of the week, at the end of the trading week, stocks went down. So this is why the screener picked up not so many results. But nevertheless, let's move forward and let's now look into what you need to know when choosing stock. Now the third which I already gave it away, choose stock and especially Chu's talk that you know, so be patient. Visit the screener every day. And look at the results that you got, and look at the stocks that ion results, and look at the stocks that you know. So basically a couple of weeks ago, like PayPal was in a stock screener. So definitely allow, you know, what is PayPal as well, like Electronic Arts as well. The gamers will know that the company that I'm talking about and various others. So I really for you to be patient and actually just revisit stock screener. Read about the companies that, that, that iIn the screener. Maybe you're going to find some other interesting company that is not well known, but you might dig in and understand the concept. Or maybe you just work in the industry that that company is in. So definitely can give you more understanding when choosing stock. So you got the idea to stock that you know. Now, another important factor when choosing this dock door trade is to stop to position traits. So when you will have this talk that you are interested in, or you know, or you understand the industry or the company. It is important for you to choose that stock that you will believe that will be here in like five years and will grow and it will grow in like upcoming years and even up to five years. So I want for you to choose this dog that will do that in your opinion, will do good and have a potential in the future. So I will give you idea why you are doing this. But remember, the most important things. Choose the stock that you know, understand or industry if you understand or the company may be understand or even work in that company and choose the stock to position trade. So look for a longer-term, because this will allow you to get more into the stock market and understand the fruit time, how everything can change and develop. So Let's move on third there. And I'm gonna give you a bit extra detail when it comes to picking stock. Now, let's move back to DOE screener. And what has well, one for you to do is click validation when you have the results. And it is important for you to check if the validation metrics, which is like Bryce validation metrics right here. Where you can see that right here, here, here, here, up to here. I want for you to check for the company that is not in red leg these ones because, you know, I'm not gonna give you all fundamental, you know, lesson. But like to simplify it for you. These are all the main valuation metric system which will show you if the company is overvalued or undervalued. And as you remember, a, you know, stocks move in tandem with a general stock market trend. And at these currents, current levels for couple of years now, a lot of stocks are overvalued, so this is actually very risky time to invest and you should be very careful with your investing. So as well on top of that, to get that best stock to invest as well, look at these. Numbers and to simplify, just loop that they should be, you know, a green or, or black, or at least with one red. So an example, I picked Electronic Arts. And as you can see right here, Brice metrics all shown. Very nice story. So it's still, the company is considered, is considered undervalued in current state. So I definitely believe in longer-term it's going to grow up because more people will find out that as usual and it's gonna, it's gonna go to overvalued territory. And this is the time that I'm going to sell the stock. And this is what I do for my position trade and lightboard type of investing, the dipole place. But this is the last idea when it comes to choosing stock of your choice. And I remember just be patient every day you're going to have new, new results. Sometimes the market can crash. So maybe one day you will not find any stock that moving higher. So just understand that the stock market is not a great time to be in and it's not a great time to buy as well. These times is a bit risky. I did not know when you watch this, this, this online course, but you know, in one year, you know, the stock market can grasp a bit more and violations can be as well. Again, attractive. Always look for a market. This is the idea you need to constantly update, look at the results, read about the stocks, understand the stocks and their standard industry. And on top of this, you know, it's very easy, just big the stocks that you are interested from the screener and write them somewhere as a watch list, right? So for a future, right, because it's still going to be wallet for definitely couple of months. And if you are interested, you can still pick up those dogs that you already saw in the screener. And you can revisit them in fineness. It's very great because you just can go here and you can see the timeline with the news and you can read the news about the company. And if you see, you know, the company is doing great. Denote the revenues are increasing. Income is getting better. Costs are being decreased. Everything's going better. Maybe you will find the stock that you will want to invest and position trait, right? So this is the whole idea, you know, when picking, when picking the stock. So let's move further now and let's look at the fourth, what you need to do. Now, the next point, what you're going to do is just buy the stock of your choice. Definitely. Put some time to just read the news, read the timeline, timeline of the news to get into this talk and understand is it, is the fundamental story is building up and it's moving. Do like more growth or better results for that company in the future and just buy the stock. And with this lesson, what I actually want for you to do is just get into the market and start experienced trading because you will be more involved. So definitely I recommend start with demo trading. So if you have in demoed trading account like $10 thousand virtual dollars, use risk management rules. So by the stalk of war of like no more than 2%. So a wharf of $200. And if you are interested, you know, to open real training account, I understand some of you will start with 200, 500s and sometimes buying, buying the stock, you know, can be a bit more difficult and not all of them you will be able to buy because they're gonna cost more and you just wanna commit more money. That's okay, but do that, that your own risk. And better I recommend if you, if you want to use real money as well, follow risk management rules. And instead of buying whole share, like if it's costs like, I don't know, two hundred, three hundred dollars and you have only $200 in your account. And we can use margin, but that's bad choice. I recommend for you to do enable fractional shear trading. Majority of stockbrokers allows this. So basically instead of buying a whole shear, you can by the amount of fraction of that, of one shear. So this is well possible. So the whole idea with this lesson is just to get you in the stock market committing a low amount of money and or better recommending just to start with a demo account, it will help you to understand the platform, how to buy and sell, how margin is, how to use the margin and so on and various other things that you're going to learn along the way when you do this whole, whole lesson. So by this doc and just get into that market. So it's going to experience, going to teach you a lot, you know, and of course keep studying markets and keep learning from your experience and from different sources. So let's look now at the last fifth. Now, when you bought the stock, stock, drag, start tracking it and analyzing it. So definitely do research before that. But when you, when you buy the stock, then, you know it's time to track and analyze the further development of the story and the performance for the stock. And you can do that through various ways. And let's look at them right now. Now. Track and analyze stock. You can do this through fillings, reading fillings because this is going to be made information that you can have on stock that you bought. And as well, if you are going to be given more stocks, started using a such thing as a profit and loss statement, which, which you, where you can see, you know, how your performance for portfolio is doing as well. You will see maybe the dividends paid out and various other things that are related to the performance of your stock or stock portfolio. So let's get back to the examples is going to be the last example. I'm just going to give you a way. Oh, simple few ways how you can do this. You know how to track your stock and just keep updated yourself and see what's happening. So let's look into them. Now. Let's get back to finish this and how you can track and analyze your stalks. So definitely every day you wish you can and should check the price of a stock to see, oh, what, what is happening with the price and value of a stock. And if you, if you have like more things to do during your day and maybe you do not have much time to read all the fillings. Definitely to simplify for you. Just look at the new stable and you can see the timeline and you can see that maybe there will be new, new information regarding the company and you as well. We'll observe how the news can influence the stock price and you can see what investors perceive as important and what is less important. But if you are interested to go deeper and understand better about the company, just go in to the website which you just, you can simply, by clicking from fingers right here on the, on the company's name. You will be then sent to the website of the company. And most of the time, you will see somewhere at the header or the website or the footer with it's called the investors table or ELA Investors page. So click here and you will be brought to them to the page where all information regarding company is put. So you can find from here various things, you know, latest news, next earnings date and so on. So definitely you can check sec fillings from here and you can read those fillings from the company's website as well. And remember, you can use Security Exchange Commission at guards database. And what is important, read the most important ones. These are like eight K, ten K as well. Definitely check what is happening with the ownership. Or when it comes to insiders transactions, are they buying or selling? Because a lot of, you know, insiders are selling. Because in general the market is looking a bit risky. But in majority of times you can find great opportunities during when everybody's selling or buying Long-term. This is my long-term play. I'm looking for this talk to be held for like up to two to five years. So definitely I'm I will not flinch on the idea that a lot of actually insiders I selling because I'm just waiting for the stock may be to crash you in, lower the, pick up more stocks. So you get the idea. You definitely, if you want to have this deep analysis into this doc and just to track and analyze how it's doing. It definitely wanted to go into fillings and start learning how to read them is definitely harder thing. But if you do not have time, if you have a lot of things. Just look at, at, at News Timeline and find the information this way. And as well on top of that, you know, of course analyze them. Analyze the chart and look, maybe there's going to be a better time to buy the stock. And I'm actually looking at like $130 sport level and somewhere in the territory of one hundred and twenty and one hundred Dan, I think So these are gonna be a great places to buy the stock if the stock market will crash. And this is the idea guys. You know, you just wanted to pick this doc of long-term because with this lesson, I just want for you to get involved in the stock market and not get involved, you know, by day training straight away because it takes a lot of time, screen time as well. It is as well takes a lot of brain power because it is haulage, psychologically more intense thing. I just want for you to just get into this talk and be with ease when trading, but as well to just get into the experience of what it is when it comes to trading stocks and stock market. So guys, this is it. I hope you will learn a lot from this online course. My promise to you, and it gums due to some online courses that I provide, is that I'm gonna update them. This course is one of them. So definitely watch out because in year or a couple of years I'm gonna update this course so you know, to be more specific, more information, you know, just to make it way better and just update it every year so to reflect new information and new examples. On top of that, I hope you gain a lot. I hope this is going to help you to just go further in dough trading and stock market or even investing. You know, it's definitely as well great way to accumulate wealth through stock market. But if you're interested as well, like day trading, swing trading, position trading. I hope this information that I prepared for you in this online course helped you to get a better idea about all these things. And yet the last slide that I left is just keep studying, keep practicing. It, it, it took me a lot though, even start to understand the stock market and actually how it really worked. And and yeah, so if you have questions, just write me and look for the contacts or use social media to find. And the social media handle is everywhere is at improved trader. So if you're interested, check it out and if you have questions, just just dried them. So this is it. I'm not gonna take much more of your time. I really hoped I gave you great information and I hope you learn. And through these studying for this material, you gain a lot of knowledge that will help you be better stock trader.