Stock Trading & Option Trading for Beginners. Learn to be profitable, 5 hour course! More coming! | Tyler Wagner | Skillshare

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Stock Trading & Option Trading for Beginners. Learn to be profitable, 5 hour course! More coming!

teacher avatar Tyler Wagner, Follow me to get notifications about new lessons!

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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

21 Lessons (5h 33m)
    • 1. Intro to my class!

    • 2. Terms + Websites I use

    • 3. Intro to tradingview

    • 4. Basics of a Candlestick

    • 5. Engulfing Candles

    • 6. Basics of the Trend and Trend Lines

    • 7. Support & Resistance

    • 8. Moving averages

    • 9. Rsi 1

    • 10. Rsi 2

    • 11. MACD Indicator

    • 12. VOLUME

    • 13. How do I look for stocks?

    • 14. Position Sizing

    • 15. Three Major Indexes

    • 16. Money Management

    • 17. What causes stocks to move?

    • 18. Wall street cheat sheet

    • 19. Options Terms

    • 20. US30, US100, US 500

    • 21. Call Option Contracts

  • --
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  • Intermediate level
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About This Class

This course introduces students to investment analysis, including fundamental, technical analysis, as well as selection of appropriate investment vehicles, including options strategies.

The following are some of the topics I will be discussing in this course:

  • Introduction to Trading View
  • How to read stock charts
  • Support & Resistance
  • Basics of the Candlestick
  • How to draw trend lines
  • Money management
  • How the major indexes effects individual stocks.
  • What causes stocks to move?

Meet Your Teacher

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Tyler Wagner

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1. Intro to my class!: Hey guys, welcome to trading stocks and options for beginners. First and foremost, wanted to say thank you for joining. I can guarantee you, I will have some information in my course that you won't see anywhere else. I have been in the market for about seven years now going on eight. And I have put my heart and soul into the stock market. I have sacrificed everything from relationships to social life, to learn everything that I'm going to be putting into this video. And the first few videos do start out slow and boring. Mostly stuff that you know, you will need to know though. And then as you progress, we will get into some videos where you paint a light bulb goes off in your head and you're like, Wow, I didn't think of that. So here's just because I want to make this video a quick, Here's some stuff I'll be covering. Basic terms and definitions of the stock market and how to read chart. So technical analysis, learn how to use trading view. So learn how to read the charts, support and resistance indicators, basics of candlesticks, basics of trend lines and trends. Money management that I use risk mitigation factors. Intro to options, options strategies in psychiatry, psychology, the market. And there are some, you know, some more stuff that's more subcategory type things but just hangs, stay with me and follow along as I go. And I promise you by the end of this course, you'll have a good grasp on the market. Got a good day. 2. Terms + Websites I use: So this will be the first video in my course. First and foremost, wanted to say thanks you guys. I can prompt shout, put my heart and soul and the stock market from just sacrificing every aspect of my life, sacrificing your relationships and social life and really everything I've put my entire life into the stock market, the last six going on seven years now. And there's no buy it as passionate as I am. Not. There's, there's no, that can't be, can't be. Because I don't stop 100% stock market. That's what I eat, sleep and breathe. Came to the right place. As you've gone through this, if you know, if you know me and we have a connection, just reach out and if you have any questions, feel free. Feel free to reach out. Oh, the first video is just going to be on some terms and a little intro. Gonna keep it simple. These we're going to get into some videos. This first couple are going to be born not going to lie. It's going to be stuff you need to know. And some of them might be already stuff that you already know. And that's fun. You might be hearing it again, but it's stuff that I have to go over. This is a course for starting out, trying to stop people from a beginner to the point where it's pretty much everything and just jump into it. So in this course I'm sharing my opinions. I will not tell you what to do with your money. I'm going to tell you what I do with my money. I will not tell you what your asset allocation should be. I will tell you what mine is. So what I mean by that is I will now tell you, you should own percent amount of chairs for sentimental options per cent amount of crypto person, amount of ETFs. Like I'm not going to tell you that that would be illegal for me to tell you. I will tell you what mine is and if you if you want to use that, then that's fine. But, you know, it's not it's not advice is now financial advice. I'm just telling you what. But what I do, do, do your own research formula, your own strategy. If you decide to listen to anything that I do personally and it doesn't work for you. This is your fault, mama. Educational purposes only and not financial advice. By using this force, you're agreeing to not hold me accountable for any of your actions. So I said telling you what I do, not telling you what you should do. So these are just my experiences and what I know. But that being said, if you have any questions about that, reach out, oh, just jump into it. So these are the terms or these are some of the terms. Of course there's more and you know, we'll get into more as time goes on. I'm going to do, when I get into options, I'm going to do a whole another list because there's different terms. You know, you gotta understand implied volatility and, you know, there's just, there's just a lot to understand. But for today I'm going to stick with some basic terms. So bullish be bullish means you think a stock is the stock or the market is going up. So what I mean by that, You self-explanatory, as you see here, this is, so this is the nasdaq chart. Now you probably don't even know what an asic is. I'll get into that and I'll talk about this and I'm gonna break everything, everything down individually. But this is bullish. We're in an uptrend. So let's say the nasdaq or a stock that say, if I was bullish, if I thought this dog was going to come up, it's 260 right now, if I thought it was going to come up to $5, I would be bullish. If I thought it was going to go from 26 down to $1, I will be bearish to be various means you think he's dark is going the stock or the market is going down. So when you hear market as people referring to the indexes, though a bull market would mean the indexes are in an uptrend. The bear market or a bear market would mean the indexes are in a downtrend. So the nasdaq is one. Let me put my three major indexes, mandu a whole video on this. But the nasdaq is one of the major indexes and as you can tell, been in an uptrend. So this has been in a bull market. Now there are certain periods that we have bear markets. Like back here in 2000, we had a bear market. Here in 08, we had a bear market, but we have bear mortgage for a certain amount of Tom's. But, you know, traditionally we've been in a bull market since inception. So when I say, you know, bull market, that's referring to the overall stock market, which is referring to the indexes, which there's three of those, and it's the nasdaq, the S and P in the Dow Jones, like Selma do all video on that. But it'll be long, is basically the same thing as bullish to be short is the same thing is bearish. So long means you think a stock is going up or you have long exposure, meaning you have positions that would infer that, that you think the market is going down. If I, if I short, I mean, That means you think a stock is going down. So if Alice short-selling or I was buying put cot put contracts, which is which is an options which I know most of you don't understand what I just said. We're going to break each one of these down individually. Hours and hours of content in here. But there's a couple different ways to short the market. We'll talk about those. And that would mean you make money if the stock goes down. Well, margin. Buying on margin means you're borrowing money from a broker to place a trade. I stay away from margin, not going to tell you what to do with your money, but personally, just common sense that you don't want to borrow money from the broker. So what they're trying to do is essentially make you lose your money faster. This is how, you know, you can, you know, if you're really, really smart, but anybody who's taking this course and just getting into stocks shouldn't even consider using margin. And you'll see it when you create an account like we created an account like TD Ameritrade or, you know, all these pretty much all these brokers have, you can have a margin account and some you don't want to do. And you gotta have money in there to use margin too. You can't just sign up as a ham or borrow money in trade with it. So don't think that's how it works. A little more complex than that. Some stay away from Athenian IPO. So IPO, initial public offering. But it's a process by which a company can go public buy-sell of it's stuck to the general public. Let's say, let's say law, mom-and-pop pizza shop. They had 30 locations and they were wanting to really branch out and franchise and and have 400, then they might have an IPO and go public. And this is a very small-scale example. You're not going to hear mom and pop pizza shop called public. That was a bad example, but it's just to, I'd say company is a company that was private. It now wants to raise money and to raise money from the public, they need to do an IPO. So they need to list their stock on the stock exchange and thus allowing private or the public who invest in there. Ask. So you see you have an ask and bid, so and start trading. The stock price is made up of an ask in a bid. So to give you an exam, so in the context of stock trading, the ask is the lowest price a seller of a stock will accept for a share? You bid, in the context of stock trading, is the highest price a buyer is willing to pay for that. This is an order book, is robin hoods order book. This and this was a little bit of an outdated version. The updated version looks a little bit different just as far as the color she but and it pretty much looks the same. And so you see over here you see a bid and that's 1362. There's an ass 368, the bid of 1360 to their willingness. So what's going on here is they're willing somebody put an order n There are willing to, and it's a limit order and we're gonna get into that. But somebody put an order n to buy shares of this particular stock to ME OWN know anything about it. This argument is just an example. I'm going to put in an order to buy 3000 shares at 1360 to a share. That's the highest price buyer is willing to. So there's other people like there's other people willing to buy. There's see like down here, you can see 134513411335, 1334. It's going to keep going down and down all the way to like $5 because there's people, you know, if the stock falls, their orders are going to be going through, you know, vice versa. On the seller side, the lowest somebody's willing to let their shares go for is 1368. So, and they're willing to let 500 shares go for that operation. Then it also somebody behind him at 1380 and then 1383 and then 1387, don't want, and so on to probably 899. And so basically what this is, is supply and demand. And supply and demand. Or the supply would be the sellers and the demand would be the virus. And how the stock price. So in this, at this exact moment right here at 941, whatever day this was, this was the screenshots on my phone. The stock price of this company was at 1360 for bid was 1360 to the ask was 1368. So the price will be somewhere in the middle. And that's how a stock price is came up with. Oh, there's people out there, they're bang, Hey, I'll buy shares at a certain price and I want to buy a certain amount of shares. And there also another guy out there that own shares already that's willing to sell his, but he's willing to he's not willing to let them go for 1360 to try and get 1360 a auto. And so the middle would be where the stock price is usually. And so that's that's an order book. Come and do a whole video on that. But that's a bid and ask. So the bid and ask is basically the supply and demand and supply volatility. Volatility is the liability to change rapidly and unpredictably. Unpredictably. Especially for the worse. Though. I bought the stock or the market is volatile, it just means it's going up and down. Or it could be going down or it's just a lot of momentum one way, for example. So I'm sure you guys have heard this already, but well, weeks back or Burma. Burma is bad. Amc very, very volatile. So as you can see, traditionally the start was just trading sideways, lower, lower, lower, lower. Then out of the wall blue had all this bad stuff, read stuff happening and it's just, it's all over the place now. So this is volatile. Back here. Not involved in the study. I just said volatiles liability to change rapidly. So back here it's not changing rapidly. Here it is. So this would be volatile. That I'll tell you place heavily into option. So we'll, we'll get into that. That'll be implied volatility, but we'll talk about that in a later video. That'll be a decent amount of videos down the road. I don't want you guys to get a framework and understand the charts and understand psychology and everything else before we really talk about options. If no one will get wrecked. Market order. So a market order is an order to buy or sell a stock stock immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. Though if I own, are actually, you know, if I could do a bomb market order or a sell market order, a sale winded up by shares of Snapchat, 50 bucks. And if I put a market order n, the order is going to go through. But I might get my shares at $50.40. Oh, it's, you can't control what the execution price will be. Whereas with, and you can do that. If I owned, let's say right now, owned shares of Snapchat, 50 bucks. And I put a market order n to sell all of them. It would sell them for sure, but it is not guaranteed, then we're going to get $50 out of homes. They might sell for 4950. And and it's different in every situation. But what I do is a limit order. We'll end this is on shares and contract options contracts. But right now we're just talking about shares in these videos. So a limit order of shares is a limit. Alumina order is the type of order to purchase or sell a stock at a specified price or better, usually, the price that you set it at for for bile him and orders, the order will be executed only at the limit price or a lower one while the cell limit orders with the cell and that orders the order will be executed only at the limit price, right, HAR1. So if I'll just finish this, so this stipulation allow shows to better control the prices they trade. Though in the same example with Snapchat, if I launch snap or if I wanted to buy shares of snapshot of 50 bucks. And it was at let's say it was at a $50.05. And what I could do is I could go in and place a limit order. And you can do this on any broker, You can do it on Robinhood. You just go in, you place in a limit in for 50 bucks, and that order will go through at $50 or lower. But it's going to be an m dot in it would go through it 50 bucks. But it's never going to go against me. It's now I can control where the order goes through it. Whereas for a sell limit order, you know, if I own shares of Snapchat and I want it to sell them at 50 bucks. And I'll put a limit, sell order and set the limit at 50 bucks. And they are going to sell at 50 bucks. It's not going to sell them for 4950, whereas on a market order, it probably will. So a marker will screw you and a limit order wall. Basically you can control it. The order just doesn't go through as quick. So it's basically a matter of patients. And then you've got the patients in the limit order will go through usually, and not all time in every situation is different. You could set a limit order. You know, I could set a limit order. Snapchat could be a 50 bucks. And if I set a limit order at $20, then obviously it's not going to go through because if 50 bucks, now it took a long time, if ever right, to get back to 20 and that day that it did in my order would go through. So stop-loss order. So the stop-loss is very important that you have a stop-loss order and a stop limit order, a stop loss order. So these are basically a stop loss order is a market order. A stop limit order is a limit order. So it's the same thing as these up here, but a stop-loss order is an order place with a broker to sell a stock when it reaches a certain price. Stop-loss orders are designed to limit and investors loss on our position in a stock are different from stopped limit orders. A stop loss order would initiate a market order. Though, let's say let's say Snapchat is at 50 bucks and I'm holding it and I think it's gonna go up. But I want to mitigate my risk by set a stop loss order at 47 bucks. And let's say Snapchat false and it falls to 47 books. What will happen is a stop-loss order will be triggered, or a market order will be triggered, a cell market order, and a mile March shares will be sold. But I don't have an exact price that they're going to be sold at because it's a market order, so I don't have control. Whereas and this is what I do if I do a stop limit order. Same thing as a stop-loss butt initiates the limit order, which is what you want. So if I'm owning shares of AB shot at a few books and I think it's gonna go up, but it doesn't balls. I have a stop limit order set it. 47. Ishares will sell at 47. They're not gonna they're not going to sell at 46 if he like, they could have said a stop loss order. So it's just the difference between a market order in a limit order. And Moore is what I do. But I would recommend. And then, so those are just some terms, discount start out. The websites that I use is Robinhood to sell and to buy and sell shares. Suppose options actually use TDMA, TD Ameritrade, Burgess holding shares long-term. And you know, and the reason for that, there's not a huge, huge reason, you know, it's more of a thing that I just have. I'm paranoid. The what if something happens, you know, I just want to be protected. So I have two different accounts, but TDMA che for me is mostly just long term and then Robin Hood, it's mostly short time goes on Robinhood, There is no fees, so it doesn't it doesn't cost me anything to get into positions where on TD do get fees for, especially for options. Let's see here. So I use trading view for technical analysis to read the charts and also use trading view to screening for stocks. Now, I use, I use the web-based version and I usually just use this on my phone. And it has all kinds of different different indicators and stuff. And you know, we're gonna get into all of this stuff right here. And this is going to be the bulk of the material. And this is my expertise as what I've said around and sacrificed everything to learn basically. And then options to me, I know a lot about options and we're going to get into that eventually too. But we really got a note on the charts before we can, before we can do that. And then I'll see you trading view and this is what, this is what trend of you has an app to. The web-based version is just a little bit better and that's on the phone. That's on the phone as well. So, you know, if I'm, if I'm screening for stocks, I think the computer version of trading views a little bit better. But if I'm looking at the charts actively than honestly, it's probably better on the phone because it's just a little more intuitive just to zoom in, zoom out with your fingers. But you can use either on your phone or your or your computer. And then one other thing. So if you want to get into options, and I'm not telling you to do this by any means. But this is something that you would have to do in order to get into options. Nine times out of 10, this is what I did. So when you first download Robinhood, you can go to Settings, click investing. And I said you can, because this isn't a recommendation, not telling you to do this. I'm just telling you this is what it would take to be able to do options. So when you first download Robinhood, you can go to Settings, click investing, and then scroll to the bottom and click Enable options. If you want to place options trades and when you are, when you're first setting up your account and they ask you your experience level. You can not tell you should, but you can get the maximum out of views available. You know, some people will be with say, well, you're you tell me to LA I'm not telling you to what I did when I first started getting adoptions because if I wouldn't have a if you don't do this when you click on Enable options, it may tell you to an experience and you know, and that's up to you if you want to get an option, to get into options. But if you download Robinhood the first day and then when they ask you what your experience level and you tell them you have no experience. And then you go to click Enable options. They're going to tell you that you're an experienced. So if you want to get an options and probably shouldn't do that, I do not place any kind of auction trades until you thoroughly understand will lose money. And there are certain factors that I do with options. There's certain percentage that I use and I'm going to talk about these as time goes on. But, you know, it's just, it's not some play around with some you have to take very, very seriously. And if you have any questions, feel free to reach out. I'll do my best for you and you can message me on my Instagram's Taiwan or 24, my Facebook. She's taller Wagner. And that's pretty much all Amman. And Jojo a good day. 3. Intro to tradingview: So you're watching the second video in my stock trading course. This video is going to be an intro on trading Trading view is a platform that I use to analyse stock charts, also known as technical analysis. So anytime you hear technical analysis, that's basically so I might just saying that they're looking at it starts works. One thing I wanted you to be aware of when you click when you first pull this up, whether it's on your phone or their computer, you want to make sure it shows launch chart top-left. You can also go in here to some other things so you can do search ideas. I personally would not recommend anybody using anyone else's ideas. You use your own ideas, you find, use your own strategies to formulate your own ideas. And you make trades based on what you see on the charts and what you're hearing obviously in the news. I'm mostly a technical analysis trader. So I believe in these charges like a religion and that's, you know, that's just the way are all. There's also paid versions. Me personally, I've been trading for years and years of full-time or full-time trader. I do not use paid versions. I use a free version. You can if you need if you feel the need to have six charts up on one screen, you can do that. Me personally I had is I just go on between stocks and look at different charts. So I would not pay for a monthly subscription. It's going to cost you 5060 bucks a month. And it's just really unless you're doing it full time, it's a waste of money. So just wanted to throw that out there. And I would also probably just use it on your cell phone. It's a lot easier on the cell phone in my opinion, they do have an app, but I think the web-based version is a little bit better. So I said make sure it's on launch chart up here. And I'm going to type a ticker. And so what a taker is basically just the acronym for a stock. So like with Apple, it's a AAPL for Tesla, it's T SLA for 3M, it's m, M, m. So if I type in apple, I'm going to select the one on the top. So that's going to give you other options. You'll see a bunch of different flags like from different exchanges. Of course you're not one. We don't want to look at anything on, you know, any foreign exchanges like the germ enter the Mexican or Canadian or anything like that. We want to be looking at the Nasdaq Exchange on this top one because apples and nasdaq listed stock. And of course, I'm going to get into as far as you know, just the different because you have the nasdaq, you have New York Stock Exchange. I want to talk about that in another video. But for today, like I said, I'm only going over trading Just wanna do a little intro to for you guys. So in later videos when we're going over this stuff, you'll have an idea what I'm talking about. When I first got into, when I first got into trading, these charts looked foreign to me and I don't want that to be the same case for you guys. It will at first, but I'm going to, by the time you get done with my course, I promise you guys, you'll have a better grasp on the antiparticle analysis. So just to kind of get into it, It's like I said, you have your ticker top-left. The next bar over would be your timeframes. So you have a monthly, weekly, daily for our one hour. So each of these candles will represent whatever time frame you have, the whatever time frame you have it this set on these candles, we'll represent that timeframe. So if I put it on a weekly, each one of these candles is one week. If I put it on a four-hour, each one of these candles is four hours. That's pretty simple. So depending on what kind of trade or your will depend on what timeframe you need to be looking at. So if you are a long-term investor, you only get a monthly or weekly. Sometimes maybe a daily, but probably just weekly, monthly if you're a swing trader. So if you do positions that are, you know, a few weeks to a couple of months, you'll want to look at a weekly or daily, a four hour. And that's pretty much it. If you're a day trader, you'll look at a four-hour, an hourly, sometimes a five-minute, but I don't necessarily recommend it. And you'll you you always want to look at the daily regardless in my opinion, no matter what. So I do day trades, I do long-term and also do swing trays. I usually look at these time-frames. I use. I look at the monthly, the weekly, the daily, the four hour, and early on, every every stock that I get into elegant those five. So that's the timeframes and x bar will be. So that's how you change it to. So when you first pull it up, it'll look, it might look like this is when I hit this bar up here, hit candle's. Just use the candles. I'm not, I'm, I'm gonna do a whole video on candles and different things. I'm going to break each of these things now one-by-one. But for today, I just want to do an intro video. Like I said, this is only the second video on the course. So, you know, as you go along, I don't want you, I want you guys to to know best, to know what I'm talking about as I'm going on and I don't want it to look for. And as I mentioned. Also another thing when you first pull this up, It's probably going to look like this. It's going to be white. And if you hit these three hashed bars at the top, hit dark color theme, it'll change it to black. I think it's just a, it's a bit easier to see. I've never used white color theme. I would just, I'd recommend using a black for you. But as far as that goes, you do you compare here, you won't use it. Indicators. So there are several, there's hundreds of different indicators in the stock market. Most traders use these right here. The volume relative strength index, the mag D, moving averages, Bollinger Bands. There's a couple of others. And I'm going to go over these one by one in separate videos. And by the time you're done with this course, I can guarantee you, you will have a better grasp on these indicators. Basically they're just, they, they give us an indication of where the market is going. So this is like, this is the map D down here. Volume moving averages. And so you can make these screens look crazy. You know, I can, I can have all these going at once. But you know me personally, I don't I don't have there's no need for me to have all this going on at once. A lot of times when you see that on social media and stuff, it's just somebody trying to look cool. They're shiny. They're trying to look smart. But the proper way to do it is look at them one by one. So, you know, for if, for me, if I'm looking at if I'm one to look at the RSI, I'm only looking at the RSI. If I want to look at the map D, I'm only looking at the map D. There's no sense in having all of it up on your screen at one time. That's just that's just some I tried to look educated, I reckon. I don't I don't know why they do that. Especially for somebody who has no There's whenever I wouldn't put you in pushing that position because you'll you'll look at it. You'll think, Oh, I'll never learn that and then you'll quit when in reality it's not, it is not complex, it is simple to understand. And now we'll go over those individual, like I said, financials I use, I use a different I use different platforms to look at financials. Templates won't use that alerts. Let's say you have a job. So I used to be a floor imagine a car business. And I was doing appraisals and close and delete all the time and I would have to try and sell them on customers. And what would happen was I would miss certain place because I wasn't paying attention until I got a little more acclimated and the stock market and in trading view, I learned how to use alerts. So there's going to be certain patterns that I'm going to show you to where they say it's a wedge pattern. You have let me just pull it up. Say you have a stock going this right here. You have a stock that bounces up here, comes down here, bounces, bounces, bounces, bounces. And I'm working in this day. And I'm wanting to get into a position if this trend line breaks, I can set an alert at whatever price that may be for that day. And it's going to notify me, hey, Apple just broke that level. I just crossed that level. So I just crossed up, across down or, you know, it depends on the position and what play if I'm short or long. But you can set alerts if you're if you're at work, you can send alerts. So if you're, let's say you're home one night, you find a good stock that you won't make a play on, you see a pattern. And you're, so, so basically you're going to set an alert for the next day. When that stock breaks out, you'll enter the position and you'll make your money hopefully. So that's alerts. And I'm going to talk about, like I said, I'm gonna talk about each one of these things that I'm mentioning and in a separate video so that we can really, really drill down on these things. Over here on the left-hand side, you have the all ones that these values are horizontal on and add a trend line. The trend line obviously would be used and I'm not going to draw a good trend the rear, but, you know, I'm gonna do a whole video on trend lines. That's something that you know, that It's pretty, it's very, very simple to understand. And we'll get into that later on. But for now I'm just showing you how to use this stuff. And then you also got a horizontal line. So basically you can draw support and resistance. So let's say, you know, this down here would be a pretty, pretty strong support level. Well, it's bounced a couple times. So, you know, this, this is just stuff, you know, that you just say you'd use these just to get ideas. You don't necessarily, There's no real reason to use these, but you definitely want to use the trends. You can draw patterns that way. And I want that rest of that stuff down through vertical line, crossline, all that stuff. I don't I don't use I just don't see any real reason to use it. You will use channels from time to time, but not gonna get into that right now. Another tool on this left-hand side that I use is the measuring tool. So let's say I thought Apple. Let me zoom this in a little bit so you can see, let's say I thought Apple is gonna go up to this level up here. What I could do is I click my measuring tool, bring it to where it's at right now. And as you can see, it's a 3.77%. Hopefully you can see that 3.77%, vice versa. You can also measure how much you're going to lose. So like I've always said, you should have a defined risk and defined rule or you need a rest, you need a reward. So you need to set a stop-loss and you need a price target. So my price target was up here. My reward when v3 0.77%. And if I had a stop-loss down here, my risk would be 0.78%. So you'd like I said, always gotta have a strategy. Always want wrist award. And that'll take you a long way. It's a little bit different with options, but with shares, if you're just trading shares, the risks are Wars. Your price target, where you think it's going to go Is your wrist or your reward. Your risk is wherever you're setting your stop-loss, that we'll get into, risk reward, stop-loss and some things like that, risk mitigation in another video. And that's, I mean, that's about as far as what, what beginners need to know at the moment. As far as trading view, just a little intro to get you to get your feet wet quiz, you got this little trashcan over here to remove your drawing. So if you haven't, if you drew a trend line or your indicators, if you had the volume and the MAC D are as Apple dog, you go up here and hit remove it or move it real quick for yeah. That's about it for today. Like I mentioned, guys, a promise Xia, we're going to add, this might look aliens still to you. But as you go through the course, we're going to break these things down one by one by one. Here in the next couple of months, when you're done with this course, you will want a 100 percent know what you're looking at. If you all have any questions at all, don't fall or feel free to reach out. 4. Basics of a Candlestick: So today I'm going to go over the basics of candlesticks. A candlestick chart is a style of financial chart used to describe price movements of stocks, crypto, most foreign exchange, et cetera. Each candlestick typically shows one day, one week, four hours, one hour or whatever time you for whatever time frame you have it on. Each candle. Like I said, each candle represents price action for whatever time frame you have it on to whatever time frame you're looking at. So this undo it. I want to show a little bit better of an example here. So this is a bullish candle. So on the charts it'll show as green. That means it opened here, let's say a stock opened at $10 here, ran out to 1050 and that's where I closed. So when I say open and close, I'm talking about that timeframe. So these could be five-minute candle. So at 10 AM, Snapchat, good. Open up here $50. And if this is a five-minute chart that you're looking at, let's say to solve. So let's say this is a five-minute chart. Snapchat opens at $50.5 minutes later, it closes at $50 and 50 cents. Then the charge good early cantos going to look like this. And then a new candle will form. So, so that would be a bullish candle. So you open here, close here. For whatever time frame you're looking at, you know, it could be a day for our weekly, monthly bearish candle. It would open up, up here and it would close down here. So let's say this is a five-minute chart that you're looking at. And Snapchat opened at $50 and then it ran down to $49.50, and it closed at $49.55 minutes, five minutes later. The candle will look like this right here. So you have those two, you'll also see candles that look like this. So it's the same thing, same concept is over here. So you have a closed and open, but you'll have these, these are called Wix, WSSE KS, Wix. So it's like a candle wick. This wig, the top of it is the highest price for that given time-frame. So if this is a five minute candle, a five minute chart that you're looking at. And let's say, let's say Snapchat opened up right here as $50. It ran up here to $51, fell back down. And $50 and 75 cents a closed right here. That's what the, that's what the candle will look like except for offer at dimension. Once it, it would open and then rundown, run back up, come back down and close here. Same thing on this. So it's just the opposite. So let's say Snapchat opened up at $50. They ran up to $50.50 cents, ran down all the way to $49 and then went back up to $49 and 25 cents and closed here. So I'm going to show you and then another thing. So you will have the, the, the big full candles like this. Full candles. You'll have these that have Wicks on the tops. And then you'll also see the dodgy candles, which just basically means it's the same thing. Just means that it opens and closes at a similar price. So if it opens at $50, runs down, it's $49. Bonds. All we back up, it's $51 and then comes back down and closes it at $50. So if this was a five-minute candle, it would be like I said, it would open a 50, went down to 491, backup to 51, come back down to 50, and that's, that would give you this DOJ candle. So what we're gonna do is I'm going to show you, I'm going to pull up a chart here. It's running at the current moment. And we'll look down together. Let me delete this down here. Okay, so this is a one-minute chart. So each one of these bars represents one minute. This would be a five-minute chart. Each one of these little candles represents five minutes. Hourly chart, each one represents one hour weekly. As you see, of course, the chart changes because this book, this candle here has a whole weekend it. So just to give you, just to kinda show you guys for today. We're going to watch this for a second. So this candle opened here. It's running down. Running down. So let's see what it does. Come on puppy move. Okay. So this green candle, it opened here, it's running out. Open here. Now we're up to here. Still going up. Given us a wick, probably should have picks on a little more volatile case. I haven't mentioned it yet. Volatility, which just means basically there's a lot of money coming in and out. So for instance, if you're looking at AMC lately has been really volatile. It's been up and down, up and down. If you if you're looking at a stock like AT and T, that just stays the same, that it has no volatility. So if it's up and down, up and down, that means it's volatile. It's only moving very fast. So I'm gonna go into a crypto, will get old dough G and do not, do not buy Dogecoin. I'm just showing you this to show you the candles. So we opened here is a one-minute chart. So we opened here, ran down. Now we're back up to here. So this, this is called the wick. So the lowest point in this minute was down here. Now it's coming back down. So what it does, I just want to show you a couple of these. I'm only gonna do like two minutes. So so we close there, but this next candle get down. So that's one the minute chart. They're really sporadic. So close right here, but it got down and opened up right here. And we'll see what this does. So it opens here and that's when I know. This is a very, very simple concept. There's going to be a lot of people live that watch this one that I like. Well, no, no. But you know, for the people that are just starting out and they look at these charts and they have no idea what's going on. So like I said, we opened here, we ran up, well, open here now we're up to here. So if it closes right here, that's what the candle is going to look like. And then the next one will start right here. Well, let's see what happens. You get the Tom over here so it's counted down. So this one closed here. And that opened up a gap down a little bit and opened up here. Same thing AS will be the last one that I want to show, for example. So this is a Dogecoin or a tow G coin. This is a DOJ candle right here. So what happened is we opened here, came down, went back up, went up here, came back down and closed here. And then the next scandal started. So I can plan on this one over here, we opened here. And the ion 12 seconds, it's getting ready to close. We'll see what happens. You said the timers over here. All right, so this candle opened here, ran all the way up to the top, closed here, but then it kept up. Next canto opened here and I could do it. We can do and whatever. If you all have any questions on this, just holler having but it's a it's a very simple concept, but I wanted to go ahead and get into it while we're still in the early stages of this. So, so you'll really get an idea of what I'm talking about and that'll do it. So like I said, you know where to find me, just let me know if you have any questions. 5. Engulfing Candles: In this lesson, I'm going to be talking about engulfing candles. So golfing candles tend to signal a reversal of the current trend in the market or stock. The stock is trading one way and we haven't engulfing candle, it could signify reversal. This specific pattern involves two candles with the last candle engulfing the entire body of the candle before it. The engulfing candle can be bullish or bearish depending on where it forms in relation to the existing trend. Though, you know, if we have an uptrend and then we have a bearish and golfing pattern, which is this one right here on the far right. That would signify reversal that were maybe we're getting ready to have some downside. Vice versa, if we're having a downtrend and we have a bullish and golfing candle, which is this one right here, then that would signify that we can reverse and go back to the upside. So one thing I do want to mention when I look for engulfing cantos, I'm looking at the weekly the daily for our conference mostly are usually only used a one hour or the five-minute or any any of that because it doesn't hold as much weight. So for a rule of thumb, when you're looking at these patterns, look for it on the weekly, the daily, and the four-hour. Because if you look, you'd like a one minute or five minute you're going to see in golfing candles all over the place. And one thing, one thing I want to mention, so engulfing candle is basically what else? So this is an embarrassing golfing candle. There are, this is a bearish engulfing pattern. But what happens is we start down here, we opened up down here. Let's say this was Snapchat. It opens up, down at 50 books. We run a little bit lower, down to 40 1975. And then we run all the way up to call it $51, and then we fall a little bit and close at $50 and 75 cents. So right here, the next candle we opened up, right there at the top at $50 and 75 cents. We run up, we cross the $61 marks, we crossed the previous HA, so that would be, let's call it 60, 125. And then we sell back off. And in golf. And we cover the entire body of this previous candle. So excited, we opened here, we ran up, and then we ran all the way back down and came lower than the previous low. Well, this would be embarrassed. This would be a bearish and golfing pattern. And we'll show you all some examples of this with a bullish engulfing pattern. We would have started up here, let's say Snapchat said $51. It opens right here where I have this cursor, where I have this mouse. We run up to $51, we round up to 50, 125, become all the way back down to $50. And then we back up to 50, 25, and close right there. The next candle opens up at 50, 25, runs down to, let's say 49, 75, right down here. And so it runs lower than the previous low. And then it runs in his scars, all moans all the way back. And it comes higher than the previous high. So this would be, I'm bullish and golfing. So this would be very bullish if you've seen this. Now. I'm not going to talk about Evening Star morning store today. But I'll show some examples of those as times go on. The bullish railway tracks and the bearish railway tracks down here. To me, it's the same thing as the engulfing patterns. So I look at these the same exact way. If a, if a stock opens up, up here. Now I'm down here on the bush. I'm looking at the bullish railway tracks down here. The stock opens up right here, and then it runs down and closes here. Opens you on the next cannon, then runs up and gulfs that whole, entire candle. To me. It's still an engulfing start. Cherish can use whatever terminology they want. You know, I don't really care. I don't care what's terminology or the names. I'm just, you know, I'll wash these charts like a psychopath. So I see these things in it doesn't it doesn't matter what the name of it is. I just understand. It's just intuition at this point, you know, but we opened here, we ran down the next candle we opened here and then engulf the entire previous candle. That would be bullish bearish railway. Bearish railway tracks would mean we open down here, we ran all the way up. We close here. We open the next candle up here where the previous house was. And then we sell off the entire way so that this would be bearish. So this, this red candle go engulfed the prior green candle. Oh, that would obviously change. That. Would you know that? You should understand that just from a psychological standpoint. If a stock goes, if it starts to $50, humans to 60, and then. Closes that candle is 60 and it opens the next one is 60, and then runs all the way back down to $50. Obviously something just happened. There's a reason, there's a change in behavior obviously. So those so those two are pretty much hand in hand. I call them both like this bullish railway tracks. I'm just going to call it a bullish and golfing bearish railway tracks. I'll just call it bearish and golfing. What's happening with these little wicks up here. And they can have their you know, they can have their, you know, the technicalities of it. But to me it's the same. There's the same psychology is going on on both of these patterns. And down here would just be another example. We have a candle right here. This red candle is grain won't be a bullish and golfing. So we come down a little bit and then we go back up, swing golf this whole entire previous candle. And that would be indicative of a reversal to the upset I'm saying with the bearish and golfing. So we have a there was a bearish or there was a bullish trend going on. But at the top of it we had this green candle. The next candle came up and then all the way back down in an end goal for the entire previous bullish candle. So this would be bearish or this would signify reversal to the downside bear Ashley. And then I got a couple of examples here. So this is Pinterest and I'll talk about Pinterest a lot. But one artery right here, obviously we have a bullish engulfing handle. At this red candle, Greenland came a little lower and then closed above the body of the previous candle, this and be bullish engulfing. Now we did go sideways for today. Who ended up going up? And now if you would have got in after you've seen that bushing, Gulf close, you'd have made that 12 percent on share prices, stock options, it would have been more. Right here we have a bearish engulfing. Though. We have this green candle. The very next candle we have, we came up a little bit and then it closed below the body of previous candle that was obviously bearish. And we sold off a time. This was one of my justifications on a previous play that you all heard me talk about a bunch, but I didn't hit a lip on it. So if out of got in after that close, now to be like 20, 25 percent play on bears on. If you're short selling, if you were buying a put options, that would have been it was a lick. It was couple 100 percent like say next example. This right here. Oh, we have this red candle. Brain one comes over, it goes a little bit lower and then runs all the way back up and gulfs this entire candle. And obviously and an uptrend since then. Bearish and golfing right here. So we had this green candle. Next very next candle, we run up a little bit past the previous house and we fall below it. Fall below the previous body of the last candle. And it's a bearish engulfing candle. Obviously it's sold off now. Right now actually, we have volition Gulf and candle yesterday. Oh, actually made money on this when this thing felt like 66. I buy kinda some riskier cautions on it. And it ran out like 7% of that animated. It's a morning. So I got in before the Bush and golfing candle happen. In this scenario though I'm not liking it. The canto looks great, don't get me wrong. Indistinct could go a little higher. But the problem is the markets of all tower. I know that I'm not really, I'm not really trusting it. I'm still considering some more downside on the stock. This sensitive data in golf, I could see a little bit upside maybe right around here to here, maybe 74 to 76 row. We're all going to see what happened right here. Last bell went off again. I'm probably just going to see that again. By going to go up fallback. We'll see what happens. So those are some examples on Pinterest. There's a couple on caterpillar. So as you can see here, we had this red candle come down. The next candle. It's very, very bullish candle. Come down lower than we did on the previous candle, but we finished out well, we finished her right at that level. We went car for a little bit, but this is a bush and Gulf and candle to me, some people might say, No, I don't really care. What I'm looking for is a sell-off and then I'm looking for a candle that sells off. And then the next canto comes up and goes higher, vice versa. I'll look for a that would be bullish. Vice versa. The bearish, I'm looking for a candle that goes up. And then the next one closes at the same level it ended at. And then that can't go falls lower than the previous one. That would be bearish. This would be another bullish and golfing. Though we had this red candle. This candle would represent a reversal, but we came a little bit lower than ran up and closed above the previous body. So this would be Bush and golfing. Here. Hello, below it ran up close here, had some upside. And being here, green candle. It back down close below it, perishing golfing. And this was a foreign exchange pair. I was looking as Australian dollar versus US dollar. This is an example. Green candle here. Read Canto came out, went above the previous high and fell below. It. Fell below the body of the previous candle has to be bearish engulfing. As you can see, we sold off. I'm doing right here. Green candle and it went up above, it came back down close, blow it. All. Those are just some examples I thought I could Digital Justice. I showed his me examples that it takes. Bile means you on the questions just let me know. 6. Basics of the Trend and Trend Lines: So in today's video, I'm going to talk about the basics of trends, as well as drawing trend lines. So you have an uptrend, sideways trend and a downtrend. One thing I want to mention is you always want to trade with the trend. The trend is your friend, like they all say, some of our biggest losses came from going against the trend. So we'd have an uptrend and I thought the thought there would be a change in behavior. I thought the trend would break and it didn't. So I would bile. It's how about put options? And I thought the trend would break and it just kept going up and I'd be losing money that way, vice versa on the downside. So you have an uptrend, which would be, would be consecutive higher lows. So on this blue example down here, we have a low and a high or low. So you can draw the trend line then, and then we have another high or low. So that's conformation. So the second, the second Harlow would be where you could draw the trend line. The third one would be where you look for confirmation. This would be as far as this pattern goes, this would be the best area to go long. So if you if it hit and then started reversing, started to curl around, that would be obviously one justification to place a trade. Obviously you want to be looking at different things, moving averages, RSM, map D, all kinds of stuff. But this would be one justification. So you have a downtrend which would be consecutive lower house. So we have a lower, higher, lower ha, downtrend. Sideways trend would just be horizontal price action. This occurs when supply and demand are nearly equal. So up here is, are down here as a Saturday strand. So we have a high, low, high, low, high, low, high, low, and they're all within the same little range here. So this would be a sideways trend. So like I mentioned, trend lines are one way, one of the ways to justify a trade. And they are definitely more allowable on a macro timeframe. So if we're looking at, you know, anytime you look at a chart, you want to look at the trends on a macro timeframe. You want to be looking at a medium timeframe as well, but not short term. So we don't want to be drawn trend lines on a five-minute chart or a 15 minute short or anything like that. We want to be drawn trend lines on for hours, daily, weekly, monthly, mostly dailies and mopping opinion. The I didn't and it depends on what kind of a traitor you're so what else we got here? So a trend line will help you identify and confirm trends as well as help you realize when a trend is beginning to break down. So in this example down here, we had a low, high, low, high, low, another high or low. This, this, this low right here with signal that this trend is going to break. Because if you kept drawing this line out, it would have broke right in this range. So it would give me a trend. The trend line itself would give me an indication if a trend is breaking. So for a trend line, you only need to connect two peaks or two lows. So what I mean by that is we had a low here and then a high or low, you draw the line there and an extended out into the future. And you know, like I said, do you look for the third LOW that you'd look for the third high or low as confirmation. And then vice versa. Look into, you, look into connect two peaks. So if you drew a line from here, the top HA, to the lower half and extended it out. It would have touched three times. And obviously if the price would have broke that trend line, it would suggest a change in behavior. As far as drawing trend line runs. You, like I mentioned, you want to define your timeframe. So I depends on what kind of writer you are. But regardless, you don't want to be looking at a verb for day traders. You know, there's, there's other things that you want to be looking for. We'll get into that. But at any trend lines, for trend lines, it's mostly if you're going to use this as one of the justifications for a trade. You want to mostly be looking at a four-hour daily, sometimes an hourly, but really not even. So the longer that, the higher the timeframe, the more reliable the trend would be. As I mentioned in an uptrend, we are looking to connect major lows. So this is a low, low, low. And when I don't to say major, I'm talking about more on a macro timeframe. So more on, uh, you know, exactly what I said, a microtome for M and then for a downturn and we're looking to connect major has so how are looking to connect those? And then you want to adjust to get the most touches. This is one thing where I think a lot of people mess up. So I'm gonna give you a couple of examples here. So this is 3M. So this is a daily chart right here. If I zoom in. So there's a couple ways to do this, and this is not a, this is not an exact science that would be more of an art. You know, so this is, some of this is subjective, but this is the way I do it and this is the way you know, I would recommend you do it as well. So if I'm looking at this chart right here, like I said, you always want to draw trends. You know, you want more immediate times as far as you know, you wanna, you wanna see trends in the last couple weeks and months. But you also want to look at the lattice. This back here would have been in March of 2020. So I'm looking at the last year and I'll show you what that means here. So if I'm zooming in, one thing that allowed people, a common mistake is they'll use these wigs. So they use the impulsive moves like an impulse and move up or an impulse move down. And you can, sometimes you will be usable, but it just depends. It's different in different situations. And this situation, I'm not I'm not going to use this week. So what I'm gonna do is I'm going to use this cluster of price action. So this is, you know, and this isn't like the technical. You're not going to hear. If you go watch another video, people, you know, somebody is not going to say a cluster. This is just me using this word, a term for an example. But to me this is a cluster of price action here. I'm going to be using this area right here for my base, for my trend line. I'm not going to use this wig down here. I'm going to use this body. So we got more, we've got more price, more, more time in this range right here. And then from that point on, you're just going to draw it out into the future. So from there, there, so we got this low, high or low. We cannot touch here, but we definitely touch here. So that's that this is a confirmed trend line. And if what I would do is if we brought it out into the future, if this thing reversion started coming down, I would you know, this would be one justification. If this is 3M stock, if this thing started coming down and started curving down and touch this trend line and then started breaking back up to me that would signal that would be a good time to buy. If I had other justifications, I'm not gonna do it just based on that. Of course, I'm looking at the broader markets, I'm looking at other indicators and what not. But that's going to be one justification because I think it's played off at 1, 2, pretty much I'd call that plane off of it 34. And if we came down here and it would play off it again, starting curling around, that would be five. So what else we got here? So Caterpillar. So my first thought on this chart here, so this is a daily. I haven't I haven't looked at this one yet. I'm just kind of doing it real time so you guys can get a, get an idea of what I'm thinking. And one thing I want to mention is after a while, after, you know, after you do this for a while, you can just see where I can see on without really Charness out. But she still, you know, you want to draw them to get an idea which we're looking at. So I would pull from here is where I would start. I'd run it up here so we touch right in this range. So I'd use that as my second touch. This would be my third touch. And then if you just draw it out into the future from November 20th is where point a would be. Point B, it would be December 20th, December 29th, 2020. Point C would be January 28th, 2021. And then way bags. So we had all we got away from the trend line for awhile. We fell down. And on this fall, buyers use this trend line obviously for a place to get in it. Because, you know, I mean, it's we touch there, touched here, touched here. If you just drew it out, you had this left up for these couple, you know, for these months right here when we came back down, as long as you have other justifications, this would be a solid area too, but just based on previous price action. So that would be an uptrend. And this is, this is on a this is eight months right here. This is eight months of time. Another thing I want to talk about. So like I mentioned, a lot of people use the Wix, so they'll use these impulsive moves and you do sometimes. But you can also create a zone. So like a channel. You can call it whatever you want, but it's basically to trend lines of places that we keep touching. So from this impulsive move down here to this level, to this level. So that's three touches for touches. And this is kind of a touch. But the reason I drew this second line right above it to create this zone was because I wanted to get from this body. I didn't want to use this impulsive Wikis much. I wanted to see what happened with this body. So I started here, ran it up through here. And as you can see right here, we play off of it. Here, we play off of it. Here we play off of it. And then right here we broke it a little bit, but we cut on this outer trend line. So you can use these zones, um, you know, as, as areas that you could get into a play on. And then as far as the downtrend on the top portion, so we're overall in an uptrend on the short. But you know, as far as the last from this point on from January 27th on, It's been in a downtrend because we had a ha and then a lower half right here broke out. But if it would have hit right there and then bounce back down, that would have been a another I would have been another lower half. But it didn't, it broke out. Here's another example of how a trend can give you an idea what a stock is gonna do later on down the road. So back in March of 2020, we'd hello, parallel. So this is where I would draw the trend. So if I just delete this and start my friend right here, run it to this level, and then just on out into the future. So if it ran from here, touched here, this third conformation. So when we came down touched lack I'm saying you'll want to look for other justifications. You don't want to do it just because it touches. But this would be one of them. So we had a low, high or low, or low, high or low. A third Harlow gives us confirmation that the trend is holding up. You could buy this zone as long as we're in this area, as long as there is other justifications. And obviously your utero, this thing up until you, until you seeing a change in behavior. One thing I wanted to mention though, if we zoom in just seeing this. So from this point to here would, would have also been a trend line to here. But as you can see, low, hard. So this is this on more of a micro Tom Tom frame. So I get like I keep saying, you know, it depends on what you're doing or you're an investor, you're a day trader, you swing trader. If I'm a day trader, get more into micro timeframes. So instead of looking at the whole chart, this whole trend line, I'm looking at more local trend lines. So are more local trends. So if I'm looking to get it, this is Pinterest. If I'm looking to go along in this area, drawn my trend from here to here. And then on the third touch, I could convert, it would give me confirmation as long as it held to go to go along. I got I keep saying you don't want to go. You don't wanna go along here. Because if this break chances are we're coming back down to the last support level. But since it held and bounce back up on the third conformation or on the third touch that would give us confirmation. And you could after after it after it bounces the second time and maintains, you're not gonna, you're not gonna know the trend is actually happening, right in this level. But once you get up in this range, you could justify a trade. Obviously, you know, like I keep saying if there's other factors, but you could and then just hold and hold. And then if this breaks set, you know, you can get out. You could look for a whole as long as it held, you could stay in. But if it broke, you could, you know, like I said, you could get out of it. But let me, but that's more of a micro trend. Run this macro one. So we touched here. So we have a low Harlow, Harlow. We get away from the trend for awhile. Sorry, let me fix this. We get away from the trend for a little while. But if I drag this on now, as you can see, when, when this thing came hurdling down it use this previous trend line, this macro trend line for a support level. So this level right in, right in here would have been a lot, you know, there would have been quite a bit of support, right, in writing this level, is it bounced off of this level, you know, several times. But when this broke, this trend line is macro trend lot hill. And then as far as this top portion goes, from February, middle of February till April until now we're on a downturn. So we have a ha and then a lower HA. And then I'm thinking what is going to happen, and this is Pinterest. I'm thinking what's going to happen is we're gonna have another lower high. So like I'm like I keep saying and this is one thing that a lot of people mess up on. You don't want to use these wigs. This, this, so this top part, this top line that I drew up here is a, this is just a resistance level. So we came up, touched it sold off, came up, touched it sold off. But as far as a trend line goes, you don't use this impulsive move up for a trend. So you want to be used in this cluster is this. It's more of a body. Basically. I'm not using this impulsive wiki there even though these are resistance levels. And I want to be watching as far as trend line and goes almost start here. I'm going to make my HA, then we hit, that's the lower half. So what I'm watching for on this third time down, or this third time up as I'm washing to see if we can get something similar. So I'm looking for it to hit and start to curl around. And that would be one justification to get into a put option or go short or sell my shares are found on and if it broke. So if it just comes up, so I'm not going to I wouldn't get into anything right now. But if it broke to the upset, what I would do it and I still wouldn't because what I would think was going on is I would I would consider something that happened here. I'd consider an impulsive will go up and come right back down close under the trend line and then we run down. So basically what I would look for is I'm, I'm just watching and this is one that I'm actively watching. Some Washington I'm watching it. And if we touch this curl around, you know, as long as there's other justifications, I would get into a short play. So let's say we broke it and we came hurdling up. Then I will look for a short or a put of a, i'd, I'd go short to a degree on at this resistance level because obviously this is a big resistance level and then I would use an option trading. There is no stop loss. So you can't, if I go short, if it runs up and I bought put options here, I can't set a stop loss. So I'd have to watch it. And if it broke over this red line, probably I mean, you could probably move it up a little bit. If it broke over this red line, I would have to get out of my play. So that would be me mitigating the risk because if it breaks, obviously there's a change in behavior and this thing could just go, this could just go hurdling towards the moon. And if your input options, while it does that, you're going to get Jack in the mouth. So that's obviously something you don't want to do. So just one main thing to take away from this. Well, what I want you to do is I want you to jump on trading and just start, start platinum out. If you all are connected with me on Facebook or Instagram, like it says Taiwan or 24. And Instagram, if you're connected with me. And what you can do is you can plot it so I'm out. You can send it to me and I'll verify whether whether it looks good or not. But one thing that I want you guys to take away for sure is that you don't want to use these impulsive weeks. So you want to be using more of the body of the candles as I did from here to here. Because if I used, I mean, if I just use this impulsive wick, Andrew from here, 30, I mean, that's, you know, that's that would be ridiculous. Then some people do this, just just don't do it. It's not, it's not the proper way. The impulsive Wix do or not a correct indication of price action in my opinion. And no, I mean, that that that I guess that's the objective to some it is objective to me. So just use just use the, use the bi's like I mentioned. And you'll want to be, you don't want to just trade based on, you know, there, there's some novice traders out there. I'm sure that trade base on solely on trends. But you want to look at trends, you want look at support resistance. You want to look at RSI, you want look at Magda, you want to look at the moving averages. And as we go along, I'm going to get into these things kinda one-by-one. But as far as force trend lines goes, that's what you kinda want to look for, but you gotta, you gotta mix that in with other justifications. So if this breaks, I'm looking for it to come up to a resistance level and then I might get in there. As long as there's other reasons I need to, you know, I can't get into that position. But for my kinda rule of thumb is you, you at least want to justifications to get into a tray, preferably three or four. And we'll get into get into that later on. Mike said if you all have any questions, just reach out. I'll do my best for you. Just to kind of back this up, show you guys real quick. So up through here, touched here. On Apple, this is what it looked like. So uptrend and do a downtrend from January on. And so we're gonna get into some patterns. So these, these trends, they form different inner triangle with this. So yeah, like symmetrical triangles, you have ascending triangles, descending triangles. And we're going to get into some of that stuff. I don't get into the names a whole lot just because it's become second nature, but I will for you guys. And I'm, you know, I'm going to show you guys what I'm talking about. But we know we form these wedge patterns, these triangle patterns. And that's something that you're going to see a whole lot. So some, some to get used to it. Here's caterpillar one more time. And then 3M. As I mentioned, you don't want to be used in the Wix, you wanted to be used in the bodies, this, this cluster of price actions, what you want to be using. So let me know if you have any questions. Thanks for watching. 7. Support & Resistance: So today's video is going to be on support and resistance. So resistance is basically the market telling us where the supply and demand is. So you look for support resistance on the technical analysis, the charts. So when I'm pulling up these charts that look like this, this is where I'm looking for the support and assistance. So this apply would be where the sellers are, the demand is where the buyers are. So with support, so support or support level, or levels where a declining stock will find a bottom and bounce up from supports are formed when a stock break above a resistance and holes above that level, the old resistance then becomes new support. Support levels are also formed when a stock spends a lot of time at one level and then break the upwards. So to give you an example. So here is support. So let's say, for instance. So let's say it's dark, spends a lot of time in one area. So start keeps doing this right here. This level down here is your support level. This is where the bars or if start game now, this went all the way back up. This, and then eventually came back now and touch that level again, broke up. This is your support. This is where the buyers are. So support is where the buyers are. Des can look, these are just two examples. This could look, it's gonna look a bunch of different ways. It can look like it could be. Could be like this. This is where the support is, this is where the buyers are. So a lot of times traders will use support levels to decide when to get into a trade. Because if we bounce once, go back up, bounce again, go back up and then bounce a third time. And then it starts to curl around. And that's a pretty good indication that this doc might be going upwards. Now as far as resistance goes, resistance or resistance level is a level at which stock meets pressure on its way up by the emergence of a growing number of sellers. So like I mentioned, that's where the sellers are who wish to sell at a certain price. Investor sometimes observe where the resistance seems to be taking place to decide if they should be selling near the resistance level. So if stock chart looks like this, this is where the salaries are. So every time we touched this level, we get sellers and stock chart to look like this. I'm going to show you guys some examples. We could emulate the look the same as that last example we did earlier. I can just go sideways. So on this example down here, the resistance is up here. So this is where we're having issues. This is where the emergence of sellers is coming in. And then the support down here is where the buyers or it could look like look like that. So if we come down come up, fall down lower. So we we have a low, a lower low. On this time we had a little brief HA and we came back down. And as we're coming back up the second time, when it gets to this level, sellers are coming in and it's causing the stock to get down. So when I say investors sometimes observed wear resistance seems to be taking place to decide if they should be selling near the resistance level. This is what I mean. When they, when it gets, you know, when it's when it hits this level the second time they're looking and they're looking at the previous price action. And there they might, there chances are they might get out around that resistance level. So I want to show you guys some actual examples on a tour. And we're gonna get, we're gonna get into candles individually like these little. So this is called a candlestick chart. As I mentioned, you can also, you know, there's, there's line charts and whatnot, but professional traders use the candlestick charts. So what I do, I mean, you do you come up, you know, you, you sat on your own, but this is my course, this is what I do. These are my opinion. So this is what this one I'm going to stick with. So. On this on this Wayfair chart. So I'm just going to point out that there's support resistance all over the charts. So there's supports are, and there's like my micro Supports, there's macro support. So you have a weak support, you have major supports. So this is, let me put it on a daily chart and anything that's happening on a daily support resistance was, is pretty, you know, it holds quite a bit of weight. So just to show you a support level, let me make this a little bigger actually. So this down here would be a support level. So a Wayfair was up at 300 bucks, 310. We ran down, touched around 224, came back and came back down to 224 and is a 224 year as 222 ish, and then bounced off that level again. So this would be a support level. Now you have, you have micro resistance level, micro support levels. So it doesn't even have to touch twice or three times to be a support level, you could be looking at it on a really short time-frame. So like if I'm looking at it on an hourly chart, the last time we came down. So this whole zone would be a support level. So a lot of times you're not necessarily looking for like Lands, you looking for more of a zone or this is what I do. I look for more of his own, you know, everybody is different but, you know, I might go from there. Right? In this zone through here is a support zone. So if you just do a level, it's hard to get a lot of touches. But if I do a zone, I'm getting 34 touches. And like I said, you're you're you're looking for weak support. You also looking for strong support. I mean, obviously the strong points of support and resistance hold more weight, which are one to, you know, you want to get an idea of what, you know, you want to look at things from, from every aspect. So up here, from here, right around into here. Let me do this. So this whole area up here would be a resistant zone. So you know, it's not even though like on this this bottom resistance on we touch twice, you know, other times we broke above it a little bit on these impulsive weeks. So you want to leave yourself some wiggle room or at least I do. So I choose to use these zones for support resistance. And it doesn't always have to be like that, like this down here is clear cut. It's only one line. That's, that's, that's the support level. Let's look at unknowns. This is General Motors. This is a while ago. This is quite a long time ago, but it was a strong support level. So I wanted to show you guys this. So this would be a support level. This is where the buyers are. A came from like what was this $32 all the way down, 819 bucks back up to 26 bucks, back down to 1819 Ky again. And so when it came down, people seeing what they were doing is they seen this last support levels. So we came down, this formed a support level, was formed an area where buyers were way back up. A second time back down. People were thinking in their head, Oh, this area right here held last time. So, you know, like you'd probably, you know, I might hold this top. Now there's a lot of other factors. This is just one factor. You can't trade based solely on support and resistance. But this is definitely something you want to look at because you can based, you know, when to get out, when to get into a play, you know, as long as you have other justifications on your side. But we came back down again, touched this level again, and for a third time it held and then broke back up. That would be a good I'd be a good support. Here's a good resistance level on this one. So right, Actually it's more able to be more resistance zone. This is like I said, it's hard to get these levels, you know, perfect. So you want to leave you and I want to leave myself a little bit of wiggle room. So now up here, back, this is an 2014. We came up, we touched $30, went back down, came back up. There's $30 went back down, came back up, touched thirty-nine dollars my bag down. Then we touched this bottom one several times and dust me creating the zone. Over here we came out past 38, sold off again. So obviously this is where a lot of stellar door, so this is current. This kinda looks like, actually this looks just like that example I drew a minute ago. So we started up here, we came down. That got sold off at this level, came back down. And then on the second tab of people were looking at the fact that last time this was a strong area of resistance. So what they did is they sold right there. And I mean, there there can be other factors like I'm Sam, but this is one indication of when they needed to sell their shares. So they sold right there and then it ran back down and I kept it keeps happening and happening. So, you know, and you want to like, you know, you want to look, if I'm trading GM and it's right around this time frame, what I'm doing is I'm going back in the past and I'm looking for support resistances. And I'm going to plot it out to find what previous Support resistances were. So anytime, anytime I'm placing a trade and I'm looking at a stock chart, I'm looking at support resistances within the last probably Year 2. It depends every situation is different. But you want to know where the buyers and sellers or so. For a Tom, Tom, let's see here. For a little while, there was a lot of sellers, right in this range. It came up, we sold it off, we came up, we sold off, we came up, we sold off. Even lower, came back up again, sold off again. So this would have been an area of resistance even after we went all the way down and came back up, pushed against, sold off again before breaking through that resistance, 0, 1 real strategy and trading is one the easiest strategy and trading is, is trading breaks of support resistances. So obviously when this broke, if this is, if this is held for a long time and this breaks its signaling, a change in behavior, which would cause a lot of people to get into a trade. I use supporters essence to justify trades, but it's just one, you know, it's one of the many reasons. I talked about this one notice this is a caterpillar, so DR. I watch quite a bit. I did a video on it a couple weeks back on Facebook. So just looking at this chart, I mean, it's pretty obvious where the resistance level is. It is right here. And this one, I really only need one line only when needed. His own. Emea broke a little bit right there, but this is fun. This, this gives me a good indication of if this thing comes back up, touches this level could be this, this could be a good indicator of when to get out of a position. And so this, this, what you see here is more of a downtrend, but it can also, it also, it also doubles as a resistance level. So we came out, we touched it, came out we touched it. But it's not a level because it's not one steady spot. So like up here, this is a, this is a resistance level because it touches the same spot and keeps telling it. This is more of a downtrend. And every time we touch the downtrend line, we were selling off, but it's still a resistance level. So you'll want to look at her you only for downtrend and all-trans because those are levels of support resistance as well. Just changed. And then, so we ran down right here. This, even though there's not a bunch of touches on it yet, it's still considered a support level. It's not confirmed and it's not don't hold weight right now. But if this thing were to come down, touch this level and then go back up, then what I would do is I would have a support level right there. So if we run down, touch it, and then run back up, obviously, this is an area where buyers are and I'm not telling you to go get this stuck. Like I said, I'm not I don't do stock picks. This is just me showing you technical analysis and it's showing you about support and resistance. And so, you know, if I'm if I'm willing to trade this, Doug, I'm gonna go look back into the past and fine and see if there's any other. So let's see here. Obviously me drawn support resistance is down here around a hundred and ten hundred and forty hundred and fifty bucks. It doesn't do me any good because price action is up at 220. So why would I be doing that? I want to be looking for support resistances that have happened in this level, whether they're in the past or recently. But since this dog is in an all time ha has never been this how blue? Let me go out to them monthly. Yeah. It's never it's never been to this level. So there is no previous support and assistance for me to base my dots off of. However, if if if this if we were in this level and I was trading this doc, then I would go out and I would chart this up. So what I would do is I would give me a horizontal line here. For sure this up here is a resistance. And then hold on. This is a resistance. So there's, there's resistance levels all over the chart. I mean, there's you, but you want to look for the major ones, like you want to look for the highs and lows. So like this is a major resistance. So if I'm trading the stock right around this level, then what I would do is I would scroll out and I would draw me a horizontal line across here. And as this thing starts coming up, I know that when it hits this first resistance level, chances are it could sell off, but if it breaks it, chances are it's gonna go up to the second resistance level and then sell off their independence. There's a bunch of factors that there could be a news that came out and, you know, really good news then it just breaks straight up, just bridge right outer resistance level. So it just depends. But my point is, you know, if I'm trading it ride around in this range, I could have already drawn this resistance line based on previous price action and this resistance line. So as you can see, we come up and we play off of it. So we play off of it Here. We come up, we play off of it again. So off, sell off, sell off, break-it, come back below it, break it, and then we eventually get above this major support level. But, you know, my my main thing I want to stick to you guys is you want to look for supporters instances in the past. Both monitor supports and major support. So you want to look for ones that aren't going to hold as much weight and obviously the ones that are going to hold the most way, the ones that hold the most white are going to be the most important. You know? And, and like I said, it don't have to have a ton of touches to be considered support resistance. This is considered a support level. It just hasn't confirmed yet. So I mean, this is a this is buyers are certainly here. If we come back down and touch the cell again and curl around, this is where the bars are at the current moment. Like I said, thanks change. So, you know, it's it's it's different. But if you have any questions, let me know and you know, jump on Google, type in support resistance. Look at look at different charts like pictures and you know, if you have to play around with the star chart in this stuff out, jump on trading view, start drawing these lands and finding out areas where these stocks are playing off of and just get, get you sort practice a little bit. You know, of course practice makes perfect game practicing ain't Yangon when you're just not going to work out. If you're not if you just watch and what I'm telling you, it's probably not going to work out. You're going to have to do more than just watch some videos. You're going to have to actually go through some trial and error. And then one last thing I wanted to mention, so you want to be looking for support and resistance on certain time frames depending on what kind of trait or you are. So if you're a long-term trader, you want to be looking at a monthly chart, at weekly chart, a daily chart. So if I'm a long-term trader, not even really a daily, I put that on there but really more a monthly and weekly. So if I'm a long-term career, if I'm an investor, that I'm looking at the macro timeframes. If I'm a and then they'll weakly of course, but it's still macros, more of a macro timeframe. A swing trader, which would long-term would obviously be long-term. You hold it for six months to a year or six months to years. You could hold it for five, 10, 20 years. This is mostly for dividends and tax purposes and different things. But a swing trader, which is more of what I do is I hold stocks. It could be a could be in for a couple of days, it could be a couple of weeks. It could be a couple of months. But it's generally not much longer than that. Of course, islands some shares to but for as far as options and you know, as far as options mostly I do mostly swing trading. And then for swing trading, you'd be looking at our weekly or daily and a four-hour I'm not going to be looking at a monthly chart when I'm swing trading. And you can, I would recommend kinda, you know, looking at all of them, but this is just kind of a God. If you had, if you're a day trader or scalping. So a day trader just means you're entering a position and you're exiting and the same day, you'd look at it daily and hourly and a 15 minute. So if I was looking at support resistance and that was a day trader, I beyond a hourly chart. And I'd be looking for support and assistance based on this. So on this hourly chart, I'd consider resistance. It'd be a zone and B would be right in this range. So dissent count comes back up. I'd consider the fact that it could sell off when it hits this range because that's what it's been doing in the past. If I'm a nature, that's what I'm doing. I'm going to be looking at the hourly, the 15 minute. I'm not going to be looking at monthly or weekly chart. Obviously, you know, anybody who's taking this course should understand why I would not be looking at a monthly chart if I'm a day trader. If you don't let me know and we'll figure out how to I don't know. Whole will have a conversation I reckon, but scalping wouldn't be somebody who's now play for like 2030 minutes, you know, like say a stock runs up in the morning and you got into a position and you held it for 20 minutes and you got out of it. You'd be looking at a five-minute chart, a 15-minute chart for our chart, mostly a five and 15 minutes. So if I'm looking at the short and it's a fun one to five minute. Does support resistances are going to pretty much be the same as on the elderly, but just a little bit. So like that would be a resistance level. You know, my resistance would probably be my resistance zone around this range. But then again, I will also look at other ones. So we've had resistance here. Here. I consider that a weak resistance point, but it's something that I would be weary of. So right in this range. So this is what I would draw on if files are going at resistance in really even right here to like I'm saying, there's resistance all over these charts. So when we hit here, we had some sellers. We came up a couple times. We had sellers in this zone. And then we had a lot of sellers in this song. Each, each, each line will hold more weight depending on how many times we've touched it and bounced off of it. But one thing I'm looking for is if roaring back up and breaks through these and I'm going to expect it to hit this one. And if it breaks through those on my expected to go higher than what it has in the past because it's, That's a change in behavior. So as a little rundown on support and assistance, like said, let me know if you have any questions and we'll get into we'll get into this a little bit more as far as like because I'm not going to do videos on certain method's on certain strategies and what not. And I'll be talking about support and assistance. So if you all have any questions, just holler at me, you know where to find me. 8. Moving averages: Today's video is going to be intro to moving averages. So a moving average is a stock indicator that is commonly used in technical analysis. The reason for calculating the moving average of a stock is to help smooth out the price data by creating a constantly updated average. Fair warning, I will tell you some of this. Some of this is not necessarily even that important, but I got mentioned, you paid for my course. So I'm doing the best I can Pooja. So some of this you can disregard the most, the most important thing that I'm going to cover here is how to, how to watch for. You want to watch how stocks play off of the moving averages. And we'll kind of talk about that a little bit. But I'm just going to get my spiel right here. And I'm gonna show some examples though trailers use moving averages to pinpoint trade areas, to identify trends and to analyze markets. Moving averages help traders isolate the trend in a stock or the lack of one. And it can also signal when a trend maybe reversing. Two of the most common types are simple and exponential. Think there's like for moving average type, but it was only once you use would be simple and exponential. I'll, I'll kind of show how to set that up. So moving averages or a trend falling or lagging indicator because it is based on past prices. So we're not, this is not predicting the future. This is the, these lines here only the pool. So these lines, as you see, are based on previous price action. Moving averages are customizable indicator, which means that an investor can freely choose whatever time frame they want to. They want to. When calculating an average. The most common time periods using moving averages are 15, 20, 30, 50, 100, 100 and 200 days. But when I say 50 day moving average or 20 day moving average, this is what I'm talking about. So the shorter the time span used to create the average, the more sensitive it will be to price. To price changes. The longer the towns banned, the less sensitive the average will be. Though, when I say that, what I mean is this blue line up here is a ten day moving average, is yellow, one is a 21 day moving average. So this moving average, since it's shorter time is going to move a lot more. Whereas this one at the bottom, this pink one is, I believe the let me make sure lose the 300, 300 day moving average. So it's just, let me zoom this out a little bit. So it's just kind of, you know, it's more it doesn't move as much, it doesn't react as much, whereas because it's a longer-term time-frame, whereas this blue one right here is a 10 day. So it's gonna go up and down more. It's going to go more with the current prices. But you want to be using all so to calculate a 10 day. So, so I'm using a ten day moving average or not, and I'm using a simple moving average and a exponential moving average. The simple moving average basically gives us an idea of, you know, it's just the price plotted out over certain amount of time. The exponential moving average, the way a calculated, you have to incorporate the, the, the most recent price to, to get it. So to calculate an estimate, just a simple moving average. To calculate the 10-day simple moving average, add the closing price of the last 10 days and divide by 10. To calculate a 20 day moving average. Add the closing prices over a 20 day period and divide by 20. Well, I guess it. And then that gets plotted out on to the chart. And you don't even have to do this like this. And this is why I said earlier in the video, I'm going to say some stuff that really doesn't even matter that much. You don't have to calculate these. And this is why I didn't even put the calculation for exponential moving averages on here, because you just don't need to know it. There's just no reason for me at least there's no reason for me to know it. And so, you know, I'm just not going to confuse anybody. This is called dumbed down stock trading for a reason. And I'm not going to get into the calculations of an exponential moving average because it's just not, There's no reason that the main thing that you need to know is I use these moving averages to get an idea of when a trend is continuing, when the trend is changing. So I'm gonna go over some examples here, and I'm going to put more and more examples as the course progresses. I'm going to keep putting more examples of, of moving averages and all and just how I use them basically. So in this example, well first, first let me do this. Let me show you how to pull moving averages up to up here at the top, where you click on indicators. You'll type in. Typing k, r, o, WNS. I've been crowns. And then scroll to the bottom and going to be this one right here, and it's going to be the 1 second from the bottom you can say e m, a, m, a. Click on that. David to your favorites. And from now on when you click that indicators button, it'll be right here. So all you gotta do. Well, why wasn't it that down? Let me refresh your memory. Stock was on Apple. Alright, so click up here. Okay, So now it's here. So now it'll be up here and it'll look like this right here. And you, boy, you do is you just click on one of these lines and double-click it. Let me get this out. Double-click on any of these ions, these little blue circles will pop up, just double-click on them. And this'll patho. Though. These are the, the moving averages that I use. So EMA, exponential moving average 21, so 21 day exponential moving average, 50 day EMA, 89, 200 and 300. And then these are the simple moving average. So 10, 30, 50 to 100. Bagger said the difference between these two, the exponential moving average and simple moving average, or just calculated different. The exponential takes into account more and more recent price action though, you want to be using on both. And if you just do what I just told you to do and pull up EMS or EMA MA on if you go on there you typing crayons. These are already pop up. So if you want to just screenshot this and just make sure these are in there and play around with it. But this is the one that I use. And then when you hit Style, it'll show the different colors. So when you first pull it up, there's gonna be like 3M that are blue 30 meter read and it just makes it confusing. So what you wanna do is you want to change them to all separate color. So you want to use pink, purple, orange, yellow, green, blue. Couple different shades of blue. And these are, these are, these are the lines basically. So DES, so this yellow line right here is this one up here. So it's EMA one though. My EMA one is my 21. Well, this line is my 21 day moving average is a blue line, would be my 10 day moving average. So SMA one would be 10. And dy is what I got it on a hero you Mk-1 book though. That's how you, that's how you set it up. Inputs, make sure these are in their 20, 150, 89200310305200. And then on style, just make sure you change the colors to where they're all different. And then down here at the bottom where it says default hit Save as Default. Because if you don't, every time you pull this up, you're going to have the colors. You're going to be the same as they were on default. So you'll want to change them all separate colors and then hit Save as Default. And then just hit Okay, and you'll be good to go. And then from now on these lands will pop up. So what I'll do is right now I'm looking at the 10 day and then the 21 that the 10 day moving average and then 21 day moving average. But what I'll do is I'll double-click back on this and I'll take everything else off. So it looks less, you know, so I mean, there's no reason to have all of these on there. If I'm not I'm not going to be using all you know, I'll take most of them off there. So I'm just looking at the blue and the yellow. As you can see, apple has played off the blue and the yellow several times. Mostly the blue. So it played off the yellow, the 21 day moving average, this is one that everybody uses, 21 that you're most people, I think. So we play off the 21 twice, three times. As you can see, a little bit actually. We broke above it right here, played off of it, hit right here, bounced up it again, right here, bounced up, hit again right here, bounced up. And then once we got above it, this time we're now playing off of the yellow. So the 10 day, as you can see, every time we hit it right there, we've bounced up, hit it right here. But we didn't close and we didn't open above it, so it kept on going. And as you can see, we're at a time right now or we just close, close below it. So what's going to happen is the next candle is going to open, right in this range. So we're going to have a close and an open below this moving average, which has not happened all this whole, entire time. Though. I'm using this as one indication. And I'm not even look into short Apple and all this is just not one stock that I should, just based on fundamentals. It's just a good company, So I just don't do it. But this is just an example. If this looked like this on another stock. And I've seen this, that this 10 day moving average just broke our really be Washington it and if this 21 day moving average breaks, then I'm for sure shorting and I'm going to get into put options there. Rod it back all the way down to lease this next moving average. And let me show, let me see some other examples here. And I haven't really checked these out. I'm just winging it here though. And this is what I'm talking about here. You see how these colors are different. Me just delete this. I had garment, Apple, Wayfair pen, moving averages back. Because knowledge check out gone. It's literally at here, so we put it on a daily. Okay. So here's one thing that I'm noticing right away that I'd be looking for. So I'm kinda looking to get into All right. So 89 day moving average, blue one is when I'm looking at right now. So as you can see, we broke above it here. Theta above it bounced off at here. Data above it bounced off at here, and we stayed above it ever since then, having really came close, I wouldn't expect unless something that is really traumatic happened with the stock. When this thing comes down, I would expect it to bounce right here. So I'm considering based on some other justifications, boarding or buying, put options on Garmin. And this, I would use this as a price target for our potential reversal. Though if it, if it comes run and down, this would be a writer. I'm a price target at expected to hit 140 and then bounce a little bit. There's other justification like a missionary blood because it could, it could just fly, fly down and run right past it. And if I if I shorted it and I got it, I'd probably get out right there. But if it went and went ahead and went past it, I just hold it and just keep hold. And this is just another example of how moving averages sold, a stock plays off of it. So this is a daily chart. This blue line is the 1809 day moving average, bounced off of it three times now. And like I said, I'm looking at buying a put on this on Garmin. And if it, if it falls, that would be my price target to be in, especially since it is confluent with this little bit of support down here. Remember how we talked about support in a previous video. We come down, we hit right here, come down, hit again. So this is a good support level. You can call it a, you could call that a little support zone. Notice how that has come fluent, right? Matches up, should I say with this 89 day moving average. But when I'm getting into a put option, that's probably going to be my price target. Once we hit this level, I can get out, take my profit, expect to bounce, and then look for another reason to get back in. Let's look at it. Let's look at Wayfair. Wayfair. And we have a long video, but now Pentecostal be the boss. All right, so I'm moving averages all of them back on. I'm just looking at the charge. So one thing I'm noticing on this one, let me take the rest of these. All right, so I've got this purple and pink moving average here. As you can see down in this range, we have played off of this moving average several times. So we come down, we bounce back up, hit that, the purple moving average, fall back down, bounce back up, hit the pink on fall back again. Go back up, hit both of them, fall back down. And then we finally broke above it. But once we broke above it, obviously, you're looking at it right in this range, that would be a change in behavior. And we wrote this purple moving average several times. So we hit right here, go back up, hit right here, you go way back up and back down, hit right here again. So it's I mean, it's rotten. It perfectly. Basically I'm if I'm going a little bit short, is coming up underneath under it a bit, but it's not. Not much. So I'd basically, I'd call that riding off of the moving average. So what I'd be looking at in wafers, very overvalued. So right now on your Jamil, right now the mortgage over valued in my opinion, so I'm buying put options, what I'm looking at and this one, obviously we've never even gotten down to this pink moving average if this purple one. But we never, we've never even broke below the purple moving average. And hell at, we've never closed below it, meaning we never close the candle below it and then open the next candle below it on the daily right here. And I've come to and we come down, we go below it. But then immediately we're right back, I guess I guess right here. We would have we did we call it below and then open blow it right here, but it's just barely, barely underneath it. And then right here, it just nicks off of it and runs back up. Right here. We did not close below it and an open bag below it. Well, it plays off of this several times in right here, as you can see, we're now are starting to thoroughly close and open candles right below it. And if this pink moving average breaks, which would be I believe, the 300, 300 day moving average, which is a pretty significant and the macro moving average, if that breaks, that would justify me, that would be one of the justifications for getting into a pilot on this plot. On Wayfair, I'd be looking for the 300 day moving average to a break on the daily chart. And if that happens, it could be Sayonara for a little while. I don't know how low is saying go I'd have to look at it. I'd expected to hit right around where this previous resistance level is right here. I'd have to look at the other moving averages and everything to give me an actual idea as far as a price target. But I'd expect to move massive sell off at some point somewhere between 180 and 230. The expected delay in there when the nasdaq cells off and cool. And let's look at one more big Caterpillar. Bromo moving out his back on. Here's a good one. And if the 21 day EMA and the 50 SMA take the rest of these. So as you can see, this is Caterpillar. This is money example right here actually isn't perfect. And it one way it works both ways to the upside. And like I said, I'm going to give more examples. These have been mostly bearish examples. And I'm, or these are bullish examples, but I'm looking bearish on as meaning. But all the way back in May of 2020, we have played off of these two moving averages. What I say, the 21 and the 50. 21 and the 50 day moving averages. We've played off of them, played off own playdough home. So as you can see, we keep it at all. Oh, if it hit right here and here, when it came back down, you could have by here, made a ton of money. You could have bought here, made a ton of money. He could about here made a ton of money in. What I would do is I'd set my stub law. So let's say, let's say I'll buy right here. It comes down, I see that it's hit previously imbalanced. I'd set my stop-loss a little bit and you want to look for. So in this case scenario, if I bought it right here, I'd set my stop-loss on. I'd set my stop-loss below previous support would be right here. Well, if I, if I, if I bought in right here, expecting a bounce on these moving averages expected to hit and then flout like it did. Then let's hedge but shares of Caterpillar. And like I said, I'd set my stopwatch right in this range right here. And it would be where my previous support level was. Because if that breaks, obviously I need to get out. But I can't set it like I can't set my stop offs too tight because I gotta give it some wiggle room. So like right here, say your stop-loss. If you bought in right here above this one, and you would have said your shop all right. Below it, then you would have got stopped out and you would just lost 23 percent and then nothing would have happened. So what you gotta do is you gotta leave yourself a little bit of wiggle room. You got to leave the stock a little bit of wiggle room. So about right here, I'll stop loss would be underneath the previous support. Previous support was right here. Oh, stop also be right around this range right here. But as you can see, we've played off of it, played off of it. Bite off of it again, right here, went back up plate off of it again. And then we broke them hard right here. And when those two broke, when you've seen this candle, this let me zoom in. This candle radio is massive handle this bearish candle down, and it closed below it and open below it. And it closes below those moving averages that it hadn't a whole Tom we hadn't. And it closes below it and opens the next one below it and runs down more. Dad had been a money town for a short. I've made all kinds of money on caterpillar. Actually going on in this play up here and wrote it down, but this would have been a money place. So as you've seen, I break that to go on the short. End. Bad it. And I mean that would work the same way to the upside. So if you see a sample here, let me see if I'm pulling memory. You want to look at a wall and you want to get an idea of how the stock plays out, hold it. You don't have to worry about calculating home or anything like that. And a very good example here, let's look at Snapchat. All right, so here's again, I'm using the 10 day moving average is blue on here. As you can see on this play here. The road below is moving average for a long period of time. Just kind of play off of it. Not real close to it, but just we stayed below it. This one in this broke to the upside. This would have been one justification to get into this play right here, this break. But I wouldn't I'm not saying that you don't solely want to trace with moving averages, but I think the big problem that allowed traders have is they're not willing to watch. They're not willing to just sit back and watch that. I want to get into a play immediately. And the more you can just watch and fun clays or money that you'll make. So, you know, I would be watching this, watching this, watching this, and then when I've seen that broke break, this is a daily chart, so it does hold some weight and there's 10 day moving average breaks. It hasn't done that since we've been 17 books and we fall, fall, fall when that broke above it, I would have been a good sign to get into a play. Those are just few examples. I mean, they don't, it's not an exact science and you gotta really get to play around with it. You got to look at certain moving averages and you know, gotta, you gotta introduce, you just got to see how this starts playing off for those moving averages. So like I said, I'm going to keep posting more and more videos on this and a more examples on there. All the indicators on the RSI, on the Mac D, moving averages on everything. I'm going to post more examples as time goes on. So feel free to reach out if you have any questions. Thank you. Yeah. Have a good day. 9. Rsi 1: So today I'm gonna be talking about the relative strength index. Though. The relative strength index is a indicator that I use to basically get an idea of if a stock is overvalued or undervalued and it also helps it allows me to look for divergences, so bullish and various divergences. But it allows me to basically know where to get in and out for the most part. Now this is just another justification. It's not something that you want to use alone. But like always mentioned, you want two or three justifications, if not more. And this will be one of the justifications that you can use to get into a trait. So the relative strength index, RSI, is a momentum indicator used in technical analysis. So looking at charts that measures the magnitude of recent price changes to evaluate over bought or oversold conditions in the price of a stock or another asset. So when I say so you can look at ETFs on the chart. You can look at crypto, you can look at anything indexes you can look for. You look at the RSI on any, pretty much any security. Meaning you know, any, any, any asset, really, the RSI is displayed as an oscillator, a line graph that moves between two extremes and can have a reading from 0 to 100. So real quick. But this down here, this thing at the bottom of my screen, this is the RSI, this thing right here. So when you see a trader with a lot of people don't have the screens out and they look crazy. They'll have four or five different indicators. This is one of those indicators that most of them use. So when I say RSI above 70 over but conditions RSI below 30 oversold conditions. Basically this is what I mean. So if I double-click it down here on the right, and you might have a hard time seeing this if you're watching it on a phone. But at the top where this dotted line is, there's a 70 over here on the right side. And down here at the bottom, on the right side there's 30. So anything above this white line would be considered, this dotted line would be considered over. But though it's saying that some kind of getting it started to get to a point where it's getting really high. So it might not be the best time by n basically. And then when it gets below this dotted line at the bottom, it's saying did this stock is oversold. So it might be a good deal. But via Zoom now, actually, let me pull up, let me get these moving averages on here. As you can see, when we have these spikes up, the RSI comes out to the top, then it goes up to 77, right here. It went up to 80. This time it went up to 80 as well. But when we have these spikes up, That's showing basically over. But typically when trader see the RSI get into these levels depending on what time frame you're looking at. You know, if you're looking at a minute or five minute or an hourly chart, the RSI is don't hold as much weight. You, if you're a day trader, you can do day trading based on an hourly with the RSI. And if you're a swing trader like me, which you want to be doing is you want to be looking at the RSI on all timeframes. Because, you know, you could be looking at a you could you could be looking at a five-minute let me fix this. You could be looking at a five-minute chart and the RSI be way oversold. And then on the daily chart, the RSI or on the weekly chart, the RSI be way over but you want to be looking at the RSI depending on what kind of trend or you are. So if you're a long-term investor, I'd be looking at it on a weekly, BAD zoom out and get a look at it on a weekly or the monthly and then of course the daily as well. But as as you can see, every time we do these spikes, the RSI gets above the bullish controls on. So from 70 down to 50 would be the bullish controls on, and then from 15 to 30 would be the bearish control zone. But like I said, if we go above 70, that means the stock is over. But if we go below 30, that means the stocks oversold. So they basically, it gives you a, a fair value of where the stock is. Basically lets you know if you're getting a good deal really. But, you know, And there there is a formula that they use to come up with the RSO. But let's just something that, that you really don't even need to know. You just need to know how to use it. And thank you, though. So to lose. With Doris, I look for over by an oversold conditions though, if I'm looking to get into a short play, for instance, on the, actually I got it. Oh, Borneo, the SPX. So I'm trading stocks right now, mostly buying put options on stocks. So this is a four-hour chart and I can use, I can go to the daily two and we see here, so I don't want a daily chart. As you can see, the, the S and P, SPX is the taker. The S and P is at a high level on the RSI, it's also at a high level. So that's one thing that I'm looking at what I'm going to put options. If this thing was down here and it was telling me that it was oversold and I'll wouldn't be buying put options. I'd be looking to go along on it. And, you know, and like I said, you gotta have other justifications. But this is one justification. So, so I'm looking at summed over by or oversold and then I'm also looking for divergences. So finding divergence on a chart is going to give you insight and potentially a better buy or sell on a stock chart. Though you have bullish and bearish divergence. And I'm gonna give you examples of each. O bullish. Our ordinance means the stock price makes a lower low, so it comes down and makes it lower low. While the RSI indicator forms a high or low. Oh, basically the price action, the candles and the RSI indicator or doing the opposite of each other. And that's divergence. And then bearish divergence. Actually let me just go and give you an example, bullish outward and quick though. This is an example that you might have already seen if you've watched my video on Facebook. But I turned $780.2 over 20 grand on his play right here. And it was quadruple bullish divergence, which you won't see very often. As I'll put down at the bottom here, I see double and triple bullish or bearish divergence on the RSI indicator often but rarely quadruple. So this rare circumstance, but as you can see up here, we were on our way down on the price. We come down, we make a lower ID here. I mean, these were all lows. But just for this example, this right here is a below that we're looking at. Let me zoom in. So right here is the low. So we come out and this is a low on the RSS is point is basically mimicking what price action is doing. So this we also have a low on the RSO, which would be normal if you have a low. And then alone RSI, that's normal. But then our second low, so this right here would be our second low. The RSI doesn't come down as four. So basically what this is telling me is we're losing momentum to the downside. Well, we have a low and a high or low. Okay, so that's the double bullish outwards. We have a third lower low on price action. We have a low, lower low, and then a lower low. On the RSO we have another Harlow. Let's triple bullish allergens. Well, that's telling me if I see triple bullish on urns, I'm getting into a play a 100 percent. I'm not going to get into it when it comes when it's coming down, but when it starts to curl around, I'm getting into this player every time. And then again we have a, another lower low with printing a high or low for the fourth time. And this time it's rejecting the bottom side of the bearish control zone. Oh, this is quadruple bullish evidence. So as you can see, price or the RSI is going up planting of incline while price action is on a decline. Like I said, that's bullish divergence. They'll just one. So if you have a low and then a lower low. If you have a low and then a lower low, That's if you have a low in their lower low at width at the same time on the RSD, we get a low and a high or low. That's double bullish divergence. If it does it again and we print a third lower low on price action, and then a third high or low on RSA, triple bullish divergence. And then if we have a fourth lower low, which you'll never see this. For the most part, unless you look at stock charts like me. You'll have a fourth lower low, and then on our ASR, we have a fourth Harlow, quadruple bullish our burdens. I wouldn't have gotten on this particular play. My, one of my justifications were the presidency, because this was back in November, though, I wouldn't have gotten on W Bush divergence, but on the triple because it would cause her to my albums, want to get it as close to election as possible. So that would have been already got in there. I would a token like if I would've gotten right here, I would to take in a little bit of an L for 67 days, but ultimately, either way it went, I would have made bank on this blank. So you probably got it on the triple bullish on burns or the quadruple bullish on words either way out and make money. And if you see triple or bullish, bearish, you see triple or quadruple bearish or bullish. Governance is a good play it again. And then for an another example, what did I have here? This is wish chart. I don't really like this one, like this dark anymore. I looked at the char I don't like this chart anymore. I looked okay for a while but I just don't just don't like it for my self. But this is bullish Albert, it's right here. And you could have made a play at this point. So we have low right here and price action. And when I say price action, I'm talking about just the price of the stock, these candles movement. So we had a low in price action. And the RSA, we printed it. All right here. We have a lower low, so we had a low and a lower lobe. Well, on the RSO, we had a high or low right? Right here. That would have been double bullish divergence. This second little, but this second little drought came in line with that, with this stirred little drought came in line with the second one. So it doesn't count when it, when it comes to divergence. Drawn this move right here, we have a third, lower low. So we had a low, lower low, and lower low. Oh, see a better. As you can see, it's coming down so it'll low, lower lobe and then a third lower low. Well on the RSL we had a low, high or low. And then for the third, for the third move on the RSA, we add a, another high or low. So that would've been trivial bullish divergence. And obviously if you got in on that plane right there, if it was allergens, it would have been a crazy play with it. I mean, just shares in general, it's a 93% of play. And you could have held all way up to this. But what you could have done if you got in right there, my price target would have been this previous resistance level through been up here. Though, I wouldn't have made it that for gravity got out somewhere. Maybe not perfect and it's hard to call perfect top. But that would have been more price target would have been where the previous, the previous resistance level was. So right there we have bullish, triple bullish divergence. But once again, and I know I'm saying this stuff a lot, but I want you to understand it. Have a low, a lower low and then a lower low and the price action. So we have three loads in a row. And I know that, you know, it's kinda hard to see. I'll zoom in a little bit. Well, low, lower, low, and then a third lower low law on the RSI we had a low, high or low, and then a third high or low. And that's couple bullish divergence mentioned. And then parish divergence, stock price makes a higher high while the RSI indicator forms a lower high. This is telling traders that the stock is losing upside momentum. So I've got a couple of examples here. So on the S and P 500 index, this is now actually this is real-time. I'm not telling you guys to make any plays based on this is just an observation. But this was July 6th that we had a high. We came up, we made a high and we made a higher high, barely, but we made a higher. I'll zoom in for you actually. I made a ha, ha, ha, and up here higher HA and RSL we made a lower HA and a third lower ha. That would be triple bearish divergence. So basically what I'm doing and I'm not telling you guys to do this, but what I'm doing right now is I'm looking for put options. They actually made. I think it was $800 total, something like that. Maybe not a 100. I have to do the math, but quite a bit on put options because I'm thinking the market is gonna go down. And this is one of my justification. So we have a ha, ha, ha, and a third higher ha, given on price action, we have a ha, ha, I mean zoom into a few on talking about we have a ha, ha, and then a lower high. As you can see it, declining wall price action was n cladding. Which is telling me, this is like I said, this is a momentum indicator telling me that we're losing upside momentum. And this was caterpillar. All right here. You can't, right here we had a ha, can't use this because this was a lower ha, ha and then a lower HA is this first time came up. Though you can't use this when it comes to bearish divergence or you can't use those when it comes to boost our agency there. It's gotta come above it or below it if we're talking bullish. But on this example, bearish our origins. This would be our HA. And then right here we had a wall on the RSA. We had a ha And a lower house. So as RSI was declining, price was going up. O on this third homo is telling me that we have, though we're losing upside momentum. And that would be one of my justifications for getting into play. And I did, and I made a tiny scratch on this one. And then we have its effect. You'd have that, you'd have the fact that this was a previous resistance at the pass. And then you had some factors going on with the Dow Jones caterpillars or dow Jones stock. So after I put all my justifications together, I come up with a play and I use that when I do that plane of my money. So that would be another, an example. So we have a ha, ha, ha, ha, well on or SLE of a HA and a lower half. So RSS waning, price is increasing. I said telling me that we're losing upside momentum. And when it short right there. This isn't something that you want to use by itself because like I mentioned, when a stock is at a when he said it, when it's an overbite territory. So when it's above 70, so like I said, above 70 is over, but below 30 is oversold. 0. If something's oversold, it's telling me that it's usually a pretty good deal, some above 70. It's usually tell me that it's not a very good deal if I'm buying shares, but if I'm going short, then that's obviously I want it to be over, but we don't want to when it's over. But as one, I'm going to get in and shorter buy put options. But as you can see in this example right here, we were over, but I'll zoom in a little bit for you. We were overbite here and it did come down for a while. I mean, it came down. We've done 7%, but in reality, just right after that, it kept going up. So this is why I say this is something that you want to use solely because it can stay over but for a while and, you know, things, things change this. This isn't some magical formula. This is just showing us what price to action is doing in the magnitude of the moves. You know how, how much momentum that moves have. But if you guys want to, if if you if you're in touch with me or if you have any questions, just reach out. What you can do is if you see divergence is bullish, bearish, whatever on a chart. And if you're unsure about it, you could come back and watch this video or just message me, send me the picture of the chart and I'll confirm whether you're right as far as the bullish or bearish divergence goes. And it's just something that you gotta kinda play around with. And the longer that you play around with it, the more familiar you'll get and understand the strength of it. Because and then like I mentioned, you want to be looking at overbite and oversold and divergences on the timeframe that you're trading. So if you're a day trader, you want to be looking for RSI or you'll be looking for RSI, bearish divergence and bullish divergence and overbite and oversold on a daily or a four hour or one hour or even 15 minute. But if you're going to be doing a trade that's for three months and you want to be looking at RSI on a daily or a weekly, something more, maybe a four hour but you probably just a daily or weekly. Obviously, you wouldn't be looking for overbite or oversold or any divergences on a one minute or a five-minute chart if you're going to be holding the stock for three months because on a five minute short, it could show over, it could show oversold when in reality it's not. And it's more, it's more in the bullish controls on. So it's kinda, kinda be careful about that. Like said, just feel free to reach out if you have any questions. Thank you. Yeah, Have a good day. 10. Rsi 2: But I'll make another video as far as the RSI goes because I forgot to. I left just a couple of things out. It's just going to be this one's just going to be real quick. To find indicator, to find the RSA, you would just click up here on indicators. And then you just type in. And then on relative strength index, I click the star right next to it to make it into My Favorites. And then when you click that, it'll come up. And it came up twice because I already had it up. Let me fix. So if I go in here, had indicators, bursa will come up. And if you double tap the line, I like to change the lambda white so I can see a little bit better. And then also on the main, on training on screeners, you can use oversold and over but to look for stocks as well. So down here if I click over, but this is going to show me stocks that are in overbite territory. So Apple, for instance, I go to Apple. As you can see right here, it's an overbite territory. Ended up coming up to this top resistance on break. But as you can see, it's an overbite territory on RSI down here. Let's add a 76. 77 was at 81. Yeah, really overheated there. And so you can also look for over sold. Though we got here. All as you can see, this one's really the way oversold. Let's beat up it's oversold. So we're not sand too and there would not be bullish Coubertin's, obviously, they have a low and then on the RSI we have a lower Ball and projection we have a low and then a lower low. So that's what it should look like. So if we had bullish divergence, we'd make a low below and then RSA, we'd have a high or low. They corresponds with lower low in price action, we'd have low and then a lower low on the RSI way of a low and a high or low. It didn't have in this time. So obviously this wouldn't be a stock that I would consider get into, especially considering the fact that it just broke this previous to poor level way back here now, but I just wanted to give you an example how you can use that to filter are just screening for stocks. You can look it over and over by oversold. And then as far as pulling the indicators of is just click on indicators up top and then just click RSM, simple double-clicked alarm handler to y if that's what you wanted. And that's about it. Let me know if you have any questions. 11. MACD Indicator: Today's video we're going to be talking about the mag D indicator, also known as the moving average convergence divergence indicator. That's the mag d is short for moving average convergence divergence. And I'm going to talk about some stuff that's not all necessarily things that she even need to know. But you paid for my course, I'm going to be going over it with you. It's stuff that you will need to know. But for a beginner, you know, you might see some of this and think what in the world he talking about. And I'm going to talk about moving averages, exponential moving averages a little bit in this video. And I should have already done a video on moving averages and I'll do that in next couple of days. And if you want to go back and watch this one again, but I already kind of started on it, so I wanted to go ahead and just finish it up. Though. This right here is the map D. So when you see these, we see a lot of traders will have a lot of indicators. Down here. You'll have the RSO. We already kind of talked about it a little bit, though. You know, they'll have all kinds of stuff going on. They'll have all kinds of different indicators go on down here. But for me, I just look at them one at a time. And the MAC D is one that I use quite often. And basically what I'm doing is I'm looking for entries and exits. But I kinda wanna go over some stuff with you before I show you examples. Though, like I said, the Magda is short for moving average convergence divergence is a trading indicator use in technical analysis for start, for reading stock charts. It is designed to reveal strength in to reveal changes in the strength, direction and momentum of a trend in a stock's price. The mag see you have three different components. Matt D, You have my dieline, you have a signal line and you have a histogram. So the blue line here, let me zoom in on this. So the blue line, the mag dieline, and all look the same way on, on your own. These are default settings. So the blue line is the ideal on the orange line or the launcher where you see it is the signal one. And then these bars down here are the histogram. I use these in different ways. I use these lines to give me entries and exits, and then I use the histogram to look for divergence for another justification. So you can kind of use it two different ways. And before I show you examples of Excel will go over some self real quick. So the mag Dillon is a result of a calculation between two different moving averages. So it's subtracting the 26 day exponential moving average by the 12th day exponential moving average. So I'm just gonna say EMA for now I'll go What that is is an exponential moving average. And like I said, I'm gonna do a video on moving averages very, very soon, so don't freak out. But like I said, so how the map dealer and how this blue line is came up with is you are subtracting the 26-day EMA by the 12th day EMA signal on which is the orange line is calculated by the nine day EMA of the mag dieline. The magnesium ion will react faster to price movement. So the signal on lags of the mag dieline. So it basically smooths, it smooths it out for you. So this orange line is a moving average of the blue line. It's not as choppy. It smooths out. Just smooths it out, it smooths out the lines a little bit. And then the histogram bots the difference between the Magdalene in the single line. If the Magdalene is above the signal line, you will see green bars at the magnitude below the signal on, you'll see red bars. But what I mean by that is right here, as you can see, this blue line on the magnesium ion cross the signal on. And the further, the further that line gets away. So the further the Magdalene gets away from this signal on, the bigger these bars are going to get. And, and this kind of stuff you don't even necessarily need to even know, you just need to know how to use it. The histogram shows when to LA the two lines or getting ready to cross. So like I said, if you see if you see the the histogram go from green to red, edges are, these lines are crossing. And what this is used for basically is, it is and I'm gonna show you some examples and I'm going to add more examples later on down the road. But as you can see here, on, on this stock, so right here, this is Pinterest. Though we got across on this blue line. We go cross the Magdalene and I'm just gonna call it blue and orange lines, so you'll know. So just a dumb it down a little bit. But we've got across the blue line, cross the orange line. That would have been a sell signal. And as you can see, it's sold off since then. Down here, we had the blue line cross the orange line to the upside. That would have been right here. And it has went up since then. Or, you know, it got up to a point where I was up 40%. And this is pent or so. And I've seen this whole thing. I made my eye on this but, you know, as much as I should have, but, you know, on shares if you bought any, wrote it up 38 percent, obviously, that's a lick, but if you got call options when it was down here at 58 and it ran to 80. You may bank I mean, you may you probably made bob 100 percent, five hundred, eight hundred percent. I would be it'd be a link for sure though. So these lines are giving us buys and sells signals. So when you hear somebody say the mag D, Skinner, I'd have a crossover. That's what they're talking about, these lines crossing over. And then some people will be referring to the histogram crossing over. But it's the same thing. So I mean you get a Histogram Crossover right here. So when I say a crossover, I mean we're going from red to green. And it happened right here with the lines crossed over at the same time. So it's better just to watch the lines looking for if you're, if you're using it for an entry or an exit point. Now this isn't something that you want to use solely just like on everything else. You know, you don't want to use moving averages solely. Don't use RSS solely. You'd only use support resistance solely. You don't want to use the trend line solely. There's several different indicators and you want to try to use a bunch together. You're not, not like ten or 15, but you want to find a good four or five that you can go through and look at it and try to see what's happening. But this is Pinterest. So right here we got a sell signal right here and it's sold off every day since then. Right up here, we gotta sell signal. It sold off after that, right here for all. So what I'm saying in cell signaling, like I said, just now, Madonna again talking about this blue line crossing the orange line. So the mag D line crossing this signal on, well, this is called a signal. Lines is given a signal, so bossing or a sell signal and a cross right here. And obviously if you sold or bought puts, you would have made my on that MOOC. We get a cross right here, the upside, so the blue line crosses the orange to the upside. That would have been an entry. Well, if you would have got in right, there, would have been 20 or 31%. I would want another lake. And they're just, they're, they're all over the chart. But it doesn't, you know, it's not exact, but this is a great, I mean, this is a great example here. I mean, as you can see, just to zoom in even more, right here, this blue line, that D line is what it's called. It's crossing over the signal on. If you've seen that right there and you would have bought in, like I mentioned, that event a and event like a 3840% percent will punt along those lines. So let me see if I got a couple. Hopefully you all can see this pretty well. Right here on Apple. So on June fifth to the seventh one in this range, the ICT across over the map D line crossed above the signal on, when you've seen that you would have got in right there would have been 18 percent move on share price on the options contracts. It would've been a lot more because Apple is not very volatile. So the contracts are pretty cheap, you know, depending on your acceleration. But the most part they're pretty cheap. The one we haven't got a style signal out, period, on Apple. We did right here. And obviously you've played out to the downside. Right here. We got above. You lost money for a couple of days, but if you just held it, wouldn't play it out. Right up here. We've got a sell signal. Few had held where you would have held your shares, you lost 20 percent, 15, 20% of the robot puts eudaimonia lot of money. Right here. We gotta sell signal. Mac D line crosses the signal on. And that happens if you would about bullets, you emit a ton of money. So this is where it can get a little hairy right here. As you can see, right here, we got a bad signal. Oh, that would be right here on price action. And it did go up for a little while, but it kinda just traded sideways 0 if you But call option contracts. And it just say it likes for six months down the road and just stay sideways for all law, obviously you're not, you're going to lose money because of time decay. I don't wanna get into that later on when I get an options, but I feel like you need you need to know how to read the chart before you get into options are if not, you will lose all your money 100% This is why I'm gone one step at a time. I think that, I mean, it's the way I learned it and I think it's the best way to do it. But like I said, you're using these lawns using the Magdalene and the signal one. Do we look for entries and exits? I mean, it's pretty, pretty simple. I mean, as far as what it's how it's calculated. As far as subtracting the 26-day EMA by the 12 EMA. And then the signal on is calculated by the nine day moving. It's a nine day moving average of the Dylan. You know, it's, so it's basically the signal on as an average price of an average level of the maxilla. Now that sounds confusing, but you know, as you go along and as we talk about moving averages and whatnot and an after I do the moving average video, it'll be, it'll be a lot more simple for you. And then so I feel like I explained that pretty thoroughly as far as the magnesium ion and the signal line. So we're looking for exits and entries or buys and sells. If you want to enter a PUT, then you'd be looking for the blue line to cross to the downside. Don't want to enter a code. You'd be looking for the blue on the cross to the upside. Same way with shares. If you're looking to buy shares, you look for the blue line across the orange line. And then if you're looking to sell your shares, if you were holding hold and Holden, When you've seen that cross, that would probably give you a good indication handy to get out of this. And if you did get out, you would have prevented yourself from getting murdered at 25 percent on this play. The downside. Well, that's those. And then as far as the histogram, the way I use it, and this isn't the same for a lot of people when they talk about the magma either just talking about looking for entries and exits as far as the lines go. But on the histogram I'm looking for divergences. Well, it's the same way as what we were talking about on the RSI last week. Oh, bullish divergence is when the stock price makes a lower low while the map D histogram forms a high or low. This is telling traders that sock is losing downside of omentum and then bears divergence. The stock price makes a higher high, while the map D formed a lower HA, so the price goes higher and higher magnitude goes high, and then, and then it makes a lower high. Lomagundi is going down while the price is going up. And then I'll often same thing with the RSI, often see double and bullish divergence on the Mac D sometimes triple, but really never more than triple. I'll see quadrupled Tom or two on the RSL glut. An idea, it's hard, it's hard to fund quadruple divergence, bullish or bearish off Sheriff seen before, but I just can't I can't even remember a town my head. But I've got some examples of that as well. Woes are looking at. All right, so here's two examples on OK. Ok. So now we'll make this small. And then when I want to click on it, I'm just going to click on it and kinda show you guys what I'm talking about. But hopefully you can see this. So we come down, so OG IZ like 220, it's coming down, it's coming down, it's coming down. It hits 14. Okay. This was and this was last year. But it comes down, it hits 140, goes back up, comes back down a second time lower than it did. So it was a 141 backup and down the second down to 110 ish on the map D. The first time I went down to 140, we got a lot, a lot of red, so a lot of negative momentum. The second time we lost momentum to the downside, even though price action that the mag D is telling me that we're losing momentum to the downside based on this histogram. Though we had moved down and so we had to move down to 140. And then on this moved down, down to 110 to Maggie didn't come down as low. So even if it would have came even if anybody came to right here, anywhere in this range, as long as it doesn't come down lower than this top, that would be bullish divergence. And it would be double bullish divergence. So here to here, while price action went low and then lower with the map D, low and then high or low. And, you know, obviously when you've seen DAT we, so you've seen the bullish divergence was the cross right here. So we had across and we had both divergence. If you would have got in on that play, had two justifications, just right there in the map D, let alone the other indicators. I'm sure we had other support resistance and moving average might have been, you know, we might have came down to a moving average or whatever. But if you would've gotten that play based on that bullish divergence and that cross of the magnitude of the signal line by the magnesium ion and wrote it up. I mean, that would have been 80 percent play if you were to held. I mean, obviously you probably wouldn't help if you would have held until we got the next cell signal. Let's look at that. A few to buy only got the bus signal right here. And then you had held until we get the next cell signal right here. You would have made 53 percent, which, you know, on contracts isn't that much on options. It wouldn't be that much because it's we're only talking about $1.28 to $2. So it's a options for the most part works better if you're using, if you're dealing with stocks that are priced pretty high. But that would be bullish. That'll be double bullish. Divergence on the mat di you have divergence on the RSI and the magazine. It basically works the same way, but it's something you want to look at. And just because there's divergence on the RSI doesn't mean there is going to be on the Mac D and then verb areas. So actually we get the same example right here. We had HA, we came back, it had 218, went down for awhile and then another half, 235. So we had HA right here they 218 and we had 235. While on the idea we had HA, and then a lower height right here. As I click on it, as you can see, it didn't come up as four on the second MOOC. Oh, if it came up to here. And this time if the histogram when it came up to here, and we wouldn't have got bearish divergence. In this situation. The price action went up to 16. The mag, the histogram showed a lot of positive momentum. We fold around a little bit. And then we came up again, made up to 234. And the Maddie didn't come up on the histogram. So that's telling me that we're losing momentum. If you would have seen that and you would assure you would about put options. You may even a feudal waited, you could've waited until you got this cross the cell signal appear. But if you were to just play a base on the divergence, the bearish divergence, you would have your stop yourself from loosen 40, 50 percent just shortly because this is a daily chart. So two weeks after it was down, 50% of you have seen that bearish, this isn't a stock that you would buy, put options on because it's so cheap and I'll get into that later on down the road. You want to be Baum put options on stocks that are above. They have to at least be about 1520 bugs. Really the sweet spot is probably 1500. But if you would have got out when you seen that bearish divergence here to here. And, uh, ha, ha ha, on the Mac, do you made a lower ha, be seen that if you would have got out, you just save new shell 50 percent, which obviously is massive. That's two examples on that. Sure. Here's one that's kind of more recent that I'm looking at. That's still kinda play it now. And I'm sure if you talk to me every day, you know that I've been plan are played this doc played this stuff yesterday. Actually. Fran told me about it and it made pretty good money, made $600 off this one play. And here's some that I'm looking at. So I mean, these are all has we gotta ha, ha ha, ha. So it just keeps making higher house wall in the Maggie, It's obviously losing momentum, it's losing steam. And then we haven't got the crossover of the signal line yet. But when this blue line crosses is the orange line, that's a for sure cell signal or for sure entry for a put. So what I'm looking at as far as divergence though, so the top the highest peak we had on the map D was on July 1st. On July 1st on price action. That was right here. Okay. Oh, that would be our ha, ha, right there. And then up here we add a ha-ha. Well on price action, we had a ha, ha, ha, ha ha. While on the map D, he had a lower half and another lower HA. And then really even another one. So I mean, this could be, I mean, this, technically this is, this would be quadruple bearish divergence right here. Let me zoom in just to make sure I didn't even notice that. But we got a on July 1st on our histogram down here. And on price action, we would have had at the time this level. So this, how would be equal. So even though we had a higher it was equal and the magneto, I'm not counting that. Run the next, the next move of the histogram kill a little bit lower. So that would be our first example, bearish divergence. Then we went up, again, came down even lower on the Mac D. That be, that would be triple, already tripled, bearish. And then right here in another or fourth in a row, with having a lower half. Maggie histogram. And again, Jesus, let me see. So we have 1, 2, 3, 4. This is like, I don't even know what the word was. The word above quadruples, cinco. Cinco. Cinco, nag me bear savage. I don't know. But it's, you know, it's a good sign. Basically, if you're if you're looking in it for me, if I'm looking to get an a put option, That is a good sign and I am looking at other factors, of course, but the fact, be honest with you, I've never seen this up until this example. It's crazy that I'm doing while I'm doing this, a seal on this video. But yeah, I've never I've never seen that before. I've never seen five bearish divergences in a row. It's this thing doesn't come down add don't know. I mean, I don't know what's going on, especially if we get a cross of the map D line crosses the signal on the lookout. Because I mean, if I zoom out, if I take this take this off here for just a second. Zoom out obviously as you can see, this things Ha, Nike last year during the fell off, 60, right here, is it a 100? This is the fair value area right here, right around this range. It's between a 100 and about 130. That's fair value on the stack and maybe up to 140 ish, but that's even stretch it. But right now it's just it's belligerently. And yeah, I mean, that's crazy. Let me pull up the naggy. So if I look at it, and that's another thing you want to look at it on like a four-hour too. So this would have been well, this whole range. So this would have been our right, you Maggie. And we got up here. We've got a ha ha ha ha ha ha. This is like quadruple perished divergence. Here is each town we're going higher and price action, the Magda is losing momentum. Well, this is telling me, and this is already crossed on the four-hour. So that can be implying something in and of itself. I want to look for the daily, want to watch the daily to the fascia that daily cross, that Blue Cross and orange. This is a good setup for me. I'm not giving financial advice and do the same for me. About put options. Mike said yesterday, I made $600 on this thing and I had him in Washington. Buddy told me about it and they tell you things happen. And it tells you about it and you just start watching it and you look for justifications and you find on adding new look this, before I'll pull this up, I was just going to look for examples, but I just looked at it and saying has ridiculous bearish divergence going on right? To the point where I don't even think I've ever seen this before. I might have, but not, not after. Usually double or triple barriers are bullish. So as an example, a bearish divergence. The bullish divergence would be one just like this. So we have a low and a lower low on price action. Where on the map D we have a low, low. And then Harlow, tell me we're losing momentum to the downside. If you guys don't if anybody doesn't understand this or you needed no video or whatever, just reach out to me, I'll make another one. But I feel like I've done a pretty good job of covering this. And yeah. So like said, You're using the lawns, the magazines signal on to look for entries and exits. And you're using the histogram to look for divergence is bullish or bearish. Make sure that you have anything else on here. And that'll be it. You guys have any questions? Feel free. Reach out. Thank you all. Have a good day. 12. VOLUME: In this video I'm going to be talking about volume. So volume is a measure of how much a financial asset has traded in a period of time. So when I say financial asset, I'm just, just think of it as stocks. So it's a measure of how much a stock has traded over a given period of Tom. For stocks volume is a measure, is measured in the number of shares traded. And for futures and options is based on how many contracts have changed hands. So basically it's just money coming in and out. Like if there's, you know, there's a, there's a lot of stocks that there's just not, they don't, there's not a lot of money coming in and out. There's not a lot of interest in those dark, so I'm just kind of stays the same. And in those stocks the volume will be low. And when I'm talking volume. So volume, there's a number for the volume. You know, it could be 50 million shares, it could be, you can measure it, you could look at it in shares or dollars. So you could look at $900 million came in this day or $50 million came in this day. But just as far as you know what I'm what I'm going to be referring to as just share. So like this, red is big red bar right here. We might have had a 100 million shares to exchange hands that day. And then the next one, the volume fell. So the stock wasn't as volatile. And we might have had 40 million that day. So it's just there's just less money coming in and out. There's less action going on. So looking at volume patterns over time can help get a sense of the strength that we're conviction behind advances in declines in specific stocks or an entire market. So what I mean about that, one example of that, and this is going to be a pretty quick video I don't use. I do watch the volume, don't trade with it a whole lot, but, you know, I might use it for any conviction point. And so like an example would be right here. And zoom in as much secant of 30. So we came down, we hear it. We came we curled around, came back and hit a resistance point, fell and backup into resistance point again, fail. The third time we came up, we broke through that resistance level. And as you can see, this is the volume bar, but we had more volume on that day then we did the previous 56 days. And so that would be some conviction. So when you see a breakout and I'm going to be going over breakouts and needle at a different strategies and what not but when you see a breakout, so this is, this is what a breakout would be. We hit resistance, hit resistant, and then we break out of resistance. And there's different breakouts. You know, you can have a break out of a chart, you can have, you can have a breakout of a support level or resistance level. You know, there's different there's different ones and we'll talk about them individually, but this would have been a break. Yeah. This is kind of a micro breakout. Was over a period of 15, 16 days. But over that 16 days, we had a little pattern going on and we broke out of it. And on that day that we broke out, we had higher volume. So that gives me conviction that the trend is strong. Down here. I'll put low volume, low momentum, high volume. How MOM actually, let me do this. So when prices fall on increasing volume, the trend is gathering shrink to the downside. But what I mean by that, if the really hadn't even have an example here, if, if a stock is going down and it's going down, so as you can see on this time, it's going down, but the volumes also going down. If this was going down and the volume was coming up a lot, didn't that would tell me that this thing is probably going to break this support. Yeah, this important level and keep, keep running down. But as you can see right through here, the volume declines. Well that that might be a, once we got down to this level, that might be indicative that are reversals going to have him because the further week we're coming down that the trend is losing, its losing steam because the volumes fallen. When prices reached. The price has reached new has on decreasing volume, a reversal might be coming. So if really don't have an example here. Oh, if you just, just in general, if if a stock, if the share of a stock is going up, if it's going up, but the volume is coming down. And that would be the son of a reversal because the higher we go, the lower the volumes getting and we're losing, you know, we're losing some momentum to the upside. So what that's telling me, if you see a trend, if you see a trend break up, you know, you want it to gain volume. The more volume and gains as the trend goes, the higher it's going to go, the more momentum it's going to have if it's going up and it's losing volume. And on these videos you're not gonna be able to see it. But if you, you know. On your phone, you'll be able to see these volume bars a little bit better. You can't really see them unless I'll zoom in a whole lot, but that doesn't show us anything really on price action. But if, so, if this right here, if we started going, there just isn't a good example. But you get the point if we're going up and the volume, and when I say volume, I'm talking about these bars down here because this is measuring the volume. If there's a lot of volume, these bars are going to be higher. If there's not, there's not a lot of volume, then the vars are going to be lower. And if the stocks going up and the volume is coming down, That's not a trending up in the volumes trending down. It's not a good sign. As it trends up or breaks out. You'll wanna see volume start pickup. If you see a breakout. And then the volumes the same, it could still break out and go higher, but it's just not as strong you will when you see a breakout, you want conviction. And that conviction would be more volume. So these indicators there are indicators that help us get a visual volume. So that's what I just showed you that both bars the bottom, that's one of the volume indicators. I said low volume is low momentum. How volumes, how momentum. So they can work both downside and if we're going down hard and we have high volume, we're going to have how high volume, high momentum. If we have low volume, there's going to be, the star is going to stay more or less, going to go more sad ways. Now, the stocks roaring to the moon. So like, I guess a good example would be, let's look at the volume on AMC back. So yeah, so right here, as you can see, as we're going higher and higher, the volume is picking up. And so it kept going but compared to compare. And then this was back in February. So we had two spikes. We had one in February and then we had one at the beginning of June of Until now pretty much. And if you look at the volume down here, everything, you know, all the other surrounding that we didn't have any. Go on AMC here. As this trend, as this stock moves sideways, we're starting to lose volume. And then the last couple of days it has picked up a little bit. So we'll see what happens on that one. But as you can see, we spike up, we run abroad and in the volume comes up to her because there was a lot of money coming in and out though these days. And then so so I don't use like I said, I don't use these bars down here, this volume. I don't use them a whole lot for justification or would use it for a conviction of a breakout. We'll talk about breakouts or should have already made a video on, um, maybe I'll do that in the next one. But I do use what's called the money flow index indicator. And the money flow index indicator, also known as MFI, is a technical indicator that generates overbite or oversold signals using both price, both prices and volume data. So unlike the RSI, so this is basically it's similar to the RSI. Unlike the RSI, the money flow index incorporates both price and volume data, whereas the RSI only incorporates price data as opposed to just price. So for this reason, some analysts call MFI the volume weighted or SR. You can also look for divergences on the MFIs we spoke about in the RSI make the videos. So right here I've got the MFA, the MFIs, the top one or SR is the bottom one. They look the same. The the the, the measurements I guess as far as the the top though. So on on the RSA, the over bar or oversold category or overbite category would be 70. Whereas on the MFIs AT and on the downside, E oversold territory, the dotted line would be at 30 and MFI it's at 20. And it'll be that way on you all too. But they are a little bit different, like I said, because the MFI is volume based as well. So this is an example. So like I mentioned, you can look for divergences on the MFA and RSI. And I use these. I look to Maggie, look at the moving averages and a couple different things. But we had a low here. We fell down on Pinterest, felt on to another. I talk about this target alive, but this is just one that I tried. So I'll look for examples. I can pull up any stock and look for examples, but this is just one that you know, what I think of when I would look for an example is the one that I'm looking at. So we have a low here. Okay. We had. In this law is at 60 to 30 ish. We had another low here, around 56 bucks. Okay. On the MFA, we had a low tech time down on price action, on MFI, we had a high or low, so we had divergence, bullish divergence. As you can see from here to here, both divergence as seen that when that occurred, while, while on the RSI, even on price when we had a low parallel MFI, we had a low or Aetna alone on the price actually at a low and then a lower low MFI we had a low, high or low down the RSL we had a low, lower lobe. So and the reason for that is because it didn't incorporate this, this loss of volume. So right around in this range, we lost volume, as you can see, we lost volume. And this MFI incorporated that the RSI didn't. So it you know, if I was just looking at the RSI or would've I would've seen that both divergence right there. But senior on the MFI. And you can look at, I guess one thing I should mention real quick and propagate each one of these bars represents whatever time frame you have it on. So it's the same with the candles of these candles along with these bars, or whatever day this candle is is what is the day that that bar is? Four as the volume goes up zoom and you can see that a little bit better to work this day would this volume would represent this day, this volume that represent this day and vice versa. Pretty simple. That's one way. So you can look, you can look for bullish Amber's divergence on the MFA. And one thing I would mention, you know, I would look for them, I would look for a divergences on both. So when I'm looking at a chart, I'm going to look at the RSI, the MFIs, Maggie, the moving averages and sometimes Bollinger Bands. And I'll talk about that in another video. And there's a couple of other things, but these are the main but I don't I don't know. I don't really use this volume bars down here. I used the volume but I use it through the MFI indicator and it's a good indicator, a lot of people use it. And if I got another example here, okay, So one thing I wanted to talk about, so you have bullish, bearish, regular divergence and then you have something called exaggerated divergence as well. And you don't really even need to know these terms. You just need to know what they are so that when you see them, you recognize them. So, you know, I haven't brought up exaggerated divergence. Yeah, but it's just not something, you know, as far as the term, it's just not something that you necessarily need to know that much. You really won't ever hear anybody else talking about it. But as you can see right here, and this is an MFI down here, this isn't the RSI. And now they look the same. Like I said, the overbite territory on the MFIs AT the oversold territory is 20 and it'll be default. So we had HA here is his character. How here 245, another here, high here to 45. A third here, high here, not a habit. They are all has with the communist the same level basically. And I realize this one broke a little bit higher, but it's pretty much the same level. So I'm sure you could look at that. Somebody could look at it as bearish divergence and you know, whatever, whatever you want to call it. But pretty much it's the same level down here on the RSL or on the MFA at a lower HA, and then another lower high, even though on price we had this three, it was the same level pretty much. Oh, I get it. We had a couple of weeks, but pretty much this is just the resistance level. We hit that level three times. While on the MFA, the momentum was whining. We're losing volume. And there's, the momentum was falling. And this would imply when you've seen that and then you've seen it reverse and break. Probably want to moving averages but 90 minute talking about that today, but at least mention though. But when you've seen it hit that same level three times. And the MFI showed that we were losing momentum. And we broke this trend line that was right up through here, and you could have gotten a deposition like your priority heard I've made a ton of money on display. So but that's how I using MFI like said, you're just looking for you. You can also just look for over by an oversold. So each time it gets to this level, for the most part. So right here we got to this level. We sold off. Right here we got his level we sold off. Now one thing to note is, you know, a stock can get over buy and sell off for a little bit and then just continue on up. So I use our uses more of a swing trade. So some might get him for 56 days. Now it's something that we'll get into. And I'm not talking about just the MFI general. You can use that on any timeframe. But I'm talking about talking about just looking at these overbite and oversold. Because even though it hits here, it does not necessarily mean it's the stock is for sure falling. It should fall a little bit, but it could just continue on. And option. Though, if I shorted here, I'd write it down a little bit. Take profit, shorted here, Write it down a little bit, take profit me right here would have been an easy example. If you got a new position right here where it was over by it, then there's an obvious, There's an obvious resistance low level. Now resistance level of support level, right in this range we've had a lot of price action by around, those ones are horrible. But right around this time that we've had a lot of price action of a scene that it was overbite up there and a shorted it right down here somewhere would have been my target. And that would have been a pretty good play and went from 200, 180. So an options that were huge. And then that, that works. That works, they upset. So actually in caterpillar on the MFI, we just got bullish our burdens here. So we fall down to 200. Five, we go back up and we fall in 201. While on the MFA, we had a blow and then a higher loa loa, loa loa loa Harlow, which is divergence. Now, I'm still consider I'm still thinking market sells off a little bit more, so I'm not, I'm not bullish on caterpillar. It could come up for a little bit of time, but eventually I think it just traits outweighs and falls as snow. Financial advice, that's just my opinion. And that's about it. So it said it's you can't use it the same way the RSI, you will use the same way as the RSI which just waited. You know, it's it's got volume. It incorporates volume. So the, the lands are going to be in different places. So you just want to look at both of them. And you will probe robot oversold, look for divergences. So this would be a divergence right here on caterpillar. But so that would be one justification for me to go bullish on this. But the, you know, this, that doesn't outweigh my negative outlook on the market in total right now. And that my outlook on what the index is shown are the most important thing to me. If the, if I think the Dow is going down, I don't really care what a DOW caterpillar is doing on the chart. I'm not getting into it though, mainly mainly looking at those. I think the Dow's fallen and I'm looking for Dow stocks and capillary just happens. Or if I think the Dow is going up there, I'm looking for Dow stocks to get into. I think the Dow is going down then I'm looking for desktops to short right now. I think the Dow might have a little bit more upside, but overall I think it's going down, so I'm weary about being bullish on Dow stocks and capillaries, one of them. So that's about it. Like I said, you know, volume. So just a little recap. If you have a downtrend with increasing volume as not a good thing. If you have a downtrend with waning or less volume, then that can be indicative that the trends going to reverse. If we have an uptrend with growing volume, that trend is strong, it could continue if we have an uptrend with a say waning, but it might be hard to even understand what I'm saying, the mumble sometimes, but if we have an uptrend and we're losing volume, then that could be indicative of a reversal there, we're going to go south. So just like said, I used the money flow indicator to as one of the indicators to measure the volume. If you guys have any questions, feel free to reach out. Thank you all. Have a good day. 13. How do I look for stocks?: Today's video I'm going to be talking about stock screening. So this is how I find stocks to watch. Keep in mind with my strategy. Typically keep a portfolio of five to ten stocks. And I'll watch ten to 20 stocks. So, you know, at certain points, I have went and used filters and went and looked at a ton of stocks and I still do. This isn't something you have to do, just non-stop every day is just something that you wanted to be done here in there in certain scenarios. But the websites that I use, your trading and struck, though trading works a bit better on the computer, I think stock probably works a bit better on the phone. You can use trading for a screen or on the phone, but it's a little bit more, It's a little bit more setup for the computer. And though, that's up to you, There's other websites that you guys can use. I'm just giving you guys my it kinda the outline that I use for looking for stocks because a lot of people are just completely lost. And I wanted to make this video for the people who have messaged me and ask me, Hey, how do you fund socks to watch? And I want to do the best account for you guys. And so there's gonna be some things that I mentioned in this video like RSA and different things and divergences and whatnot that you guys don't understand yet if you're, you know, because we're all on video 10. But this, you should understand a little bit about trend lines and resistance. And this will give you some ideas as far as what to, what to play with. So so these are the filters that I use. The only the ones that I use at any given time depends on if I'm bullish or bearish on the major indexes, though, like we spoke about in a previous video. You have the nasdaq, the Dow Jones, the S and P 500. Those are your three major indexes. Though one thing that separates me from a lot of traders is I use these a time. But a lot of people, they just buy stocks and they'll be falling or there'll be going up and they have no idea why. And they're not looking at the grand scheme of things. Though. I based my trades on what the nasdaq, the S and P and a Dow Jones are doing, a kind of move together. But if I'm, if I'm looking at a nasdaq stock or if I'm looking at Dow Jones dark logo, say I'm looking at Caterpillar. And like I said, I'm going to be watching the Dow Jones. So if I think that the nasdaq, is it or really how point, which if I'll put it on a weekly chart and I zoom out, it is. Now it's obviously it's at a 0.5. If I'm, if I'm thinking the market is TRND going to turn around soon. And when I say soon, I'm not saying in the next weeks or months understanding generally, it should be in my opinion, I would imagine that it can't just go up forever. I mean, that wouldn't be logical. So, so if I'm bearish, and another thing I want to say, the higher this thing goes, the more bearish I am, the lower this thing goes, the more bullish ion of this thing. If this thing starts to fall, even though the even though when it's falling, that's considered bearish. Getting more bullish, the more I fall. So obviously if the nasdaq were faulting 14 thousand and just roar all the way down to 8000. A man should be bullish, more bullish as we start to go lower than it should. And if if you don't if you don't understand what I mean by that, just reach out to me. And because that kinda goes against what I've said. Because, you know, if this is a bull market, but as this thing gets higher and higher, getting to be more bearish because it can't keep going up forever. So it should make sense. So I'm basing my ideas on what the nasdaq, the Dow Jones and S and P are doing for the most part. Now there's news that comes out and, you know, different things. If I had a big play on cannabis several times actually last year and this year. And one of the reasons that I got into that play was news. And 0 the first time around it was Biden winning the presidency when he won. Assumed, obviously the Democrats are going to be more leaning towards marijuana being legalized and whatnot. So that should stir up some speculation. Speculation telling me that are speculating on marijuana stocks thinking that they're gonna go higher and it did, and I made like 3000 percent on that trait. So this is this is something you have to have four Seidel into. I mean, you, you know, you need a little foresight. You need to be able to, to kind of get an idea. You need to be a logical person and get an idea of what things are going to occur in the future. And, you know, I don't know if that's a skill or a talent or I would imagine that would be something you could acquire over time. I'm just seeing a poor sign, general. So if I'm bearish, so let's say that as a, runs up like it, like it does right here in my filters are going to be more on the bearish. Now it's the nasdaq was down in this level. But it rips down, or let's save it and rip down this town. Rip down again. And let's say I went from 14 grand all the way down the candidate 12, somewhere in that range. In the further it gets down, I'm going to be, I'm going to be looking at filters that are there at least. So I'm going to be looking at the 52 week lows, the all-time lows, the overall oversold or and a top gainers. So as far as 52 at Lowe's goes, so this is what the screener looks like. You can come in here and you know, there's, there's all kinds of stuff. So new Fiji to a lower value. If I go to MD&A and I don't know anything about this dye is just this is just an example. But within the last 52 weeks of n, this area where it alone. So I always say bow and bloods in the street though. This discharge don't look that great and I'd have to look at some other out. I've looked at a lot of other factors. Like I said, you always need two or three justifications. But what I would do is I'd go through these individually and try to find justifications to get into these flakes. And I'm going to be, I've spoken on a couple justifications, support resistance and trend lines, but you got a ton more. And I'm going to go over for me up, I got seven or eight different justifications and if I can find a few of them on a play, then I'll get into that play. And if if I'm bullish on the Nasdaq in the Dow Jones and S and P. So if I look at those charts and I decided, Hey, those short, so I'm also looking for justifications on those shorts. But if I'm looking at the Nasdaq and it gives me justifications that it's going higher on bullish on it. I'm going to jump on the screener. And I go to 52 week low stocks because I want to bow and buds in the street. And when it says cell through here, don't pay any attention to that. This is irrelevant. Don't pay any attention to that. I mean, some of this hold weight but this they're just Saint cell because the stocks gotten beat up. But of course the screeners don't know when the stock is going to turn around. So those are those are where your justifications come into play. Probably going here and I'm gonna look at all of these, not all of them, but I'm going to pick out a handful each day and I want to look at, and if I can find justifications on the chart and I'm gonna do it. And that's if I'm bullish on the nasdaq or on the Nasdaq and the indexes nasdaq, the Dow johnson S and P bandwidth all-time lows. So ACH L is the first one. Should be at an all time low, should be lower than it's ever been. And it is, Oh, this looks terrible. It fell from my eyes all the way down to $7. And Joan robot right now. But if it turned around and gave you justifications, maybe it would be a buy. You know, I don't know anything about the stack with this is just an example. So this would be an all time low. I'm bullish on the market. I think the market's going up overall. I'm looking about them, bloods in the street. And this is the way I do this, my style. And you know, you can, you can kinda play around with this and kinda learn, you know, kind of do your own thing. But I'm giving you an outline. But if I'm bearish on indexes and we can all time has 52 because overbite or ISR and top losers. And actually I want to mention, so if I'm bullish on the Nasdaq, I'm bullish on the indexes. One thing I will look at top gainers. So the government here stock screener, top gainers. It's going to show me the stocks that went up a time that day. Like this first one went up 280%, which is not just stock actually went up 600% that day. And like I've always said, Don't buy a pump and ops. But you can go in here and you can go through some of these and you can look for breakouts. When I say a breakout. This is an example. Breakout. As I mentioned the other day and support and resistance video and, or the trend line video. The middle a district where obviously we have a squeezing into a triangle pattern here. And this pattern broke, broke, broke out of the resistance level. And so if, if this had went up quite a bit, that says 10 percent a day and their stock would probably be in this stock screener. And I would have seen it and I'd see it broke out. And if obviously you want to look for other factors, this isn't, I'm not giving you all the justifications for buying stock in this video, but if it if it broke out a lot and it went out, let's say 10, 12 percent. It would be on a stock screener. I could pick it out. I look at it at c, This chart and see that it just broke out. And I might get into a play if I have if I have justification. And The example I showed on Apple area, as you guys can see, we have a resistance line here, resistance level here, here, here, right in this range, it's touched several times and failed to break it and it just broke it. So now that sometimes can be an indicator of, you know, that a is going to continue, broke out of support level and broke it down, downward resistance. But now we're at where we are at a, another resistance is right there. Though. I could turn around and go south now. So I'll tell you about Apple. I'm just, this is just an example. So if I'm bearish, if I thank the nasdaq or if if the nasdaq is high, it's at a really high level and I think it's going to go down. Now I'm going to look for stocks at all time. Ha, pity, 2k over bought RSI and top losers. I know you guys don't know what RSI is, but I'm gonna do that and probably for three videos from now. And give you an example. So if I go to my stock screener and I go stocks at or at, let's say all time, ha, oh, apple of course. Abb. As you can see this dark side and all time ha, ever been this out? Oh, that's my, my filter and my stock screener. Pick that up and I could watch this doc. And if I'm bearish on the market overall, I'm looking to short this dog. And like I said, I need justifications. I need two or three justifications to be able to be able to show it or buy put options on this doc. But I'm using these, I'm using this filter to tell them, to tell me which stocks are at their old townhouse. And I'm going to these topics one by one by one looking for justifications. This isn't, isn't sexy. It takes a lot of hard work. I've been called a psychopath before for how much I look at these charts. And if you're not willing to put the work and you're going to fail. I mean, if you're if you're just gonna get on Zack Morris Twitter and somebody like that, there's, you know, there's these different twitters that give plays and discords and whatnot. If you're going to be a lazy person and you want everybody to as spoon-fed, spoon-feed you pigs, you've got to fill, period. Not that easy. That would be all time. So 52-week, same thing. So I'd be I'd be a stock that it's at a high level, the highest level in 52 weeks. If I'm bearish on the Nasdaq and I'm looking to buy, put options on stocks. Now my bob, stocks that are 5280 tags, or I might put options on stocks that are 5280 house on, shorting them over. But I saw, I'm not going to talk about those monkeys. Mostly I don't understand what I'm talking about. So you can come back and look at this video after you see that video. And then top losers would be an example. Let me just show you this first. So up losers. So as you can see, there's a lot of red here. So these stocks have gotten rect, so this dot-dot, 33 percent today, 95 percent today, like I always say, you guys Baum bloods in the street. So you see a lot of red here, bloods in the street. And you want to go through these individually. And you want to look for ways to justify buying shares or buying calls going along. And if I can find two or three justifications on any of these charts and I have the cap will be able to do it. Then I'm going to want to place among place a trait. An example actually for that I just drew, this would be an example. This would be an example of the kind of the top loser situation. So back in the daily acts, I made a trade on his place was back in April. Interest fell. When I use this measure into our measuring from the top to the bottom of the candle. 11 percent in a day? Oh. If I had been using the stock screener that day and I went to the top losers. Ventures would have came up. I will pull this chart up here. It would have looked like this all the way up to this candle and that's where I would have stopped. So if I would have looked at that chart, recognized a double-tap, maybe there was either divergent that maybe there was divergence is going on. Support levels or resistance levels that are holding. And I decide I can just have a play there. And I've gotten to put options in this level and held it for a month down to anywhere in this range from 75 to 54 to 50 to 60. Really, it would have been a massive play options was and I don't really recommend short selling. So. I'm going to get into it a bit, but I usually, if I'm short on a stock, I'm going to be buying put options and any candidate they can be risky, but that kinda ties them with money management and positioning, position sizing, and memory. Like I said, you don't want to use more than 10 percent or 15. So as if I would have got in right here and it went down three days and it came back up for days. Both four-day are those five days would have been bad. Five days, I would have gotten lost money off our age pretty much. But if I just held it and it ran back down, I want to make a time and that's why you expirations need to be 4 out. If our buyout an exploration on a put option within a week or two, then that our direct. But I'll do the A-bomb after a couple months out. And there's gonna be some people that are listening to this like one of the world's he talking about poets called all this stuff. Don't freak out. I'm going to go over this stuff thoroughly one-by-one. And some of these, some people that are in this course know kinda have an idea of the terminology, at least. Not that you should, you know, if you just start now, you know, it takes a y took me years before I even got into options though. I'm not saying you should even get into options, but this is an option that trading stocks and options course. So I'm going to talk about both. But except if you were looking at top losers that day and you're bearish on the market overall, then you would have you'd have been able to get into that play if you're bearish on the Nasdaq Utica ended up way and you wrote it down the road, the nasdaq down and Pinterest will follow. And that's about it. I guess my main takeaway that I want you guys to know is that these filters that I use are depending on my outlook, on the indexes. It's a one thing that separates me from a lot of people. They don't know. They're just they're just kinda, you know, I don't know what everybody does. Actually, this is counted just the way I do it. I don't, I haven't seen anybody else talk about this though. I can't farmer deny that anybody else does this, but my filters are based on the outlook of the broader markets. I'm bullish on the indexes, meaning the nasdaq, the Dow Jones and S and P. And I'm looking at these filters on trading view and on these filter platform like, these websites, if I'm bearish on the Nasdaq or the S and P are the Dow Jones. They kind of move together if I'm bearish on them. And I'm going to be looking to buy put options. If I'm looking to buy put options, and I'm going to be, I'm going to be looking at these filters down here at the bottom. I'm looking to buy shares on the stock. I want to go long. And I'm going to be looking at these filters. You people that don't understand options yet. Well you should do is you should stop and, and if you're bullish on the indexes, you would jump on trading And you would look for stocks that are air at their 52-week low or all time lower oversold. Ours are the top gainers for a certain day and you're looking for breakouts based on support and resistance and trend lines, patterns that we've talked about. And that's about it. So I guess I should have told you, if you pull ups down here on the right side, you'll see all the filters. I mean, there's many stocks under a dollar, best penny stocks. Stocks today, 50 to a low CD20 has over bought stocks. I mean, there's just, there's a time I'm going to get an over by oversold RSL, that kind of stuff in the next couple of videos here that you guys will know what I'm talking about. And if you guys want to come back and watch this video again, feel free. But that'll do it. Thank you guys and have a great day. 14. Position Sizing: All right, so in this video I'm gonna talk about portfolio for me and just, just present position sizing overall for me. I wanted to make this video because I harp on it and a harp on it and a harp on it. But people continue to listen and go the riskiest possible route to try to get rich quick. And it's just not, it's not the MOOC. You might get lucky a time or two and think that you know everything, but you'll learn. And I've been, been at this game for years and years. And the longer you're in it, the more that you'll, you'll be humbled and realize, you know, everything that you think is not going to go your way. And that's where position sizing is key though, is to jump into it. My long-term shares for over a year. This would be five to ten, and this is for me, it's five to ten different stocks with growth potential 50 to 60 percent of the portfolio. So this is more of the Warren Buffett route. By accompanies, you know, for me, I've bought companies that I think that, you know, that companies die like that are going to do well over the years. An example would be GH via its a, a speck right now and it's getting ready. They're getting ready to it. Basically what it is is it's matter port is the company matter port. They do they scan real estate so that the n-side of places. And it's just, you know, it looks like a good company to me and I bought it and I've had it for months now. This isn't I will trim the position depending on what the chart looks like. If the chart looks like it's going against me, then I will trim the position. And here lately I've been get more short on the market because the indexes are just high as can be. But this is something if you don't have a long-term position. If you don't have long-term shares, you will lose all your money. This will, You can't, can't day trade with all your money. You can't swing trade with all your money and option trade with all your money. You need some long-term. Sometimes it's gonna go against you, sometimes it's going to go for you overall is gonna go up over time though. And that's what's happened since the inception of the stock market. And for some reason I just can't I get this through people's heads. I cannot get this to people's hands right here. For long-term shares. Another thing it does is if you're not aware, you do have to pay taxes. If you don't get very much games. You know that RS is never going to find out, but you do have to pay taxes if you if you turn ten grand and a 60 gray and you do have to pay capital gains taxes. And if you hold it long term over a year, you don't have to pay the short-term taxes. So that's another reason, but it saves me a ton of money and taxes. So just understand that if you don't do this, it doesn't matter. You could buy 30 courses. You will lose all your money. For the long-term proportion, I am looking for undervalued stocks that have gotten beat up. They can grow. Bow and blood is in the street. So there's a couple of companies like GHB root, a couple of different ones that have potential to go up over the years. And I'll get into some fundamentals later on. But I wanted to make this video because before, you know, people lose all their money, basically. Because there's people, it's just gouging money every single day and they don't understand. I went I think a hit. Like if I enter a 5 5% percent play on an options like this week has not been a very good week to be blind. Had plays on etiology. Nike put one on Microsoft today. And they've all, when it gets me pretty much because the market is going up irrationally. But guess what? Even if they and they're not down 50 percent because I go far out in exploration and I'm going to get into options. But this is just an example. If those plays that are 50 percent of my portfolio go against me 40%. And I've only lost 2% of our money off of my overall count. But if I have a 100 grand and I account and that play on DDO G goes against me 50%. I just lost $2 thousand. Now, obviously overtime you don't, you can't keep doing that or you will lose all your money. But every now and then you're going to have bad place. So as long as, as long as like on an options, I like to stay around 5% on a play. It's as long as I do that, I can get wrecked and and be okay for the long-term. Already went over that. So short-term share. So this is under six months. So this for me, this would be under five stocks. So I mentioned, I like, you know, there's a couple of companies, There's quite a few companies that are like longer term that have gotten picked in the mouth here in the last six months or whatever. And, and I liked those long-term, but there's also an ozone more for fundamental reasons, it's more of a Warren Buffett approach. For the short-term shares for under six ones would be, an example would be right now the market's very high, so I'll buy shares of texts PECS today, 455. And, and also loaded up on some more as QQQ, which are both inversed ETFs that, so they go up when the market goes down. But that will hedge against some of my longer-term shares. So if if my longer-term shares go down and the market, rhonda, the downside. Well, with some of my short-term plays, I have inversed ETFs. So if those shares, those long-term shares go down, ETFs and will go up and it'll mitigate some of my losses on the shares. And so this is more for when you're looking for short-term plays are showing trades. I'm looking, I'm looking for this good setups on the stock chart, more southern fundamentals, the fascia, the RSI have a triple, triple bullish divergence or the MAC D having trouble bullish divergence or maybe the money flow indicator as a triple triple bullish divergence or moving averages crossing that I haven't seen cross and a well, those are the types of ways that I'm going to get in more short-term under six months. And it could be a day trade. For the most part I'm going to hold and it's going to be five different stocks or five, you know, it could be a right now, two of my thoughts are, I think I actually have four right now that are short-term pages for a shares and 200 album or short place like they're there, they go up if the market goes down. Because short-term, I think the market is going down, even though it's been irrationally going up last few days. And we are in earnings. So it can be, it can be Vault. It's hard to predict as y position sizing is key. No more than five to 10%. And I've said this a thousand times, I'll say it again. No more than five to 10 percent of portfolio on a particular play. If I have a $100 thousand and I'm not putting more than five or 10 grand on a particular play. And that's more so the 10 percent size more. So when it comes to the shares, I like to stay around 50 percent of portfolio on an options play. And I'll put it on here, options can get messy because you're trying to stocks and if a contract loses 40 percent of its value, only want that to reflect a couple of percent loss on total portfolio 0. If like the last couple days, I have I have an options account and I have a shares account. And in my options account, I've lost a little bit of money because with about 20 percent of that, 5% on ddeogboggi puts up with optional Nike poets. I put 5% on a couple different stocks and they went against me, not quite 40%, but they went against me a pretty hefty amount. And oh, that sucks. I don't want to lose money. I'm, you know, overtime I haven't and I won't. But every now and then you're going to have bad periods. And in those bad periods where you're not correct, you just don't want it to absolutely wrecked your entire account. And this is a little bit of a shorter video. And it's some stuff that I talked about in the money management video. But it's, it's so, so crucial you, it's so important. So, so important. Long-term shares, a 50 to 60 percent of my portfolio, short-term shares. So this would be so short-term shares, it might be 10 percent, 15 percent of the portfolio. And then with options, it's 10, 15% of my portfolio. But if I have a 100 grand, I'm only going to have 15 grand in my options account. The other 85 grams is going to be a shares of care. And at 85 gram, I'm going to have a certain amount and long-term shares, certain, certain amount and short-term shares in a certain amount in in a certain amount in cash. So I like to keep it in 15, sometimes even 20 percent cash because Anna, like I mentioned, when these plays go against me, I want to be able to either average down or, you know, or if a stack gets destroyed and I want to buy and I want to have money to buy it. Your whole count is n on plays. And you can't buy and when there's a better deal. And you know, not doing that is a result from being a short-term minded person. And, and you won't win, you just won't way and you'll take this course, you'll lose a little bit of money and then you quit. And that's what we'll have, is chances are you just like everybody else. And you're going to do the same stuff that everybody else does. And if you get into an account with ten grand, 20 grand, 30 grand, and you put it all into options contract, you're going to lose all of your mind. I don't, I can't say it enough. And if 15% of our portfolio is in option, if the person 50, 60 percent isn't a long-term, there's about 10, 15 percent. And in short term and in English about 10, 15, 20 percent in cash. And that changes obviously in those aren't exact numbers, but that's a framework that I have used. Of course, when I first started out, I didn't I would do stupid stuff like go a 100 percent on Options. And I blew up several accounts alimony several several times and you will too, and then you'll quit. And then it'll either be mofo or you'll just quit. Quit forever. And I'd rather not see that if you pay money for my course, so doing the absolute best I can. But you have to listen to me. It's just not it's not going to work. It's not going to work. If you're a short-term amount of Persian, you have any questions at all? Reach out to me. Thank you. Yeah. Have a good day. 15. Three Major Indexes: So in this video, I'm going to talk about the three major indexes. Just to be clear, there are other indexes. You have small cap indexes. There's several, but these are the main ones. And when you hear the market or the stock market is falling, this is what they're talking about. And when I say looking at the grand scheme of things or the bigger picture, this is what I'm talking about. I'm talking about the nasdaq doesn't pee in the Dow Jones because this is a measure of how the overall market is doing. So just giving you a definition of index. Index is measure the performance of a group of stocks intended to replicate a certain area of the market. But when I say a certain area, for instance, the nasdaq is mostly tech stocks, S&P 500 stocks, basically top of her companies. And the Dow Jones is, it's basically a measure for the health of the broader US economy. So a stock market index helps investors compare current and past price levels in order to calculate the overall market's performance. So it gives us an idea of what the overall market is doing. And just go down the list here. So the Nasdaq, 100's, it includes 100 of the largest, most actively traded non-financial companies that are listed on the nasdaq Stock Exchange. Most, mostly textiles dioxide, Apple, Google, Amazon, AMD, eBay. The ticker on Reading View is in dx. So pull up trading view. This is the nasdaq chart. This is a 52-week chart. So like I mentioned, like I've mentioned in the past, each one of these candles is it's basically represents whatever timeframe I have it on. So in this case, this is a weekly chart. So if I zoom out, this shows me price action all the way back to back your program. You will further, it'll show me the price action all way back to 1985. It shows me kinda what we've done in the past, but it also shows me where we're at right now. So quite frankly, I wasn't expecting the Nasdaq to break 15 thousand, especially not this soon. And not after COVID and everything that's happened. So, you know, the bag during COVID the nasdaq fell to 6000, has came up a 125% sense that now historically is too much. I mean, that's, you know, we're this isn't a financial advice, but we're probably due for a pull back. You see what happened over here in 2000, we went up the dot-com bubble happen and then we sold back. Go back here. What happens is Everybody got over-hyped pi, pi, pi. And let me zoom in on this a little bit actually. And kind of like what we're doing right now. We've got ourselves into a bubble where people just kept bond and bond and bond. And then capital dried out. And when capital dried out, so the money, the money drought, it's sold off 95 percent. And and I'm not saying that's going to happen, you know, within the next couple of minutes. But eventually it not even 95 percent. I mean, it's massive, but eventually we have to have somewhat of a correction. And when this thing falls, nasdaq stocks fall, though when this thing falls, stocks that are listed on the nasdaq or that are in the Nasdaq Index. Though companies like Apple, Google, Amazon, AMD, eBay, they are what moves this chart. So when all those stocks start to follow this chart versus the Nasdaq 100's starts to fall. So one thing that I always do that a lot of people mess up on is I always watched the grand scheme of things. So if I'm trading apple, you can best believe that I'm watching the Nasdaq. It's an asic storage falling and I'm seeing things on the Nasdaq chart that scares me. And then there could be a reason for me to get out my positional Apple, but just, it just depends. But, and that goes for any nasdaq dark. And it's same way with any of these indexes. So S and P 500 is the top 500 companies qualify for the, for the index 0 to qualify for the S and P 500 a company. And you don't even really need to know this. I just threw this in here. But a company must be in the United States haven't adjusted market cap of at least 8.2 billion. And at least 50 percent of the corporation's stock must be available to the public. So ticker on that is SPX. So this has 500 companies in it, whereas the Nasdaq has 100, so it measures 100 stocks, S&P 500, and the Dow Jones measure sturdy. Or the S and P. Speaker is SPX. We're going to tap 1 or come up. As you can see, the chart Tower looks the same as the Nasdaq because the market cam moves as one. The more money that are coming into the stock market in general, the more these indexes are going to push her and her and her, that all kinda move in unison. So if changes or if the nasdaq storage to curl that around and drab chances are the Dow Jones and has appeared on the same thing at the same time. And they don't always move in unison on a micro level, broad macro level, they pretty much moved together intra-day, like day-to-day. They might have, they'll have different movements. You might see the S and P go up 0.5 and the Nasdaq only go up 0.05 or something like that. But overall the charge look the same because on a macro level they moved together. And NFL, I'm trading a stock that's in the S and P 500, which is a lot of stocks. I am. There's ways to find that out online. You just look at the you can look at the list of the S&P 500 stocks are the list of the Nasdaq and Dow Jones dirty sock. If you trade in one of those stocks you want to be paying at a tangent, you want to be paying attention regardless because even if it's not a S and P stock, chances are these indexes will a, will be a factor. And pretty much every stock if these, if these indexes start to crash, for the most part, most of the market crashes. Crashes, but correct, so that's a and then the Dow Jones. So the Dow Jones historically, so in the past, has been designed to serve as a measure for the health of the broader US economy. Nowadays, a lot of investors and creditors watch the S and P 500 a little bit more, little more diversified and covers. Just got more stuff. 500 stocks in the S&P 500 index. Whereas the Dow Jones sturdy, It's like the main stacks from different sectors. So you know, you've got Apple, boeing, Microsoft, Coca-Cola, 3M, caterpillar, Procter and Gamble, big, huge, huge corporations. And that's why historically it has been, been a measure of the health of the barriers economy. And the ticker on it is EGI. And as you can see, it looks about the same. I was trading at a pillar or what else we got caterpillar, Procter and Gamble. And you have new pricing Apple. So, so some of these darks are in all three of these indexes. So that's why when I'm trading apple, I'm looking at all of them pretty much, but like I said, they all kind of moving in unison so I can if I wanted to adjust, wash the S and P 500 stock like that. But if I'm watching, I'm watching for the most part. If I'm watching Boeing, I found over the years, Boeing follows the Dow Jones pretty, pretty heavily. It follows a quite a bit, especially day-to-day if the, if the Dow Jones starts at the Dow Jones Falls 500 points on Monday, Boeing's going to fall a decent amount. And sinewave Somalis, other company caterpillars and why trade 3M that much on trade Procter and Gamble, Coca-Cola, don't really even trade Microsoft. Really on this down here, really only want that trade traded in the past, or Boeing and Caterpillar. Little bit, but not much. And this is, this is more of a boring video, but you wouldn't believe how important this is. A lot of people will get it in the market is to start buying. And they're not paying attention to the macro, the grand scheme of things. And it's something you really have to do. So I would recommend every single day dopant on trading view and looking at the stocks that are looking to trade. But I'm also looking at, at the SPX or I don't look at the Dao that much of the eyes. I usually just watched the SPX and MDX, nasdaq and SP SP 500. So day-to-day, I jump in there, I look at those, get a feel for what's going on. And actually judge my trades for up, for a big majority of my trades are based on what the index charts look in light of the Dow Jones is maxed out and it said, ha ha level, traditionally down looking at some of these stocks, like I made some money on caterpillar. This Middle-Eastern. I made some money on caterpillar, right? You seen signs on the Dow Jones that it was going to fall a little bit as seen signs on the caterpillar short that it was getting a little tophi. And so I shorted it or I put contract rather and I made some money on it. And one of the justifications were what the Dow Jones chart was doing. And and I was looking at the Dow Jones part because caterpillar is a Dow Jones stock. And so this is one thing that traders do not do. They don't look at the grand scheme of things. You'll meet some, some do obviously the good ones too, but nobody stay down. So you don't want to just be watching the star charts. You want to be looking at the index chart as well. If you guys have any questions on this, feel free to reach out and like always, I'll do my best for you. You'll have a good day. 16. Money Management: Okay, so today's video is going to be on money management and things I avoid. Though trading stock just like anything else in life can be abused. You can turn it into a gambler very quickly if you're not a discipline Persian, I've seen people go down the wrong path over the years and it won't end well for you either. If you have a gamboge mentality. Though, I've, I've battled this so, so much in the past, especially the first couple of years. My first started, I was such a get rich quick type person. The gamblers mentality, it just, it just loses. I mean, you know, every now and then there's somebody that squeaks by and gets lucky and bias LG coin at 0.002 and ends up going at 30 cents and they turn five random million. That does happen, but it's Q and Q bar in between, you know, for, for every one person that happens through, there's, you know, there's 3 million that here's some things that I avoid. The thought I'm going to risk a ton of money and try to quit my job. So I did this in the past and this attitude does not work, does not work for the majority. And the pupil who like said, the people that are get rich quick people never make it. So I want to direct this course towards people who have jobs and you know, and even if they aspire to be in stock trader in the future, they make wise decisions up to that point. They don't try to get there really quickly because it just doesn't it just doesn't work, you know, FOMO. So you see Joe Schmo on Reddit or Discord, proud to say to buy a volatile stock or risky contracts and just shirts going to work. So I have a you know, I've, I've told people plays in the past and I've, I've always told them, you don't don't listen to what I'm telling you to do. You have to do your own research because not everybody's place. Even not all my plays are going to work someplace that I say and do that day go horribly. But for the most part, you know, over a certain number of years, it has worked out consistently. So I just I would avoid listening to anybody else, like even on particular plays, even me just don't listen to anybody else. There's nobody in the world that I would listen to. Now, I'll tell people some Minogue, give you some advice on certain dad's house stock charts, look and what not. But I just don't, you know, I just don't personally recommend ever listening to anybody's discord or any of these groups, Tad's or group poster memes or read it or any of this stuff. Just do your own research and you'll, it'll, it'll work out better. And if, if you don't, then you're just going to have the same results everybody else to us, which usually is not very good. Next, doing options spreads without understanding how they work. Though this can be deadly. Just not, yeah, I mean, you can get wrecked if you're doing option spreads without understanding it, understanding how they work. And I'll get into options later on. Of course, I'm going to be going over it very thoroughly. Everything that I know and I will talk about some spreads that I would that I can see myself using from town to town, but it's not something that I do at time. But every now and then I will put on a spread of us see the perfect timing. But for now, if you don't understand, don't understand options. There's no way in hell. Do you need to be doing any type of the spreads are options in general, you need to wait a long time before they get an option. So if you ever do, you can make money just buying shares and selling on, and then just buying it the right time, selling at the right time. You can make money just doing as people who do it everyday. Buying a stock at the next thing. So buying a stab at the top of a huge run or pump Baba with justifiable and when blood is in the street now and some mean boy is my friend tells me to. So if there's some person tell me. Now, AMC runs to $9 to 50 bucks and people who are J baba, baba. Now I'm going to buy 50 bucks just because I hear a bunch people tell me to do it and there's a lot of people that do it's called FOMO. And you see a bunch of people talking about something on social media, you freak out. You think I gotta do it, but this does not work. You want to buy before you want to bow. And everybody said now everybody's happy. For the most part, that's just me. And I'm a swing trader too, so it's a little bit different. It's some, to some degree you can buy when the hype is up, but it's gotta be under certain scenarios on the chart. And I kinda, you know, I'll get into that stuff and I talk a lot about a lot of justifications that you can look for foreign charge to get into a play. And let's delete this down here. Well, yeah, hi. Personally, I would stay away from pumps and dumps. I just don't like like Baum blood and street. So you have to have strategy, of course. So then I just mentioned this because doing all these things is not having strategy. So following into a play is not having Shadi, is listening to somebody else tell you what, those not having a strategy and gambling because you want to try to which job? There's no strategy in that. Well, I do like risk. I believe you need to risky to get the biscuit. On the same token, you need to be smart. So I do risky place, but I do more smart plays and I do risky. I had a couple plays last week, that one, I guess me terribly. But my smart plays went for me. So I had 60 I got so just give me an idea of what that means. 60, 70 percent and shares, ten to 15 percent and contracts, buying and selling contracts and 10 to 15 percent cash at all time. So I always want to have cash. You don't you don't want to be the guy that doesn't have any money to buy a good stock or shares a good stock or some good options. When it goes way down the values there, you won't be able to bias. You always want to have cash. And preferably if you can even get up to around 20 percent, cash is probably best. But these are just what I do. I I'd be illegal for me to tell you what to do with your money. But, you know, I'm telling you what I do with mine and I use 60, 70 percent of shares. So last week when I had some contracts, that kinda risky contracts that went against me. But those 60, 70 percent shares saved my ass. And yeah, but I had was if I didn't if I was a 100 percent in contracts, I would have got wrecked. And what a lost a lot of money last week. But because it doesn't always go your way and like you know, I'm gonna, I'm gonna go over a lot of justifications on these charts and talk about some things that, you know that the cause is the stocks you own way or another, but it just doesn't always work out like that. So you got to be prepared. You gotta have, for me are going to have a little bit of a diversified portfolio bit, you know, not to, not to diversify. And when I say diversified, I mean having not having all my bag, all my eggs in one basket. So having them spread out a little bit. So if one thing goes against me, I'm okay. Back in the day I put a 100 percent of our money on one play and never worked out. It just never worked out. You get too emotional. It's just not it's not the thing to do for me though when I didn't understand options at all. And it was just starting out, this is what my portfolio look like. I just said 75 percent shares, 25 percent cash. Now I'm not telling you to do this, but if you're just starting out, you definitely want to stay away from options. As you you want to stick with 75 percent shares, 25 percent cat. And this can be long-term and short-term shares. And when I say, I'm going to go over this a little bit, later videos, we'll want to say short-term. I'm saying no. And this is this is subjective, so this is just my opinion. Well, for me I have a short-term swing trade and a long-term. Long-term would be anything over a year. When trade would be something between a month and a year. And then short-term would be something from worth basically. And of course you have day trade to the pretty self-explanatory. You buy and sell on the same day. So with that being said, if you aren't thoroughly knowledgeable with options, you should save for far away until you acquire the knowledge nurses and other market tags. If you start options trading without knowledge on things like implied volatility, time decay in proper position sizing, you will lose all your money. You will. Option trading can deplete one of all their money because it is designed to work against retail traders unless they know it to a T. And nobody is buying this course knows it to a T. So my advice personally, and what I did in the past, I wouldn't I wouldn't mess with it until I had a good understanding of the charge and how the stocks move. That's critical if you don't understand that and there's a lot more feet understand before you get into options. But if you don't, you will lose all your money. I don't want to be negative, but I keep it real position size for me, I'm gonna do, I do another video on this, but the positions as for me should be no more than 10 percent of total portfolio on a single trade. And that's even a little bit more on a risky side. If you know, more conservative people would say no more than five. Like I was watching Kevin O'Leary. He was talking about her day. He does not let one of his positions gates over 5. I may go they can't shave it off and take the profit and put it into some males. But for p, If he has a faction position and start growing and it goes into an ape present position as portfolio over town. Then he shaves it, takes M10 by something else with it. And who doesn't want investment type strategy more long-term, I'm more short to swing trade pipe ideas. So the size of the position will depend on justification and conviction on trade. But if I have a bunch of justifications to get n on the train and we'll talk about justifications as time goes on. If I have a bunch of them, then, um, I do temperature. If, if I don't, if all I have to do 434, 5%. So it just depends. I might don't 10 percent on every single play. Not known more than temperature anyway. And this is a recommendation you do you, but beginner should start out on what's called a paper trading account until they get acclimated to the stock market. It's just like a normal accountable with fake money. You can't do this from Robin, Robin Hood, which can on, to my knowledge, I've never seen any way to do it on Robinhood. But you cannot. We will end td and I don't use, we will. I do use TD for long-term shares, but I use a Robin Hood for options trading. But TDS file and just they, they have commissions on the options trading. And they can eat me up a little bit because I'm kind of in and out. So I just use Robinhood. But to start out, I would recommend that paper trading account access, just fake money. It's the same as everything looks real, feels real, but it's not your mind. So it might start out with 10 grand. But I would recommend putting a amount. And you have, like if you plan on star now with 50, 100 or 1000, five 1000, I put 50,000 paper trading account and play with it and start to learn and understand risk. And if you don't, you will destroy it. So those are just my $0.02 there there's more. There's more that goes into money management. But the main takeaways words were the same as that of boiling. And the what my portfolio looks like. So 60, 70 percent share of 10, 15 percent contracts and then 10, 15 percent cash as the main takeaway from this video. So if you have any questions, yeah, Have a good day. 17. What causes stocks to move?: So this video is going to cover factors that move stocks. The first factor that I got is news. So bad decisions for anybody that doesn't know Federal Reserve or the ones that print the money. And they make decisions based on a number of things. One being interest rates. So anytime there is a fair decision within a couple of day period are surrounding that bad decision. The stock market can give very volatile because traders and investors are worried that the Fed might come out and raise interest rates. And if they do, then chances are the stock market's going to go down because it hurts these big businesses if interest rates are raised. So you want to look out for Fed decisions, company acquisitions. So obviously our company acquisition would be accompany or acquiring another company. So to give you an example, Tilray TLR is marijuana stock. They came out with some nos back in somewhere between January and February that they were going to be acquiring area, which is another marijuana company, and their stock roared. As you can see. They ran from I mean, it ran 3, 400%. This was also around the same time that some of the meme stock chatter like GameStop hi plus happening. So that did play some influence on this huge move up. But either way, when that news came out, you were going to see a run-up. So that's an example of a company acquisition. So Tilray acquired another company, Africa, and their stocks are stocks ran up lower than expected performance. So let's say Tesla came out with a bit of news saying that they were gone. They were going to miss expectations as far as maybe production of their vehicles. Then obviously, that can be a big deal. Sock the star can fall higher than expected performance, so vice versa. If Tesla would have came out and said that they were going to produce more vehicles than they were expecting, then chances are the stock will go up. Another bit of news they can cause start to move would be trading flex CEOs selling their stock or their shares, CFO selling their shares. So let's say a company, I'm gonna give Snapchat for example. Let me do that weekly. As you can see, the structure amount of blood here in the last year, back in March of last year during the COVID 19 crash, it was at $8. Right now it's at $70. Could run up a little bit more, but this stock is valued very high. I don't know that I'd say overvalued, but it's it's in my opinion, it's overvalued. Some people wouldn't agree, But I believe is overvalued. So if you've seen the Chief Financial Officer of Snapchat selling some of his shares right here of his own company. That's probably not a stock you want to be holding shares of. Because if, if the, if the CFO or the CEO of the company is selling their shares, it's just not a good look. So that would be put inside or terrain trading, I'm really saying insider selling their shares. Another bit of, another factor that move stocks would be new price target set by analysts. So there's different, there's analysts that work at Bank of America, Citigroup and different banks. And they come out with these price targets. So I remember at 1 snapchat was right around here, 4050 books right around this area. One of these analysts at one of these big banks, Wells Fargo or somebody came out and said that they had a price target of like $70 when the saying was a 50. And immediately it started or to the upside and ran close to $70. So you gotta be very weary when you're shorting a stock or you're buying put options on a stock. And you don't know a, a put is yet, just just yet. But just be patient with me, we'll get there. But if you're if you're betting that the stock's gonna go down and pry and a Analyst at Bank of America, or any of these, or any of these banks came out and gave a row ha, price targeted that might cause the stock to move. You'd, you'd want to really, you want to fall out this news. I'm more of a technical trader, so I trade based on the charts, but I do keep it on the news on stocks that I'm tracking. Another factor that move stocks would be earnings. So always be aware of when earnings is for a stock you're trading. It's risky to do short-term trades within a day or so of earnings because sometimes even a good earnings report can cause they start to go down. So how you find out where earnings are, what the earnings days you just go to Google. So I use 3M for an example, M m, M is the accurate or is the ticker. Mmm stock earnings date is July 27th. So and by the way, I'm not saying like if you let's say you work for 3M, you hold a bunch of shares of 3M stock. I'm not saying you should sell the shares. Overtime earnings comes around because that would hurt you. Tax was so that that wouldn't be a good idea. But if you're doing a short-term trade or even a medium-term trade on a stock. And when I say short-term on talk in within a month, or could even be a day. When I'm saying I want to talk medium-term, I'm saying one to six months, somewhere in that range, and then longer term would be from there on. So if you're doing a shorter term trade, you just want to be wary of when they earnings. Because even sometimes a good earnings can cause a start to go down. So for instance, Pinterest. This is back in back on April 5th. They came out with an earnings report, not April 5th, but somewhere. It was somewhere around April. Whose? Mid April? Late April. Somewhere around here. At of the thing that's $84. I was I was Washington when it happened, the earnings report came out and this thing tanked Amelie. And soon as that report came out of this thing felt like 10 percent. So you gotta be you just its earnings as a gamble and I don't recommend doing short, short-term play the day before earnings, during earnings or the day. So there's a little window there. You just want to be weary of HIV. So you've probably heard about while she beds and read a chatter and memes dogs here lately would stay away from those at all cost. I'm going to get in, I'm gonna, I'm gonna do a whole video on why you should stay away from stocks that other people tell you. What you have to do is you have to find your own stocks. You have to find your own setups. Font, a strategy that works for you and execute that strategy. I'll be going over some strategies and you can, you can play with omen so you know what you like. But you don't want to be buying stocks that everyone else is telling you to above, chances are what happens is a start. Let's say it starts at $5 and then it runs to $12. So I've just ran like a 1000 w, a 120% or so. That's when you hear about it because you don't get in early because you're not paying attention. You get M when it's up a 120% from five to $12. And then you buy, it runs up and our two dogs, your wants to 14, you think you're getting ready to make a bunch of money and then it just drops down, back down to 89 books and you get rect 30, 40 percent if you hold it long or you could get wreck more. So stay away from Wall Street beds, read a cheddar meme stocks, all that stuff. If it was that easy, everybody would be rich. So technical analysis. So that's looking at the charge. So this means to study a stock chart. Certain patterns form on the chart. Breakouts occur, traders see the breakout and a stock moves example or resistance breakout. So as an example, I drew a little trend line on Pinterest up here if I'm going to discharge. So draw a trend line from here to here to here. It touched three times. There's a clear trend line when it breaks. That was going to be a big deal. So what happened is after you see those three touches and it doesn't have to touch three times, but that's it. Good. That's a good indication that it's going to be a heavy resistance point. And I haven't gotten to support and resistance. Yeah, bro, I'm going to within the next video or two because that's, that's a huge thing to learn. But when that broke, obviously that's going to cause a change in behavior and it's going to cause the stock can move. So technical analysis can cause the stock to move depending on what kind of pattern is forming and whatnot. So that's going to wrap it up for today. If you guys have any questions, feel free to reach out to me and I'll do my best to answer any of the Jeff, You have a great day. Thanks for watching. 18. Wall street cheat sheet: Today's going to be a pretty quick short video. I don't have a whole lot of time today, but I wanted to talk about this at some point in the course. So I decided to go ahead and do it. And I'm going to begin to options over the next few weeks, but that's not the that's not going to be the bulk of the material. I will have a lot of material on options, but there's a lot of stuff. For example, it took me years to even get into option. So the quicker you get into it, the more money you're going to lose, the longer you wait and you learn, the more money that you make. So I'm trying to take it kind of a step-by-step process through more of the low complex things all the way up to the heart complex thing. So this video, I'm gonna talk about the psychology of a market cycle. And this picture right here is on Google. You can just go in and type in Wall Street. The but what this is is basically it's a chart that shows a market cycle. Oh, market cycle would be, in this case, we have an uptrend and then a downtrend and then some, some sideways action and just kinda get into it. So this first, first phase down here would be disbelieved. So this rally will fail like others. But so down in this stage, one would think, Hey, this thing is never going to rally. And then we pump it up a little bit and then you start to hope a little bit of recovery is possible. And then we start to break out a bit. You start to get optimistic, and then break out more belief, and then break out more thrill. So now everybody's excited. Euphoria would be at the very top. That's when everybody thinks they're a genius. We're all going to be rich. So this comes, you know, a couple of examples. And this would be when we have these massive big coin are these crypto runs, you know, Dogecoin ran thousands of percents and all of a sudden everybody's ingenious. I have people hit me up non-Arab in the market for years. They had just a mess. And with crypto three months ago talking to me like they think they know more than me. Just because just because they wrote Dogecoin up a little bit and it's insane. It's insane. But it's something that you, you know, you gotta be weary of. Now, I will say it is hard because, you know, hand side is always 2020. It is hard to know exactly when the euphoria level and the belief and the thrill levels or coming Hope level, it's easy to spot the optimism level during a breakout, it's pretty easy to spot, but the belief that through on the Fourier It's hard to call. So you know what, you want to look for certain signs and this complacency level. But we just need to cool off for the next rally. People, they get complacent. So AMC runs to 60 bucks and then it stays around 40, and then it goes to 60 and then it drops and hits 40, and then it stays sideways for a period of time. And then that's when you hear we just need to cool off for the next rally. And, and that usually happens in not every time like in this example of a MCM, I run to them moan. But in this example, let's just say trade sideways for a while to 40. And then it starts to drop down to, you know, kinda like what it did 30. So now anxiety, so people are starting to freak out. This dip is taking longer than expected. And then we did more and now it's starting to get denial. My investments are, are with great company, they will come back. So when AMC has 20 people will kill it. Well, they'll keep saying all my investment is great. Sand was Bitcoin. Bitcoin ran from 70000 down and now it's around 30000. It can render a can run down the 15 thousand and people will start to him then denial phase my investments or was great companies are great securities. And then it crashes even more. So that's a big win, false. Well, 1012 thousand Shit Everyone is selling. I need to get out as when you panic and that's when you sell. And then capitulation comes in. When you think yourself, I'm getting 100% out of the markets. I can't afford to lose more. And then you get angry. And then it just keeps going sideways for a long time and you get depressed. And then it starts to come back up a little bit and now you're in disbelief. We've had it's thinking it's a sucker's rally. And then you're not even n on the position and then it might run back to the moon. And so, so that's kind of, that's kind of a brief overview of a market cycle. The main two, I guess, psychology points that you want to understand or euphoria and the complacency and maybe anxiety too. But you need to understand when to get out around this tabby area. And you can look at this on a chart and find this on any chart pretty much. And there's certain sons that I'm going over in this course, certain justifications. If you see triple Mac D bearish diversions, bearish our burdens on the RSI, bearish towers on the on the money flow, the EMF of the money flow indicator. Maybe you see a double-tap and we, you know, there's just multiple it maybe a support level breaks. Oh, there'll be a support lower right in this range. And then it was holding, holding, holding, holding. And when it broke, that's when you would want to sell. But you don't want to just keep holding and holding and letting it. Now there are some plays that I just let. So you know, this is true. This is the honest truth. There's someplace that I just read me. If they're really small percent of plays that I think that I think I'm right, I stick to my guns. If I'm going to 5% Auctions play and it goes against me 2030 percent, maybe in 40, 50 percent. And I have a small amount of my portfolio and 5%, then I'll, I'll let it rot. If I think, if I think I'm right, then I stick to my guns. You know, but it just depends. A lot of people get, we'll get into Bitcoin and then they start. They just build big, big positions. So it's a position I'm going to position relative. How much money you, Adam, Santa position just relative to their portfolio. So they might have 10 grand and they put a grain of it in Bitcoin. And you know, and that just puts you in a position where you can't let it go against you, you can't, or you will get destroyed. If you have correct money management position sizing, then you can afford a little bit of wiggle room because this one might, one might not be working out for you, but another one will. And this blue chart down here is an example of Bitcoin. So as you can see, these two charts match up. This is just, this isn't, this doesn't this top chart with all these colors. This doesn't represent any stuck. It's just what happens over time. This is just the psychology. It's human nature right here. This is human nature on a charge. And because, you know, eventually we start out at Hope and we run out of euphoria, and eventually people start taking profits. And it has you to have to, It's what happens. It's just human nature. They're going to take profits. Some people, the smarter ones will. And when they do, you'll mark it runs down and it comes back up a little bit, trade sideways for a little while because people are still anticipating a more move up. And then it eventually just drops. And the person that gets caught holding down here usually cells and those are the people that lose all it is where it is. But there's blue chart down here is Bitcoin. So as you can see, back in 2018, end of 2017. So it had been like November, December 2017. This thing ran up. I think this was the tab and hit 20000 actually. And it was pretty sure. And I don't quote me on it, but I'm 90 percent sure to hit 20 thousand right here. I'm not on crypto in crypto that much. I'm messed around with it back in this area, but I don't know too much about crypto. Know, I know more than most, but not naive enough to accurately speak on it. But this is the chart and it doesn't give us prices, but it gives us an idea of, you know, the market cycle. And as you can see, these two parts kinda mantra, you know, I mean it, we hit optimism and belief thrill and then eventually got to the euphoria, then we fail and then we've got complacent right in this range. And then we hit anxiety, denial, panic. And down here is where people start to get an angry. And then we wrote down and then right here, people who are depressed. And then we come back up and now it's disbelief, it's suckers rally and then we fall back off and then we eventually moaned again, I went higher. And, you know, you just want to be careful. And another thing this plays into is a pump and 0, 0, 0. It's kinda the same thing as this right here, but this is a market cycle. This can take years, much a permanent. It's usually something that happens in a couple of days. And we have just a lot of optimism beliefs throw euphoria, and it's usually just a lot of euphoria and we run out, we went up and people start bond and these ranges and you get wrecked on and you have anxiety but now panic and then angered the hallway down. And so that's why I always tell people you don't want to get caught up and pump it ohms. You want to bow when the anger and the depression is happening. Oh, right now I'm looking at a stock called a root. It's gotten destroyed lately. And and that's where the anger and we're definitely in the anger and depression phase. Well, either the marijuana as doctrine anger phase. I wouldn't say that actually are probably more to panic. I'm starting to freak ER, denial even. But yeah, just this is something you have to be aware. You have to understand the psychology. Because if you just start buying or on a euphoria level on ICC, AMC and it's not ADA euphoria level anymore. I'd say it's more than anxiety level. Maybe I denial level one of these two bitcoins by in a panic level right now. I haven't looked at the charts in two weeks with that being said, but just something I wanted to talk about today. And and I'll I'll come up with another video in a couple of days. You'll have a good day. Thank you. 19. Options Terms: In this video, I'm going to talk about options terms. My first term would be just an option. So a stock option gives an investor the right, but not the obligation to buy or sell a stock at an agreed upon price and date. When I say bye, I'm talking about a call. And so when I say Stella, I'm talking about, I'll put, there are two types of options. Books, which is a bet that the stock will fall, or calls which is a bit, the stock will rise. And you know, most people when they hear this, you're going to think, what is he talking about? And this is something that takes time. You have to hear these things over and over and eventually you'll, you'll get it. I'm gonna do a video on these things individually and really, really break it down. I'm going to put a lot, a lot more time into this course. But we were really just getting started. Each contract is worth 100 shares of the given stock. Oh, when I say contract right down here is what? It looks a little bit different. This is a little bit outdated, but it's still pretty much looks just like this. This is what the options, it's called the option options chain looks like on Robinhood. So in this situation, the stock is R4 ROA or I don't know anything about this dark. But they have their own by calls. So there are 12 buy a call option. And the each one of these contracts is worth 100 shares. If they buy $12 call, they have the right, but not the obligation to buy 100 shares. Her contract burden on or before December 15th, as long as the contracts and the money and we'll talk about that as it goes on. But one thing I wanted to mention, each one of these contracts are worth 100 shares. So if you bought 11.5 strike call, that's a 100 shares that you're, you're blocking and essentially, and then over here it shows Oh, you know, most people, when they see that they think 35 cents, 25 cents, $0.81 or four. But in reality you have to times that by 100. So you would and the reason so you times it by 100. So the 12 dark color here, this contract would cost $35 for the value of announce 35. That's what I will have to pay for it if I want to own it. 11.5 call would be $55.11. Dark call would be $81.5 that I call would be a dollar O4 or not a diary for a 104. And the reason that they do this is there showing the premium you pay. So what you pay for a contract, It's called premium. So if I pay $35 in premium for this $12 contract, it's showing me right here with the point 35. It's saying that I'm paying 35 cents per share. Though. Just forget about that really in is when you see points we've added, just assume or just just know that it's paying thirty-five dollars for the contract. And when you click on this, like if this was an actual distance, my phone and I clicked on the 12 dark law, hit one. So saying I wanted about 11 contract, it would come up with the bottom and it would say thirty-five dollars. So it's not something that you can really mess up on, but it's just one dimension. So a call contract, like I just said, a call contract gives the owner the right, but not the obligation to buy a specified amount of stock. So it's a 100 shares per contract at a specified price. Best PFAD price would be your strike price. And the strike price is ease on this side down here. So it's both call 11.5, call 11, core 10 and a half call. Those are the strikes specified. Solos, we'll do it again. I call contract gives the owner the right, but not the obligation to buy a specified amount of stock, shares of a stock at a specified price within a specified time. The Tom would be the exploration, and that would be the sayings of where these dates up here. So I can set my contract on different explorations. Or I could do an explanation for this week, this month, next year, two years from now. It has a limited but you know, you get the point. You can pick the you get to pick the con, the expiration of the contract. Sooner and expiration the more risky. And we're gonna get into all this butt. And then down here, the specified price is known as the strike price and the specified time during which a cell is made. It's exploration. Like I just said. This is the expiration, so this is going to be the specified town. A contract. Like I said, there's two different kinds of contracts and options. You have call contract put contract. Put. A put option is a contract that gives the owner of the contract the right, but not the obligation to sell a specified amount of shares at a specified price within a specified Tom. Oh, this word, this specified price that the buyer of the put option can sell as it is called a strike price. So this down here is the screen of a bike call. But if I would have had a picture of phi, put these down here, it's going to look the same thing, though. It's the same way and you don't have to put contract is designed for you to be able to lock in a selling price of your shares. And, but you don't actually have to own the shares to be able to do a put nice, because sometimes Alba, if I think it starts going down, Alba put on it and I don't short sell them. Entrepreneur will buy a put option. And you know, it's a stock goes down, I make money. And like said, Armando video on each one of these free gap. Strike price, strike price. And just to show you like sit again, strike prices, these on the side. The strike price is the price at which shares of the contract can be. But our shares of the stock, I should have said shares of the stock can be bought or sold when it is exercised. Recall contracts the stock, the strike price is where the shares can be, but by the option holder for put contracts, the strike price is the price which where the shares can be sold by the owner of the contract. Then exercise. So up here I said exercise. So the strike is a set price at which shares of the contract can be bought or sold when it is exercised. I said that clarifies strikes or a year. These are the strikes. You have a 10 and a half call stride or 10.5 strike 11. So when I say 10.5, strike call or 11, strike call or 11.5 strike call, 12 strike call. That's what I'm talking about. If a put option contract is exercised, the writer or the seller. So when you hear me say the writer of the contract, It's the same thing as the seller. So there's people and I'm going to be talking about buying contracts at first, but you can also sell contracts. And it's pretty complex stuff. So this is, you know, you might, you might want to stick, you know, if you really knew my own stick to just the videos that I release on shares and just stocks in general. But good, this is something that eventually, you know, if you want to be here and you can learn. Oh, man, I just got off course. Let me do that again. If a put option contract is exercised, brighter, so the seller of the contract is obligated to purchase the shares from the contract holder. I just said, exercise dates are up here. Are the expiration dates are up here. And you can exercise the contract prior to that date. And if so, just to give you an example, so in this situation, if the air price right here, it 11.55410 call, I can go ahead and exercise and let's say it's a December 15th call on that and I'll buy that one. I can exercise that contract all the way up till December 15. If I'll wait till December 15th, it's going to exercise immediately, long as I have the money in my account to buy the shares width. So about one contract, it's going to give me the ability to buy 100 shares at any point that I want. Between now and December 15th for Ken and a $0.5 each. But the kicker is I have to pay a $104 for that contract. If a call option is exercised, the rider, so the seller of the contract, remember I said there's a buyer and a seller for each for, for, for contract. And a call option is if a call option is exercised, writer or seller of the contract is obligated to sell a 100 shares at the strike price to the holder of the contract. So if a call option is exercised, skipped over this example, but if it's exercise, I'm going to be buying. A 100 shares at 10.5. Our bodies tend to have down here about 11 call and exercise the contract. So I go through with the contract. You can't do that now. You wouldn't really want to. And I'll talk about that when I do a video on exercising contracts. But you wouldn't want to because you would just if you buy the 10.5 call and this stack roar went from 1150 four to $15. You just tell the contract back. You wouldn't buy the shares for 10 and a half and then sell the shares, you just sell the contract because the contract is going to go up in value. And that's a little bit about exercise. So contracts must be in the money to be exercised. So what in the money means is it is an expression that refers to an option that possesses intrinsic value. I'm not talking about entrance evalue in a second. And in the money call, option means the option holder has the opportunity to buy shares of the stock below its current market price. And in the mind put contract means the options holder has the opportunity to sell shares of the stock above its current market price or market value. So in the money, so to give you an example, so in this situation the share price is 11, but before on the stock roar In the money would be these three down here and anything below out of the money would be anything above the $12 call would be out of the money because it's not below 11 34 1150 call sort of 1150 strike call would be in the money because it has intrinsic value. 11 call would be in the money because it has engine the value same thing, all the way down to a $1 call. There's 11 by 11 dollar call, 10.5 call. And when I say 11 dollar call, I'm not saying the price, I'm saying the strike price is over here. These are the price is right over here. It go. Take that away. Yeah, so and then it works the same way with the put and in online and do a whole video on that. But today, you know, I'm just kinda going over a little bit of the basics. And over in the money a little bit. Like I said, contracts must be in the money to be exercised. So you couldn't exercise the 12th call, which could exercise 11.5 called 11 called TNF call. If I bought this, I could turn around and buy those shares for 10 and a half and hold on till. And a tongue. Intrinsic value. O up here I mentioned in the money is an expression that refers to an option that possesses entrance the value. Well engines, the value is though the intrinsic value of both call and put contracts is the difference between the underlying stock's price of the underlying stock in this situation would be R4. So the difference between the difference between where's that Adam lost the difference between the underlying stock price and the strike price. In the case of both call and put options, if the calculated value is negative, the intrinsic value is 0. So in this situation down here, intrinsic value of the 1150 calls since the share prices. So the 12 dark or has no intrinsic value. The 10.5 call as a $100 and entering the value 11 call has $50 or fifty-four dollars and intrinsic value, the 11.5 strike call as $0.04 and intrinsic value photo has not. There was a 10 Doc Hollywood dollar for D4 and intrinsic value, though it would be the 10, 10. So obviously 1134 minus 10.5 is 1.1.4. So it would be a dollar O4. And that would be the that would be the interview guide for this contract right here. Is this this must have been enclosed the December 15th. It must have been like on an expiration date because this contract only has intrinsic value down here. The 10.5 call is worth a $104 and it's injuring the value is a $104. Whereas the 11 dire call as fifty-four dollars and intrinsic value, it's $81 because it has extrinsic value. So a contract, an options contract, is made up of intrinsic and extrinsic value. So I like to think of extrinsic value as potential of the contract. The amount of Tom left until expiration and the volatility of the underlying stock directly impact the price of an options contract giving it extrinsic value. Another way to understand extrinsic value is this. Investors pay more than the options current intrinsic value because there is no value. Ability, because there is value in the ability to hold a contract over top. So the mean just finishes. So we can calculate the actual value by subtracting the intrinsic value from the total value. What I mean by that is the total value of these 11 dark color right here. And he says it shows $0.8181, total value of $81. Well, the intrinsic value in this, on this contract right here is the default dollars like I mentioned. So the difference would be $81 minus 54, which would be what is that? 27. Let me 720 get 27. So the intrinsic value on this $11 strike call would be twenty-seven dollars, but has intrinsic value in and extrinsic value. Extrinsic value is people are willing to pay more because there's Tom left. And it has, it has it has an interesting actually value can be, if a stock is very, very volatile, the extrinsic value will be a lot. If the time is, there's a lot of time left. So if, you know, if you're buying a contract that's two years from now, the extrinsic value is going to be alive. The contract going to be worth more, or it's going to be valued more, you'll have to pay more. If you're buying a contract that expires this week. And there's not going to be a lot of actions value because the potential isn't very happy for it to move one way or another because it expires this week. All these are, these are very important and I'm going to do all video on these RTKs. So I'm decay is a measure of the rate of decline in the value of an options contract due to passage of time. But like I just said, if you buy a contract. Q. If you've got a contract that expires in December and now so right now it's July. So what is a 55 months? Well, you buy a contract that's five months away. As time gets closer, the contract, if, if everything stays the same, if the share, if the stock's price data Exactly. So in this scenario, if the share price stated it exactly 1134 and it was in our analysis to by December 15th contract. The contract is going to stare. The contract is going to lose value over time because the extrinsic value is going down. Oh, the more time you have, no more. Like said, the more time you have, the more, the more action the value stack will have. Does the value, the total value of the contract is higher? I hope I'm not confusing or normal or confuse the hell out of people. But for the most part, like I said, I'm I'm doing the best job explaining these encountered download down. I'm not the smartest, smartest guy in the world. So it couldn't be making a 22 complex, but charter really, really downwind down as much as I can. But Mike said I'm gonna go over these individually. Do time decay accelerators and Options. Tab to expiration gets closer. And so there's less time for the share price of the underlying stock. Want to say underlying stock? I'm saying, you know, like in this example down here, the underlying stock would be R4. If you're looking at options on snap, the underlying or the underlying stock would be snapped. And I'll same with any stock you're looking at. The further out the contract expiration is the less the contracts will or the more the contracts will be valued, I shouldn't have made it fixed. But the further out the contract expiration is, the more the contracts will be valued. So the sooner the closure the exploration is, the less the contracts will be valued. As much action guide, like I mentioned, open entrust. I really talk about it much. It's just the number of contracts currently on play. The ADN and option chains. Like if I was I was able like if this isn't actually my phone and I pressed on this 11.5 call, it would show me the open entry. And it also show me the implied volatility is sometimes pretty important. So implied volatility is the market's forecast of a likely movement in a security's price. Implied volatility is often used to price options contracts. I implied volatility results in the options with it results in options with higher premiums and vice versa. So if you have low implied volatility, so if there's a low chance of the stock going one way or another, the contracts are going to be cheaper paradigm and down if the if the contracts are moving that time, I guess snap goes from 50 or 70, 60 I give it's moving at a time. Or even if it's just going one way faster, if it goes from 50 to 70, the, the contracts are going to be more expensive. So you're going to pay a higher premium. Like I said, vice versa, if you have low implied volatility, your contracts, the premium you pay will be less if you catch a stock. So just kind of a rule of thumb. You don't want to buy contracts when there's high implied volatility you want to buy when there's low. So when the, when the implied volatility is low. So let's say a stock XYZ is saying it $30.32 dollars, thirty dollars, thirty two dollars, thirty dollars, thirty two dollars, and it just keeps going sideways. The implied volatility is going to be low. The contracts are going to be low. If you buy those contracts while the volatility is low, and then the volatility picks up towards the direction that you thought it was going. If you bought a few Bach calls on a low volatility stock, you get home sheep and then it starts to get volatile. That's when you make a ton of money because you're the implied volatility goes up and then the contract's value goes up. Because the extrinsic value goes up. And extrinsic value, like I said, made up of Tom left until the expiration and volatility. And then this is just something kind of basic, so limit order. So like I mentioned in the last terms video, when we were just gotten out, a limit order is an order to buy or sell ice at a specified, a specific price. Let me just say that the game is account mobile that an older, so I limit order is an order to buy or sell at a specific price. So you can sell a contract at a specific price that works the same way in contracts and shares, a limit buy order is placed below the current market price. Limit, sell order is placed above the current market price as Shani and really put that on there because it doesn't have to be. You can set an a limit. You could say if a contract is at thirty-five dollars and our own dome, I could set my limit price at thirty-five dollars. And that will wrap it up for, for this video. Hope I didn't confuse anybody to too much. And like said, we're going to dive into these things one by one and we'll get you there. And I do have more videos coming out on technical analysis and just fundamentals in general. But this was a request. So you you ask you shower, she 20. US30, US100, US 500: All right, so this is going to be a pretty quick video. I just wanted to talk about the US 30, us 100 in the US 500. So what I want you to do is at nighttime and during the morning before the market opens up in us 30, us 500, US 100, and look at the charts. So basically it is just so it gives us an idea of what the Dow Jones nasdaq and S and P is going to do the next day. And this will run as a futures market. This will run between six or it will, it will start at six on Sunday night, 06:00 PM. And you can watch it on Sunday to get an idea of what the market's going to do Monday. So at nighttime what I'll do is I'll watch the US 30, us 100, US 500. Not watch on, but I'll look at it every now and then. You'll once every hour show. It'll, it'll give me an idea of what the market kinda do show. If this is the US 30, if this thing came hurdling down, down to, let's say 30, 35, which would be a 1500 move, which could be massive. If this, if the US 30 falls down that much, then the DJI what it would do is it would open up down here. So we get down and it would start down here at 930. So DJI SPX in MDX run between 130 and four PM. And then at 06:00 PM until the only times that the US 100, US 30, us 500 aren't running is between 430 PM and six. So it's about an hour and a half a day that they're not running. But other net, you can watch it all night. And that'll that'll give you an idea of what the sorry, I had a burp. And that'll give you an idea of what the market is going to do the next day. So let's say you train a caterpillar. What I would do so caterpillars, a Dow Jones, US 30 is the Dell, US 500 is the SP, S and P. And US 100 is the nasdaq. If I will shrink and Caterpillar, I would get up in the morning and I will pull up the US 30 chart right here. I look at it, give me an idea of what the market's doing. And if this thing was hurling be the downside, That's telling me that there's probably going to fall. It's probably already fallen. So if if the if the US 30 cells off at 1000 points overnight, then at at four AM, when the when the stocks, when the actual stocks start trading pre-market, they're going to have a lot to do. The way those move is depending a lot on what the US 30, us 100, and US 500 are doing. So I just wanted to make a brief videos, just going to be a short one. But what I would do at night time, I would watch us 30, us 500 years, 100 per on, you know, probably an hourly chart or something like that. And just get an idea where the market's headed the next day. Right now this is the US 30. Dow Jones is trading negative 30. So from where it closed down 30 points. And if it keeps gave it where to turn and run a 1000 points, then what would happen in the morning? Again, the DJI chart would gap and it would start up here. So you see this is what happened right here. So you see how we were up here, then we get down here. Well, what happened that day? This would have been on July 26 or 27. So as you can see right here, around it out. Well, this is, I mean, this is a five-minute chart, so that's kinda example actually. Let me go back to you finally get there. All right. Here's a gap. This was on November 6th, 2020. So we were at 283. And the Dow Jones gapped to 2009, so it grabbed up 700 points. And now it would have been on November 9th. So let's look at US 30 on November ninth. Right here. As you can see, the same random monad day. Zoom out a little bit right here. But this angular ran out pre-market to around this level and that's where the Dow Jones opened up. Oh, all this will do for you. I mean, you're not going to be, definitely, certainly not going to be trading futures. If you are in this course, you can look into the futures market, your target contracts. But it's pretty good. It can be pretty complex. And you know, I I just I would focus on just learning how to buy or sell shares when the boss in Celsius and don't worry about doing a shorting or anything like that. I do buy a lot of put options, especially right now since the market. So how is pretty much ongoing and shorting, which I have a long-term long-term portfolio gone to. But for now we're the market. So ha, I'm looking for are companies make money on the downside. And one way that I can get an idea, like I said, where the market is going the next day is by watching the US 3100 years, 500. That's all you need to know. If you guys have any questions, feel free to reach out. You'll have a good day. 21. Call Option Contracts: All right, so today I'm gonna talk a little bit about call contracts, cautions or financial contracts that gives the contract buyer the right but not the obligation to buy a stock at a specified price within a timeframe. So the timeframe would be the expiration, of course, the stock is called the underlying asset. So what I mean by that, if you're buying a call options on Apple stock, so you think Apple stock's going to go up the underlying asset, it would be apple. And I'm just telling you the actual hear that. And you know, if you, if you get into the stock market, you get an options trading, you will hear underlying asset. And what they mean by that is you're buying certain contracts, but the underlying asset is the stock of the other contracts that you're buying. A call buyer profits when the underlying asset increases in price. So if I bought calls on Apple and apple increases having money. Now there's more to it to that, of course we'll get into it, but this is just some points. Options. Give the holder up, put all new change that real quick. Call options give the holder the right to buy 100 shares of a company at a specific price, known as the strike price, up until a specified date, known as the expiration date. The market price of the call option is called the premium, though. So it is the price paid for the rights to the call option that the college provides. So pay premium to get the rights that the call option provides. Once again, though, when I say premium, I'm talking about this right down here. So this is Apple, this is the Robin Hood screen when you, when you click on options trading call, I don't want to sell call. I'm talking about that later on down the road for now, I'm just talking about a call in general which are the main, you know, just for the beginning, I'm just going to talk about buying calls. Selling calls it a little more complex. And I like to make these videos short and to the point. And you know, if you just watch, watch them slowly and watch a few at a time, you'll get, you'll get a hold of this stuff. But the premium is this down here. So on this 167 0.5 call, the strike price is 167 0.5 and the premium is $0.69. It looks like it's 69 cents, but you have to times it by a 100 because remember I said up here, call option gives the holder the right to buy 100 shares. So each contract, so these are contracts right here. So this 167 and a half call would be a call option contract. This contract will give me the right, but not the obligation to buy 100 shares of Apple at 167 and a half on February 16th or before if it goes in the money. So if Apple, so in this scenario right here, in this, this is just a picture that I got Google. But in this scenario, share price down here is 165 point 64. If this thing goes above 167.5, then it's in the money. And at any point after it's in the money, I can I can exercise my call, which means exercising the call would mean I'm bad. A 100 shares. Though Apple could go to $400 a share or a $1000 a share. I still can buy my shares at 167 and a half at any point. So this contract, right, you're expires February 16th. So let's just say February let's just say about this today. And every 16 is what? Seven over there be seven months from now. So anytime in the next seven months I can exercise my contract, buy those shares as long as the share price is above 16, 17 and a half. Now what happens if by February 16th, Let's say Apple just falls and goes down to 100, then what will happen is I'll lose the premium. Rpa bot would lose $69. So the reason I say $69 is is because right here is, is it's 0.69, but that's point C. So it's, what they're saying is that 60, 69 cents per share, PE and 69 cents a share. But you have to times it by 100 because each contract is worth 100 shares. So if I do 69 cents times $169. So anyway down here, it's shown 179, but I'm campaign 179 per share. So about times that by 100, I'm paying a $179 per contract. Same thing down here. This is 360. So that would be 3.60, $0.$3 a share. That's the contract is a 100 shares. I said, Allah, all contracts are a 100 shares times the 360 by a 100. And you're looking at $360, you're paying a premium. Now the benefit of that is if like let's say I buy this contract down here, this 16, 2.5 strike call, then what happens is I pay 36 for the premium. It's already in. When, when I say in the money, it's because it's below the share price of the share price is 16. 5.6 for my strike price is 160, 2.5, so it's in the money. So if I wanted to, I could buy the contract and immediate immediately exercise it, but I would never do that because I would give it Tom and see what happens. So if I think the stock's going to go up to, let's say, let's say goes to 200. So that would be a pretty hefty well, that would be like a 20 percent over. So let's say it goes up to 200 and share in this time frame, then what would happen is these contracts would be worth too. They'd be worth about 3800 each. Because the share price is at 200. I can buy my shares for 162 and a half. Actually it'd be 37. The intrinsic value. And I know this is some of the sounds confusing, but we're going to get on. I'm gonna do, I'm gonna break everything down in particular are individually like intrinsic value, implied volatility, town decay. I'm going to break everything down kind of one-by-one. But if I buy this call option contract and the apple went to 200 each. So let's just pretend, exercise the contract and I bought my shares for 16, 2.500 of them. Well, I could turn around and sell them right back for 200, right? So if you do 200 minus 162 and a half, that's 37.5 times 100 because memories contract is 100 shares. So if I do that, if I bought 100 shares for $200 each and then Salam bag for 160 or if no, no, I said that wrong. If I but each share for 162 and a half each and then sold them for 200, which let's say the share price goes to 200, like, you know, I'm talking about in this example. Then, then each share would be worth 37 and a $0.5 times 100, it'll be 3750. That would be the profit or no, the profit would be 37 pity minus the 360 that are paid in premium, which you know, I don't I'm not going do the exact math. 3200, 3300 or something like that. And now, you know, so so that contract would have turned from $360 all the way up to 3750. And that's just engine the value, let alone extrinsic value. And then like I said, I'll talk about that later in a later video, but, you know, and it doesn't work out like that every time. I My about a 160 2.5 call for 360. And let's say Apple just goes to 170 in the contracts would be worth $750. It'd be worth a little bit more than that. But for today, I just want you to understand more. So another way that calls work, I'm not getting into, into intrinsic value and actions that value and you know, that might be something that I should talk about burst. But I'm just kinda go on in the order of the way I learn this stuff. And I'm going to be talking about this stuff later on, like, like I mentioned, but see here and then some contracts will look like this right here. So you see how these as So that means these are worth $1. This one's worth $4, that one's worth $1. And it's because the share price is at $20 and it expires December 14th out this screenshot is old, obviously this was 2019, so this would probably the screenshot was probably taken on December 1st or something like that. So contracts only had a couple of weeks to expire. And the share price was $20. So these calls are way out of the money. In order for this to make money, the the share price would have to, I mean, you would have to be a 50, go up 50%. Because for, for it to be really worth more than money, these would have to be twenty eight, twenty nine, thirty dollars. A share price would. And for that to happen, it would have to go up from $20 to digress said 29, 30, 31, 31 bucks, which would be a 50 percent move. The chances of that happening aren't very likely. Thus, these contracts are really cheap. They're $1 for $1.1, $1.1 dollar. And that's because the one because it's far out of the money. Oh, I mean, if you watched the options terms video, you should know what out of the money means and end the money. But I got mentioned up here, if these contracts down here in the money, these contracts up, you're out of the money. So the share price is 165. 167 and a half calls are out of them or either out of the money and then the one 65s because it's below the share price or in the mind in the mine right here in the money. Whereas these are out of the money because the share price is $20 and the calls or 50 percent above that. So a 21 dark call would be out of them wanting at 22 dark color would be out of the money, but a 20 dollar call would be in the money and 911 call would be in the money because the share price is $20.21. Let me finish these points up here a little bit. Oh, mentioned. Just to really nail it down, call options give the holder, though, the contract holder, the right to buy 100 shares of a company at a specific price, known as the strike price. Once again, these are the strike prices on the sides right through here. These are the strike prices up until a specified date known as the expiration date. This is the exploration of periods. So February 16th, February 23rd, and March second, March 9th, and go play around with it and make it got Robinhood. All you do is go to Settings, go to investing, and go about midways down into it and hit Enable options trading and you'll go play around with it, see what I'm talking about. But these are these are expirations up your December 14th of December 21st. And these explorations go out way far, like they'll go out till 2022. So that's something that I do a lot of times and you know, as far as more of an all long-term outlook, if I think that stock's gonna go. If I'm confident that a stock's gonna go up the next couple of years that i'm I'm contracts that expire in 2022 and get some decent in the money or a little bit out of the money contracts and interact it out for two years. Then let's see here. The market price of the call option is called the premium. Though this down here is the premium, so the market price, so this call, this 167 and a half strike call right here. The premium is $69. So that's what I have to pay to get the rights to this contract. So the market price of the call option, it's called the premium is the price paid for the rights that the COG and provides. If at expiry, the underlying asset is below the strike price, the bar, the call buyer loses their premium paid. This is the maximum loss. A lot of people asked me, you know, can't you lose more money than you have in your account in old money and all kinds of stuff. Option trading, well, you can, but not buying a call option, you can't, you have to do certain things and I'm going to get into that later on down the road. If you do certain spreads and they're just there certain ways to really, really mess up. But if you just buy a call option, the worst-case scenario, like if you bought this 167 and a half call, worst possible case scenario, you lose the $69 that you paid for that contract. If Apple expires at 165 or let's say it expires at 140, then that contract is going to expire worthless because it's out of the money. If it was in the money, if Apple went up to 180, then that contract would be worth like $1300 or you turn 70 bucks. And the 1300. The here options may be purchased for speculation or sold for income purposes. They also may be combined for use in a spread or combination strategies. So hello. So there's, there's multiple ways to go about this. You can you can also sell calls and you can do covered calls, you can do There's, there's just so many different ways to go about it as far as spreads go, you can do a strangle. Them are in con doors. There's, there's all kinds of different ways that you can manipulate options trading. And you just, you really gotta be careful in, and I'm going to get into these things one by one and really, really break it down. But for now I just want to kind of do a video on calls and then I'll do on quotes and then all DO on intrinsic value than extrinsic value in town decay and then exploration and you know, the mispriced tracks and all kinds of things. What you're what you're looking for as far as contracts, because some contracts are buried over price and you can buy, if you buy contracts during very volatile times, then you could get clubbed in the mouth. If the stock goes up really fast and the volatility is going to be dull and thus the premium that you pay is going to be high. And the conjugate in the stock, if it stay, if it, if it's volatile when you bought the volatilities, and then it stays the same. So the contract or the stock just move sideways, then you're going to lose money. Just based on volatility alone. Not even. The really done in the share price is the most important part, but the volatility is huge. And so that's, you know, I'm just I'm just saying these things as their own when she does is just start playing around with it. I want you I do want you to kinda look at the options chain. But when I say that chain, I'm talking about this right here. So look at the explorations and start to understand just the setup and how they work. But I wouldn't put any money at it just yet until you really understand it. And I go, I say I don't use very much of my account on option trading anyways. And then after you bought a contract, it'll look like this over on this. I didn't even mean to put this up on the right side, but over on this side, so it'll show you how many contracts you're on the equity. So the equity would mean if you, if you owned a 100 God, or 10 contracts and they were worth a $100 each, and the equity portion would be 1000 bucks. And I'll show you the expiration, the current price, which would be the current price of the contract you own. The current price up here on this one would be $69, current price and this one would be 179. So it's going to show that right, right down here. Your average cost would be the average cost you pay for the contract. So if you pay $1600 for the contracts, then your average cost would be 69 and your current price would be wherever it's added to Tom. So if you bought them for 69 and they ran up to a $1.20, then you'd almost make it a 100 percent of your money. It's a 100 percent down here, and then the current price would be like a $1.20. So let's see. And then another thing when you go to buy a call, just like buying shares. When you're doing a you're going to be doing a limit order. And there's going to be a bid and ask. So the bid on this contract right here was $81? Yeah, ask is $83. And in order to get the contract immediately, you're going to have to pay the $3. But if you want to, you can just put it in 82 and just give it a while. And hopefully the order feels if the spread is tight, which in this case it is. So 8183, that's a widespread, this could be, the spread, could be four, it could be, let's say 60 and 70, three. And so if I pay 73, then the actual price of the contract is going to be somewhere in the middle. So I'm going to start out losing money. But that's what you have to do if you want to get into the contract immediately. Now the way I trade is more swing trading, so I never have to get into it immediately. But there's day trading, unclick and looking for setups that are, you know, two or three weeks. So I don't know. I don't have to give the ask. Well, how about a contract? Every time sometimes I do. You know if it's a if it's a move that things happening that day, then at 930, I might give the ask like if I'm buying a call option, I might give the ask price instead of putting it in the middle somewhere and just hope in this dark, maybe comes down a little bit so that my contract will will go through, the order will go through is about it for this video. So I just kind of wanted to make a quick video on call contracts. It's pretty simple and there is very complex things about it, and this is nowhere near enough information to even remotely start trading options, so don't even consider it right now. But the main thing to understand is that a call option contract gives you the right, but not the obligation to buy 100 shares of a stock by a specific exploration. And basically what it allows you to do is leverage. So instead of having to pay, in this case scenario right here, instead of having a PE 165 times 100, which would be $16,500. If I wanted about 100 shares of Apple at this price, it would cost me $16,500. In this case, the call options, I can I can buy the rights to 100 shares for only 69 bucks. For $69, I'm leveraging 100 shares at 167 and a half. Instead of paying 100, instead of paying $16,500. The reason I saved 16,500 is because the share price is 165. And if you times that by 100 is 16,500, well, in order to buy 100 shares of Apple have to have a decent amount of capital. But with call options, It's given me leveraging power. And the reason. I'm able to, The reason I'm able to leverage 100 shares at $69 is because there's an expiration date and it is risky. So if if it doesn't play out in the right amount of time that I think it's gone and then I'm going to lose if I just held on the contract the whole time, are those the $69? Now the way I trade is if if I bought the car track, even if it does what I wanted to, then I just hold it. If it doesn't do it, I want it to and say $69 turned into $50. Then at some point I'm going to sell the contract and I'm just going to let it keep going against me and it gets me, it gets me. So that's about it. And like I mentioned, you can also so cell calls and I'm going to get into that. That's a little more complex. But, you know, I just kinda want you to understand the basic stuff. But 11 important takeaway is there's a lot of people are like, well, why would you have news options? It's because you're able to leverage a ton of shares basically, though, for somebody that doesn't want to pay $16,500 for the rights to own a 100 shares of Apple. And this add this town on the certain date, our criminal what Apple's share price is right now. But instead of doing that, instead of paying 16,500, I cabal one call option right here for 70, 69 bucks. And if Apple goes up, I'm still going to reap the rewards is if I own a 100 shares at 167. So it's just, it's just the risk is the term brain. I'm trying to Tom the stag, I'm trying to Tom the market. And it's a lot less risky just to have a long-term portfolio and just to hold stocks long, long term. But like always say you get a risky to get the biscuit. So that's kind of why I like orchestrating is it allows me to leverage. So you can use a little bit of capital for a lot of shares. And in I'm not, I don't ever actually buy the shares. I don't ever actually exercise the contract, I just sell it. So in this case, if I bought one 167 and a half call an app on it went to 200 and that in these contracts would be worth it's like 30 to 3250. So I would just sell the contract back and collect my $3,250 and move on. But I wouldn't I wouldn't spin the 16 thousand. So if Apple random 200, yes, technically I could buy 100 shares for 167 and a half, but I'm not going to spend $16,700 on those those chairs. I'm just going to sell the contract better. And in certain cases I will just nine times out of 10, I'm not going to exercise contract. So that's about it. Like I said, key takeaway is a college and gives you the right but not the obligation to buy 100 shares within a specified timeframe. And if you have any questions at all, feel free to reach out. I'm going to try and do videos on Monday, Wednesday, and Friday from now on This one's a Sunday video over Omega ahead and release it tonight. But from now on it's going to be Monday, Wednesday, Friday. Hopefully. That's what I'm that's why I'm shooting for. And and as time goes on, over the next few weeks, months, you will for sure know more about options trading and hopefully be able to learn options trading. Of course, everybody is not going to arise, not going to pick it up. There's going to be some people that I could dumb this down and downness down, dM is down and it's just not, it's just not going to click. But there's some people that it will click for. And if it's not, if it doesn't click for, you Don't go, don't go. Gamble and just focus on buying shares and hold them long-term is what I would do for now. Just invest. Good. You know, if you have a job where they're pays you five grand a month or whatever, it doesn't matter how much it is, just as much as you can, but five grand a month and you're getting, uh, you know, let's say your take-home is 3500 a month and then after bills and rent and everything like that, food and whatever, you're left with $1500. Well, then invest foul her ours a month. And by, you know, look at the charts, look look for similar justifications like we've talked about. When you see those justifications. And he liked the company then by the company and hold it long-term. But don't, don't, don't start dabbling with options trading until we really, really Davin some stuff. And like said, it's you guys have any questions, feel free to reach out. You'll have a wonderful weekend.