When to start trading
How I learned To Day Trade In A Week
about a week ago I downloaded a stock
trading app called Robin Hood and I knew
absolutely nothing about the stock
market and today I can watch a video
like this and then I saw when I hit the
resistance it ended up opening at 1:30
and then I saw when I hit the resistance
at 1:40 I'm gonna get a little bit
closer it built a new resistance at 165
and a new sport at 160 it looks like it
broke that support and I actually
understand it in this video I'm going to
run you through what I did to learn the
stock market in a week and hopefully
save you some headache and show you some
shortcuts alright first Robin Hood it is
the first trading app that is free for
the past 20 years or so anytime you want
to trick stocks you either and pay a
broker or download a software that would
allow you to trade but they always
charge a transaction fee per trade and
those transaction fees would be anything
from five to twenty dollars which means
unless you know what you're doing and
you plan on holding a stock for a year
plus you're immediately in the red and
you can't really do anything that
changed with Robin Hood
about a month ago my friend told me
about it and I decided to take a look at
it last week on messing around with it
and buying my first NV stock we'll come
back to a and B in a minute I told
myself you know what I'm gonna take this
seriously because anybody I know that's
really good with stocks is really rich
so I'm actually going to invest in time
and try to educate myself on all how all
that's worse so this video is not going
to be a tutorial it's not going to be
how to or anything like that I'm just
gonna tell you a bunch of things and
give you a bunch of words that you need
to research and learn and if you do it
the way I did it within a week you
should know how the stock market works
and how to trade and how to do it
effectively if you're one of my older
viewers or somebody watching my videos
because of you know making stuff like
this YouTube channel is not going to
turn into a stock market YouTube channel
this I treat this channel as more like a
portfolio and showing my work and for
those of you who watching my videos for
the first time I'm actually a
manufacturing engineer and I designed
stuff professionally for a living I take
people's ideas
to mass production so if you're
interested and stuff like that or like
how things are made check out some of my
other videos first thing there's a
website called investopedia it's a
wikipedia for investing if you hear any
word or anything that you don't
understand or don't know in this video
or in any videos that I recommend pause
the video and either search one of
disappea dia or Google or YouTube take
the time to understand what where it is
and then come back and unpause the video
this is what I did for the first couple
of days and yes it's very tedious and
very time-consuming and kind of boring
but it's the quickest way to learn and
that's that's pretty much how I did all
what I'm about to show you I'm gonna
save you a bunch of time so you don't
want to sit through all the scatter
information on the Internet
the first thing you need to know about
the stock market is there's two ways to
invest there is analytical investing and
there is fundamental investing there are
two totally different things don't mix
up strategies with one of the other
because they can spill disaster for you
fundamental trade is like Warren Buffett
JP Morgan you know old school training
where you research a company you dig
down through their quarterly reports you
know everything about them you know what
they're selling you know what the
products are you know what the bottom
line is you know what the income is you
know what the competitors are and you
know all the information about the
competitors - that's the old-school way
of investing and it still works and it's
still very important I recommend whether
you want to be a day trader or a
long-term trader that you learn the
fundamentals of trading some things see
that you should Google and learn income
statements balance sheets and cash flow
statements also 10-qs and 10ks all of
those things are very very important for
fundamental analytical investing is a
more modern approach of investing and
that's the one that you're probably most
familiar with were some guys sitting in
front of like 20 screens with all kinds
of data running through it
that's analytical investing and it's not
nearly as complicated as it seems now
the way a little trading goes is there's
a few different types two main ones that
you'll see is day trading and swing
trading they're essentially the same as
far as
philosophy but dick trading is what it
sounds like you buy stock and you sell
stock in the same days usually within
minutes it's very quick trading and you
can make a lot of money if you can do it
effectively swing trading is where you
buy a stock and you sell it the next day
or a few days later or week it's a very
short term trading but before we get
into any more of that I need to explain
to you how the stock market works and
what makes it go now if you've ever
looked at a stock market chart it's
probably looked something like this
now what analytical traders do is they
try to figure out if the stocks going up
or down and if you can do that you can
make a lot of money and the way they do
that is looking for what's called
supports and resistance lines stock
market the stock market moves up and
down no matter what it rarely ever stays
straight and these oscillations can be
predicted if you know what to look for
it's basically it's just looking for
patterns that's all it really is the
most fundamental whether you do it is
they look at the peaks and the valleys
and by doing so they can predict where
the stock market is going to be in the
future the simplest way is this going
off the last two peaks of what they have
so if this is the top line this would be
considered the line of resistance and
this would be called the support line
now what day traders and swing traders
do is they watch the stock and they
graph out where these lines are and
there's a lot of different ways to do
this this is the beta most simplest way
in the next video I'm going to show you
all the different kinds of ways you can
do it and my particular setup that I'll
be using to test out so what these guys
do is they watch the stock and as it's
moving up and down if it crosses the
resistance line or the support line it's
called breakout this right here is where
it would be considered a breakout now
day traders and swing traders buy stock
right here at this point and they will
ride the way the line up and recalculate
where the new resistance and support
lines are and that's how they make their
money that's the basics of analytical
trading now while this seems very simple
it can it's not it's very complicated
and it takes a lot of experience and
understanding what you're doing
the reason the stock murder goes up and
down is because really big investors
come in and they buy a lot of stock now
that you do this for a bunch of
different reasons it can be like the ten
key words or the ten cage the quarterly
reports maybe they did a bunch of
research on the company or where the
company's about to come out with
something there's a million reasons why
someone a big investor might buy into a
stock well day traders and swing traders
pick this up using scanners they can see
when these stocks are about to jump up a
good analogy would be big investors are
like freight liners or cruise ships you
know massive ships moving a lot of stuff
moving they're making really big wakes
in the water day traders and swing
traders are more like speed boats and
jet skis they come in they jump up and
down the way is they have fun but then
they are gone pretty quickly and they
don't go very far except that the waters
are also invested with sharks and filled
with rocks and if you fall off you'll
probably die so big traders can see when
these stocks are about to go up they
have what's called scanners that will
pick up these stocks that are about to
fluctuate really high if they pick them
up in time and analyze the data they
will buy into the stocks right as it
breaks the resistance line and when that
happens the stock usually skyrockets in
the day traders and swing traders will
ride these waves up and then sell out at
the top and make profit that's how they
make money
now if you're wanting to day trade
there's two things you really need to
understand that's volume and flipped now
volume is the total mouth shares being
sold in a given day or a given moment
quote is really important to know
because it allows you to understand how
much risk and reward you're gonna get
when you take a trade blow is the total
number of stocks out in the market that
you can buy as a trader now it's
different from the total share cap of a
company it's not the same there'll be
people in the company that owned shares
but they usually don't trade them all
the lot and that's not calculated in the
float so it is different the reason
flood is so important is because the
less amount of shares there are in the
market the more volatile that stock will
be the more it will jump up in
or jump down Kreis so for example if
there's 10 million shares floating in
the market if all of a sudden the volume
of the stock goes up to say five hundred
thousand or a million that's 10% of the
total stocks you know that that stock is
gonna be moving a lot versus say a
company like Apple who I think has over
a billion shares out in the market right
now so you know if there's a million
shares being moved in a given day that's
that's less than 1% of their total stock
so that price that stock prices get you
know barely fluctuate here it's gonna be
a major risk for not a lot of reward so
what day traders and swing traders look
for are stocks with low float and a lot
of volume being moved so if you want to
get into day trading and swing trading
some things you should research and
understand is well let's start with
standards there's two types of scanning
there's free market scanning which can
be done a bunch of different ways and
use a dedicated software to do it which
all of those cost money or the way I'm
gonna be doing it starting out because I
know a lot of money is using TD
Ameritrade software called thinkorswim
it's free to use but you have to put in
I think 50 bucks and star brokerage
account with them but it is a standing
and analysis platform and I'll be
showing you my setup another thing you
can look up this gap scanning which is
now analyzing the difference in trade
between the stock market closing
yesterday and the stock market opening
today the other one is called momentum
standing we're also momentum training
that's what I just explained about the
stock market and down in the resistance
lines in the lab now analytical traders
look for patterns and here is a list of
all kinds of different pattern types I
suggest you research them understand
what they are and how they work now I'm
going to show you a thinker swim
brief I'm just going to brief over the
software and show you how it works
and what it does if you don't understand
anything that I've said or maybe about
the show don't worry just stop the video
and research it and then come back and
continue okay so this is thinkorswim and
this is probably what you're from
with when you see somebody talking about
the stock market I know it looks super
confusing right now it's not trust me
now I'm just gonna brief over all this
stuff and in the next video I'll go into
more depth fees this videos already
pretty long so this right here is my
analysis for how much a stock is going
to be going up and down it and this is
where I calculate support and resistance
lines and where I should buy and trade
stocks this chart over here is a little
different it's it actually shows the
momentum and the volatility of the stock
so whether it's gonna be jumping up the
price or not this is my kind of quick
look this is what I'm gonna be using for
finding stocks quickly into seeing if
they have potential and if they do then
I look at this little chart to analyze
where I should buy and sell but let me
clear all this out and I will just start
with very basic so this is not nearly as
confusing get rid of that and then your
studies so when you start your thinking
swim account this is what you'll have
when you start and we got a bunch of
different tabs up here you have charts
Market Watch scans analyze trading
monitoring starting out all you really
need to know is scanning and charts but
all the other stuff is also important
and you should learn down the road so
some things know on this this chart is
one if you want to add studies and
analysis like I was showing you you go
here and hit edit study and you can
there's all kinds of different types of
analysis you can do I can add Ichimoku
which is a fantastic analysis a highly
recommend that you take the time to
learn it it's complicated and it's kind
of confusing at first but if you
understand it you can figure it out it's
very very useful it's one of the best
analysis I've seen so far and you know
my research you can also just click here
and this will take you right to the
studies you kerley now I'm gonna take it
off okay so this what we're looking at
here is candlesticks and volume
measurement like I said earlier volume
is something you want and they stop now
the light is the after-hours trading
this is after 4 p.m. the last day and
9:30 a.m.
which is when the stock market opens
next day and the only transactions that
usually happen at this time are you know
big purchases like big investors or
hedge funds or something like that or
just electronic things going on it's
real low volume time it's not really
when you want to invest especially as a
novice starting out most of the big
investments and the money you're gonna
make is within the first two hours of
the stock market opening that's when all
the fluctuations happen and then by you
know eleven o'clock usually the market
kind of evens out now candlesticks tell
you where a stock opens and closes so
down here is where it opened that right
here's where it's closed at when it's
green when it's red it's the opposite
this is where it opened at and this is
where it closed there so it dropped now
the little sticks that are coming out of
it that is the highest that was sold at
and the lowest that it was sold at so
the stock could open here some people
could buy stuff up to here but then a
bunch of people sell it and it drops
down here but then it comes back up and
it closes there and those are called
wicks real quick some things you know
about the chart you could go here you
can select what's what timeframe you
want to see in the on your chart so this
is I've got mine custom set to two days
one minute then you know you can see
every trade one minute apart or you can
do five minutes five days it's five days
apart the whites are the opens it closes
you can see up in the top left corner as
I move back and forth you can see the
time period and stuff and it also tell
you open open high low close stuff like
that
now when a stock is just kind of going
back and forth like this this is called
consolidating and this market doesn't
really know where it's going there's no
trades or sales there's low volume
nothing's happening that's not when you
want to buy stocks however as you see as
it hits here it starts to go up and it
gets a trend and this is during closing
hours and then there's some big movement
but throughout the rest of the day
there's not really much going on and if
you actually even start to draw trend
lines just from this very simple
trendline so you would match it at the
top of the open and then the top the max
sale here and then we'll just drag this
out past here so that's a basic
trendline and then you do your support
line right about here now over here you
will see watch listed and you can
customize these and you can follow
stocks that you want to follow now the
way you find stocks is you can go here
scans and type in the parameters that
you want like I said day traders like to
look for vault stocks with really high
volume and really low float and you
can't search for float but you can I'll
show you a few ways to check that now so
this is a really basic search its stocks
between 30 cents and $5 the reason you
want to go from low dollar stocks is
usually there's more volatility and then
you'll be making more money but as
someone starting who only has $1,000
like me you know if a stock is a dollar
50 you're not gonna even be able to buy
a thousand shares so you're not gonna be
able to make a lot of profit which is
kind of the hardest part about starting
is you're not going to be making a lot
of profit and you're still risking about
the same like I said earlier Robin Hood
is a free trading app so what I'm gonna
do is use
thinkorswim as an analysis tool and
trade on Robin Hood but there's
something called the PDT rule or the
pattern day trader rule and this is a
government thing where if your accounts
flagged as a day trader and you have
less than $25,000 in your account your
account will be locked for 90 days and
the stipulation is you can only make
three-day trades every five days so
three day trades eight-week what counts
as a day trade if you buy a stock and
sell stock in the same day that's a day
trade now you can swing trade but your
also risking a little more and if you
have not a lot of money starting out
it's yeah so if we go here I don't think
it's gonna work right now if they hit
scam because yeah the stock Markos it's
Sunday night nothing's going on
now when you do a scan you can actually
load these scans in your watch list so
if the stock market was live right now
and I could I could go down to personal
bullish bears nightly scan I picked this
up off of a stock market community
YouTube I can't remember but I'll have
links in the description below for the
videos and stuff but yeah you can select
this and if there was if the scam was
actually bringing up anything you could
see it in the watch list right here now
back to charts let me get rid of these
when a stock is going up in price this
is called bullish it is rising you'll
hear this a lot publishing bears when
it's going up it's bullish when it's
going down it's bear as in bear and
there's nothing going on if we go up to
like 180 days you can see like it's the
same thing no matter whether you're
looking at 1 day or 180 days the stock
is always fluctuating it's always
oscillating no matter what and if you
pick up these oscillations and you learn
them and you figure out how to replace
your money you can make money from this
so that's the the basics of analyzing
and scanning data it's really this the
basics of it's pretty simple but getting
good at it is where you takes practice
and just knowledge and experience and I
highly recommend you don't just jump
into stock markets and try to do this
after watching a couple videos what you
want to do is start a paper account
which is trading fake money you can
practice and one of the nice things
about Robin Hood again is it's free and
so there's no transaction fee which
means if you want to you can just buy
one stock and see what happens for like
a dollar a share and you're not going to
be losing anything
just over the pattern day trader rule
and don't be more than three a week now
one thing to note the difference between
a paper account and a real account when
you place orders they are trans they go
instantly in paper accounts because it's
just fake at simulation in real life if
you buy too much stock and there's not
enough volume there
your sales won't go through or you'll
lose a bunch of money because you're
trying to sell something but nobody's
buying them and the price could tank and
then you're stuck with shitty sock so
keep that in mind that's a really
important thing that a novice needs to
know is paper money is instant real
money is not you really have to pay
attention to volume and one last thing
I'll show you is thin biz this is a
pretty nice website or also finding and
scanning if you want to you can go to
you go to screeners and then get rid of
the pop-up go to all you can do
performance plus or minus whichever
waiting there we go let's do the past
week up so any stock that has been go up
in price for the past week price under
five dollars because we don't a lot of
money we want to keep it low relative
volume it's the current volume and these
are all the different stocks and you can
go to a snapshot and this is a year-long
progression of the stock and you can see
you got your support lines going here
and one thing that is nice about fin biz
is when you you find a stock on here you
can click it right here is the shares
floating so this is how many shares are
in the market so if you see a high
volume a million volume in a stock and
there's 85,000 like this that's you're
not gonna make a lot of profit on
eighty-five thousand 1000 is less it's
like 0.8 percent of the total stock so
the price is gonna go up like a sit or
two and you're gonna be risking a lot of
money for no profits you want to look
for stocks around ten thousand flow and
lastly some YouTube channels to follow
stock market community I think this is a
few guys that upload videos on one
channel but they're very detailed in the
nuances of trading they they go into
real good detail in their videos a great
playlist on their channel is Omar
momentum trading on elite in the
description below pretty much all of my
analysis and scanning was learned on
that YouTube channel another one's
warrior training this guy is really
expensive but he's
doing it for six or seven years he's got
courses on his website and he makes a
lot of money like he's really good at
what he does but I think the courses
started like $4,000 if you're somebody
who's really strapped for cash like me
I'm only gonna be starting $1000 it's
probably not the guy for you but he does
have a lot of great videos on there
regardless but he doesn't go into the
nuances as much and he also has a
best-selling book how to day trade which
I think has four and a half stars on
Amazon and like 380 reviews it's uh he
actually had a webinar just last Friday
as I was learning and I was able to pick
it up free through there so pretty
awesome another one is rick gutierrez
he's another day trader he doesn't go
into the details and stuff as much but
he does videos almost every day and he
covers really basic you know entry-level
stuff so if you're brand new to it and
you don't know anything highly recommend
his youtube channel and the last one is
eat sleep profit he this YouTube channel
doesn't have a whole lot of videos but
they are really well edited and he's
very concise and gets to the point when
he actually makes a video
and lastly websites that you can use fin
vis which I already mentioned which is a
graphic analyzer and I'll go into detail
on how you can use that to scan for
stocks seek alpha which is I haven't
used a whole lot but it's very popular
website it does graphs and stuff you can
use it for analysis and stuff like that
and then stock tweets this is actually a
live stream of tweets that are about the
stock market and its growth end up
really recommend that you have some kind
of news feed going on also all of the
YouTube channels that I talked about
also have chat rooms and stuff that they
use were a bunch of people like
thousands of people are in and they talk
about which stocks are getting hot and
stuff in the day you should really look
into joining one of them and finding one
that fits you and lastly Yahoo Finance
which is really good for doing the same
analysis is like fin biz or stuff but it
also is
the balance sheets and income reports
and cash flow statements so if you want
to research fundamental investment and
kind of compare contrast companies it's
really good for that that's what I
actually first started using when I was
researching fundamental trading but yeah
that's about it the next video will show
you the details and nuances of scanning
and how to analyze data
