start

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