How I learned To Day Trade In A Week
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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

About Ralph Robinson

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49 thoughts on “How I learned To Day Trade In A Week

  1. Hey bud a member in our group shouted you out for making a great intro video. I want to thank you personally for labeling me and my YouTube community as a useful channel. In your opinion what are some areas of opportunity for our channel to provide more quality content for advanced users? We have 30k members with in our group and it's no surprise a majority of them are new traders. Just wanted some feedback and to wish you good luck on your venture!

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