0:00 welcome back to the channel my name is 0:01 smsh you're here because you want to 0:02 learn some trading strategies how to 0:04 start the basic terminologies and all 0:07 sort of stuff right actually how to 0:08 basic to all the way the advanced that's 0:10 why you here because you click to check 0:12 the title you're like man it's a full 0:13 course let me see all right so this 0:14 video going to be a long video and but 0:16 just stick with me this is going to be 0:19 freaking awesome I will break down 0:21 everything that you need to know about 0:23 trading okay from Basics to Advanced it 0:25 won't have like really Advanced topics 0:28 but we'll cover the more most of the 0:30 ground that we need everything that you 0:32 need to know about trading so first 0:34 things first for next couple minutes let 0:35 me tell you who I am been day trading 0:37 for 5 plus years I started trading in 0:39 about 2018 or August or September that's 0:42 when I actually first learned about 0:43 trading towards the end of 2018 that's 0:45 when I kind of like got started 2019 was 0:48 losing money 2018 and 2019 was losing 0:50 money 2020 21 22 23 I've been profitable 0:53 all these years and now it's 2024 and 0:56 I'm recording this video for you 0:57 hopefully this video helps you take you 0:59 to the next level let's freaking do this 1:00 so you might be here from my Instagram 1:02 or you found out about me from Maybe 1:04 YouTube wherever make sure you are on my 1:07 Instagram because that's where I post 1:09 all those little tips and tricks about 1:10 trading every day daytoday basis and 1:13 let's just jump into it let's help you 1:15 make some money let's freaking go first 1:16 things first fam welcome to K University 1:19 and this is a course that are going to 1:21 break down everything that you need to 1:22 know but what are the things that we are 1:24 working on so the table of content for 1:26 this whole thing would be first we'll go 1:28 over the basic terminology the stuff so 1:30 you understand when I'm explaining stuff 1:31 I'm going to use these basic 1:32 terminologies okay if you miss these 1:34 basic terminologies then you will not be 1:36 able to understand what I mean by 1:38 certain terms you know the nicknames 1:39 that we often have for certain things 1:41 like you may have a favorite bar or 1:42 something and you always call it by a 1:44 nickname but somebody else outside your 1:45 circle doesn't understand the nickname 1:47 you see what I'm saying so these basic 1:49 terminologies where I'll tell you those 1:50 little nicknames that you need where the 1:52 little nties of the stuff that you need 1:54 for the whole course and the B that's 1:56 where basic terminologies is and then 1:58 we'll go over how to read Candlestick 1:59 and this might be like oh man I already 2:01 know this maybe actually you don't maybe 2:03 you're reading it all wrong that's why 2:04 you're not making money all right so 2:06 we'll go over how to read candlesticks 2:07 the stuff that you actually need in 2:09 order to see if the Candlestick is 2:11 actually even good which is Candlestick 2:12 patterns right these are different from 2:14 chart patterns Candlestick patterns a 2:16 little bit different from chart patterns 2:17 chart patterns are usually so this is 2:19 how kind of the game works all right so 2:21 first comes the candles a few candles 2:23 make chart patterns okay a few of them 2:26 make chart patterns sorry candle 2:28 patterns all right a few of the candle 2:30 patterns make chart patterns a few of 2:32 the chart patterns make support and 2:34 resistance few of the support and 2:35 resistance makes pretty much Trend and 2:37 that's how the game pretty much work now 2:40 the next thing that we're going to talk 2:41 about is how you can set up your trading 2:43 view trading view is a software that I 2:44 use to literally put my charts on and if 2:46 you're using think or swim or anything 2:48 else man here's the thing I have tried 2:50 using every other platform but trading 2:52 views so far by far has been my best the 2:54 reason why is because the way they have 2:57 literally displaying the indicators and 2:59 stuff it's totally different than 3:01 everything else so I have back tested 3:03 all my strategies on trading view if you 3:05 compare thinko swim or trading view 3:07 chart together and the same chart same 3:09 time frame same everything the indicator 3:11 value of think or Swim and trading view 3:13 will be a little bit different so I have 3:15 back tested everything that I'm going to 3:16 teach you on trading view so if you are 3:18 like trying to go over and do stuff on 3:21 think of swim man good luck trading view 3:23 by far the best application that I 3:25 personally think so make sure that you 3:27 set up your trading view the way I have 3:29 and then we'll go over examples of some 3:31 Candlestick patterns used on daily 3:32 charts I'll give you some examples the 3:34 charts how to actually break them down 3:36 and all the stuff and then we'll go over 3:38 support and resistance levels how to 3:39 draw support and resistance levels how 3:41 to actually make money from support and 3:43 resistance levels all stuff all that 3:45 stuff then we'll go over some chart 3:46 patterns okay it says chat patterns but 3:48 then we'll go over how to trade using 3:51 technical analysis now technical 3:52 analysis is which we need to in order to 3:54 make money we date fa is man we make 3:56 money from technical analysis we look at 3:58 the charts and we like man man this 4:00 looks really good that's how we make 4:01 money you see what I'm saying so if you 4:03 do not know how to actually trade using 4:05 the technical analysis you will not be 4:07 able to make money okay we need to learn 4:09 how to trade using and then comes 4:11 glossery for options so I'll break down 4:13 the options for you if you have no idea 4:15 about options you can always go and 4:16 watch my 4-Hour trading um option 4:18 trading course which is after the video 4:20 you can go but I will cover the stuff 4:22 that actually matters here okay the 4:24 little tips and tricks that I have used 4:25 over the years then comes how I day 4:27 trade the secret how day trade my 4:29 three-step framework now you will be 4:31 very tempted to just skip to this 4:33 particular thing it's cool okay you can 4:35 go there but promise you if you do not 4:38 go all of this you will not be able to 4:40 understand this all you might go and you 4:42 might try to be like oh let me cut the 4:43 learning curve but nah man if you can't 4:45 literally put like doesn't matter how 4:47 long this video becomes if you can't put 4:49 that long in your future do you think 4:51 Future Has any time for you even your 4:52 future will not actually care about you 4:54 if you do not care about your future 4:55 think about that for a minute all right 4:57 so stop trying to just cut the corners 4:59 and just stick with the video I promise 5:00 you it will be the best video that you 5:02 ever watch all right then we'll go over 5:04 risk management the psychology all sort 5:06 of stuff that you need in order to make 5:07 money because at the end of the day if 5:09 you do not have trading psychology if 5:11 you do not know how to manage risk if 5:12 you do not know how much money to put in 5:13 a trade if you do not know which option 5:15 contract to choose and how to manage the 5:17 risk and actually how to respect the 5:19 stop loss you will not be able to make 5:20 money from Trading and I'm telling you a 5:22 fact okay I've been day trading for a 5:23 long time I've seen a lot of day Traders 5:25 come and go and I've trained over 5:27 literally thousand plus day Traders and 5:29 I've seen what works for them what 5:30 doesn't work for them I have seen a lot 5:32 of people if you do not have risk 5:33 management you are just a little guest 5:36 that is hanging around here in the big 5:38 boys game and this is a big boys game 5:39 all right so let's just get started and 5:42 time to make you some money man let's go 5:44 now basic terminology we'll go over the 5:46 basic terminology first some of the 5:47 stuff that actually matters if you're a 5:49 complete beginner this is exactly for 5:51 you if you're somewhere in the middle 5:52 this is exactly for you and if you're a 5:54 very advanced level you might think 5:55 you're Advanced but if you're not making 5:57 money you're actually not Advanced 5:58 because Advanced is just for for the 5:59 pros who make million dollars a year 6:01 plus all right now basic terminology 6:02 first comes a stock what is a stock 6:05 stock is a type of investment 6:06 representing an ownership share in a 6:08 company investors buy stocks that they 6:11 think will go up over time for example 6:13 let's say apple is a 6:15 $150 stock NOW basically what they do 6:17 let's say you and me go in a business 6:19 together right you and me go in a 6:20 business together and what we do is we 6:22 open a cafe so we go half and half all 6:24 right so I'm a 50% ownership you're a 6:26 50% owner so what is that I own one 6:28 share you own one share basically 6:30 they're two different shares of the cafe 6:33 of the business of the company and we 6:35 both own one each like think about it 6:37 even if you divide into 100,000 shares 6:39 but you own 50,000 I own 50,000 shares 6:41 that's still you own half I own half 6:44 that's share okay now big companies 6:47 divide they literally big like apple 6:50 they divide into very very small pieces 6:53 so if apple is a $3 trillion company 6:55 which is a lot of freaking zeros by the 6:57 way I think so I think so this is Apple 7:00 if it's 150 you do the maths that's 7:03 meant how many pieces they have in a 7:05 company okay that's why if you own one 7:07 share you own that little tiny piece of 7:10 the company now we are not investors we 7:12 do not care about owning the pieces 7:15 unless you actually want to invest money 7:17 into something cool but otherwise we 7:19 only need to know what is a stock just 7:21 if you're a complete beginner all right 7:23 now what is next apple is a blue chip 7:24 stock what is a blue chip stock blue 7:26 chip stock is simply a big company 7:28 that's a pretty much blue chip stock for 7:30 example Amazon Netflix the stuff that 7:32 you know a very leading company stuff 7:34 that you know every single day the stuff 7:35 that you use every single day Blue Chip 7:37 company like McDonald's right Apple 7:39 Nidia all these companies Tesla Amazon 7:43 um AMD you see Facebook meta now all 7:47 these companies are blue chip stocks 7:49 because they're leading they're very 7:50 very large and they're very leading 7:52 companies so they're called Blue Chip 7:54 stocks now what are bulls Bulls are 7:56 buyers Bulls means a buyer now why do 7:58 bulls called buyers now a bull by 8:01 definition is an investor who buys 8:03 shares because they believe the market 8:05 is going to rise so they believe the 8:07 market can go up that's why they buy and 8:10 the Bulls is another word for basically 8:13 Market going up Bulls means buyers okay 8:16 now how do I kind of remember it you 8:18 know how everyone knows bull here right 8:20 have you ever seen the bull strikes up 8:22 it literally puts his like thing boom he 8:24 strikes up that's why bull strikes up 8:26 the market goes up that is why right so 8:29 now a bull market is when the stock 8:31 market as a whole is in a strong period 8:34 of increased prices now a bull is a 8:36 buyer bull strikes up and when we say 8:39 it's a bull market that means stock 8:41 market is just going higher it's 8:43 prolonged period of increased prices 8:45 means an uptrend price is going up and 8:47 what is a beer market what are our beers 8:49 though Bears Simple Man bears are 8:50 sellers just the other way around bears 8:52 are sellers Bear by definition is an 8:54 investor who sells shares because they 8:56 believe that the market is going down 8:58 now why are they called Bears because 9:00 Bears strike down they literally scratch 9:03 downwards okay that's why they called 9:05 Bears now bare market is when the stock 9:07 market bare market is when the stock 9:09 market is in a Long period of decreased 9:11 prices downtrend okay when Market goes 9:14 down keep going down that's called a 9:17 bare Market sweet now BS are sellers 9:19 they B will sell shares as they believe 9:20 Market is going negative bear strike 9:22 down what is the bid price bid price is 9:24 the highest price that the investors 9:25 will pay to buy a stock option and the 9:28 ask price is the lowest price they will 9:30 accept to sell stock option for example 9:33 let's say you want to sell your iPhone 9:35 right if you want to sell your iPhone 9:36 this your iPhone that you want to sell 9:38 you put on your Facebook Marketplace or 9:40 whatever like eBay Craiglist whatever 9:42 you put this iPhone to sell for 100 9:44 bucks or th000 let's say $1,000 for you 9:46 know easy that's your ask price because 9:49 you own the phone so you literally can 9:52 ask for whatever you ownn you're like 9:54 okay this is mine I need $1,000 but 9:56 somebody on the other side of the you 9:58 know City he's looking at you like oh I 10:00 like this iPhone it's so cool oh my God 10:02 I want to buy it but I only have $800 so 10:05 he sends you a message and he goes hey 10:07 would you accept 800 for it now what is 10:09 800 that's a bid he's just making a bid 10:12 like you can still negotiate you can be 10:14 like no maybe 950 he's like 9 maybe 850 10:17 but this whole thing he's dropping a bid 10:20 you are drop you are literally having an 10:22 askk that is called bid and ass okay a 10:25 bid price is the highest price that 10:27 literally the investor will pay to buy 10:29 your phone or your stock ask is the 10:32 lowest price that you are willing to 10:34 accept for your phone what is the 10:36 literally this spread the spread is very 10:38 simple the difference between the two 10:39 numbers let's say you want to have 10:40 $1,000 for he want to give you $800 the 10:44 difference between them is called spread 10:47 so spread you might have heard the word 10:49 Spread spread simply means ask minus bid 10:53 and I promise you ask is always going to 10:56 be higher than the bid think about it 10:58 somebody offering you $800 for the phone 11:01 and you're like nah just give me $600 or 11:02 you post an ad for your phone for $ 600 11:04 and somebody goes I'll buy for $800 11:06 you're like what no it doesn't happen 11:08 right so ask price is always going to be 11:10 higher than the bid price okay now 11:13 spread simply means when the ask is more 11:16 than the bid what is the difference 11:18 $1,000 minus 8002 200 becomes the spread 11:23 bid ask spread now bid ask spread is ask 11:26 price minus bid price ask price will 11:28 always be higher the narrower or smaller 11:30 the difference between the bids and asks 11:32 the better for example if you really 11:34 want to sell your iPhone okay you want 11:36 to sell for $1,000 and somebody comes 11:39 along and um say bid at $ 800 you're 11:42 like okay cool sweet let me Let Me Wait 11:44 For The Better Price somebody comes in 11:46 drops in$ 850 somebody comes in drops in 11:48 900 somebody comes in drops 950 now you 11:51 clearly know you sitting there you 11:53 clearly know damn why do they all all of 11:55 them want to buy my phone like it's only 11:57 been 2 minutes and literally the the 11:59 price is going up the your ask in the 12:01 bid the spread is getting so w so so so 12:05 small now cuz somebody want to offer you 12:06 950 it was two it was a $200 difference 12:09 now it's only $10 difference because 12:11 they're offering you $99.90 for the 12:12 phone think about it the narrower it is 12:15 easier it will be for you to sell the 12:16 stuff because there's less negotiation 12:19 okay you going to sell the phone for 12:20 th000 he's offering you $990 like you 12:22 know what let's do it but if he's 12:23 offering you 800 you're like nah nah 12:25 there's more negotiation so narrower it 12:27 is better it is usually okay now what is 12:30 meaning of long it simply means a 12:32 bullish position putting your money 12:34 hoping to price hoping the price to go 12:36 up in which the buyer is thinking the 12:39 price of the stock or option is going to 12:40 increase over time so long simply means 12:42 I'm going long so you say I'm going long 12:44 on these options or I'm going long on on 12:46 Apple that simply means you can buy 12:48 stocks for a company to go long or you 12:50 can buy call option contracts to go long 12:51 that means you think that the prices can 12:53 go up that's when you say I'm going long 12:55 okay like long oh it's so long the list 12:58 is so long because you think oh it can 12:59 really make a move higher okay list is 13:02 so long or I'm going to go long what is 13:03 short the term refers to a bearish 13:05 position where a seller believes the 13:07 price of a stock or option is going to 13:09 move lower over time you can short 13:11 stocks of a company by just placing the 13:13 order reversed instead of buying first 13:15 like you would normally do you just sell 13:18 first a lot of people get confused with 13:20 shorting man shorting is so simple just 13:23 think about it for a minute you know 13:24 what shorting is shorting simply means 13:26 let's say for example it's highly ille 13:29 if somebody from the company by the way 13:30 tells you what to do but for example I'm 13:31 just you know dropping for educational 13:33 purposes somebody works in a company and 13:35 he sees oh [ __ ] this is not actually 13:38 good for this company this this phone is 13:40 getting overheated and they need to 13:42 recall all the phones it's not a good 13:44 news the company is going to literally 13:45 lose so much money because they have to 13:47 refund to every single customer and they 13:49 have sold a million PHS it's it's a bad 13:51 news right and you know he's walking 13:53 down the street talking on a phone and 13:55 somebody hears him talking the whole 13:57 story um and he's talking to somebody 13:58 from the the company like what they 13:59 should do somebody hears him so the guy 14:01 knows now the company prices can go down 14:04 so what can you do is you can literally 14:07 go to that stock place a order of 14:09 shorting the order which is you're 14:11 betting that the prices can go down when 14:13 you say long you're betting the prices 14:15 to go up but shorting simply means 14:16 placing the bet that the prices can go 14:18 down now here's the thing okay shorting 14:21 is not hard it's actually very easy you 14:24 know what you do in shorting you just 14:26 you know how when you go long you press 14:27 the buy button first and when you have 14:29 to sell you press the sell button pretty 14:30 much in shorting you do the opposite so 14:32 it don't no need to over complicate it 14:34 no need to understand it anymore it's 14:35 just like oh if you're Bing the price to 14:37 go up you buy first and sell later right 14:39 or exit your position later when you're 14:41 shorting this is what you do you sell 14:43 first you just press the other button 14:45 first you sell first and then you buy 14:46 back later pretty much that's how simple 14:48 it is right now what is sculping 14:50 sculping just simply means scalpers make 14:52 several hundred there's three different 14:54 types of trading from scalping day 14:56 trading and swing trading and longterm 14:58 you can say but scalpers make several 15:00 dozens trades even like a lot of man 15:03 they'll make a lot of Trades scalpers 15:04 are trying to scalp a very small 15:06 percentage of profit from each trade 15:08 they just want to catch a move from $100 15:10 to $100 and10 but they're doing with 15:14 very very big size when they're doing it 15:16 very with very big size you know what 15:17 happens they make the M they make small 15:19 money or decent money from big size they 15:22 take big risk but they just want to 15:23 catch small moves because scalping is a 15:25 general term that is used to describe 15:27 rapid day trading SP scalp is going 15:29 heavy and take profits quickly you can 15:31 make a lot of money in short period of 15:32 time if you know what you're doing but 15:34 now here's the thing I personally think 15:36 scalping is just another term to be used 15:38 for I'm too scared to lose I mean if the 15:42 market asks you to day trade why 15:44 wouldn't you day trade like with me man 15:46 if the market wants me to day trade I'm 15:48 day trading literally if the market 15:49 wants me to catch big moves I'm catching 15:51 big moves but if the market is choppy 15:53 I'm sculping you see what I'm saying if 15:55 there's a 1000% return on option that I 15:58 can have I'm catching that if I know the 16:00 market can make a big move it just broke 16:02 a weekly daily level strong level it can 16:04 literally push higher I'm catching a big 16:06 move I'm not scalping I'm catching a big 16:08 move right so what a lot of people do is 16:11 they literally want to be a scalper 16:12 because they do not have enough like 16:14 Cuts or they are I'm sorry to use the 16:17 word and they can't control their 16:18 [ __ ] emotions and they just don't 16:19 want to take the risk so they are happy 16:21 with small profits um and there's a lot 16:23 of [ __ ] [ __ ] that goes around on 16:24 the social media F people talking about 16:26 sheit like oh man nobody goes broke take 16:28 profits nobody gets Rich taking small 16:30 [ __ ] profits put this in your goddamn 16:32 head all if you take small profits man 16:33 you ain't going to get rich like what 16:35 you're talking about you quitting your 16:36 [ __ ] job to dat fade full time and 16:38 now your wife asks you how much money 16:39 you made today and you're like 40 bucks 16:41 and she going to be like bro get the 16:42 [ __ ] hell out of here and go to the 16:44 [ __ ] job you ain't got to goddamn 16:46 stay home and trade you see what I'm 16:47 saying so but if your wife asks you how 16:49 much money you made today and you tell 16:50 her 4,000 you like oh [ __ ] damn you want 16:53 me to [ __ ] make you some food but you 16:54 see what I'm saying so try to catch 16:56 bigger moves that's where the money is 16:58 okay okay day trading now what is day 16:59 trading day trading like day Traders are 17:02 traders who get in stocks hoping to sell 17:03 them the same day if they buy 9:30 time 17:07 they can sell at 950 they can sell 17:09 literally 10:30 or 11:30 any time before 17:13 the market close whether it takes them 5 17:15 minutes or few hours the purpose of 17:16 being a day trader is to sell your 17:18 position the same day if you open your 17:21 position literally on March 1st you 17:24 close your position on March 1st as well 17:26 same day okay now what is Swing TR swing 17:28 trading refers to the group of people 17:30 who hold their positions for more than 17:32 one day you can hold a position for 2 17:34 days or 2 years they both will be 17:36 considered as swing trading period so 17:39 you can open your position on March 1st 17:40 you can sell on March 2nd you are a 17:43 swing Trader you can close on literally 17:46 October 3rd you are a swing Trader okay 17:49 don't over confuse yourself don't over 17:51 complicate this this stuff is easy all 17:52 right now next comes your technical 17:54 trading what is technical trading 17:56 technical trading are consumed like 17:57 literally charts and graphs we watch 17:59 different line signals and like 18:01 literally we look for Confluence 18:02 Divergence that might give us buy or 18:04 sell signals that's technical trading 18:06 right we look at the charts we look at 18:07 the trading view charts we look at the 18:09 graphs we look at draw some levels lines 18:11 that all comes under technical trading 18:13 and then comes fundamental trading 18:14 fundamental trading literally like it 18:17 goes on over stuff like oh let me see 18:19 the earning reports let me see the 18:21 balance sheet I don't do this stuff man 18:23 it's too [ __ ] boring you see what I'm 18:24 saying examining things like cooperate 18:26 events like actual anticipated earnings 18:27 stock splits real like all this stuff 18:30 it's too boring like I want to make 18:31 money when I'm young so that's why I day 18:32 trade you see what I'm saying I don't 18:34 want to make money you sit there and 18:35 [ __ ] wait for 50 years and by the 18:37 time I'm 75 and then I'm I have a 18:38 million dollars I don't have time for 18:40 that year I want to make money when I'm 18:41 young when I have energy when I can 18:43 literally help my parents to [ __ ] 18:44 live the life that they want to live 18:46 that's how I want to go and Technical 18:48 trading is pretty much that did the job 18:49 for me see what I'm saying now volume 18:51 volume is a matter of an asset or 18:52 security that changes hand over some 18:54 period of time often over the course of 18:56 a day for instance for example the stock 18:58 trading volume would refer to number of 19:01 shares of security traded between its 19:03 open and close Okay so if you're looking 19:05 at a daily chart you're like okay how 19:07 many how many option you know how how 19:09 much volume there was so if you sell 19:11 your phone if 10 of your friends sold 19:13 your phone sold their phone to someone 19:16 and all 10 sold they like 10 people sold 19:19 their phone okay sold their phone to 19:21 somebody people bought 10 phones now 10 19:24 people bought 10 phones now what's the 19:26 volume here 10 the amount amount of 19:28 assets or security that changes hand not 19:30 20 n 10 the amount of assets that 19:34 changes hand that's pretty much it 19:36 volume can be calculated on a smaller 19:37 time frame and larger time frame as well 19:39 now time frame simply means if you go on 19:40 a 5 minute chart it will give you a 19:42 different volume like just a zoomed in 19:44 version like this happened over the 19:46 course of day right you sold 10 iPhones 19:48 over the course of one day now if you 19:50 want to look at hourly let's say it took 19:52 you 10 hours to sell 10 phones every 19:55 hour it took you one phone to sell so 19:57 what's the um volume for that particular 19:59 hour one but 10 hours it becomes for the 20:02 day all together becomes 10 see what I'm 20:05 saying now obviously there's much more 20:07 to the markets than just these 15 terms 20:09 that I went over but I'll be explaining 20:11 to you as we go further in the course as 20:14 well I'll break him down all be good now 20:17 by the way fam you're doing extremely 20:18 well I just want to literally take a 20:20 moment and let you know you're [ __ ] 20:21 killing it you're doing well and you 20:23 already in about 20 25 minutes of the 20:25 course you're doing well keep going keep 20:27 pushing you got the all right I know you 20:28 do keep going by the way don't have to 20:30 binge watch pause the video go get a 20:32 drink you'll be fine you'll be 20:34 completely fine all right it's okay you 20:35 want hustle sweet I love it I appreciate 20:38 it but hey just want to let you know I'm 20:41 [ __ ] proud of you you could be doing 20:42 anything you could be literally watching 20:44 Netflix right now but you are watching 20:45 this video that means you're [ __ ] 20:47 hungry and you got this all right let's 20:49 [ __ ] go get to the next point which 20:50 is how to read candlesticks okay how do 20:53 read candlesticks now every single 20:56 Candlestick has four data points doesn't 20:58 matter what Candlestick you look at 20:59 every single Candlestick has four points 21:02 the four points is the opening price 21:04 it's the opening price open high low 21:06 close it's often called 21:09 ohlc okay open high low close what's 21:11 open the opening price of the candle 21:14 okay opening price of the candle where 21:16 did the candle open right here the 21:17 highest price over a fixed period let's 21:19 say this is a 5 minute chart so on the 5 21:21 minute chart this is where the price 21:23 opened let's say $100 the lowest point 21:25 was $ 999 the highest price was 105 but 21:30 it closed at 104 okay now this is a 21:32 green candle why because it opened at 21:34 100 closed at 104 what would have 21:36 happened if it opened at 100 and closed 21:38 at 96 it would be a red candle you see 21:40 what I'm saying so anything that comes 21:43 Above This closing price from closing 21:45 price to the high of the day that 21:46 becomes a wick you see this this becomes 21:48 a little Wick from opening price to low 21:49 of the day this becomes a wick okay we 21:51 just want to see the measuring distance 21:54 from opening to closing price the 21:56 measuring distance that becomes the 21:57 candle body this is called body and 21:59 these are called Vicks literally you see 22:02 a candle have you ever seen a candle I'm 22:03 pretty sure you do that's called a Vic 22:05 okay so the opening price highest price 22:07 over fix and this can literally if this 22:08 this 5 minute chart if you're watching a 22:10 weekly chart it will have high closing 22:12 open low everything okay doesn't matter 22:14 what Candlestick you watch every single 22:16 Candlestick has these four points all 22:18 right now each Candlestick represents a 22:20 specific time frame and give data about 22:23 price open high low close during that 22:26 given period now on a 5 minute of course 22:28 on a 5-minute chart it will only show 22:29 you 5 minute candles that means every 5 22:31 minutes this every candle represents 5 22:33 minutes if you look at a weekly chart it 22:35 not going to show you 5 minute candle is 22:36 it it going to show you a weekly candle 22:38 right so each candles s represent a 22:40 specific time frame it also gives 22:42 information about the assets opening 22:43 High lower close during that period okay 22:46 now standard candlesticks are consist 22:48 standard candlesticks consist of a 22:50 candle body plus upper and lower Wick as 22:53 I explained right here it consists of 22:55 body and the wick all right the candle 22:58 body extends to the closing price from 23:01 the opening price of an asset for a 23:03 particular period so if it opens right 23:05 here but closes at the bottom right here 23:07 this is the open this is the close and 23:09 this is the low high whatever right the 23:12 candle body extends from from the open 23:14 to the closing price and next these 23:16 Wicks are just like things hanging all 23:18 right the tip of upper Wick of the 23:19 candle will show the highest price 23:20 attained during that given period and 23:22 literally the bottom Wick will literally 23:25 be the time of the lowest point of that 23:29 given candle all right it's not hard 23:31 it's simple that's all it is all right 23:33 now let's go over candlesticks a little 23:35 bit more a candle sticks are either 23:36 bullish or bearish depending on the 23:38 direction of the price During the period 23:41 they are drawn for if it's a green 23:43 candle that means price opened here it 23:46 closed higher that means it went up how 23:48 do the bull strike they strike upwards 23:51 that means it's bull it's bullish we 23:54 usually say okay if it opened higher and 23:57 closed lower how do the bear strike bear 23:59 strike downwards what happened this went 24:02 down this is bearish yeah bullish or 24:05 bearish candles are either bullish or 24:07 bearish depending on the direction of 24:09 the price During the period they are 24:10 drawn from bullish versus bearish 24:13 candles okay a bullish Candlestick forms 24:15 when the stock opens at a certain level 24:17 and growes at a higher Point okay that's 24:20 called bullish Candlestick a barish 24:22 candlesticks forms when the price opens 24:23 at a certain level and closes at a lower 24:26 price that's called bearish Candlestick 24:29 for example right here this is the open 24:31 event to close these became the Wicks 24:34 okay this is the open right here it went 24:36 down these became the Wicks okay this is 24:39 how the candle would have gone let's say 24:41 for example for this one it opened here 24:44 it went down so every time it goes down 24:46 that's like the sellers trying to take 24:47 over okay now buyers came along buyers 24:51 pushed the price high and then sellers 24:52 came in a little bit and it closed here 24:55 this is how it would have went this is 24:56 what the Candlestick kind of looks like 24:57 like if you zoom in a little bit price 24:59 opened here went down but what's the 25:01 most amount of who covered the most 25:03 amount of literally the most amount of 25:04 distance on this candle from lowest 25:06 point to this point who covered the most 25:08 distance the people who push the price 25:09 up who pushes the price up Bulls they 25:12 strike upwards so what is this candle 25:14 this candle becomes a bullish candle 25:16 what is this candle becomes a bearish 25:17 candle you see what I'm saying all right 25:19 now let's go with the trading view chart 25:22 like this particular chart right here 25:24 you can use men like literally this 25:26 graph right here that you see is a 4our 25:28 Candlestick chart where each of the 25:30 Candlestick represents a 4our period you 25:32 see this 4 hour right here okay that 25:34 means each candle this is a four C 4 25:37 Hour 4 Hour 4 Hour 4 Hour 4 Hour 4 hours 25:40 every single candle takes 4 hours to 25:42 form okay now you can use as many 25:46 different chart time frames to kind of 25:47 plot Candlestick charts in your 25:49 technical analysis system you just need 25:51 to select instead of 4 hours just select 25:53 10 minutes it will automatically do it 25:54 or 5 minutes the most common time frame 25:57 that people use a 1 minute 5 minute 15 25:59 minute 30 1 Hour 4 Hour daily weekly 26:01 monthly I personally use 2 minutes a lot 26:04 I use 5 minutes a lot I use 10 minutes a 26:07 lot and I use 60 minutes and I use daily 26:10 candles okay 60 Minutes like 1 hour 26:13 candles you got it now this is what 26:16 trading view looks like this is why I 26:17 love it so much it's just so clean all 26:20 right now let's go over long and short 26:23 candles so what is a long and short 26:25 candle long green Candlestick show 26:27 strong buying pressure that means 26:29 literally price opened here and it made 26:32 a huge move up closed here see after a 26:37 huge literally after a huge drop in 26:39 price long green Candlestick can Mark a 26:41 potential turning point or support level 26:43 thinking of support as literally the 26:45 floor of your house so when something 26:48 falls from a lot like let's say you drop 26:50 your phone you drop your phone from the 26:52 highs and it hits the hits the ground it 26:55 bounces a little bit right it hits the 26:56 ground and go boom then it falls so that 26:59 little bounce wherever happens that 27:01 becomes a support okay after a huge drop 27:03 in price and if you see a candle like 27:05 this that means there's a strong area 27:07 where a lot of buyers are interested 27:09 because buyers push the price higher and 27:11 these candlesticks only formed when 27:13 buyers come along okay now long red 27:15 Candlestick shows strong selling 27:17 pressure why because it opened here and 27:19 it literally closed so down below this 27:23 is where it closed that's why it's a 27:25 bearish candle because bear strike down 27:28 right a huge move to the upside long red 27:30 candlesticks can foreshadow a turning 27:32 point to Mark a future resistance level 27:34 think of resistance is roof of the house 27:37 if I throw the phone high up you're 27:39 going to hit the ceiling come down right 27:41 that's exactly what this means okay 27:45 that's what resistance means the ceiling 27:47 of your room all right now just speaking 27:49 generally the longer the body is the 27:51 more intense the buying or selling 27:53 pressure the longer the body that means 27:55 a lot of buying pressure here longer the 27:58 body there means a lot of selling 27:59 pressure here okay but on the other hand 28:02 short candlesticks means they are very 28:04 little buying or selling activities you 28:06 see this they're very little buying or 28:07 selling activities not a lot of people 28:09 are kind of interested in it they're 28:10 like yeah whatever you see what I'm 28:12 saying in the common trading lingo Bulls 28:14 means buyers and bare means sellers all 28:18 right now let's go over short green 28:20 candlesticks with small bodies show that 28:22 the buyers were there but they are were 28:24 short green candlesticks with small 28:26 bodies show that the buyers were there 28:28 but they were not that strong and they 28:30 failed to make a huge impact on the 28:32 stock prices why stock opened here they 28:35 made a very little move literally closed 28:37 here that means the buyers were not so 28:40 strong that means literally they were 28:42 just like poop that's it they were not 28:45 really able to strike like a full bull 28:47 see what I'm saying that means they were 28:49 not that strong candles shot green 28:51 candles with small bodies indicate it 28:53 was not that strong now short red bodies 28:55 with small bodies literally shows us 28:57 that the the sellers were there but they 28:58 were not that strong and they failed to 29:01 make huge impact on the stock prices 29:04 okay that means opened right here closed 29:07 right here it was a very small move it 29:09 was not strong enough for the stock to 29:12 kind of keep pushing higher 29:14 okay now let's look at different type of 29:17 candlesticks now you now you now you 29:21 understand what candlesticks is so let's 29:22 look at what different type of 29:23 Candlestick patterns they are the stuff 29:25 that I like the most this the first one 29:27 that I like the most is called maruu 29:30 candle you do not need to remember this 29:32 I like to call them boner candles okay 29:34 like hey whatever you thinking right now 29:36 I like to call them boner candles 29:38 because it's just long freaking candle 29:41 straight up all right more bozy candles 29:43 are wonderful examples of long 29:45 candlesticks morosus does not have a 29:48 higher or lower Vick what does that mean 29:50 that means the moment it opened they did 29:53 not let any sellers kind of make a wick 29:55 the moment it opened the Bulls STI over 29:57 over they made the price shoot up 29:59 straight up there was no Wick at all 30:02 okay and the high and low are 30:03 represented by the candle opening or 30:05 closing of the candles a green moreos 30:07 will form when the open equals the low 30:09 open is the lowest price as well and 30:11 close means the high this Candlestick 30:14 indicates that the buyers control the 30:16 price from literally the first trade 30:18 within that candle to the last trade 30:20 within that candle it's very very very 30:24 bullish okay now red Moro or red Bon 30:27 candle forms when the open equals the 30:29 high of the candle and the close equals 30:32 the low of the candle this Candlestick 30:34 indicates the sellers control the price 30:35 literally from the opening price to the 30:38 closing price from the first to last 30:40 trade this is either very very bullish 30:43 candles are very very very bearish 30:45 candles you need to pay attention to 30:47 them when you're trading you want to 30:49 know if there's a boner candle fam 30:51 literally if it's a very very critical 30:52 level and you see such a critical level 30:54 and then there's a boner candle 30:55 literally going through that means talk 30:57 is just going to literally blow up you 30:59 see what I'm saying now the next one is 31:02 that I love the most is long versus 31:04 short Wicks okay these are called pin 31:06 bar candles as well I love them by the 31:08 way okay now candlesticks with long long 31:11 long upper Wick and short lower Wick so 31:14 these candlesticks have a long upper 31:16 Wick okay so we're looking at this um 31:19 red candle first a long upper Wick now 31:21 think about this for a minute okay what 31:23 I want you to do is just focus on this 31:25 particular candle I just take everything 31:27 a very Focus whatever you're doing right 31:29 now just focus on this particular candle 31:30 for now what happened on this candle and 31:32 this candle kind of looks like this yeah 31:35 it open because it's a red candle that 31:37 means B strike down it opened here 31:39 closed here now you might be like but 31:40 only made a small move but think about 31:42 it this is where it opened this is the 31:45 highest point of the candle where opened 31:48 went to the highs so bulls that means 31:50 the Bulls were had Bulls had this in 31:52 control Bulls were like man I'mma 31:54 [ __ ] take this this looks good and 31:56 then the sellers came sellers like nope 31:59 went to the lows and then then Bulls 32:02 came again and it closed like this but 32:04 looking at this candle who had the most 32:06 control over this candle who covered the 32:08 most amount of distance from highest to 32:10 lowest who covered the most distance 32:12 sellers or bears so this becomes a 32:16 bearish candle it's a super bearish 32:18 candle cuz they literally fought the all 32:21 the be all the Bulls and the Bears took 32:23 over price went down okay it indicates 32:26 the sellers dominated during the session 32:28 okay on the other side candlesticks with 32:30 a long lower Wick and short upper Wick 32:31 indicates the buyers dominated the 32:33 session literally same thing it opens 32:36 here goes down then the buyers take over 32:39 and they close like this who had the 32:41 most control who covered the most 32:43 distance from lows to the highs who 32:45 covers the most distance Bulls so this 32:48 becomes a bullish candle this is very 32:49 bullish candle as well okay now you 32:52 literally are making a Killin fam you're 32:54 doing well and now you're about 3 5 or 32:57 40 whatever the time is man I don't even 32:59 care um but you're making a killing and 33:02 I'm so freaking proud of you sometimes 33:03 you literally got to take a hand like 33:04 this and pat yourself you're doing well 33:06 all right this stuff's not easy again as 33:08 I said you could have been watching 33:09 Netflix right now but you're doing this 33:10 so keep pushing keep going I know you 33:12 got this maybe grab a drink maybe 33:14 another drink time for another drink I 33:15 think it's for me it's time for another 33:17 drink definitely I need to go grab a 33:19 beer actually um here was the thing fam 33:22 um I was sitting down I was like man I 33:23 haven't got nothing much to do what 33:24 should I do um I was just sitting down 33:26 and watching literally watching Netflix 33:28 on the couch and I'm like man you know 33:29 what now let me record that video that I 33:31 want to record man let me help some 33:33 people out so we're here I just want to 33:35 break this stuff down and it it going to 33:37 help you make some money and then I want 33:38 you to send me a photo of you whatever 33:40 money you made on my Instagram and 33:42 they'll make my day so I feel like 33:44 that's a time well spent see what I'm 33:46 saying keep poing keep going I know you 33:48 got this pause the video right here I'll 33:49 wait for you I literally sit like this 33:51 doesn't matter how long you pause the 33:52 video for I'll sit like this pause the 33:54 video go grab a drink I'll see you soon 33:56 okay I hope hope you pause the video so 33:58 let's get right into it um hope your 34:01 drink is Yum yo hope your drink is Yum 34:03 anyway setting up your trading view fam 34:05 now we're going to set up your trading 34:06 view let's go over how to set up your 34:08 trading View and the things that you 34:09 need okay the first step towards setting 34:12 up your trading view is literally you 34:13 need to go on the website you need to go 34:16 to trading view website sign up right 34:18 here go to tradingview.com okay you can 34:20 even download the app or from your 34:22 smartphones iPads desktop this is the 34:24 app that I use to draw parents check 34:26 charts Andy stocks all right if you're 34:29 working full-time I will definitely 34:30 recommending downloading an app from an 34:32 app store or Play Store is whatever you 34:33 use all right then the next step comes 34:36 is literally go to this chart section to 34:38 access all the charts just click this it 34:40 will show you some super charts I think 34:42 they call them now super charts click 34:44 that it will show you all the charts 34:46 boom okay then go right here step three 34:50 go literally this is how the chart will 34:52 come it will be an apple or something 34:54 but there will be a line chart go click 34:57 right at the top right here where the 34:58 line says and select candles Okay click 35:02 the line section that depicted in the 35:04 photo and literally choose candles then 35:07 click this Arrow icon right here like 35:09 this click this arrow and choose one day 35:12 time frame make sure you on the daily 35:15 time frame from now okay so this is how 35:18 you set up your trading view now you 35:19 have it you can make your trading like I 35:21 have an account you see this I have an 35:23 account KCK apples have an account with 35:24 them so you can have your account with 35:27 them if you want and this is how you do 35:28 it okay I really like it so I'll 35:30 definitely recommend that you sign up 35:32 for I think towards your Black Friday 35:34 sales or something they give like 70% 35:36 off they give 28 days for free and then 35:38 70% off if you sign up or stuff like 35:40 that definitely recommended this it's 35:42 good um yeah all right now let's go over 35:46 examples of Candlestick patterns used on 35:49 daily charts okay some of the examples 35:52 of the Candlestick patterns the patterns 35:54 that I showed you just stuff like Mor 35:57 candles or you might have heard bullish 35:59 engulfing or bearish engulfing and stuff 36:01 like this I'm pretty sure you already 36:02 know this stuff um and I'll break them 36:04 down a little bit as well for you as we 36:06 move along but let's break them down 36:08 right now all right okay so first one is 36:10 bullish harami what is a bullish harami 36:13 candle bullish harami candle is simple 36:16 candle fam I'll break them all four down 36:18 for you okay one by one one at a time I 36:21 think that will be way better so bullish 36:23 harami kind of goes like this there's a 36:25 big candle more ruzi candle or whatever 36:27 bullish candle the next candle is small 36:30 candle remember hey I think we all are 36:32 old enough and we all remember you 36:34 remember the Pac-Man game we used to 36:36 play when we were kids and it used to 36:38 eat the little [ __ ] thing so pretty 36:40 much this is a Pac-Man candle okay it's 36:42 eating the ne like this candle is 36:44 getting eaten by the big Pac-Man pretty 36:46 much okay one of the easiest way to 36:47 remember that's called bullly shami 36:49 anything that happens after bullish 36:50 harami is a bullish setup now how to buy 36:53 this this is how I do it this is again 36:55 educational purpos this is only this is 36:57 what I do it works for me I'm just 36:58 sharing my stuff my opinions this is a 37:01 what is it bullish harami candle but how 37:03 do I buy it I literally if the next day 37:05 Market opens next day when the market 37:07 open I will buy right above if the 37:10 market gapped up I'll buy right here 37:12 stop loss will be just below this 37:14 particular candle okay if this is a 37:15 daily chart that's what I'll do all 37:17 right if you want to zoom in let's zoom 37:19 in a little bit boom this is what 37:21 bullish harami looks like it went from 37:23 250 to all the way to 270 right here 37:26 this is how this is what bullish harami 37:28 candles are like okay then comes bearish 37:31 engulfing or we'll say yeah bearish 37:34 engulfing does a job same thing bullish 37:36 engulfing bearish engulfing same thing U 37:39 just like other way around pretty much 37:40 fam um so what happens here is the 37:42 Pac-Man just reversed the Pac-Man is 37:44 reversed so this big candle this 37:47 particular candle is eating the previous 37:49 candle fully like the highs and lows of 37:51 this particular candle is eating away 37:53 the previous candle fully okay look at 37:55 this so it's a Pac-Man but just in 37:58 Reverse bullish engulfing and it's a 38:00 usually a strong sign to for the prices 38:02 to go down what is the bullish Hammer 38:05 remember the examples that I gave you in 38:07 the at the back fam where you go um I 38:10 think it was this one this is called 38:12 Hammer candles as well because it kind 38:14 of looks like a hammer doesn't it look 38:16 like a hammer like you grab a hammer 38:17 bang looks like a hammer right so that's 38:20 why we call him hammers okay which is a 38:22 hammer candle and a bullish candle you 38:24 see this price is literally forming 38:26 around 600 price can move up to $720 38:29 literally $120 move in matter of like 38:32 few days right because of the bullish 38:34 Hammer candles because they have a long 38:36 wick on the downside okay you got it 38:39 then next comes your evening star dois I 38:42 like this evening star does Evening Star 38:44 does are just like or this particular 38:46 day candle closed like this or red 38:49 candle or green candle whatever the next 38:50 candle just like it gapped up but 38:53 couldn't make a big move it just like 38:54 went like this literally the full body 38:55 of this candle is is away from this and 38:57 then the next day becomes like this so 38:59 it's a 3-day pattern it's a 3-day 39:01 pattern and this is like literally 39:04 nobody cares about it abundant baby 39:06 pretty much you see what I'm saying 39:07 nobody cares about it that is called 39:09 Evening Star doy usually that personally 39:12 means particularly for me that I treat 39:14 it as like okay that's a neutral candle 39:16 stocks can go down so start getting 39:18 ready for the stocks to go down like in 39:20 this case stocks went from 415 to down 39:22 to 411 410 area this is how I trade it 39:26 okay you got it these are the four ways 39:28 to kind of treat this and let's go over 39:31 some of the stuff that I wrote down I 39:33 use candlesticks with volume 39:34 confirmation during breakouts and 39:36 assisting my opinion for the next day's 39:38 price action do not get caught up in the 39:40 attempting to trying to trade based on 39:42 candlesticks pattern only this can 39:44 assist you again price movement is never 39:47 100% predictable no patterns or 39:50 indicator is 100% right you always need 39:52 further confirmation before executing a 39:54 pattern I switch from 5 minutes 39:57 literally this is what I do I switch 39:58 from 5 minutes and 15 minute chart 40:00 during the day from whatever daily 40:02 happening I switch to 5 minutes or 15 40:04 minutes to kind of see what's happening 40:06 so I can have a little clear idea of 40:08 what's happening in the market in real 40:10 time you see what I'm saying and that 40:11 helps me kind of get better entries and 40:13 exits on my trades okay sweet you got 40:17 this I know you do all right now the 40:20 next is support and resistance levels 40:22 like we have covered a lot of ground 40:24 already right you see what I'm saying 40:26 next is support and resistance levels 40:28 now this whole thing kind of becomes all 40:30 right so let's get to support and 40:31 resistance levels now all right now the 40:33 next step is support and resistance 40:34 levels we have covered a lot of ground 40:36 already we are making a kill in man I'm 40:38 so proud of you you're literally making 40:39 moves as we go along this is it this is 40:42 very good I'm very happy with the 40:43 progress so far that you have okay now 40:45 let's break down support and resistance 40:46 levels so what are support and 40:48 resistance levels in every price chart 40:51 every single price chart there's a 40:52 demand and Supply where demand is 40:53 created by buyers who are willing to buy 40:55 more of the stock and supplies created 40:57 by sellers who want to sell the stock 40:58 think about it for for example in other 41:01 words if there's excess of Supply prices 41:03 go down for example the price of a 41:05 regular stone is zero like if you pick 41:06 up a garden Stone literally if you pick 41:08 up your garden Stone and try to go to 41:10 your pawn shop and be like hey guys 41:12 what's going on I want to sell this 41:13 Garden Rock like what's so special about 41:15 this rock nothing just just another rock 41:17 like nah why because there's so many 41:20 rocks around the world you see what I'm 41:22 saying the price of a regular Stone 41:24 regular rock is literally zero why there 41:26 are plenty of rocks and nobody want to 41:28 pay high value for just a little piece 41:30 of rock right a normal Rock see what I'm 41:33 saying why is that the supply is a lot 41:35 demand is not that much there's a lot of 41:37 Supply even if the demand is a lot 41:39 there's more Supply than the demand so 41:41 price is zero but what if there is an 41:43 excess of demand but Supply is limited 41:46 that means the prices go up for example 41:48 let's say all of the tickets to the 41:49 football game that you want to go to 41:51 have already been sold but people still 41:53 want them what happens so to fulfill 41:55 that demand and Men what people do 41:57 people will start selling their tickets 41:59 to buyers at higher price let's say oh I 42:01 bought this ticket for $100 you know 42:03 what or $1,000 you know what I want to 42:05 sell this I'll sell this for $5,000 42:06 let's see if somebody wants to buy it 42:07 somebody B buys it boom here you go why 42:10 cuz tickets are sold out now there's a 42:11 lot of demand still you see what I'm 42:13 saying that's why the prices push up 42:15 because if there's a lot of demand 42:16 prices will push up all right now demand 42:19 is very very synonymous with bullish 42:21 bulls and buying Supply is very 42:23 synonymous with bearish bears and 42:24 selling okay now going forward I want 42:27 you to remember a few things as 42:28 literally as demand increases man price 42:31 will go up as well if the demand is 42:33 going up price will go up if the supply 42:35 increases price will go down when demand 42:37 and Supply are equal price moves 42:39 sideways nobody wants it or whosoever 42:42 wants it gets the you see what I'm 42:44 saying bulls and bears need to literally 42:47 push it out of control that's when if 42:49 the Bulls get literally Bulls defeat the 42:51 Bears what happens prices can shoot up 42:54 if Bears defeat Bulls prices can shoot 42:57 down okay they need to Slug It Out of 42:59 Control this is what support and 43:01 resistance levels mean now let's look at 43:03 what is the support first okay let's say 43:05 this particular chart on Snapchat this 43:07 particular level over and over again 43:09 every time prices come down here it's 43:11 getting bought back up now what is 43:13 happening here support is a price level 43:15 at which demand is thought to be strong 43:17 enough to prevent the stock from falling 43:19 below it's like the floor of your room 43:21 that is this right here the price broke 43:24 this literally it became not new new new 43:27 new new floor okay in other words 43:30 support is like your floor if you throw 43:32 a ball on the floor it bounces right 43:33 back up from the floor okay now you can 43:36 see this right here Snapchat 43:38 $712 it bounced beautifully over and 43:41 over again now if this breaks it can 43:44 again support does not always hold 43:46 however a support like literally a break 43:48 below this support level signals that 43:50 bears have taken control like if it 43:53 breaks below that means Bears have taken 43:55 control and the prices can really move 43:57 down breaking of the line of support or 43:59 line of resistance is called breakouts 44:01 or breakdowns or whatever you want to 44:03 call it I like I just call it breakouts 44:04 whatever for both sides when the price 44:06 breaks the support line the price of 44:08 stock will move down 9 out of 10 times 44:11 if a critical level breaks towards the 44:13 downside price will move down 9 out of 44:15 10 times from my personal experience 44:18 okay that's support now here's the thing 44:20 how is support established if you see 44:23 this particular chart right now fam 44:24 you'll be able to see let me zoom in a 44:26 little bit 44:27 71.2 did this particular thing touch 44:29 71.2 no did this thing touch 71.2 no 44:33 this actually dipped below this a little 44:34 bit higher why does that happen though 44:37 because here's the thing if I on my 44:39 charts marked it at 71.1 to but you 44:41 marked it at 71.1 but somebody else on 44:44 the other side of the world marked it at 44:45 71.0 5 because that's what they could 44:48 see now what all of a sudden somebody's 44:50 buying a 71.0 5 somebody's buying a 71.1 44:53 two somebody's buying a 7115 somebody's 44:55 buying a 7 only 1.2 you see what I'm 44:57 saying that becomes a Zone which is why 45:00 it's always recommended to make it draw 45:03 a Zone like this on your charts support 45:06 levels are usually below the current 45:08 prices but it is not surprising for a 45:10 stock to trade at or near support 45:13 support is usually at the downside okay 45:15 as technical analysis is not a rocket 45:17 science setting precise support levels 45:19 can often be difficult in addition price 45:22 movements can be very volatile briefly 45:24 dip below support and those are called 45:27 fake outs this is what happens it will 45:29 drop below like this make a little wck 45:31 and shoot up and it's okay you see what 45:34 I'm saying it's okay that's why you need 45:35 certain strategies to jump in this just 45:37 puts the stock in a radar for me I'll 45:40 break down the stuff that I actually 45:41 like to watch for example it does not 45:43 seem logical to consider a support level 45:45 broken if the price closes 10 cents 45:48 below the established support level if 45:50 this is the level that you're watching 45:51 66 and the price literally closes 45:54 65.90 would you say it's broke no why 45:57 because I like to consider it a zone now 45:59 wait wait maybe let it retest this you 46:02 see what I'm saying I'll break down how 46:03 actually enter but just try to 46:05 understand this don't try to jump ahead 46:06 okay for this reason some Traders and 46:08 investors established support zones take 46:10 the example right here okay these are 46:12 the zones a little wide zone right you 46:15 got it now what is the resistance like 46:17 you see this Lily what happened every 46:19 single time it touched here it got 46:20 rejected now why did they guy rejected 46:22 right here let me put myself down here 46:24 okay resistance is a price level at 46:26 which selling is thought to be strong 46:28 enough to prevent the stock from rising 46:30 further think of this as your ceiling if 46:32 you toss a ball to the ceiling it comes 46:34 right back down you can see example 46:37 right here price of Lily every time it 46:39 kind of went to the price level of 86.4 46:41 6 it rejected beautifully now resistance 46:44 does not always hold however a break 46:45 above the resistance can mean stop 46:47 literally the Bulls have taken control 46:50 over the Bears breaking off the line of 46:52 support or line of resistance is called 46:54 breakout when the stock breaks a 46:55 resistance line the price of stock will 46:57 move higher 9 out of 10 times all right 47:01 now again if you have this level marked 47:03 8 6.46 I have it marked at 47:06 86.5 somebody else has marked at 47:09 8670 what happens it's okay that's why 47:12 we need to draw zones you see this now 47:15 everything is like in the zone right 47:17 resistance levels are usually above the 47:19 current price but it's not surprising 47:20 for a stock to trade near the resistance 47:23 levels at Tech literally as technical 47:25 analysis is is not an exact science 47:27 setting like literally bro it's not an 47:29 exact science this is just an art that 47:31 you're going to get better at over time 47:34 okay now in addition price movements can 47:36 be very volatile it can kind of briefly 47:39 go above the resistance points and then 47:41 move lower and it's fine which is why we 47:43 draw this zones for example it does not 47:45 seem logical to consider resistance 47:47 level broken if there's only 10 cents 47:49 kind of same thing right that's why we 47:51 draw this okay now trend lines this is 47:55 where the fun begins 47:56 fam all right as technical analysis is 47:58 built on the premise that price trend 48:00 and the use of trend line is essential 48:02 for both Trend identification and 48:04 Confirmation we all know stocks like to 48:06 Trend okay that's how the stocks move up 48:08 they like to Trend right so it's very 48:11 important to actually understand how 48:13 they move so trend line is line at a 48:15 angle that connects two or more 48:17 literally price points and then extends 48:18 into Futures El it's just a line of 48:20 support and resistance support comes on 48:22 the bottom resistance comes at the top 48:24 but rather than being horizontal they 48:26 are a little bit vertical that's the 48:28 only thing that's difference about them 48:29 that's it they just have a little bit of 48:30 angle that's it you see what I'm saying 48:33 that's all about it that's trend lines 48:35 now I understand I understand it might 48:37 be a little bit confusing right now and 48:38 it's fine let's go over them many of the 48:41 principles relevant to support and 48:42 resistance levels can be literally 48:44 applied to trend lines as well same [ __ ] 48:48 everything still stays the same okay if 48:50 the Stock's moving like this at the 48:52 bottom you draw the support level if it 48:54 dips below the support level prices can 48:56 go down right there are two different 48:58 types of trend lines uptrend line 49:00 downtrend line same stuff all uptrend 49:03 line acts as a support downtrend line 49:06 acts as a resistance to the stock okay 49:09 if it breaks below this can move up down 49:11 if it breaks B above this move up I'll 49:13 show you an example look at this uptrend 49:15 line every time it's touching right here 49:17 what happened it's bouncing off an 49:19 uptrend line has a positive ink line and 49:21 is formed by joining two or more low 49:24 points first point and second point will 49:26 help you kind of draw the line but the 49:28 third Trend literally helps you confirm 49:30 it that this is there so the fourth and 49:32 fifth one you can trade pretty much the 49:34 second low must be higher than the first 49:36 one for the stock to have positive 49:38 incline this just common sense man if 49:39 the first one is here and you need to 49:41 connect it if it's second one is down 49:43 you can't have a positive in positive 49:44 incline right so has to be higher the 49:47 second Point has to be higher than the 49:48 first one for it to have a little 49:49 positive in line just common sense right 49:52 note that at least three points must be 49:54 connected before the line is Con 49:55 considered to be a valid trend line you 49:57 need to have a third Point third 49:59 respectful Point like this one for it to 50:01 be considered like all right fourth time 50:03 it can bounce like a did fifth Point can 50:05 bounce like a did okay now in the 50:07 picture right here we connected 0. one 50:09 and point 2 and then point three and we 50:12 got a uptrend line and at point 4 and 50:14 five we bounced off the trend line 50:15 beautifully because the uptrend line 50:17 acts as a literally your floor or 50:20 support okay now a break below the 50:23 uptrend line shows that the demand has 50:25 reduced and the change in Trend can be 50:27 expected think about this if it breaks 50:29 below that means sellers are going to 50:31 take over okay BS have taken over now 50:34 let's go over the downtrend line okay 50:37 the downtrend line has a negative 50:39 incline there a negative incline you see 50:41 this negative incline downwards it's 50:43 formed by joining two or more high 50:45 points you join higher points right here 50:48 at the top of candles the second high 50:51 must be lower than the first for the 50:53 stock to have a negative incline second 50:55 point must be lower to kind of have it a 50:58 negative in line all right note that at 50:59 least three points must be connected 51:01 before the line is considered to be a 51:02 valid trend line first or we can 51:05 consider this first or first second 51:08 third kind of fourth and fifth one can 51:10 be a little bit nicer again these are 51:12 never aligned these are always 51:13 considered a little Zone around them 51:15 that's why it's never going to be 51:16 perfect perfect doesn't exist in the 51:17 stock market all right it's always a 51:19 little Zone all right in the picture 51:20 right here we connected1 2 3 and then we 51:23 could have traded 4 and five as a 51:24 rejected beautifully of the resistance a 51:27 break below or actually a break above 51:29 the downtrend line shows that the supply 51:31 has reduced and the change in Trend 51:33 could be expected if it breaks like this 51:34 it can go higher you got what I'm saying 51:37 bro I'm proud of you man you actually 51:38 hustling you're hustling right now you 51:40 got this let's freaking go hey you know 51:42 what let's just grab a drink I'm 51:44 grabbing more water you grab your drink 51:45 whatever you have just all right let's 51:47 do your chers we're in good we're 51:48 covering ground here this stuff makes me 51:50 happy man I can't you see I can I kind 51:52 of get like cheered up with this stuff 51:56 literally stuff makes me happy this is 51:57 what I do all day man I'm like a nerd 51:59 for this for I'm like a nerd for the 52:02 charts I go with charts all day I watch 52:04 charts all day this is what I do this is 52:05 what I do for living you see what I'm 52:06 saying I'm a full-time day trader and 52:08 the reason only reason why I'm able to 52:09 break it down so well is because I spend 52:12 whole day doing this stuff so I just 52:15 find out easy ways to kind of explain to 52:17 myself because I literally learn very 52:20 you know kind of giving examples to 52:22 myself so it becomes a little bit easier 52:23 for me to kind of break down and I've 52:25 talk let's get to it chart patterns fam 52:27 in this quick little thing we're going 52:29 to discuss chart pattern FAQs I'm sure 52:32 you have some questions we'll break them 52:33 down let's go over them okay now we 52:35 going over chart patterns what are chart 52:37 patterns chart patterns are foundational 52:39 building blocks of technical analysis 52:42 they replicate themselves in the market 52:43 time and time again and are almost easy 52:46 to recognize now what does that mean 52:49 this right here what is this kind of a 52:52 flag right this is a chart pattern flag 52:54 pattern pretty much much okay what is 52:57 this it's a double top see what I'm 53:00 saying this is a neckline price can 53:01 break below these are chart patterns 53:03 okay don't go confused it's fine I'll 53:05 give you some examples and I'll show you 53:07 how they kind of formed okay now what 53:08 time frames can I find these patterns on 53:10 who can like literally can they be used 53:13 for day trating the basic patterns 53:15 appear on every single time frame 53:16 therefore can be used by scalpers day 53:18 twitterers swing twitterers position 53:19 Traders and investors how many types of 53:21 chart patterns are there there literally 53:23 so many type of chart patterns F but 53:25 kind of like I'm breaking down into 53:26 three buckets I break them down to 53:28 reversal patterns that means where the 53:30 price is likely to reverse so if the 53:32 price is going up and I see a reversal 53:34 pattern that means the prices can move L 53:35 move lower the next one is called 53:37 continuation pattern that means like oh 53:40 this is formed and the prices can 53:41 literally shoot up after that and the 53:43 third one I like to call them bilateral 53:45 patterns which means it can go either 53:48 way like it can go towards the upside or 53:50 downside whichever okay now the 53:53 measurement of the chart patterns can be 53:54 used to to project the next price 53:56 movement and what Target to aim for 53:58 these patterns can either be traded 54:00 aggressively with less confirmation or 54:01 conservatively with more confirmation so 54:04 the rules of entry and exit can change 54:05 it's easy to calculate the reward risk 54:07 to reward for them which is important to 54:09 know before you enter a trade if you do 54:11 not here's the thing fam if you do not 54:13 know what you stand to lose you will 54:14 never be excited for whatever you make 54:16 or you'll never be a able to wait for 54:17 whatever you make because you don't know 54:18 how much you stand to lose a first place 54:20 boom right so if you know that you're 54:22 risking about 100 bucks so you know okay 54:24 I need to make more than $0000 like 54:26 that's how the game works okay but if 54:28 you do not know how much you stand to 54:29 literally lose how how much do you stand 54:31 to make you would not literally have any 54:32 idea so it's very important that we 54:35 literally go over risk and reward and um 54:37 if you just want to make money for 54:38 consistent period of time you need to 54:39 know your risk and reward for every 54:41 single trade okay I'm going to go over 54:43 the stuff in deep in detail as we move 54:44 along as well but just put this in your 54:46 head if you know your stop- loss there's 54:48 nothing that can hurt you in the stock 54:50 market okay all right now let's do one 54:52 really quick all right what do you see 54:54 right here 54:55 anything do you see any lines forming 54:57 what do you see anything no man what do 55:00 you see nothing just use your 55:01 imagination let your imagination kind of 55:03 take over in the top left corner of the 55:05 screen right here or the top right 55:07 corner of the screen Tesla the symbol is 55:09 called oh right here this is Tesla right 55:11 so this is what I see I saw this 55:13 particular thing second third fourth I a 55:17 few touches then at the bottom 1 2 3 4 55:21 okay so what I did I drew the lines like 55:24 this what does it look like now a pole 55:27 yes then I kind of Drew this which is a 55:30 pendant and the finally the breakout 55:33 boom you see what I'm talking about 55:34 right here fam so what do you see what 55:36 do I see I see a bullish literally I'll 55:39 put myself right here I see bullish 55:41 penet forming and break out to the 55:43 upside I you know there fancy names for 55:45 everything I just call everything a flag 55:47 pretty much I call everything a flag for 55:48 him I ain't going to lie okay these 55:50 prices shot past the green line and 55:53 which was a resistance and a shoot it up 55:55 if in this triangle if you're drawing 55:57 this correctly the prices will literally 56:00 go 9 out of 10 times at the end at the 56:02 ending stages of this triangle it's very 56:04 easier to kind of spot this and it's 56:06 called consolidation period you see this 56:08 this around here the trend is very wide 56:10 but as we approaching this little thing 56:12 is getting a little bit tighter like 56:14 getting a little bit tighter and then it 56:15 finally breaks out okay this is when the 56:18 volume trading participation is lower 56:20 because everybody's waiting for the 56:21 breakout people don't want to put no 56:23 money in like look at this volume nobody 56:24 want to put any money in after every 56:26 every period of consolidation a breakout 56:28 will take place a big consolidation like 56:30 such a big consolidation a big breakout 56:33 will take place all right will take 56:34 place you just want to know when where 56:36 how and why the breakout is happening 56:39 you need to catch the move you need to 56:41 catch a big trade right let's go over 56:44 this stuff now really quickly let me put 56:46 myself back in my original position 56:48 let's break this down all right now 56:50 Benet continuation pattern it's a 56:52 continuation pattern why because it goes 56:54 back in the original Direction parents 56:56 are very short-term continuation parents 56:58 they Mark a consolidation period and 56:59 literally it goes like this forms stuff 57:02 like this and go higher you can 57:04 literally pause this video and take a 57:05 screenshot of this okay this is what it 57:07 kind of goes like it's a pattern and 57:10 forms things like this it makes a big 57:12 move okay I like trading this you can 57:14 trade this on a 5 minute chart as well 57:16 all right it's simple okay next one is 57:19 flag same thing I like to call 57:21 everything a flag to me everything is 57:23 pretty much a flag I like to call 57:24 everything a flag all right continuation 57:26 pattern again same thing the 57:28 continuation patterns price kind of um 57:30 is in a little Channel right now and 57:32 then when it breaks we can catch a big 57:33 move for example right here it was form 57:36 a little flag pattern right here made a 57:38 big move now you can kind of look at 57:40 length of a and length of B I don't do 57:42 it this way personally it's cool easy to 57:44 say it like like this but it's very hard 57:46 to manage your trades with this so I 57:48 always use this on a smaller time frames 57:49 like 5 minute and I'll keep taking 57:51 profits I'll you know at the every 57:53 support and resistance levels and I'll 57:54 break break that down in my trading 57:55 secret which I'm you know moving forward 57:58 further down the course I'm breaking 57:59 down as well okay now bullish 58:01 symmetrical triangle what is this again 58:03 just a flag for me Fam you see what I'm 58:05 saying this pent looks similar to pant 58:07 and looks similar to the flag and what I 58:09 do it's a symetrical triangle um same 58:12 thing again looks like a flag and the 58:14 moment everything breaks out it should 58:16 break out with a lot of volume then 58:18 comes bearish symetrical triangle stocks 58:20 moving down then it kind of goes like 58:21 this again just another flag for me all 58:24 right same thing stocks moving down 58:26 another flag the volume picked up the 58:28 moment it broke out sweet low volume 58:31 during that little flag thing there's 58:33 low volume ascending triangle same thing 58:36 you see what I'm saying same thing it's 58:38 just like another flag it's just like a 58:40 flag that's forming on the charts for me 58:42 what happened like look at this a firm 58:44 holding right here just a big Freaking 58:47 Flag forming either to the downside or 58:49 through the upside whatever wherever 58:51 side it breaks I'm going trade that and 58:53 see what I'm saying that's how I trade 58:54 trade that's how I make money baby all 58:56 right and the volume at the breakouts 58:58 always going to be 58:59 high then the descending triangle same 59:01 thing another flag fam boom Another flag 59:05 moment it broke down boom I'mma make the 59:07 move volume picks up when it breaks down 59:10 you see what I'm saying then comes 59:11 bullish rectangle same [ __ ] hey keeping 59:14 it simple just a flag you see what I'm 59:17 saying just a flag Boom the moment it 59:19 breaks out the volume going to pick up 59:21 and you can catch this move right then 59:24 comes B rectangle same thing downside 59:26 flag forming bang you can catch this 59:29 move like forgot to change the image but 59:31 you got the point right it was just this 59:34 right then comes price Channel what is 59:36 the price Channel now fam now yes of 59:39 course I could have taken a lot of time 59:41 breaking the stuff down but my whole 59:43 point here is to make things easy for 59:44 you okay everything that's forming a big 59:47 move than making a little it's pretty 59:49 much a flag for me I don't like to make 59:51 my life hard I'm one of those dudes I'm 59:53 I like Simplicity man like I only wear 59:55 this black black T-shirt every day 59:57 reason it's not that I only have one I 59:59 have like probably 30 of them I just 1:00:01 don't like to show off too much like 1:00:03 simple man just simply city everywhere 1:00:05 it's the best okay it just keeps you 1:00:08 calm like here's the reason like before 1:00:09 we even start this now if I buy a fancy 1:00:12 toy if I buy a fancy toy for myself like 1:00:15 let's say a car first things I am using 1:00:17 the energy to buy the car because I do 1:00:19 not know anything about them second um 1:00:21 now I have the car now I need to 1:00:22 maintain the car there's more energy 1:00:23 going towards it third now I have the 1:00:26 car sitting in the garage collecting 1:00:28 dust I need to keep it clean the 1:00:29 maintenance the fourth I have it so I 1:00:32 need to drive it right more energy going 1:00:34 into it Fifth you're going to break down 1:00:36 then there's more energy going to go 1:00:38 into it uh registration Insurance all 1:00:40 this stuff no I don't do that crap I 1:00:42 haven't got time for that right I rather 1:00:44 chill man Uber goes everywhere I have a 1:00:46 car like normal car just like everybody 1:00:48 why simple I don't care if the car 1:00:50 breaks down that car breaks down I'll 1:00:52 just leave it on the side of the road 1:00:53 who cares you see what I'm saying cuz I 1:00:55 make every day I make more money than 1:00:56 how much the car cost pretty much think 1:00:58 about it for a minute why I value my 1:01:00 time too much I don't want to waste no 1:01:01 energy on nothing I rather spend time 1:01:03 with my family see what I'm say now 1:01:04 let's go over this price Channel price 1:01:07 channel is literally the trend line or 1:01:09 support line resistance line but in a 1:01:11 little pattern like this all right this 1:01:14 is called price channel for example you 1:01:16 see right here price Channel price broke 1:01:18 and literally broke for this 144 was 1:01:20 trading around 180 price Channel exactly 1:01:23 same thing is it was just a downside 1:01:26 thing I told you if the trend line 1:01:28 breaks you're going to make a nice move 1:01:29 up okay now then one next one is called 1:01:31 cup and handle pattern again crap I 1:01:34 don't like to look at a cup and handle I 1:01:36 like to just look at the last move 1:01:37 another flag you see what I'm saying 1:01:39 this is this is a overextended version 1:01:41 for no [ __ ] reason to confuse you 1:01:43 boom flag move up what happened it went 1:01:47 up because of a flag not because of a 1:01:48 [ __ ] cup you see what I'm saying it 1:01:51 just boom made a flag shoot up and not 1:01:54 because of the freaking no cup all right 1:01:56 everything is pretty much everything is 1:01:57 a flag for me all right now let's go 1:01:59 over reversal pattern this is where the 1:02:02 fun begins okay now reversal pents so 1:02:04 far we discussed the continuation pents 1:02:05 now we're going to discuss the reversal 1:02:07 pents and how do we spot them how do we 1:02:08 bank money on them let's start jump 1:02:10 straight into them now double top 1:02:12 reversal pattern double top and reversal 1:02:14 pattern so the left peak of the shoulder 1:02:15 right peak of the shoulder is sitting 1:02:17 literally um this is the this is the 1:02:19 shoulder one this is the shoulder two 1:02:20 sitting on the neck and this is a 1:02:22 support line or a neckline the moment 1:02:24 neck Clan breaks comes back retest makes 1:02:26 another flag toward the downside you 1:02:27 trade the flag boom in trading double 1:02:30 double top is name um of unique chart 1:02:32 patter in shape like an M okay like this 1:02:35 look at this if I zoom in right here 1:02:36 you'll see the flag forming again you 1:02:38 see this it went to retest this kind of 1:02:40 made a little flag boom left Peak right 1:02:42 Peak volume will pick up the moment it 1:02:44 breaks out and it'll make a nice move 1:02:46 down that's pretty much what it is 1:02:48 double bottom reversal pattern what a w 1:02:51 but towards the end it gives you a flag 1:02:52 you trade that okay at this kind of 1:02:54 brings it in your attention but you 1:02:56 trade the flag at the same time you see 1:02:58 what I'm saying again boom man I forgot 1:03:00 to change the image again my bad fam but 1:03:02 you got it man right just just um 1:03:05 reverse this all right now next one Head 1:03:08 and Shoulder right Head and Shoulder 1:03:11 what is this there's a left shoulder 1:03:12 there's a head there's a right shoulder 1:03:14 man I just look at the goddamn flag I'm 1:03:17 I do not make life heart I just look at 1:03:19 this flag I'm going trade the flag this 1:03:21 kind of brings stuff into my attention 1:03:23 but that's all I do then come this 1:03:24 reverse freaking Head and Shoulder same 1:03:27 I treat this as a flag and I trade that 1:03:29 you see what I'm saying that that's who 1:03:31 I am I just either this flag or either 1:03:34 this flag this can bring things to my 1:03:37 attention but I'm never kind of looking 1:03:38 at I'll never be like oh n let me make 1:03:40 my life hard nah let me keep my life 1:03:42 easy same another flag falling wedge 1:03:45 another flag it's just your flag you see 1:03:48 what I'm saying prices can move up right 1:03:50 then comes your Rising wedge another 1:03:53 flag the moment it breaks God damn you 1:03:56 catch that boom and what is this 1:03:58 rounding bottom but treat this another 1:04:01 flag you see what I'm saying things are 1:04:03 just there to confuse you so you never 1:04:05 become profitable I promise you half of 1:04:07 the [ __ ] that you hear on the internet 1:04:08 man it's just there to confuse you so 1:04:10 you never become profitable so literally 1:04:12 you become a commodity at the end of the 1:04:14 day I'm I'm going to give you the real 1:04:15 Source all right because I love you all 1:04:16 right go out there and make some [ __ ] 1:04:17 money why not I come from literally no 1:04:19 money I come from India and I moved here 1:04:21 2018 January 2018 to a new country by 1:04:24 myself all new and I built this by 1:04:26 myself nobody [ __ ] helped me yeah of 1:04:28 course I learned from a lot of YouTube 1:04:29 channels of course I always give credit 1:04:31 to everybody who kind of helped me when 1:04:32 I was down by the end of the day fam I 1:04:34 was I helped myself because I watched 1:04:36 the YouTube video like you're helping 1:04:37 yourself right now by watching this 1:04:39 YouTube video you see what I'm saying my 1:04:41 only goal for you is to go out there 1:04:42 [ __ ] bring some money fam all right 1:04:44 why not because you and your mama 1:04:46 deserve to live good all right next this 1:04:48 is like another thing to confuse you top 1:04:50 one top two top three man this is too 1:04:52 much triple top [ __ ] four top five 1:04:54 diamond pattern that pattern that pad n 1:04:56 [ __ ] that man make keep your life easy 1:04:58 fam you see what I'm saying people look 1:05:01 at oh this's a diamond patter this is a 1:05:02 [ __ ] this patter this is this 1:05:04 hexagram 1:05:05 patter man I I look at this I'm like man 1:05:08 what the heck are you guys own to be bro 1:05:10 keep it simple all right because 1:05:12 Simplicity is where money is all right 1:05:14 now in the next one we're going to go 1:05:15 over how to trade using technical 1:05:18 analysis and this is the fun pit all 1:05:21 right this is where the fun begins how 1:05:22 to trade using technical analysis and 1:05:24 this is where the money making topics 1:05:26 start all right and we about halfway in 1:05:29 and maybe maybe a little more than half 1:05:31 maybe less than half but be about 1:05:33 halfway in and you're doing good pause 1:05:34 the video go out and um you know get a 1:05:37 drink or maybe even do it tomorrow who 1:05:39 cares cuz I'm now I'm sitting down I'm 1:05:41 just going to just smash this but you 1:05:43 can just pause the video I'll see you in 1:05:44 a minute so now in this particular part 1:05:47 of the video we're going to go over how 1:05:49 to trade using technical analysis we'll 1:05:51 break it down what does that matter and 1:05:53 how to kind of make money using this 1:05:55 stuff all right let's go over this now 1:05:57 first things first so far we spoke about 1:05:59 candles we spoke about time frames we 1:06:01 spoke about charts we spoke out chart 1:06:03 patterns candlesticks supports 1:06:04 resistance trend lines all the stuff 1:06:06 Candlestick patterns this that a lot of 1:06:08 stuff now let's talk about how you can 1:06:10 put all this into perspective and see 1:06:12 how it would all be looking on the 1:06:13 charts how we can make money using this 1:06:15 technical analysis now you know 1:06:16 candlesticks how do we put candlesticks 1:06:18 together how we use everything together 1:06:20 all right so first things first what is 1:06:21 technical analysis Technic analysis is 1:06:23 the means of examining and predicting 1:06:25 price movement in the financial Market 1:06:27 using history of the charts and Market 1:06:29 statistics it's basically just looking 1:06:31 at the charts and be like all right you 1:06:33 know what I think Market can go up it is 1:06:35 based on the idea that Trader can 1:06:36 identify previous Market patterns that 1:06:39 can reasonably predict future price 1:06:41 trajectories in technical analysis we do 1:06:43 not look at the company statistics all 1:06:46 we care about is charts like I don't 1:06:48 even care what the name of the company 1:06:49 is I just want to trade it that's it man 1:06:51 you can give literally v i l I'm happy 1:06:54 to some if bro I'm happy to do this 1:06:56 challenge put me in a room put me in a 1:06:57 room give me a trading account every 1:06:59 single day don't even tell me what the 1:07:00 name of the stock give me $10,000 I can 1:07:03 turn the $10,000 to $100,000 don't even 1:07:05 tell me the name of the stock you see 1:07:07 what I'm saying I can turn 10 to$ 1:07:09 100,000 as soon as possible all I care 1:07:11 about charts if there's no trade setting 1:07:13 up I'm not taking a trade if there's a 1:07:14 trade setting up I'm making sure I'm 1:07:15 taking a trade that's how I trade you 1:07:17 see that's how I make money what is 1:07:19 technical analysis you got it right 1:07:21 let's go over the next bit which is a 1:07:24 bit more in detail technical analysis 1:07:26 all right now what is this right here 1:07:28 this is a support this is a resistance 1:07:30 right here at the Top This is a support 1:07:32 right here at the bottom which is 1:07:34 getting holded next day the moment of 1:07:36 Break made a next move up now the 1:07:38 example here is of AMD break of 1:07:39 resistance level of 149 after the stock 1:07:43 pushed all the way down to literally all 1:07:44 the way up to 15 2.59 you see the stock 1:07:47 price is moved higher as soon as we 1:07:48 broke the resistance as the P took over 1:07:50 and made the price push like crazy right 1:07:53 here what happened happened this is the 1:07:54 resistance literally the support level 1:07:56 that you see right here what happened 1:07:58 the example is of Tesla break of support 1:07:59 level of 1,1 149.6 6 after the stock 1:08:02 dipped down to literally 1,30 you see 1:08:05 what I'm saying big move down that's 1:08:08 even 1, that's a big move down like God 1:08:11 damn that's $120 move down you see the 1:08:14 stock price literally moved lower as 1:08:15 soon as it broke the support and the 1:08:17 literally the sellers took over all 1:08:19 right now let's talk about a trade that 1:08:21 I found from A to Z and how I was able 1:08:24 to capitalize on it all right this trade 1:08:26 we found from literally the starting to 1:08:28 finish and how much money I made I think 1:08:30 this was probably the biggest trade um 1:08:32 that I took at the time when I was like 1:08:34 literally sitting down um finalizing 1:08:36 this stuff or when maybe the first trade 1:08:39 that I made most amount of money on yeah 1:08:41 kind of now this was in last week of 1:08:43 June I was scanning for trades I noticed 1:08:45 on Amazon there was a clean resistance 1:08:47 line on weekly chart this is a weekly 1:08:48 chart I noticed there's a clean 1:08:50 resistance line on a weekly chart where 1:08:52 it retested over and over again 35 54 1:08:55 multiple times already like boom boom 1:08:58 boom boom boom boom I'm like damn this 1:09:00 looks good straight away I knew that I 1:09:02 discovered a cold mind this is it see 1:09:04 what I'm saying now I then went to the 1:09:06 daily chart to kind of getting zoomed in 1:09:08 version of what's happening just to see 1:09:10 if I you know if I see a little bit 1:09:11 little bit better on the daily chart it 1:09:13 looked like this like daily chart weekly 1:09:15 chart man I'm like God damn this really 1:09:18 looks clean you see what I'm saying this 1:09:20 really does look clean now the time had 1:09:22 come I was very very ready for the 1:09:24 Amazon to for a big move Above This 1:09:27 3554 I knew if that breaks towards the 1:09:29 upside going to make a nice move up this 1:09:31 is what happened fam Boom the market 1:09:33 opened it broke Above This 3554 went all 1:09:36 the way up to 1:09:37 3685 now let's see how this play went 1:09:39 Amazon broke the resistance by stepped 1:09:41 in and sent it flying all the way up to 1:09:42 3685 from 3554 that's a $132 move this 1:09:47 play was a textbook play I had one of my 1:09:50 biggest days as I was able to catch this 1:09:51 whole move with a big size now it's up 1:09:53 up to you that you want to call me lucky 1:09:56 or you want to call that I was just very 1:09:59 prepared my preparation met the 1:10:01 opportunity I made about 1:10:03 $149,000 on this particular trade back 1:10:05 in the day you see what I'm saying cuz I 1:10:07 caught this big move how did I discover 1:10:09 this move I found this on weekly then I 1:10:11 found it on daily I'm like damn I'm 1:10:13 ready for this now you see how I saw the 1:10:15 opportunity showed you exactly how I 1:10:17 planned my trade and printed money on it 1:10:18 let me show you more all right look at 1:10:20 this so during the premarket I realized 1:10:22 Netflix had a very very strong day 1:10:24 before now we have a strong resistance 1:10:26 level sitting at 666 check the photo 1:10:29 around here right I'm like damn this 1:10:31 looks good but I was fully ready for the 1:10:32 trade and knew it if we went above 666 1:10:35 it can make a crazy move again very easy 1:10:37 here's how it went ready to go the 1:10:39 moment Netflix broke Above This is money 1:10:41 fam the moment Netflix broke above 666 1:10:44 buyas took over as soon as we broke 1:10:46 above 666 they push it all the way up to 1:10:48 676 before having any sort of pullback 1:10:51 now that's a $10 move in about 25 5 1:10:53 minutes the momentum buying picked up 1:10:55 the sellers moved away and Netflix paid 1:10:57 me fat as you see right here man all I 1:10:59 did was like from like I just looked at 1:11:01 Key support and resistance levels they 1:11:03 can be very accurate can be very very 1:11:05 profitable enter read the confirmation 1:11:07 that the stock has either flushed out or 1:11:08 literally taken out the levels if 1:11:10 sellers have stepped down and pies have 1:11:11 taken over the bullish momentum will be 1:11:13 strong if literally and all the sellers 1:11:15 have moved aside and only way to see if 1:11:17 the sellers a m side is you literally 1:11:18 wait for your critical level to break 1:11:20 that usually means the buyers are taking 1:11:21 over okay now that's how you make money 1:11:24 like this fam this is how you use 1:11:26 technical analysis this is how we make 1:11:27 money you see what I'm saying so easy 1:11:29 it's so easy but people make it so 1:11:31 complicated don't have to be complicated 1:11:32 making money can be easy so keep it easy 1:11:35 man I promise you you will make more 1:11:36 money all right now let's go over some 1:11:38 glossery for options so let me break 1:11:40 down some stuff about option trading 1:11:42 that I use every single day all right 1:11:44 now I thought it would be perfect time 1:11:46 for me to kind of break down some basic 1:11:47 key terms that I used in trading options 1:11:49 every single day so let me break that 1:11:51 down the first one is the receipt of an 1:11:53 option option 1:11:54 exercise whatever I like to I'll just 1:11:56 give you an example of literally think 1:11:59 of it as a coupon the coupon that you 1:12:01 got get that's pretty much what an 1:12:03 option contract is so you have a coupon 1:12:05 for $2 then you can have a hot dog and 1:12:08 the coupon expires December 25th okay so 1:12:10 when you go to that stand you see um hot 1:12:13 dogs are seven bucks so you take your 1:12:14 coupon out you're like yeah and they 1:12:16 give you for the $2 that's options how 1:12:19 that means you have this and the seller 1:12:21 the seller of the hot dog has to sell 1:12:23 tell you the hot dog at $2 because he 1:12:25 promised to do so because the coupons 1:12:27 doesn't matter what the price is now 1:12:29 same thing if you buy option contracts 1:12:31 and you and you want to literally nobody 1:12:33 like we don't we just trade premiums but 1:12:35 if you want to exercise those option 1:12:37 contracts right if the price you bought 1:12:39 them at 100 and the price went to 500 1:12:41 you want to exercise them that means 1:12:43 whosoever sold you he gave you a coupon 1:12:45 that you can buy 100 shares at $100 each 1:12:48 so it doesn't matter what the price is 1:12:49 he still have to sell you at 100 right 1:12:51 doesn't matter what the price of a hot 1:12:52 dog is he still have to have to sell you 1:12:54 at $2 that's pretty much what it is okay 1:12:56 don't get over over complicated don't 1:12:58 over complicate every option controls 1:12:59 100 shares that's just easy okay now the 1:13:02 relationship between strike price and 1:13:04 the current stock price an option is at 1:13:06 the money when the stock price is equal 1:13:07 to the strike price for example if stock 1:13:10 price is at 100 and you want to do calls 1:13:13 okay the $100 strike $100 strike price 1:13:16 on options will be at the money because 1:13:18 it's right sitting at the stock price 1:13:20 101 will be out of the money 9 99 will 1:13:24 be in the money okay because price is 1:13:27 100 so that's in the money it's already 1:13:29 inside the money right now cuz if you 1:13:30 buy that that's like a coupon code that 1:13:32 you buy for two that you get for two um 1:13:34 the $2 coupon code when the price is 1:13:36 already $3 that's in the money coupon 1:13:38 code but if you get it for $3 when the 1:13:40 price is already three but you're hoping 1:13:42 maybe in future it goes up that's at the 1:13:44 money but out of the money is you 1:13:46 literally go let me buy a coupon code 1:13:47 for $7 but price right now is3 you're 1:13:51 expecting that by the time I use it 1:13:52 maybe the price of this particular thing 1:13:54 will be $10 you see what I'm saying 1:13:56 that's that's simply what it is fam 1:13:58 right don't no need to over complicate 1:14:00 none of this stuff all right a call is 1:14:01 one type of an option for each contract 1:14:03 you buy you have the right to purchase 1:14:06 under shares again you have the right 1:14:08 you can either choose to exercise or you 1:14:09 can just be like that I don't want to 1:14:11 exercise nothing right now after this 1:14:13 date a listed option price contract 1:14:15 cease to exist there's a um expiry point 1:14:17 for those option contracts and after 1:14:19 that there's literally the those 1:14:22 particular things are expired the coupon 1:14:23 codes expires okay you get my point now 1:14:27 if you can go out there and try to learn 1:14:29 more about these options and what it 1:14:31 means there's actually 4 and 1 half hour 1:14:34 course I think 4 and 1 half hour course 1:14:36 that I have on literally YouTube sitting 1:14:38 there for free you can watch that learn 1:14:40 everything that you need to know about 1:14:42 options all right if you have no idea 1:14:45 about options go watch that break that 1:14:46 down into like seven different days so 4 1:14:49 hours how long is that 240 plus 10 1:14:51 minutes on top maybe 250 hours break 1:14:53 into 10 different days you only need to 1:14:55 watch like 25 minutes a day you'll be 1:14:57 able to finish the video you see what 1:14:58 I'm saying so if you want to go and 1:15:00 finish that sweet because there's 1:15:02 literally no point in me going over 1:15:04 options again cuz I'm just going to give 1:15:05 you some glossery and then you'll be 1:15:07 maybe even more confused let's keep it 1:15:09 towards stocks yeah I think so too if 1:15:11 you want to learn more about options go 1:15:13 and enjoy that video after finishing 1:15:16 this video okay you got it but I 1:15:17 explained you what is the meaning of 1:15:19 option contract and the coupon codes and 1:15:20 stuff I'll just give you a little um 1:15:22 little head start now but options 1:15:23 options can look more complex than it is 1:15:26 if you're looking at simple option 1:15:27 trading it's something goes like this 1:15:28 option trading is trading instrument 1:15:30 that gives you right to buy da d d this 1:15:32 is like complicated version option 1:15:34 simply man in simple words think about 1:15:35 this options are calls that you're 1:15:37 betting that the price is to go up puts 1:15:38 you're betting the prices to go down now 1:15:40 you do not have to literally exercise 1:15:42 your contracts literally the premiums if 1:15:44 the stock goes from $100 to 101 premium 1:15:47 will move from 110 to let's say 150 that 1:15:49 means this 40 cents which is $40 profit 1:15:53 Prof it on every single contract that's 1:15:55 pretty much what it is all right that's 1:15:57 all the two different types of options 1:15:58 called inputs boom okay no need to over 1:16:01 complicated what is a put option put 1:16:03 option just means that you're betting 1:16:04 that the prices can go down yes you can 1:16:06 make money when the prices go down I 1:16:08 promise you all right how does option 1:16:10 trading work man option trading is 1:16:11 simple option trading you can literally 1:16:13 do off your broker I personally use 1:16:14 interactive brokers and what is it 1:16:16 buying a call buying a call Simply means 1:16:19 you're betting that the price is to go 1:16:20 up that's all it is you see what I'm 1:16:22 saying that's simple now what is buying 1:16:25 a put just go over this stuff if you 1:16:27 want to go watch the video that I told 1:16:29 you to go watch um but how are options 1:16:31 priced options are priced calculated by 1:16:33 different models by The Roots it's just 1:16:35 intrinsic value and time value you might 1:16:37 be getting confused a lot right now so 1:16:38 what I'll do is you can take a 1:16:40 screenshot if you already know what 1:16:41 options are sweet if you do not know 1:16:42 have any idea what options are after 1:16:44 this video I'll put the link in the 1:16:45 description box below and go watch the 1:16:47 video all right now this is where the 1:16:49 money begins Fam I'm going to go over 1:16:50 how a day trade I believe in the saying 1:16:53 that if you give a man a fish you feed 1:16:56 him for the day but if you teach him how 1:16:58 to fish you feed him for life I just 1:17:00 want to feed you for life boom so my 1:17:02 goal right now is to give our real 1:17:04 information for you who I believe have 1:17:05 the potential to literally do something 1:17:07 big and great for your families if 1:17:09 you're here man rather than going out 1:17:11 there and watching Netflix or freaking 1:17:13 Showtime or freaking anything else bro 1:17:16 you have what it takes okay if you're 1:17:18 watching an hour and a half into this 1:17:20 video you know what to do all right so 1:17:21 take out some pen and paper because I 1:17:23 will give you exactly everything that I 1:17:25 do all right from my pre-market to 1:17:27 during market and after hours schedule 1:17:30 I'll break everything down into three 1:17:31 different steps for ease of 1:17:32 understanding for you all right let's go 1:17:34 over this stuff step one for me 1:17:36 personally everything starts with a 1:17:37 pre-market times I will come to my 1:17:40 office around 8:00 a.m. eastern time the 1:17:41 first thing I do is I open up my news 1:17:43 platform my news platform is 1:17:46 google.com so simple but so confusing 1:17:49 you do not need to pay man keep your 1:17:51 life simple you don't need to pay 1:17:53 [ __ ] some platform to give you news 1:17:56 google.com I read all the news that I I 1:18:00 feel comfortable trading and these are 1:18:01 the only stocks that I feel comfortable 1:18:03 trading you know how I search news I'll 1:18:04 just put this dollar sign spy that's it 1:18:07 that's all I do gives me the news then I 1:18:09 put QQQ news so basically what I do is 1:18:12 I'll read all the news till one uh 1:18:14 literally half an hour now the question 1:18:15 you may ask is why read the news now 1:18:18 it's necessary to read the news from 1:18:19 overnight to see if anything important 1:18:21 has occurred and how it may impact 1:18:23 Market sentiment surrounding each stock 1:18:25 now I open my trading view charts with a 1:18:27 1 hour time frame to start this 1:18:29 literally start the charts all right 1:18:31 secret tip I learned this tip from 1:18:33 somewhere I don't exactly remember but 1:18:35 secret tip most money most most smart 1:18:37 money uses one hour charts to find out 1:18:39 the supply and demand zones on the 1:18:40 charts most of them use 1our charts and 1:18:43 uh smart money is the big hedge funds 1:18:45 okay big hedge funds Big Money 1:18:47 Management so I'll show you some 1:18:48 examples of how easy it is to determine 1:18:50 critical supply and demand areas using 1 1:18:52 hour chart okay you ready for it now we 1:18:55 have read some news we know news is good 1:18:57 now we can literally go over our 1 hour 1:18:59 chart and we can draw some levels and 1:19:01 I'll show you how easy it is to kind of 1:19:03 draw and determining these critical 1:19:06 levels it's easy all right let's go with 1:19:08 this Nidia 1:19:10 298.2 determined pre-market dumped to 1:19:13 28a Boom this is where the level came 1:19:16 from Spy this is where the level kind of 1:19:18 came from in the pre-market boom spy we 1:19:21 determined this level it went to this 1:19:23 Apple Amazon 1:19:26 3119 man I I forgot to change the charts 1:19:28 e forgot to change the charts again um 1:19:30 Amazon same thing we drew the level and 1:19:33 it dumped okay Shopify what happened we 1:19:35 determined the level from the pre-market 1:19:37 don't make it hard man people go back 1:19:39 too much man don't make it hard just 1:19:41 keep it so simple this is how you can 1:19:42 make money you see what I'm saying now 1:19:44 what happened meta we determined this 1:19:46 level all right 326 from the pre-market 1:19:49 and it literally went to about 333 from 1:19:51 what I remember all right then then 1:19:53 Netflix 665 determined where they go 1:19:57 this is where it came from man critical 1:19:58 levels come from right here on the 1:19:59 charts where they go 685 680 plus you 1:20:02 see what I'm saying again Netflix 1:20:05 determined we determined this level the 1:20:07 moment it brokes it went down to 596 so 1:20:09 these are just examples of a couple days 1:20:11 I do this scan every single day of every 1:20:13 single year now I've been doing this 1:20:14 literally from a long time now and they 1:20:16 have never ever L to they always got my 1:20:18 back so cheers all right this is a step 1:20:20 one step two now comes is after we have 1:20:23 determined all the key levels in our 1:20:25 pre-market now we have to know how to 1:20:27 trade those in real time now considering 1:20:29 how key these levels are man I've been 1:20:31 trading for for a while now um I mostly 1:20:34 enter the first break the moment I see a 1:20:35 break I will enter most individuals wait 1:20:37 for one or five minute chart to kind of 1:20:39 um you know close above verify but [ __ ] 1:20:41 that after 1 to 5 minutes I'm already 1:20:43 taking some profits while you're still 1:20:44 considering an entry as soon as the 1:20:46 stock breaks the key level I pre-planned 1:20:48 in the pre-market I enter straight away 1:20:49 as long as this Fallout volume from 1:20:51 false breakouts will happen but it's not 1:20:52 a big deal if you know how to cut stop 1:20:54 loss okay so now take a look how this 1:20:57 kind of would have gone let's go now 1:20:59 Netflix entry at 665 with strong volume 1:21:01 right boom look at the volume big move 1:21:04 right Nvidia entry 298 point with strong 1:21:07 volume look at this volume went up right 1:21:10 and these examples are very very simple 1:21:11 man this is like I to straight away most 1:21:13 of the time they bring big moves big 1:21:15 money in the stock okay now step three 1:21:18 is profit taking now planning your exits 1:21:20 is one thing man but if you do not know 1:21:21 how to actually get out of the trades 1:21:23 you're going to be struggling a lot I'll 1:21:25 show you some methods that I exit my 1:21:27 trades with on strong volume days I like 1:21:29 to enter with some size and take First 1:21:31 like if I entered 50 contracts right 1:21:33 here that I was watching 326 level that 1:21:35 I showed you back um few slides ago I'm 1:21:37 taking like 50% off look at this I 1:21:40 exited 30 contracts at 327 then I exited 1:21:43 another five another five another five 1:21:45 another three another two that's what I 1:21:46 do you see like slowly you get what I'm 1:21:49 saying if you're only playing with one 1:21:50 or two contracts I would recommend 1:21:52 having a mental trailing stop- loss 1:21:53 holding the winners for rest of the move 1:21:56 okay just add a mental loss so okay 1:21:58 closed above 327 if it closes below 327 1:22:00 I'll get out I close above 328 if it 1:22:02 closes below I'll get out boom boom boom 1:22:04 boom boom you catch a big move okay one 1:22:06 way you can ensure that the stock is in 1:22:07 an uptrend if the price is holding 8 and 1:22:09 21 EMA on its way on the 5 minute chart 1:22:14 okay if it's holding 2 8 EMA or 21 EMA 1:22:18 on a 5 minute chart that's what I like 1:22:20 see what I'm saying just remember the 1:22:21 indicators are all leg the most 1:22:23 effective way to kind of go about is 1:22:25 reading level two and time sales okay 1:22:27 now I'll show you how to read the chart 1:22:30 like the whole thing man okay here's the 1:22:31 thing the three steps people make it too 1:22:33 complicated man the three steps are very 1:22:36 very very simple okay the first step is 1:22:39 I read the news every single day the 1:22:40 moment I come to this literally my 1:22:42 office you know the first thing that I 1:22:43 do I read all the news why why do I like 1:22:46 to read the news because I want to know 1:22:47 if anything happened overnight that can 1:22:48 literally change the trajectory of the 1:22:51 stocks that I'm I want to trade so when 1:22:53 I read the news then I draw some levels 1:22:55 and I keep it simple then what I do then 1:22:57 I like wait for an entry with a lot of 1:22:59 volume then what do I do then I like to 1:23:01 take some profits as it goes higher of 1:23:03 course stop loss will get triggered 1:23:05 sometimes but if you know where to get 1:23:06 out you can't get hurt you see what I'm 1:23:08 saying the stop losses usually are if 1:23:09 the critical level is trying to break 1:23:11 and it you know it couldn't close above 1:23:13 or anything or if I entered and it made 1:23:15 a false breakout I'll just jump it out 1:23:17 that's it all right now risk management 1:23:19 the fun topic okay we all like this risk 1:23:22 management right risk management what is 1:23:24 risk management risk management is the 1:23:26 process of identifying risk and limiting 1:23:28 it as much as possible just identifying 1:23:32 how much you stand to lose and limiting 1:23:34 how much you stand to lose is what risk 1:23:36 management is managing risk helps limit 1:23:39 losses and protect Traders from blowing 1:23:41 their accounts man trading is surrounded 1:23:43 by risk so you need to literally try to 1:23:46 diminish the risk as much as possible 1:23:49 what are the common size that you you 1:23:52 are are not following any risk 1:23:54 management common size that show you do 1:23:56 not have risk management you're risking 1:23:57 more than you potentially making you 1:23:59 have no plan you end up holding your 1:24:01 trades ever done it you are risking more 1:24:04 than you're potentially making you have 1:24:06 no plan on a trade how to enter how to 1:24:08 exit you end up holding on to your 1:24:09 losing trade and selling your you know 1:24:11 winning trade you dump all your money in 1:24:13 every trade without knowing how much you 1:24:15 will potentially lose if you're wrong 1:24:18 you see what I'm saying your positions 1:24:19 are way too large which leads to 1:24:21 significant Los es all it takes is one 1:24:24 trade to literally destroy your whole 1:24:26 account if you use see literally man if 1:24:28 you see yourself doing any of this thing 1:24:29 please stop you're not a Trader but more 1:24:31 of a gambler so hey this is for you so 1:24:34 make sure you go out and take some notes 1:24:37 okay now what are the components of risk 1:24:39 management first thing is you need to 1:24:41 identify risk the first component of 1:24:43 risk management is know what you stand 1:24:45 to lose at first thing okay now risk to 1:24:48 reward ratio the next step is to 1:24:50 establish our risk to reward ratio sure 1:24:52 does this trade make sense for us to 1:24:54 take how much are we risking to make 1:24:56 what are we anticipating how much is the 1:24:58 risk man do I even want to take this 1:25:00 risk H nah yeah all this all right so if 1:25:04 you think oh I'm risking about 30 cents 1:25:06 on this particular trade but it has a 1:25:07 potential to make me $5 that's a 1:25:10 beautiful risk to reward but if you 1:25:11 think oh this trade can literally make 1:25:13 me 30 cents but um the risk is 30 cents 1:25:16 but the reward is about 15 cent would 1:25:18 you take this trade no risk to reward 1:25:20 ratio okay position sizing during this 1:25:23 step you need to calculate how many 1:25:24 contract shares you can trade based on 1:25:26 your risk per account size man if you 1:25:28 have a $1,000 account you see I'm saying 1:25:30 if you have a 1,000 account your 1:25:31 position size should be 200 to 300 you 1:25:33 have a small account that's your 1:25:34 position size so risk would be like 20 1:25:36 to 40 or 50 bucks or whatever 10 20% now 1:25:39 then you need to manage your risk this 1:25:40 is where you execute the trade embrace 1:25:43 the risk hey you need to jump in at the 1:25:46 end of the day if you do not jump into a 1:25:47 trade you never [ __ ] make no money 1:25:49 because you you need to be in it to win 1:25:51 it you see you need to risk it for the 1:25:53 biscuit at the end of the day all right 1:25:55 now what is risk to reward ratio the 1:25:57 risk to reward ratio is the difference 1:25:58 between the potential profit versus 1:26:00 potential loss risk how much are you 1:26:02 willing to lose if this trade doesn't 1:26:04 work out reward how much will you make 1:26:05 if this trade worked out as expected 1:26:07 before you enter every trade there are 1:26:09 three things you must know where are you 1:26:12 expecting to take profits where are you 1:26:14 expecting to enter where would you take 1:26:16 a loss if this doesn't work you see what 1:26:19 I'm saying there's three things that I 1:26:21 always like to know if this is my entry 1:26:25 this is my let's say stop- loss and this 1:26:29 is like 30 cents profit Target is about 1:26:34 80 cents or 90 1:26:38 cents make calculations easy and this is 1:26:40 the profit Target that I have so I'm 1:26:42 risking about 90 Cent I'm I'm risking 1:26:45 about 30 cents to make 90 cents so my 1:26:49 risk is 30 cents my reward 1:26:52 is 9 cense that means I have 1 to three 1:26:55 risk to reward ratio think about it that 1:26:57 means I'm risking $1 to make three 1:27:00 that's good that's very good you see 1:27:02 what I'm saying that's why you need to 1:27:03 know where where you looking to take 1:27:05 profits where you're entering where your 1:27:06 stop loss okay now what is a good risk 1:27:08 to reward ratio a good risk to reward 1:27:10 ratio is anything greater than two or 1:27:12 where you are risking $1 to make at 1:27:14 least $2 how can I calculate position 1:27:17 sizing to calculate proper position 1:27:18 sizing you need the following total 1:27:20 trading Capital well how much money do 1:27:22 you have in your trading Gap trading 1:27:23 account the percentage of your account 1:27:25 you wish to risk the stop- loss area on 1:27:27 every single trade generally speaking 1:27:29 you should not risk more than 2% of your 1:27:31 entire trading capital on any given 1:27:33 trade now 2% I do not mean I simply mean 1:27:36 2% the risk I don't mean position size 1:27:39 if you have $10,000 in your trading 1:27:42 account and you know that's like a 1:27:44 decent size trading account if you're 1:27:45 $10,000 in your trading account and 1:27:48 that's actually very good amount of 1:27:49 money to trade 2% of this what is this 1:27:51 200 bucks don't risk more than 2 to 300 1:27:52 bucks now that means your position size 1:27:54 can be $1,000 but if you're risking 1:27:57 about 2% that means you need to be 1:27:58 making if you're risking 200 bucks that 1:28:00 means you need to be making $ $500 per 1:28:02 trade right that's how the risk of 1:28:03 reward makes sense otherwise the risk of 1:28:05 reward don't make sense you see what I'm 1:28:06 saying now if you have 5K in your 1:28:08 trading account you should not risk more 1:28:09 than $100 that means the position size 1:28:11 would be 500 bucks and 20% of 500 is 1:28:14 like 100 bucks all right if you know the 1:28:16 strategy like if you know how to trade 1:28:18 if you know the strategy if you know how 1:28:19 to control the risk and everything um 1:28:21 like I teach my students how to kind of 1:28:23 control the risk and all the sort of 1:28:24 stuff that they need to know bro they 1:28:26 can literally take ,000 position size on 1:28:28 their $5,000 account and they can 1:28:29 literally take their account from 1:28:31 wherever they are to making about $1,000 1:28:33 a day every single day you see what I'm 1:28:34 saying it's all about how confident you 1:28:36 are in your trading setup right now your 1:28:38 position size can be 1,000 2,000 but 1:28:40 don't try to lose any more than $100 1:28:43 right have risk management plan is 1:28:44 essential now what is position size in 1:28:47 we broke down this whole thing 1:28:48 positioning number of shares or 1:28:50 contracts that you can trade based on 1:28:51 total number of risk that you're based 1:28:52 on account size dumb Traders dump their 1:28:55 entire trading account in one trade 1:28:57 whereas smart Traders know how much 1:28:58 Capital are they going to put in each 1:28:59 trade okay what is a risk management 1:29:01 plan a risk management plan helps you 1:29:03 limit your losses and draw Downs by 1:29:06 setting rules and guidelines you need to 1:29:08 have rules you need to have guidelines 1:29:10 that's how you're going to make money 1:29:11 otherwise you make no money okay now 1:29:13 what is the risk reward ratio identify 1:29:15 your risk tolerance the first thing you 1:29:17 need to do in this what's your risk 1:29:19 tolerance maybe you feel comfortable 1:29:20 like I see some people they lose $100 1:29:23 they're like man my life is so [ __ ] bro 1:29:25 if you feel that way cool that means 1:29:27 don't lose any more than 100 cuz you'll 1:29:29 like that's it you're done you see what 1:29:31 I'm saying if you feel like $100 is a 1:29:33 lot of money to lose that's your risk 1:29:36 tolerance maybe lose 50 don't lose any 1:29:38 more than that all right like this is 1:29:39 what always surprises me about people 1:29:42 they think $100 losing $100 is a lot of 1:29:43 money they don't want to risk $100 but 1:29:45 they want to make a million dollars I 1:29:46 mean bro the numbers don't make sense to 1:29:48 make million to make millions you got to 1:29:50 risk thousands all all right tens of 1:29:52 thousands but to make hundreds you risk 1:29:55 hundreds you see what I'm saying to risk 1:29:57 to make thousands you got to risk 1:29:58 thousands so make sure you have 1:30:00 realistic goals as well you can't be 1:30:02 literally I'm not one of those people 1:30:04 who going to tell you oh you can take 1:30:05 your $1,000 trading account to a million 1:30:07 dollars in matter of a year no you can't 1:30:09 do that [ __ ] yeah no that not how it 1:30:11 works right decide how much do you want 1:30:14 your risk reward to be on each trade 1:30:16 risk reward ratio to be on each trade 1:30:19 give it your give you man I will not 1:30:20 take any trade that doesn't give me 1 to 1:30:22 four personally for me I'm even happy 1:30:24 with one to one you see what I'm saying 1:30:26 I'm happy to risk a dollar to make a 1:30:27 dollar why because I know my strategy 1:30:30 Works about 85% of the time that means 1:30:33 even if I lose let's say if I lose a 1:30:34 dollar and I make a dollar okay times 85 1:30:37 times it works 15 times it doesn't work 1:30:39 when it works I make $85 out of 100 1:30:41 trades 15 times it doesn't work I lose 1:30:43 15 that means I still profitable $70 1:30:46 because my win rate is high I'll still 1:30:48 be profitable so I'm even happy with one 1:30:50 to one you see what I'm saying decide 1:30:51 how how much do you want to risk per 1:30:53 your trading account then you need rules 1:30:55 for your plan and then keep tracking 1:30:56 them and keep tuning them all right you 1:30:58 need to sit down make a rules very very 1:31:00 important now my risk management rules 1:31:02 my general rule to follow is 3:1 this 1:31:05 rule can be used like this is the rule 1:31:07 that I always teach everybody but I 1:31:08 teach my students this rule can be used 1:31:10 in many distinct ways if you long Nidia 1:31:12 at 250 with 3 to1 RIS to reward and your 1:31:15 profit taking is 253 and a stop loss is 1:31:17 at $249 it can also be used if you buy a 1:31:20 contract and you take profit at 30% or 1:31:22 cut stop loss at 10% the more you are 1:31:24 right the more you can risk man period 1:31:26 you see what I'm saying consistency is 1:31:28 everything in trading now someone 1:31:30 someone personal ways to reduce risk I 1:31:32 buy always buy into small position 1:31:35 sizing right I always buy small position 1:31:37 sizes see what I'm saying that's how I 1:31:39 do what I do I buy small position size 1:31:42 and I make a lot of money okay I buy 1:31:44 boom then I'll add more I add more add 1:31:46 more as the Stock's moving High I'm 1:31:47 adding more does it make sense now then 1:31:50 I want to take profits about like 10 to 1:31:53 20% I take some off that's just me I 1:31:55 want to take some off I want to pay 1:31:56 myself for trying to find this beautiful 1:31:58 setup that I found okay I only enter the 1:32:01 trades that I'm confident in I never 1:32:03 ever over trade if I'm not confident 1:32:05 about a trade man I'm not jumping in a 1:32:06 trade period you see what I'm saying 1:32:08 like I want to be confident in a play so 1:32:10 I can dump my money in the trade all 1:32:12 right now the next one comes is when you 1:32:15 hit your goal for the day like I have a 1:32:16 goal if I make 10,000 5,000 8,000 1:32:19 whatever I walk away I'm like done man 1:32:21 it's it's good all right so have a walk 1:32:22 away limit for the downside and for the 1:32:24 upside both all right and if you're in a 1:32:26 trade and your stop- loss hits exit hope 1:32:29 is not a strategy sitting in Hope 1:32:31 doesn't doesn't make you money all right 1:32:33 hopium doesn't make you money Hope's not 1:32:35 a strategy all right do not hope and 1:32:37 there are no emotions in trading fam 1:32:38 there's no emotions do not hold your 1:32:40 contracts until they're valueless hoping 1:32:42 that someday some you know please God 1:32:45 man God got bigger things to worry about 1:32:46 rather than you freaking not being 1:32:48 disciplined enough you see what I'm 1:32:49 saying so next is don't use 50 1:32:51 indicators on your charts I Promise You 1:32:54 Like There's No One indicator that will 1:32:55 work 100% of the time keep it simple and 1:32:57 the next one would be always every 1:32:59 single day Man review your trades every 1:33:02 single day make sure you Journal your 1:33:03 trades so when I'm journaling my trades 1:33:05 I'm always asking myself three questions 1:33:06 first trade is why there are enter 1:33:07 second is why did I exit the third one 1:33:09 is what would I do better next time and 1:33:11 you always need to journal every single 1:33:12 time and it takes a lot of time to be 1:33:14 consistent fam it took me about 14 1:33:16 months to be consistent Trader okay 1:33:18 start small man blowing accounts is very 1:33:20 very common in the beginning and this a 1:33:21 lot of Traders do this so you if you 1:33:23 start small man you will avoid yourself 1:33:25 the pain of literally blowing blowing 1:33:28 your account and losing everything all 1:33:29 right and the next point which is the 1:33:32 huge point the 12th point that I have is 1:33:35 make sure you analyze your journals over 1:33:37 the weekend what people do is they 1:33:38 Journal their trades but they never go 1:33:39 over their journals so you need to 1:33:41 journal your trades at the end of the 1:33:43 week so you can find out your weakness 1:33:45 you can find out your strength if you do 1:33:46 not know them man you will struggle 1:33:48 you'll struggle bad you what I'm saying 1:33:50 and then comes our keeper ego on the 1:33:53 side fam the goal here is not to be 1:33:56 right or wrong the goal here is to make 1:33:57 money that's why you're trading okay and 1:34:00 literally the last one that I have for 1:34:02 you if you want to make really make 1:34:03 money let the trades come to you don't 1:34:05 go out there and then try to hunt for 1:34:07 plays Let the trades come to you because 1:34:09 when the trades come to you you have an 1:34:10 edge when nothing comes to you you do 1:34:13 not have an edge okay and one quote that 1:34:15 I love if nothing is happening in the 1:34:17 market you should do nothing if Market 1:34:19 is slow sit on your cash or light your 1:34:21 fion fire and I I always thought like 1:34:24 this is like one of the coolest things I 1:34:25 ever heard but yeah so what next man 1:34:28 what next let's go let me show my screen 1:34:30 again and boom what do we do here man we 1:34:33 went over basic terminology we went over 1:34:36 how to read candlesticks Candlestick 1:34:37 patterns how to set up your trading view 1:34:39 charts some examples of these patterns 1:34:41 on a daily chart support and resistance 1:34:43 levels some chart pattern F cues how to 1:34:46 trade using technical analysis we went 1:34:48 over some options and then how I day 1:34:50 trade consistently in and then we broke 1:34:52 down some risk management and my rules 1:34:53 that I use all sort of stuff you see 1:34:55 what I'm saying this is the stuff that 1:34:57 we do every single day fam now I really 1:34:59 really hope that you enjoy this video 1:35:01 okay thank you the fancy thank you I 1:35:04 really hope you enjoy this video let me 1:35:05 know in the comments down below if you 1:35:06 actually enjoy this video and if you 1:35:08 want me to make more of these videos by 1:35:09 the way I'll also put the option course 1:35:12 right here if you want to just click 1:35:13 here and you can watch the option 1:35:14 trading course as well follow make sure 1:35:16 you follow me on Instagram and like the 1:35:18 video so I know you enjoy this let me 1:35:19 know in the comments all right peace you 1:35:21 have a good one goodbye