Start Trading Stocks Using Technical Analysis!

Fundamentals vs. Technicals

Fundamental analysis is the study of a company's intrinsic value, the Warren Buffet approach to investing. Technical analysis assumes that the intrinsic value is already represented by the value of the stock, and instead focuses on statistical analysis.

You can avoid some common pitfalls by making sure you always trade with a plan, build in some form of risk control in to your trading strategy, and never trade emotionally.

I will touch upon how a typical investor makes decisions during up-swings and down-swings.

Do you want to be a day trader, swing trader, position trader, or traditional investor?

In this lecture, I will show you how to use pivot points to plan your next trade.

Pivot points create levels of support and resistance that can then be used to help mitigate risk.

Prices at whole, round numbers often act as support & resistance.

Let's take a look at trend analysis and the importance of up-trends.

We will take a look at downward trends, pivot highs & lows, and trendless stock.

In this lecture, I will show you how to draw trend lines through pivot highs & lows.

We will go over multiple trend lines that cross minor, intermediate, and major pivot points.

In this lecture, we will cover the life cycle of a trend and get in to the 4 different stages.

Stage 1: Consoldifation

Stage 2: Breakout

Stage 3: Continuation

Stage 4: Exhaustion

A short test to see whether or not you can apply what you learned about the 4 stages.

Answer key to the previous lecture.

Whenever you come across a stock chart, you should be able to idetify at least one of the 4 stages.

In this lecture, we will talk about common gaps, runaway gaps, and breakaway gaps.

Gaps are caused by news, earnings, analyst upgrades & downgrades, or other market events.

The candlestick technique of charting was started by the Japanese to track the prices of commities.

Expanded range candles are a good indicator of a stock's future performance.

Hammers, Shooting Stars, and Dojis are good indicators of whether a stock is trending up or down.

In this lecture we will take a look at bullish engulfing, bearish engulfing, piercing lines, dark cloud cover, bullish harami, and bearish harami,

Let's get started with Average True Rating (ATR).

In this lecture, we will add the ATR to the chart of a stock, and compare two stocks to determin their personality.

Let's take a look at a few more ATR examples, and learn how to calculate our buy & sell price.

If the markets have made a strong price move either up or down, then the perceived strength of that move depends on the volume for that particular period.

In this lecture, we will take a look at some charts that illustrate this idea of buying and selling pressures.

There are simple and exponential moving averages. Simple moving averages are evenly weighted, therefore every period carries the same weight. Exponential moving averages place more weight on recent price action, which reduces the lag.

We will take a look at up trends, down trends, and bullish/bearish crossovers.

20-, 50-, and 200-day moving averages are most popular to represent month, quarter, and year of the stock.

You can think of technical indicators like going to get get a second opinion from a doctor.

Let's identify where a buy/sell signal occurs when looking at MACD signals.

The RSI compares the magnitude of a stock's recent gains to the magnitude of it's recent losses.

In this lecture we will cover overbought sell signals, oversold buy signals, and RSI combined with price action setups.

In this lecture, we will go over the topics we will be covering in this section.

Let's talk about the S&P 500, Dow Jones Industrial, Nasdaq, and Russell 2,000.

When trading it is always important to do a broad market analysis checklist.

In this lecture, we will go over what a sector analysis checklist looks like.

Let's talk money management!

If you are a "buy & hold" investor proper diversification is key to maintaining a healthy portfolio.

When position sizing, you should ask yourself 4 questions:

1. What is the size of your portfolio?
2. How much a of a loss would be too big?
3. What are your normalized numbers?
4. What would your anticipated profit be?

Let's take a look at some additional position sizing examples.

Before you enter in to a trade identify your time frame, entry point, stop loss, and target.

Let's take a look at what a trading calculator looks like.