Stock Market for Beginners. Learn to trade

Learn how the stock market works.
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Instructed by Diego Quiñones Business / Finance
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  • Lectures 42
  • Contents Video: 3.5 hours
    Other: 7 mins
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
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About This Course

Published 10/2013 English

Course Description

Stock Market for Beginners. Learn to trade

If you do it yourself these questions How does the stock market work?, How can i learn to invest in stock? And finally, How To Make Money? So, this is your course online. In this online course How to trade in stock market for beginners, you will find the answers to these questions.

Precisely, I created this online course for people who have no knowledge about stock market or economy. Not necessary to be a genius to speculate on the stock market, only have much discipline when you are go to trading and develop your own system of speculation.

With a few simple tips that I will explain you in the course, you will develop your own speculation system, and you will know when is the best moment to buy or sell shares like the professionals traders.

The techniques used in this course are very simple, but it will take you to get great results. Learn how to buy shares, and when to exit the market.
This online course is fully adapted for beginners. Learning to trade on the stock market for beginners and ending being a professional.

    ·How the stock market works

    ·Learn to trade

    ·Learn to buy and sell shares

    ·Analyzing stock charts

    ·Mastering indicators shares

What are the requirements?

  • A computer that connects to the internet

What am I going to get from this course?

  • Check the software to analyze stock charts
  • Analyze charts of stock
  • Over 130 charts to analyze
  • Learn several indicators
  • Having your own speculation system

What is the target audience?

  • Anyone who wants to know how to invest in stock market

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Introductory Lecture
Welcome
Preview
01:32
03:33

I want to share the subject that we will see in this course. What am I going to explain in this course? I have divided the course into three sections.

1:05 Chart Analysis
  1. We´ll see the best software to analyze the stocks.
  2. We´ll study how to draw the trend lines on the charts and some exercises.
  3. What´s mean break-out and pull-back and how to work with them.
  4. And we´ll learn how to draw channels trend lines.
1:24 Types of Figures

There are some figures that we have to study. We will see different kind of figures on the chart. You will learn how to draw;

  1. Double Bottom and Double Top
  2. Support and Resistance
  3. Rectangles
  4. Flags
  5. Wedges
  6. Triangles

You will see the importance of the Stop-Loss. It´s very important understand this concept in order to not loss money when the market is down.

1:54 Indicators

Indicators help us to make a decision. We have to study these indicators in order to have more probability of success.
There are several Indicators:

  1. MACD (Moving Average Convergence-Divergence)
  2. RSI (Relative Strength Indicator)
  3. Stochastic
  4. CCI (Commodity Channel Index)
  5. DM (Directional Movement)
  6. ADX (Average Directional Movement Index)
04:48
0:30 There are online software to analyze charts

Most of them cost money but there are some a few with free service after close the market.

4:00 Choose a good online bank

There are many online Banks, so you have to compare each bank online on Price and customer service. Check that your bank online provide good chart to analyze shares.

Section 2: How to draw trend lines
04:06

It´s very important to know how to draw the trend line on the chart. In this video you will learn how to do it.

0:13 There are three kind of trend
  1. Uptrends
  2. Downtrends
  3. Sideway trend

Most of the time the chart will be sideway trend. Usually 40% of the time.

1:17 How to draw the trend lines?
  • Some examples about chats with uptrend line
  • Down trend line
  • Sideway trend line
06:23

Here, there are some exercises to identify the trend lines on the charts.

04:13

In this video you are going to learn the importance about “Break out” the lines and the "Pull-backs".

0:15 Break out the line

When the price cut the line of the trend, we have to entry or out of the market. It´s the moment to buy or sell shares.

1:34 Pull-Back

Sometimes the market gives us a second chance to incorporate or get out of the market. After the break out of the trend line, the price turn up or turn down but later rise or fall again.

2:40 Some examples about Break-Out and Pull-Back
09:26

In this lesson you are going to learn how to draw a channel trend line.

0:20 Draw Channel Trend line
  • Upward channel
  • Downward channel
1:05 Some rules

Speculate when we were draw the upward or downward channel line.

7:35 Examples
06:09

Now I want to show you a simple strategy to speculate with the channels trend.
When we see a break out in the channels trend, it´s the moment to buy or sell.

0:25 Up market

When the price cut the top line of the channels, you have to calculate the minimum price target.

2:15 Down market

When the price cut the base of the channels, you have to calculate the minimum price target.

3:30 Some charts about this technique
Section 3: Figures on the chart
06:07

In this lesson, you are going to learn the different kind of figures that you will find on the charts. Here you can see a summary of the figures in the charts and their functions.

0:45 Double Top and Double Bottom
1:25 Support and Resistance
2:39 Rectangles
3:07 Flags
3:27 Wedges
4:20 Triangles
09:44

We start with the figure Double Top and Double Bottom.

These figures are typical on the charts.

0:20 Double Top

We link the two maximum peaks on the chart in order to draw the horizontal line (resistance).

1:15 Price target of the Double Top

We calculate the price target measuring the distance between the peak (resistance line) and the support line.

2:10 Some examples; Double top
5:08 Double Bottom

We link the two minimum prices on the chart in order to draw the horizontal line (support).

6:05 Price target of the Double Bottom

We calculate the price target measuring the distance between the minimum price (support line) and resistance line.

6:52 Some example; Double Bottom
05:46

In this lesson we are going to study the Support and Resistance lines. These lines are drawn with horizontal lines.

0:20 How to draw Support and Resistance lines
1:42 Break out the Support and Resistance lines

The support or resistance lines are considered broken when the price is more than 3%. If the trading volume is high, that´s mean the break out of the support or resistance is rely on.

2:54 Examples charts
06:37

Rectangle is a classical technical analysis pattern. We draw this figure when on the chart is sideway trend.

0:10 Rectangle
1:00 Minimum price target

We have to measure the distance between the support and resistance levels.

2:30 Examples charts
04:00

Now we are going to see the Flag figure. It´s like the rectangle but smaller.

0:15 Flags
  • Flag is formed by two trend lines. Horizontal lines.
  • Flag´s slope is the opposite of the main trend.
  • Flags occurs when the prices goes up and down very fast.
1:23 Example Charts
05:02

Now it´s time to study the Wedge figure. This figure is similar than the triangle but with some difference. It takes three or four weeks for showing this figure.

0:15 Wedges (down market)

We draw the Wedge with two lines with the same slope. These two lines are in the opposite direction that the main train.
When the price is inside of the wedge, the trading volume decrease, and start to increase when the price breaks the figure.

2:10 Charts about Wedges figure (down market)
2:55 Wedges (up market)

The two lines for draw the wedge are with negative slope because the main trend is up trend. The trading volume decrease when the price is inside the wedge figure.

4:20 Charts about Wedges figure (up market)
12:57

And the last figure are the Triangles. It takes three or four months to forms this figure. Master this figure is very useful because it gives us a very good signals.

0:10 Triangle
  • You can see this figure on daily charts
  • To draw the triangle needs at least four contact points
  • If the triangle doesn´t take more than two months, then could be a flag figure
1:45 Three kind of Triangles
  1. Ascending Triangle
  2. Descending Triangle
  3. Symmetrical Triangle
8:50 Example Charts
06:48

This lesson is very important. It´s the Stop-Loss, and it´s our live insure when we make a mistake. After buy a share we always have to put the Stop-Loss and sell the shares just in case the market goes in the opposite direction.

0:15 What´s the Stop Loss?

Stop Loss cut the losses when we make a mistake. Thus, we minimize our losses.

0:35 Where to put the Stop Loss

We put the Stop Loss 3-4% below the support line. Also, you can move up the Stop loss to protect the gains.

Section 4: Trading Volume
General rules of the trading volume
4 pages
Volume Analysis
3 pages
Section 5: Study the technical indicators
04:25

In this lesson you´ll study the importance of the Momentum Indicators. To speculate successfully we have to know the trend and the speed of the price. The indicators inform us if the trend is speeding or decelerating.

1:45 Types of indicators

Trend Followers;

When the market has a strong trend, the trend followers indicators are very useful to incorporate on the trend. MACD, Directional Movement.

Oscillators;

These indicators identify the turning points. They show the beginning of the new trend, I mean, when the price is going to start a new trend. Stochastic, RSI, CCI.

Other Indicators;

These indicators gives us information about the strength of the trend. You can use the ratio PUT/CALL, or the lines New High/New Low

01:46

Now in this video we are going to see how to detect the changes of the trend. It´s very important to know this because we always looking for the trend. We always speculate with the same direction with the main trend.

0:18 Speculators always try to find the trend changes
  • Only one indicators isn´t enough to figure out the new trend.
  • We need more than two indicators to see the new trend.
  • The weekly chart is more rely on than daily chart.
03:13

In this lecture we talk about Overbought and Oversold. Some indicators show this measure, and that means when the people buy or sell in a short time. These indicators only warns if the share isn´t good enough to buy because the share is overbought or isn´t good enough to sell because the share is oversold.

0:25 Overbought and Oversold for RSI and Stochastic

These indicators have finite extremes. Overbought and Oversold represents a point which there is a high probability that the price trend change.

02:45

In this lecture we will study the Divergences. If the movement of the price and the indicator move on the opposite direction, we call this behavior Divergence.

0:32 Price-Indicator
  • If the Price and indicator move in the same direction, then, the market is healthy.
  • If the Price and Indicator move in the opposite direction, then we have to pay attention. The market could change the trend.

You can use this method with all the momentum indicators.

02:52

In this lesson we are going to study the Kinds of Divergences. There´re two kinds of divergences;

0:19 Upward Divergence

The price is down and the indicator goes up. As the price and the indicator moves in different direction, we have an Upward Divergence.

0:35 Chart about Upward Divergence
1:30 Downward Divergence

The price goes up and the indicator goes down. As the price and the indicator moves in different direction, we have a Downward Divergence.

1:50 Chart about Downward Divergence
04:29

In this video we´ll see the importance of a divergence. It´s very important to know this technique.

0:32 Number of tops and bottoms

In the up trend: If there is lower highs in the indicator, more significant will be the divergence.

In the down trend: If there is higher lows, more significant will be the divergence.

1:48 Time to form this figure

If the indicator takes three or four months to form the divergence, it will be very significant.

2:22 Proximity to the zero level indicator
  • When the price gets a new highs and the momentum indicator has drawn a downward divergence, we should look at the last wave of the momentum indicator.
  • When the price gets a new lows and the momentum indicator has drawn an upward divergence, we should look at the last wave of the momentum indicator.
02:24

In this lecture we are going to study the MACD (Moving Average Convergence Divergence). It´s a good momentum indicator that measures the divergence and convergence over two exponential average.

0:30 MACD

It can be represented by a histogram or by two lines. If you use the two lines, MACD has a solid line and broken line.
Usually we work with 12 and 26 periods (solid line).
Usually we work with 9 periods with broken line.

05:05

Now we are going to see how to speculate with the MACD Indicator. You will learn some techniques very simple and most of the time it works.

0:20 How to speculate with the MACD
  • If the MACD indicator is over zero line, that means the market has up trend.
  • If the MACD indicator is below zero line, that means the market has down trend.
1:30 Example Chart
4:02 Crosses lines

Other technique to speculate is when the two MACD lines are crosses.

  • If the solid line cuts up the broken line, that´s a good signal to buy.
  • If the solid line cuts down the broken line, that´s a good signal to sell.
04:10

In this video you are going to see other technique to speculate with the MACD Indicator.

1:13 The zero level in the MACD

The signal is more reliable if the crossing line is close to the zero level. This technique is useful when the market is up or down.
The MACD indicator will be more significant if we use weekly or monthly chart.

2:38 Divergences MACD

Divergences are necessary but not sufficient to produce a change in the trend. For a change of trend, we need a break of support or resistance line. Price is always more important than the indicators.

05:05

In this lecture you are going to see the RSI (Relative Strength Indicator). It´s an indicator created in 1978 by J. Welles Wilder.

RSI´s signals are more reliable when the momentum indicator is in overbought zone or oversold zone.

0:20 RSI (Relative Strength Indicator)

Formula:

RSI = 100-100/(1+RS*)
RS*= Average of x day´s up closes / Average of x day´s down closes

1:40 Example
2:50 Overbought and Oversold in RSI

RSI uses 7, 9 or 14 periods.

  • For 7 or 9 periods, the overbought is above 80 and the oversold is below 20.
  • For 14 periods, the overbought is above 70 and the oversold is below 30
07:15

In this lesson you are going to see the Relative Strength Indicator Signals. This indicator gives us some signals that have to interpret.

0:10 RSI Signals

These signals help us to speculate with the RSI. We can draw trend lines in the RSI as if it were a chart. This technique is the same like the trend lines on the price.
And the other technique to speculate is with the RSI when the share is overbought or oversold.

0:32 Draw trendlines with RSI

The trend lines, supports, resistances in the RSI work better than the others indicators.

3:12 Levels “overbought” and “oversold”
08:35

In this lecture we are going to explain when we have to join to the trend. We figure out the market has up trend and we want to join in this trend. When is the best moment? For use this technique, we need to work with the MACD and the RSI. I explain you.

  • The chart price´s share is on daily chart.
  • The MACD is >0 (on monthly chart)
  • And the RSI is on daily chart.
0:22 If we have Upward trend

When the RSI cuts up the 40 line level, we have to buy.

1:45 Example upward trend chart
5:17 If we have Downward trend

When the RSI cuts down the 60 line level, we have to sell.

6:05 Example downward trend chart
07:45

In this lecture we are going to explain other technique to speculate with the RSI. This method is pretty easy.

0:20 RSI-50

RSI has to be on weekly chart. Then we draw a horizontal line, in the level 50.

  • If the RSI is above 50, the market is up.
  • If the RSI is below 50, the market is down.

This rule get more reliable signals if we use it together with others indicators.

1:19 Charts examples
06:51

Now we are going to use the RSI and the MACD at the same time. It´s a good technique that nobody use. But this technique we´ll get earliest signs and can be use it on intraday, daily or weekly charts.

0:25 MACD and RSI

We have to look the line crosses between the RSI and the dashed line of the MACD. These two lines will give us the signal to buy or to sell.

  • When the RSI line cut down the dashed line of the MACD, we have to sell.
  • When the RSI line cut up the dashed line of the MACD, we have to buy.
3:30 Chart example
02:50

In this lesson you are going to study other indicator, It´s the Stochastic. George Lane was the creator. Usually, we use this indicator on daily charts, but also we can use it on intraday, weekly or monthly charts. We usually work with a range of 14 days.

0:32 Stochastic

This indicator has two lines, a fast line “K%” and the slow line “D%”.
The K line is a solid line. The D line is a broken line and slower than the K line.

Formula:

%K = 100[(C-L)/(H14-L14)]

08:01

In this lecture we study the “overbought” and “oversold” level for the Stochastic. It moves within the range between 0 and 100.

0:20 Stochastic: Uptrend and Downtrend

Uptrend;

When the indicator entry in the overbought zone and cut the 80 level line, we have to buy shares.
When the indicator cut down the 80 level line, we have to sell.

Downtrend;

When the indicator entry in the oversold zone and cut down the 20 level line, we have to sell shares.
When the indicator breaks out the 20 line level, we have to buy.

3:12 Charts examples
01:42

In this lecture you are going to study other indicator. It´s CCI (Commodity Channel Index).

It was developed by Donald Lambert in 1980.

0:20 Stochastic

Formula:

CCI = Price –MA/0,015 x D

MA = Moving average

D = Deviations

02:00

In this video you are going to learn how to read the CCI Indicator. This indicator is very similar that the RSI.

0:20 Commodity Channel Index
  • Overbought area is above 50 or 100
  • Oversold area is below -50 or -100
11:39

In this lesson we study the overbought and oversold areas in the CCI Indicator. We work with period of 14 days on daily, weekly, or monthly charts.

The CCI is an indicator that you should incorporate into our technical arsenal.

0:30 Overbought and Oversold
  • When the CCI Indicator is above 50 we consider overbought.
  • When the CCI Indicator is below -50 we consider oversold.

Uptrend

If the CCI breaks out the 50 line, we have to buy. And when the indicator cut down the zero level we have to sell.

Downtrend

If the CCI cut down the -50 line we have to sell. And when the indicator cut up the zero line, we consider the down market is finished.

3:30 Charts examples
04:35

In this lesson we are going to see the Directional Movement (DM). It was published by Welles Wilder in 1978.

Directional Movement compares the difference between the price of a day and of the previous day. Thus, this indicator informs us the strength of the price trend. Wilder recommends work with periods of 14 days.

0:26 Directional Movement
  • If the price moves up, we call it +DM
  • If the price moves down, we call it –DM
1:50 Directional Indicator (DI)

It´s calculate dividing DM by True Range.

+DI = +DM/TR

-DI = -DM/TR

06:20

More information about the Directional Indicator. We have two lines and we have to interpret this behavior.

0:15 Crosses lines; +DI and –DI
  • When the +DI is above –DI, that means the market is rising. So we have to buy new shares when the two lines are crosses and the +DI line cuts up the –DI line.
  • When the –DI is above +DI, that means the market is falling. So we have to sell our shares when the two lines are crosses and the –DI line cuts up the +DI line.
2:14 Charts examples

This indicator can give us too many false signals if we have sideways trend. This signal is more reliable when the price trend is strong.

03:29

In this lesson, we are going to study the Average Directional Movement Index (ADX). To detect the moments of strong trend, Wilder used the ADX. It´s works as a combination between positive Directional Indicator (+DI) and the negative Directional Indicator (-DI).

0:20 ADX

Wilder worked with 14 period. We have the two lines DI´s and the line ADX. The ADX line is less volatile than the other two.
ADX doesn´t indicate the direction of the trend.

2:18 Interpretation of ADX

ADX tell us if the main train has power or if it´s weak trend.

  • If the ADX is above 40, that means the trend has power. People want to buy or sell shares.
  • If the ADX is below 20, that means the market is flat, there is sideways trend.
06:57

In this lecture, we study the best sign to buy or sell using the ADX. This technique is very useful because this indicator show us the power of the trend, I mean, says if the market has trend or not. And we have to invest money when the market has trend.

0:20 Buy signal

We have a good buy signal when the ADX is over 20 and have positive slope. ADX cross the –DI and is above of the negative directional movement.

2:05 Chart example buy signal
3:50 Sell signal

The ADX is over 20 and cuts up the +DI. So, the –DI is above and the +DI is below. There are more sellers than buyers in the market.

5:45 Chart example sell signal
05:14

In the last video I want to give you my last tips to speculate in the stock market.

  1. Use your own speculation system
  2. Have confidence in yourself
  3. Invest in stocks very liquid
  4. Follow the trend in the market
  5. Dont´t doubt in your speculation system and use it
  6. Invest some money to gain confidence in your system
  7. Always put your Stop-Loss to cut losses
  8. If your speculation system hasn´t worked, figure out

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Instructor Biography

Diego Quiñones, Stock trader expert

I got started trading in 1996, and from the beginning I liked. For that reason, I studied economics. I always liked to speculate on the exchange. To do this, I had to study and train, to understand how markets work. The base of a good speculator is to have discipline and buy or sell when your speculation system says. I have developed my system of speculation.

A part of my passion for speculating on the stock market, I read about the financial markets, and especially the European and Asian economies.

This last year I am especially interested in the creation of start-ups and the world of social media

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