In this video, you’ll see how simple and easy trading the market can be when you trade with the main trend over 3 different timeframes: the daily, the 4 hour and the 2 minute charts.
This is the third video in our series on how to accurately forecast where trends are likely to start and end.
In this video, you’ll see how the market can often give you a series of obvious setups, as long as you know what to look for.
In this stock trading tutorial video, you’ll see how you can enter a stock that is SCREAMING at you that it’s about to go much higher with very little risk.
This Australian stock was setting up for a significant rally, allowing potential investors to buy the company because not only is it fundamentally sound, it’s about to start rising strongly in value.
Click the ‘Play Button’ to see what happened…
Stocks that are both financially strong AND are going up in value like this one was are the safest trades you can possibly make in the market.
Many traders and investors buy stocks that have strong fundamentals, only to sit around waiting for months or even years for those fundaments to be reflected in the share price.
By having both fundamentals AND technicals in your favor, you can massively cut the time the good quality stocks you own are either falling in value or going nowhere.
Whenever you see this trade entry setup, you should consider adding the stock to your portfolio, subject of course to your own money management rules.
Learn more about how to find and trade stocks like this one at http://trendtraders.club
In this series of 3 Stock Trading videos, you’ll see how you can sometimes forecast the highs and lows of stock market trends with incredible accuracy.
In the first video, you’ll see how you can often find the end of a fast moving trend by simply measuring the length of the trend before it.
While forecasting like this doesn’t always work, it gives you a gauge for how strong the current trend is.
For example, if the market travels 100% of the previous trend, you can say it’s neutral.
If the market starts to struggle at around 50% of the previous trend, it’s exhibiting signs of weakness, and if it goes more than 100% of the previous trend, the market is showing signs of real strength.
In this second video, you’ll see how you can trade out of a retracement and get set in a position back with the main trend as soon as it starts to reassert itself.
Again, there’s no guarantee that a counter trend will stop at 50% or .618, but if the trend is going to continue, there’s a very high probability that one of these support (or resistance) areas is where the man trend will resume.
In this third video, you’ll see more examples of how the 100% and 50%/.618 areas pulled the market up.
On September 30 and October 1st, the Dow Jones Index served up a beautiful long trade out of a major low.
Here’s a LIVE screen capture video of how that trade unfolded:
Learn more here: http://trendtraders.club/
In this video, you’ll see a live example of a 350 point long trade entered close to the end of the recent market panic that ended (for now) on September 30 2015. We used Elliott Wave structure, equal price ranges and proven entry signals to produce an astounding result.
In this stock market for beginners post, I wanted to tell you about the day I nearly cleaned up in the Australian Share Price Index Futures (SPI) market. I’d been trading for about 3 months, and had been making small profits and losses.
Nothing to get really excited about.
But after spending a lot of time doing my analysis, I was pretty confident we’d seen a major low in the market, and the trend was changing to up.
The Big Money Is In Buying The First Higher Low
As WD Gann said, the safest place to buy is the first higher low once the new uptrend has begun. I watched the market make a higher swing high after a panic selloff, and waited for the retracement to a higher low. Since a market will often react around 50% of an advance, I had a price target that if hit, I was ready to buy.
The market hit my price target at around 2.30 pm that day, and started to rally. Problem was, I started to second guess my forecast like many stock market beginners, and hesitated for about 30 minutes, During that time, the market was slowly grinding higher and higher without me on board.
By the time I pulled the trigger, the Share Price Index Futures contract had rallied 25 points of the low. That’s no big deal in the SPI, but I could have gotten in a lot better if I’d had the balls to take action earlier. OK, so I’m in the market, now to place a stop loss order in case I was wrong.
Back in those days, I had this stupid arbitrary stop loss point of $500. I couldn’t see myself losing more than that on any one trade, so that was usually where my stop loss would go – $500 away from my point of entry. To be proven wrong by the market, I needed a stop of 30 points ($750). But because of my arbitrary stop loss rule, I put my stop 20 points away, and hoped for the best.
As soon as I had confirmation that my order had been filled, the market started to fall away. Don’t know if you’ve ever been there, but it totally BLOWS…
So There’s Another $500 Down The Drain
I watched in disbelief as my stop loss point loomed, and as so often happened to me in those early days as a stock market beginner, I was stopped out for a loss of about $500 plus commission.
The market fell another 3 points and reversed higher. It never reached the price level where my stop loss SHOULD have been that day, and it’s NEVER been that low again since that day… and it’s been over 15 years. The SPI closed strongly on the day, and overnight, the US announced they were lowering interest rates to stimulate the economy. The DOW rallied 360 points that day, which was a huge move for the index in those days.
Our SPI opened over 80 points higher the next day, and ironically over the next 3 months rallied a total of exactly 360 points – the same amount of the one day Dow index rally, and a prime Gann number.
Stupid stop loss placement that day cost me a potential profit of $9000 per contract.
Not to mention the compounding opportunities I could have had as my profits grew.
So what’s the message here? Yes both stock market beginners and seasoned traders need stop loss orders to protect ourselves against huge losses, but put your stops in a SANE place. The best place to put them is where the market has to change trend to get you.
If your analysis is wrong, then you want to be out of the market. But if you are correct, you want to be able to hang in there for the long haul and grab your profits.
If you can’t put your stops in the right place because of your capital rules, lower your position size so you are back in balance.
Making a smaller profit, but being on board for the ride is much better than overtrading and getting knocked out of the game before it even begins.
I hope you found this stock market for beginners post helpful, and if you like it, please share us with your friends or make a comment below…
In 1998 when I was one of those green stock market beginners who really don’t have a clue about what’s going on, I managed to perfectly pick the first lower top in what turned out to be a complete market rout. Unfortunately my inexperience caused me to leave a small fortune on the table.
Watch this video to see what happened…
Click To Play Video:
Here’s The Details…
The Australian Share Price Index Futures futures (SPI)contract had made a significant high, and had pulled back sharply. After looking at the time cycles at the high, the ranges, the 50% retracement and all of that Gann stuff, I was pretty confident we were in for a continuation of the correction, or even a change in trend from up to down.
My plan was to trade the market into the first lower top (where Gann said it was the safest place to sell), stop and reverse, and then ride it down.
Good plan. Bad execution. Typical of so many stock market beginners…
I bought the market at the open on the day if the potential lower top (a 50% retracement in time and price), and rode it up to the price area where I thought it would end. But instead of placing an order to stop and reverse, I only sold ONE contract, not two. That meant I was out of my long trade, but I wasn’t short where I had wanted to be.
The market made it’s high within a few ticks of the price I’d exited, and started falling… fast! I stood by and watched it fall like a deer in the headlights, until finally I couldn’t take it any longer. I called the Broker and told him to sell me one SPI contract at market.
He came back after what seemed like an eternity, and said the market had closed for lunch before he could place the order, but it would be filled on the open after lunch.
I went to work on afternoon shift at the coal mine where I was working and thought nothing more of it.
How Stock Market Beginners Can Get Their Heads Handed To Them
I was working away happily until the Broker called me in a panic to let me know the Australian stock market had tanked. The Hang Seng Index had opened down around 600 points due to a collapse in the Thai Baht – this was the very start of the Asian Financial Crisis. I had been filled 100+ points below where we’d closed for lunch, and the market was starting to rally.
Of course the market was doing what it always tries to do – close the gap, and my trading account margin was going backwards at a rate of knots.
On his ‘advice’ I panicked and closed out the position for the biggest loss of my trading career ever, and went back to work feeling like a total loser.
When I got home that night at midnight, I found out the market had collapsed all afternoon, and I would have had a small profit if I had hung in there and not exited the trade.
Then of course, overnight all hell broke loose as one after the other, Asian countries devalued their currencies, and a full blown Asian Crisis took hold.
Had I stayed in that trade, and trailed my stop loss orders below the swing highs (like my TRADING PLAN told me to do), I would have made thousands of dollars that was just waiting there for me to pick it up up.
These days I rarely make those kinds of rookie mistakes, because I have a SYSTEM that has a clear set of trading rules – what I call the rules of engagement – that keeps me safe in the stock market most of the time.
What’s The Point Of This Trading Story?
- When your proven trading system says to trade, then take the damn trade
- Don’t place trades when the market is closed and has the potential to gap wildly against you
- And don’t let your Broker pull you out of trades – make your own decisions and stick to them (see point 1)
Of course you need a proven system that gives you high probability trades.
Oh, and if you like this, please share us with your friends or make a comment below…
In this post, we’re going to look at a problem that is endemic in the trading community, and a simple fix you can use right away to drastically change your stock trading results.
Having traded and spoken with many stock market traders in other over the years, I’ve found that the vast majority never really achieve their full potential, and in fact many spend years in a fruitless search for trading success.
The Secret Pain Of The Average Stock Trader
I get letters and emails from traders all the time that pretty much boil down to something like this –
I really need some help. I’ve tried everything I know of to become a successful trader, and I’m belting my head against that same old brick wall. I’ve been trading for about 3 years, I’ve spent thousands on courses, services, seminars and books, but I still can’t seem to make a buck. I’m actually embarrassed to tell you, but despite everything I’ve spent buying products and courses, I still lose money on the majority of my trades.
I’ve spent a huge amount of time on this and I’ve learned a hell of a lot, but with so many people making wild claims and promises that amount to nothing, I’ve just about had enough. I just need someone to help me understand the basics. I guess what I really want is to learn to trade profitably from somebody who’ll show me what to do.
Where can I find somebody who will teach me how to trade profitably? Can you help me or do I just forget about it and go and get a job? I know my fiance would be so darn happy if I gave it away and got a 9-5 job after all the dramas we’ve been through.
Alan P. Trader
It’s so sad, but this kind of thing is repeated every day by stock market beginners and experienced traders alike out there in the trading world. Good honest people are losing money trading the stock market, and they just don’t know how to stop the bleeding. Trading can be the best lifestyle business anyone could ask for, but it can also totally blow if you can’t make money at it.
So if you can relate to our trading friend Alan above, how can finally turn things around and start trading the market profitably?
The Solution To Poor Trading Results
All great sportsmen and women have a coach. They always have somebody who can to help them perfect their game, keep them honest, and tell them when they are doing something they shouldn’t be doing.
Just about every great businessmen and women has a mastermind or group of advisors or mentors to coach and guide them. All of the highest paid actors have agents or advisors who they admire, respect and learn from.
For you to go from a stock market beginner to a top trader and achieve the success you want, you can’t expect to get there on your own either.
What you need to do is find an trading coach – somebody who is already successful – who can show you exactly what he or she does as they enter and exit profitable trades. Then get them to coach you so you can do the same.
Learning to trade from courses and books is a great start, but if you really want to master this business, you’ve got to go to somebody and get inside their head. The stock market is a dangerous place for beginners, or for people who don’t have both a good trading system and good control over their emotions.
You’ve got to be able to get immediate answers to your questions and study not only the actions of successful traders, but also the mindset they have as they go through each step of the trading process.
What You’ll Learn From A Trading Coach
How do they handle losses? How do they handle profits? What are their trade confirmation signals?
How do they know when a trade is going against them and what do they do to manage the situation?
You simply can’t completely learn these things from books or courses. You have to watch a successful trader and go through it with them as they do it and let the experience rub off on you.
Going back to our sport example, can you imagine Arnold Palmer not having a golf coach and still winning majors?
It most likely would never have happen would it?
We all need somebody on the outside looking in to help up improve and see the things that we can’t see ourselves.
A mentor or coach can do that for us and can guide us towards becoming successful at anything we want to achieve.
Trading is no different – in fact, it’s critical we have somebody in our corner when we go into the markets, watching our back, and looking out for us. Let’s face it; nobody else will.
And if you are ready to learn a very simple system, and become part of a community where others are happy to coach you until you make it, then check out The Trend Traders Club.
I hope you found this post helpful. If you did, please share our site with your friends or make a comment below…
In this post, you’re going to learn the 3 biggest tips you’ll ever hear from anyone about making a living as a trader.
Trading the stock, option or futures markets can give you a lifestyle business that takes a LOT of beating. You don’t have any employees, you don’t have a boss, you get time freedom with no clock to punch, and you can run your business from anywhere.
Not to mention, you can make a lot of money if you get it right.
If only it wasn’t so damn hard to make it all work… right?
Learning The Stock Market Is Hard For Everybody…
You might know what I mean. You sit down and go through your analysis, you see a trade opportunity, and hit the buy or sell button. But then you start to worry about everything that could possibly go wrong. This is why the stock market for beginners is such a scary place.
What if I’m in the wrong way? Or the wrong Stock? What if that reporter on TV was right about the non-farm payroll number coming in higher than expected? What of the Fed could raise rates this afternoon?
You feel sick in the stomach and your mind starts racing with all sorts of ‘What if this happens?’ thoughts, so you decide to get out of the trade, and wait until tomorrow to see what happens.
Then you go to the shops, the beach, or for a long walk… you do anything to take your mind off trading for today. Tomorrow will be better, you just know it will be, and you get that feeling of relief knowing your precious capital is no longer at risk today.
But tomorrow, it’s probably gonna the same. There’s a different set of risks maybe, but they are still there, haunting you and hurting your ability to think rationally.
You still take a few trades, but your confidence and your account balance start to suffer. If this (or something like it) sounds familiar, here is a simple three-step solution to mastering the stock market for beginners.
Step 1 – Understand The Stock Market Is A Business NOT A Hobby
Traders who are successful over a long period of time treat their trading as a business, not a hobby. Traders who quickly blow their accounts and give up are often trading for the excitement the action gives them, or for the rush of being in the market.
If that sounds like your current trading style, be very careful. You are possibly in for for a lot of emotional and financial pain before your trading days are over (which could be sooner than you think right now). If you treat trading as a business, and take the time to learn and test different approaches, you’ll massively increase your chances of long-term success.
Step 2 – Trade The Stock Market Reality You See In Front Of You
It’s very hard to forecast where the market is going with any degree of consistancy, so it’s best not to try. If you trade reality, you’ll probably be around a lot longer, and make a lot more money.
I have a lot of respect for WD Gann’s work, but he was a master, and the stock market is no place if you haven’t achieved his kind of wisdom and understanding. The bottom line is this – trade the trend you see in front of you.
WD Gann’s stuff can help you to stay with that trend, and trade out of counter trends (which is our favorite strategy, as you’ll see in our email series), but if you start trying to pick tops and bottoms – well, I wish you lots of luck with that.
Step 3 – The Stock Market Is HARD For Beginners Without A Coach
If you want to speed up your learning curve and save yourself a lot of emotional and financial pain, you should learn how to trade from somebody who is prepared to coach, guide and mentor you until you are making money on your own.
To succeed at trading long-term you must think and act like a business person in any other market would. You will need to study and learn how to trade by taking courses and gaining experience. You will need to develop a business plan and have enough capital to make it through your learning curve and become a successful trader.
The stock market for beginners is a place where you’ll need on-the-job training, but learning this way from scratch can be terribly expensive compared to finding somebody who will coach you until you are ready.
You’ll learn how to trade much more quickly if you have somebody who’s done it profitably watch over your shoulder and guide you through the process.
The bottom line is this: Look for somebody who has been where you are now and succeeded, and work out how you can get them to coach and mentor you. If you do, your chances of becoming a hugely profitable trader will get a whole lot better.
Your stock trading coaching can start right now when you grab our video series on finding, entering and profiting from the stock market regardless of whether the trend is up, down or sideways.