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FREE Day Trading Course – Lesson 2 – Trading Methodology

Welcome to trade net my name is maverick and in these videos I’m going to teach you the basics of day trading these lessons are hopefully going to provide you reliable and consistent method to join this wonderful world of trading welcome to lesson two trading methodology just before we get started if you would like to trade live with me you are invited to click here and take my 14-day free trading room trial also in order to practice all trade you will need a trading account if you would like to open a comics account comics will pay for my trading room membership fee first you need to realize whether you will swing trader or a day trader as a swing trader you will have to spend up to 60 minutes a week you will probably do not more than one or two trades a week you will not need an infrastructure of more than just one screen a training room will help and your initial capital we probably lower than if you were day trader as a date whether you will trade a few hours a day you will need one day or more per week you will probably make 2 to 5 tweets a day you would probably need more than one screen you will need the trading room support and you do need more capital let’s see how a typical swing trader would look like which weighted x few weeks ago the trigger was nine dollars we wanted to go along meaning by X if it moves over $9 we add a stop loss at and we will expecting the price to move higher to our first target where would you usually sell three quarters of the quantity we bought we also add a second target enters the price moved higher we changed our original Stoppers and adapted it to the new price a swing trade as you can see here would probably last anywhere between a few days to a few weeks however date weight would last anywhere between few minutes to a few hours in this case we had the trigger over ninety sixty four we also had of course a stop loss we always have stop-loss we had a first target and we move the stop-loss higher as the price moves higher we also add our second target but as you can see we reached our first target in approximately 45 minutes and the second target in approximately now or later there are two types of transactions there is a long transaction which is a classic method when you are buying a share in the assumption that the price will increase so in fact you you buy low and you hope to sell high and there’s a short selling when sure to share you are selling at the high price hoping that the price will fall in order to buy it later at a lower price we will discuss this later this is how a typical loan would look like you buy low you sell high this is our typical shot would look like you first sell for example 100 shares and if the price drops you will buy them at a lower price this is an example of short selling a stock it’s $50 hoping that the price will move down if we expect the price to move down to $49 the first thing we will do is sell high for example if we will sell 100 shares is $50 there worth $5,000 the time we sold them if the price will decrease we will buy the shares for $49 which means we bought them for $4,900 and the difference is $100 because we bought low and we sold high the unanswered question is of course how can we sell a stock that we do not own because we need first to sell and then to buy let’s see how it works there’s a trader there’s the market another broker so it radio recognizes has trade any things stock price would fall from 50 to 49 dollars so he would like in fact to sell short the stock at 50 dollars which he does once you click the short button the broker loaned him 100 shares so in fact in order for the trader to be able to sell short 100 shares he need to get a loan of 100 shares form the broker the broker can loan him 100 shares because the broker has a lot of customers and one of them probably owns the stock if the trader was right and the stop-bys did fall down then in order to move out of the trade he will buy it just clicks the Buy button and he buys the stock at $49 at the market once he bought a stock he returns it to the poker so in fact he had a loan from the broker of 100 shares and they returned the loan to the broker that’s how short works when you sell short a stock you are bowing the stock formula book and you are returning it later you’re broken of course needs to ensure that they have the stock and they can lend it to the trader it is usually better to show the stock than to longer stock and the resume is very simple price declines faster by 68 to 80 percent faster than the long side and why is that feel is the first reason people are selling for feel faster than they’re buying from grid and there are stop-loss orders people are using stop-loss orders once the user stop-loss order and the price moves down there are stops that will trigger more sellers and the price will drop faster thank you for watching my video and again if you want to start trading I highly recommend to join I love training room and trade live with me it is a free trial 14 days and if you don’t already have a trading account and you want to open a Comex account while comics will pay for my trading room again thank you for watching and see you in the next lesson

Lesson 2 – Trading Methodology, is about:
Swing Trading Vs. Day Trading
Long & Short
How shorting works

Free Day Trading Education from a professional day trader, Meir Barak. If you are brand new to trading, start here. If you have traded before, you can probably skip to more advanced lessons which will be coming soon. If you enjoy this video, you are welcome to subscribe to see upcoming videos.

Helpful links:

Watch all course lessons: https://www.youtube.com/playlist?list=PLb9tmPwCEfFjZWiIEYa4BfF4BZX0F0mWz
Join a FREE 14 day trial to my live Day Trading Room: http://lp.tradenet.co.uk/lp/pages/70120000000Pmpy_main.html?s=pnimi&c=Meir
Download the FREE “Part one” of my new day trading book “The Market Whisperer” here: http://lp.tradenet.co.uk/lp/pages/70120000000yAgV_main.html?c=creative or
Buy my book: http://www.amazon.com/dp/B00KHQVD8U/ref=rdr_kindle_ext_tmb
Open a Colmex account: https://services.colmexpro.com/registration/start.aspx
Watch all my day trading live videos at: http://www.youtube.com/user/TradenetGlobalUK/videos
Contact Tradenet: [email protected]
Contact Meir Barak: [email protected]
Visit our website: www.tradenet.com

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