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Dollar Cost Averaging is a great way to get an average price for a stock. Combine that with a Dividend Reinvestment Plan (DRIP) you are on your way to build steady wealth. Please watch the video below to learn how to use these concepts to your advantage.   [link name=”validlink” dest=”/account/validatecode?code=4000020″]If this was part of Read More…

Please watch the two videos below before beginning the assignments posted below. [link name=”validlink” dest=”/account/validatecode?code=4000019″]If this was part of an assignment, Click Here to confirm you’ve read it[/link]

  A market is a place of exchange that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. The price that individuals pay during the transaction may be determined by a number of factors that we will discuss later. Although there are many types of markets Read More…

  In the first chapter we learned about what markets were, and specifically talked about the stock market. You might still be wondering though what is stock? As we talked about in the Apple example, stock is a type of security that signifies ownership in a corporation and represents a claim on part of the Read More…

This table of data is kind of table that you will see when you type a stock or stock symbol into the Yahoo! Finance search tab. The top line shows us that we are looking at information regarding Annaly Capital Management, Inc. Stocks are denoted by symbols that are unique to that stock. For example, Read More…

What makes stock prices go up and down? Most people would tell you that supply and demand makes stock prices go up and down, and most people would be wrong. Price discovery is the actual reason tha makes stocks go up and down and is a difficult concept to understand that is too often comapred Read More…

Liquidity can be hard to explain with respect to stocks, but an easy way to start thinking about liquidity is by picturing a water bottle with one of two things in it, water or concrete. If you took a water bottle with concrete in it, twisted off the cap and flipped it upside down, nothing Read More…

There are three phases of the market that you need to know to understand how markets move and work. The three phases of the market are congestion, breakout, then blow off. The first phase of the market is congestion. The market is in congestion more than 65% of the time. Congestion can be hard to Read More…

Risk vs. Reward is one of the most important concepts when it comes to our trading. It is important to realize that when we are trading, we are not gambling. Our trading revolves around calculated risks that will make us successful in the long run. It is a beautiful thing that when we trade, we Read More…

This section builds directly off of the last one because it reiterates the fact that we are not gambling when we are trading. Your personal opinion and emotion must be left at the door. The only thing you should be looking at is the levels on your chart. There is nothing more dangerous than a Read More…

We have talked a little bit about trading stocks. You might be wondering though, “How do I know which stocks to trade?” We also have a set of rules in place for finding the right stocks for you to trade. The key to technical trading is to find the levels you want to trade. It Read More…

We’ll pick up right where we left off last section. Your watch list comes directly from the stocks that you screen for. We want our watch list to consist of 20 stocks from the screening section. It may seem like a hard task to pick only 20 stocks from that big of a list, but Read More…

There are many different types of orders you can place in the stock market, and it is important to know the difference between all of them. Let’s start with the two most basic types of orders that we should be aware of. A market order is an order to buy or sell immediately at the Read More…

Please watch the videos below showing you how to place a buy order with a 3% stop. A buy order is also called a long position because we always want to place our orders off of the levels we create when making our watch lists.   [link name=”validlink” dest=”/account/validatecode?code=4000012″]If this was part of an assignment, Read More…

Once your stock has been filled you always want to protect your downside risk.  The recommendation for trading stock is to place a stop order 3% lower than what you paid for the stock.  For example, if you bought a stock for $37.00 per share you would want to put your stop in by taking Read More…

We are now onto the last step of learning how to trade. This step is the most exciting one as we actually get to use charts and make trades off of them. Our style of trading revolves around identifying patterns within charts. We have two main patterns that we use, they are called double tops Read More…

Options are one of the most misunderstood concepts in trading. Many people do not trade options because they have false beliefs that options are too risky. The truth is that they just don’t know how options really work. Options are actually the most beneficial for young traders because they don’t require nearly as much capital Read More…

Volatility is a critical concept to understand when trading options. The volatility in the market place can give us a lot of information regarding how we should be trading options. So many people trade options without evaluating the true market value of the options they are trading. This is a peculiar phenomenon because these people Read More…

We have briefly gone over what a call option is, but let’s make it a little clearer. When you buy a call option, you are betting that a stock will go up. Here are three important components that affect the price of an option. Strike Price= the price at which you are allowed to buy Read More…

This chapter will basically be a mirror image to the last one. We have briefly gone over what a put option is, but let’s make it little clearer. When you buy a put option, you are betting that a stock will go down. Let’s move right to option chain this time, but now we are Read More…