Today, we're going to be talking about the three most popular ways to make profits in the stock market. Hey everyone, lee dragon with stocks, trade tim bone here be sure to like share, subscribe and ring that bell, if you're on youtube to be notified. As soon as we go live soon as we drop a podcast as soon as we drop a basic how-to information - video like this, so that being said today we're going to kind of get into like some terms. But you know a lot of this stuff can be often misunderstood.

You know a lot of people here, long short and they'll mix up that a lot of the times, especially like with investing and swing trading, so um. I think this is important and again it's more of a beginner video but hey. We all got to start somewhere. So when we talk about going now now keep in mind, i do actually, i almost jumped ahead.

Most of what i'm going to talk about today is in the day trading short term trading world. Okay, now that's what most of you are probably here for that's a yo stocks. A trade is a great software for investing for longer term trading, but it is geared towards day traders and short-term traders and again that's why i'm doing this video, because maybe i'm on pre-market prep and i talk about going long, a stock and people might think that Means a long-term hold, or maybe i'll say hey. This is a swing, trade and they're.

Not necessarily you know, they're confused what that means. So, let's break down those three terms. So when we talk about going long, a day, trade that means we're buying the stock, we're buying 100 shares we're buying a thousand shares with the anticipation of selling them higher. You know cei great example: look at this beautiful breakout over 75 cents, already doubled, pushing back to the near the high of the day.

So anyway, this was a day trade idea. We talked about this morning, um over those pre-market highs at 175. When i say talked about it this morning on pre-market prep, i go live every morning on the channel 8 30 eastern check it out. But anyway this is uh amex american stock exchange stock uh many of us in the day trading community joke.

We call the amex the american stockade exchange the scam x, okay, very risky, very speculative companies. So the reason i make that point number one cei is kind of a stock du jour going into the afternoon, but also i would never ever ever long term hold an american stock exchange company. I mean these are the worst of the worst, almost as bad as the otcs, not quite nothing's, worse than the otcs, but but the amex stocks are closed. So this is that day, trade type idea and going along that stock.

So what we're thinking about is we're not believers. Okay, we're not investors, we're not long-term holders. We may know what the company does. We may read the press release, but at the end of the day we know we're going to be in and out of this for minutes hours, but no matter what we're out at the end of the day, so we're done by the 4 p.m close or maybe Into the after hours, which you know trades up till 8 pm eastern, but we're not holding this overnight, because unless you hate sleep or you enjoy waking up to a crippling loss, which i don't know anybody that does, except for masochistic losing traders that never want to Learn the people that don't watch these videos they enjoy the pain and the losses, but anyway, in a day, trade war in and out the same day or the one exception is when we talk about a gapper - and this is an another term that can get a Little confusing because this is an overnight trade now normally, when we talk about otc gappers, it is in the otc markets, because a lot of those do if they close at the cl at the high of the day, if they close near the high of the day, They tend to gap up the next day.

Now. I still consider that a day trading uh strategy, because the idea is you're buying into the close like 3 30 p.m, 3, 30, 45 p.m, and then you're selling right at the open. 9. 35 a.m.

The next day, maybe 9 45 - maybe 10 a.m. The next day and understand otc is very ill number one otc's don't trade in after hours, so you don't have to worry about that and they're very illiquid. They they barely trade in pre-market. So that's why we do like them for the for the gappers, because the thing with nasdaq's and nyse's and amex is they start they trade up till 8pm.

They start trading at 4 a.m. Eastern! So it's like it's just a terrible day. The nice thing about otcs is, you can gap them and you don't have all that stress and all that time so that strategy, i still consider a day trade philosophy because ultimately you're in the trade an hour market time. So when i say market time, otc's close at 4 pm, they open back up at 9, 30., so yeah, maybe you're in the stock 16 hours but market time, you're in at 45 minutes and it's a date.

Ultimately, it's a pattern day, trader friendly philosophy. So that's long get long day, trading buying the stock selling in minutes an hour later or maybe you're gapping in otc, but market time, you're still in and out hour couple hours tops. Then, when we talk about short selling, you know and again this is where people might get concerned because you say: oh, i shorted the stock or not concerned get confused confused, not concerned they get confused because when you say i shorted the stock, a lot of newer Traders will be like they think that just means, like short term, like you, were hey, oh, you were in and out in minutes no understand when you're shorting, a stock you're selling before you buy, and this get confusing. We got a bunch of videos on this.

Got a bunch of blog posts, i got an ebook on short selling if you want more, but just ultimately the easiest way to explain. This is you're just reversing time: okay and you're selling before you're buying, okay and the idea is you're still buying high and selling low okay. So the idea is, or buying low and selling high. That's if you screw up your short sale, you're, buying low and selling high you're, just reversing the time frame, so a great short sell would be you sell it.

Two dollars sell the stock at two dollars and you buy it back in a dollar. So you profit from the difference, so you sold it to you, bought it one. So you're made a dollar a share. It's just the time frame is reversed.

Now, if you short sell something on your brokerage account, you actually take a negative position. So if you short, a thousand shares of a stock you'll actually see a negative 1000 shares in in your brokerage account. Now you do need to borrow those shares again, it's confusing, but we have resources to help you, but the idea is that you're you're doing the same thing for a profit. You know again buying low selling high.

If you take a loss, you're you're as i screwed up in the beginning, you're buying high and selling low. So if you short that stock at a dollar and you buy it back, buy to cover it two, you lost the difference. So that's the idea. Now, most almost all short sales.

If you're smart are day trades, it can be very, very dangerous in this market, we're into long term short sale when you borrow the stock you're, actually paying uh short selling fees, locate fees and interest. So keep that in mind, if you think you're going gon na hold this short for a long term really the fees can eat you alive. So short selling to me is a day trade only strategy, but then the last term swing again often misunderstood confused. When i talk about a swing trade and when pretty much every uh, you know short-term biased trader what we're saying there.

It's an overnight trade to maybe multiple days or multiple weeks. So it's basically that one step between day trading and investing you know we're we're. Looking to trade, higher quality stocks for swing trades, because you know the higher quality stocks, the higher price stocks, they don't make the crazy moves. The 100 moves, the 20.

You know 200 moves. You got to be a little more patient, but the nice thing about swing trading is you're trading, higher quality stocks, so your uh potential for disaster is much lower. What we typically use that strategy for is earnings winners. That might be a term you've heard, but we look to swing trade earnings winners, that's a stock with great news.

They've been great, you know, their sales are up, their profits are up they're in a hot sector, but it's a higher market cap stock. So it takes a few days a few weeks to move that 20. 30. 40 percent.

But again the nice thing is they're higher quality stocks, so you can actually sleep at night versus a sketchy low float day, trade type stock. So that being said, hope you guys like this drop me a comment below you know we'd like to appeal to everyone here. Do you like the basics video? I mean listen like i said you're, probably here on youtube, because you're looking to learn and you might be com, this might benefit an advanced video to you or maybe you're kind of new to some of these wild runners and you're. Like hey, i picked up something from this video, so drop me a comment and, as always, definitely check out pre market prep every monday or every monday, every monday, tuesday, wednesday, thursday.

Every day the market is open. I go live at 8 30 eastern on youtube, instagram and facebook check it out. It's a great way to learn these rapid fire stocks and we'll see you next time.