Welcome everyone. Today we're gon na be talking about the basics of day trading for beginners, okay. I think I give a lot of higher level medium level content, but sometimes you know I get so into the groove of talking about this stuff that sometimes I skip over a lot of the basics., So if you're brand new, I think this is the video for You and I think I can answer a lot of very frequent questions that come up, particularly for people that are new today. All right.

Everyone welcome back., Be sure to like share, subscribe and ring that bell., Most importantly be notified. As soon as we drop a new video. And I am lead trainer with StocksToTrade Tim Bohen., I run the SteadyTrade Team.. It's an amazing mentorship, program..

I've done over 3000 webinars in five years., Never missed a day, never been late, never failed to show up ready to rock and ready to give as much trading information as possible in twice daily webinars. Check out the SteadyTrade Team. All right. Let's talk about the basics of day trading., So I'm gon na run through a lot of the stuff.

You look at., So maybe you've been on pre-market prep. Maybe you've been on a lot of these videos and you're like what's all this stuff going on okay.. So I'm not really gon na get into much charting, because I've got a ton of videos on charting, but a lot of the other information that you have on the screen. You see my screen.

If you get StocksToTrade, which you should get click below for the trial, you might see a lot of this information and see green red lines going everywhere and you're wondering what it is.. So I'm gon na start with a lot of the information. We're kind of mostly gon na focus on the lower level of the screen, you're looking at kind of below the charting., And I'm just gon na work left to right and I'm gon na explain you a lot of these things that are some of the most important Information. Again, I know like particularly on pre-market, prep and stuff, like that, it's very, very chart-based., So I'm always saying hey this chart level, this price level, this red to green.

This view app et cetera, all of those levels and a lot of times. You might not hear me talking about a lot of this other information, though you see it on screen and you're wondering what it is. So we're gon na start with the Basics box over here on the left and what that shows in, and it's very simple, but Some of the most important information is here and I'm gon na focus on the stuff that I use, and I think you should be particularly dialed in on. Nice thing is you got the high of the day, the low of the day right off the bat..

I mean right there at the top. And I care about those particularly that high in the day, because, if you're familiar with the dip and rip morning set up as well as the afternoon view uphold, those are both keying off the high day level.. So you always wan na know that, high day level for your stock ,'cause, those are the explosive levels.. I mean if AMC happens, to break 3071 during this video you'll see a response..

I don't necessarily look at the low of the day. If you're short bias. You probably wan na you know ,'cause, keep in mind if you're short bias, you're dialing in on the low of the day for breakdowns.. So it's like I mean remember when we talk long and short in day trading.

It's the same idea. It is. - And I know I joke a lot about short sellers on my social media.. It's the same process.

They're, both totally viable strategies., We're looking at emotional levels and when shorting you're, just flipping that chart upside down and you're looking for panic. When we're going long. We're looking for euphoria, greed., Okay, we're keying off of greed. When you're shorting you're, looking at fear; okay, Those two, the two words that drive the stock market, more than anything fear and greed..

So anyway, if you're looking at that, if you're shorting, if you're looking at those breakdowns, you look at the low of the day, then I could see the previous or the open price in the previous close. That previous close is the red to green line.. You know I love that. And then the volume that's your volume on the date.

AMC has traded 132 million shares and then related to that right below is the 60 day average okay.. That is a key. I look at other than the float and we'll get to the float in a second.. I look at the 60 day average - probably the most well second to the float., Because I wan na look for stocks that are trading..

You'll hearing me say ridiculous unusual. All of these adjectives, but if you're day trading, I don't care if you're long or short, you need unusual volume. You need ridiculous value because we're looking for big moves.. What creates big moves Unusual? This is your post-it note write this down.

One of my favorite quotes. `` Unusual value brings unusual price action.'' When we're day trading, we're looking for unusual price action, upside downside, fear and greed okay.. So you can see again AMC's kind of one of the biggest movers of mean stock.. You can see the 60 day.

Average is 42 million.. You can see I'm recording towards the end of the day at almost 3:30 PM straight at 132 million shares., So it's traded three times the average value.. That's unusual. That is something to key on there's a reason: it's up: 23 %.

Okay. Next thing we look at is the market cap. AMC's a little bit bigger market cap than we typically look to day trade, but it's a mean stock., So normally we're looking at. You know: 20 million market cap 50 million less than a hundred million market cap stocks..

This is a 15 billion market cap, but it's an insane mean stock.. Then the last thing that we really dial in on is the float. You'll hear me say: float low, float, low, float, low float. When we're day trading.

We love love and let me bring up one kind, one of the bigger movers today, that's a low float., So you can see BFRI. This is stock. You can see, went red to green and squeezed for two bucks, a share on a Friday which is always glorious, but you can see a hundred million dollar market cap kind of what I was mentioning. 6 million float a good example.

And then again you can see unusual price action., It's trading two and a half times the 60 day average okay., I'm gon na jump back to AMC just to kind of keep things. Consistent. Next is we're gon na look at the level two box and I'm gon na go really quick on this okay. Level.

Two merits an entire video and probably merits way more than a 10 minute video okay., But the biggest thing I'm gon na focus on is the bid and the ask because listen level, two is very important, but I'm trying to keep this as a 10 minute video Level two warrants way more than that., So the biggest thing I wan na talk about is the bid and the ask.. So the bid - and the ask is the bidders okay, that's the lowest price someone's willing to buy at okay.. So if you're bidding on an auction think about it. Your bidders, your buyers are saying: `` Hey.

This is the price I'm willing to pay up. To.'' I'm buying a car, I'm buying a stock., I'm like ``, Hey man, you got really nice. 1987 Camaro.. You know it's a little rusty.

It's got about a hundred horsepower I'll, give you 1500, but that's it.. I ain't giving you 1501 all right, ?'' And then on the ask side is the guy with the glorious mullet and the tank top t-shirt and the cargo shorts. And he's like `` Wait a minute. I ain't taking less than 1750 for my 87 rusted out Camaro.''.

So that's on the ask.! So then that's the lowest price that people are willing to sell at okay.. Now you're gon na see that bid in that ask jump around because it's not just you and the guy with the mullet.. You got to understand in the stock market, especially liquid stock. It's not one-to-one there's, not only two people looking to trade AMC, thousands and hundreds., So you're gon na see that bid and that ask jump around a little bit because you've got well.

I said hundreds thousands of liquid stock, like this tens of thousands of people trading, this thing., So you're gon na see that move around. And then, when we talk about the spread, that is the difference between the bid and the ask.. Now, I'm gon na beg beg beg you to trade liquid stocks.. You can see most of the time AMC has a penny spread..

I just saw a two cent: spread., That's what you want.! That's a liquid stock with a tight spread.. If you're trading illiquid stocks with wide spreads, you can't get the fills you want. You're gon na get crappy fills and you're gon na end up paying 1600 for that rusted out Camaro, because the spread's too wide and you get a crappy price. Car's, probably not even Worth that, probably not even worth the 1500 you're willing to pay., But anyhow I'll quit with my dumb analogy.

Anyway, look for tight spreads pennies at the most.. If you're looking at 50 cents, multiple dollars a share, the stock is too illiquid and it should be ignored.. Next thing we're looking at is the level one which is what we call the tape. And basically every sale, not basically every sale.

That is consummated goes on the tape. Okay, So every time there's a transaction made, it goes on the tape.. It's what we call the level one. So you'll see three things.

Time. Obviously we know what the time is. That's the timestamp.. The next is the price..

That's the price that the transaction took place. At. We sold something I bought you sold. You sold.

I bought at that specific price.. Now then, the next thing is the size.. That's the number of shares. One share two shares.

Thousands. 337 shares. 96.. That's your shares that were transacted., So I just saw 20 shares..

I bought 20 shares from you., I'm the buyer.. I bought on the bid you sold on the ask.. We sold, we transacted 20 shares., Then the next thing, that's quite frequently misunderstood is the colors, because people think oh, what's that mean.? Does that mean it was a short? Does that mean it was a buy et cetera, et cetera no.? All that shows is upticks down, ticks or unchanged, and I'm gon na finish on this and please pay attention.. Well, I won't finish..

I got one more thing, But don't read too much into that.. So many people see the level one they think it's shorts. They think it's longs no.. All that shows is, if there's a green print, we call it so there's a print on the tape..

I try not to get too jargony, but if there's a green print, that means that that transaction was an uptick from the previous transaction., So stock sold at 29.55 and the previous transaction was at 29.54 uptick.. Then, if the stock sells at 29.53 versus the previous transaction, it's gon na be a red.. It's gon na be a downturn.. Now, if it sells at 29.54 and then another transaction at 29.54, that's your white prints, unchanged.

Green uptick versus the previous transaction, red's, a down tick versus the previous and then white is unchanged.. So if you see a bunch of white transactions, I just saw a bunch of transactions took place at 29.54 unchanged. All right last thing: I'm gon na talk about is I'm just gon na quickly walk you through all of the data in StocksToTrade, because this video is Running a little long., So we've got our news: okay, Which is all press releases company announcements.. Then you've got the SEC filings, which are the legally required filings that companies need to make with the SEC with the government.

Those are their, whether they buy stock sell stock. If they dilute, if they have earnings, they need to file with the SEC. Events, are events that you set in StocksToTrade. We've got a chat module which is awesome., Definitely check out the trial.

Anytime. Someone in StocksToTrade mentions that specific ticker it'll be filtered for that.. I love that., Especially like if you're in a stock, if you're in AMC, you'll see what everyone's saying about AMC.. That's the beauty of it., Because if you're in the stock you wan na know., Is there news? What's the chatter What's going on, Then profile? Is your basic information on the stock.? What industry are they in? Where are they located Et cetera.? Key statistics is way too much information for this video, but it's all of the financial information that we use.

I'll do another video on that.. Then we've got the order box, which is where you buy and sell on the bid. The ask et cetera. Related love this tab, because this shows you other companies that are in the same sector as the stock you're looking at..

So this is one of the great ways to find sympathy. Plays., Okay, you might've heard of sympathy plays.. We do that with the Related tab.. Next is the Twitter feed.? It's Christmas.

People are posting Grinch, which you know Twitter's a disaster. Anyway, don't go on Twitter if you're day trading. It used to be so useful.. It used to be so great and then 2016 happened.

Anyway. The nice thing is, we do have this feature where you can see. Every tweet about AMC, but all you're gon na see, is pumpers, bashers and non-stop, stupid, memes. And then the last one is Rating..

This is tip ranks.. It's another service that gives you hedge funds, insider rating, it's exclusive to stocks and trade.. Tip ranks is a very interesting feature. Again I'll save that for another video., So I made it in about 15 minutes..

They told me to keep it under 10.. I only ran over by 50 % Anyway comment below. Let me know if you like these videos kind of breaking down.. I think this is very, very useful, especially like people don't necessarily know how to use the information in the Basics.

Box. Level two is so misunderstood., So many people don't understand level two. And again, even the tape. You know the uptick downtick thing trips up a lot of people.

Drop me. A comment check out the SteadyTrade Team. Would love to work with you and we'll see you next time.