So how do you know when to buy a stock, because it's one of the worst feelings when you buy a stock and it continues to sell off? So in this video? I'm actually going to talk about the three stages of a reversal and the steps that i've taken and how i work with the learn plan, profit group and making sure that you stay effective when everyone likes to say by the dip. I think that there is a more effective way and how to buy the dip, and that's what i'm going to share with you in this video today. So let's go ahead and jump into my screen. I don't want you to focus on all the mess that i have going on here right.

I want you to focus on what's important, what is a trade-in and like? Why do we buy something? Well, we buy something with the intention to be able to sell it. For more - and i want to make sure of three things that i put my money in areas that are consistently bullish, meaning indicating signs of an uptrend. The second thing is: i need there to be consistency, because i trade based off of technical patterns right. So that means that i have to be able to identify a pattern to choose to take advantage of it.

And the last thing is, i don't know about you, but i don't like overpaying, i like to focus on deals and it's just those three principles that i solely choose to focus on. I like to keep things simple and it's the simple things in life that people tend to over complicate, but you and i are not one of them. So let's go ahead and jump into my screen. So this is facebook.

I don't know if you've heard of them, but it is a nearly 1 trillion dollar market cap company. And if i were to ask you, do you think facebook's going anywhere anytime soon? No, it's a quality, valuable blue chip company and if you look at facebook on the day chart meaning where each candle represents a day right, this is almost a whole year. If i were to ask you hey what do you have bought in facebook one year ago? Just looking at it well duh right, it was trading at 170 and now it's trading at 340., i'd love to double my money. Well, what's one thing that i like or find attractive about facebook? It's bullish! It indicates signs of an uptrend over a long period of time.

The direction is in your favor one of the biggest mistakes that beginner traders make. Is they always like buying the dip on a stock? That's consistently bearish, meaning that it's selling off? Why would you want to buy the dip on something that is losing money? You just think all of a sudden, it's going to it's going to recover. That's not how the market works. I'm not here to trade based off of hope.

I'm here to trade based off of what makes sense, have a why, behind everything that you do so, let's go ahead and dig into it. The direction is in my favor with facebook check. Is there consistency? Well, yeah, it's consistently bullish and it makes higher highs and higher lows, meaning that over time, facebook does pull back just like any stock pull backs. You should embrace them.

It allows the market to breathe. No one that is well positioned gets scared when the market pulls back, because, if anything, an opportunity where you can buy more at a cheaper price and write it back for the recovery, the only people that get upset when the market pulls back are those that were Not prepared and like i said you and i we're not those people, we are here to be prepared not to get scared so now that facebook has recently pulled on back guess what it meets. My third criteria of it being cheap now is it the cheapest stock? Is is facebook, a stock that you know like amc that offers like crazy return? Is it a pump and dump or a hyped upside? No, it's facebook! It's a good quality company, that's bullish over a long period of time, and it makes sense that it's consistently bullish and that's why i want to put my money behind it because it it grows over a period of time. So it meets my three criteria of it.

Being cheap bullish and consistent so now, should i just blindly buy the dip, should i just throw a thousand dollars into it and just cross my fingers? Well, no there's an effective way in taking advantage of these opportunities and within our loan plan, profit group. We call it the three stages of a reversal. I want to give you a real example. When facebook was trading at highs of 220, as you can see right on over here, and then it pulled back and hit lows of 137 as it was selling off, did it make sense to buy some at 194? Did it make sense to buy some at 175? You don't know where the bottom of a stock is i'm not here to predict that i can predict the future.

I'm not here to pretend that i can predict the future. My apologies i messed up, but i'm not here to pretend like i have a crystal ball. We don't, we can't predict, we can prepare so as something is selling off the direction is not in your favor, it's bearish. So this is what we call the rejection stage and it's a very common mistake that how many times when something sells off do you buy the dip with 100 of your account? It sucks, because guess what? When i go in with a thousand dollars and i bought the dip - and it still sells off now - i'm just sitting on my hands - it's the worst feeling, because all you're doing is now hoping for it to recover again.

What are we not here to do hope? So during the rejection phase as an absolute beginner, i would either go with zero percent to ten percent of a position, so an example can be if you have a thousand dollars in your account, instead of going in with a thousand dollars right away either going in With nothing at all, because it's still selling off, because it's a very high risk stage and or ten percent, so a hundred dollars a hundred dollars out of the thousand dollars. So if it does continue to sell off well yeah, it does suck because you might be losing a little bit of money, but only 10 of your account is invested. So you can tolerate it. Put yourself in a position in which you can tolerate you're.

Not just hopeful, because you don't just think that you control the market and that when you buy the market has to recover, that's not how the market works. You should always be optimistic with the idea that nothing has to happen. The market can continue to sell up things, don't have to go according to plan, which is why we focus on risk management, a very common mistake that many beginner traders don't so as we approach this consolidation stage as a stage two. This is when the stock is beginning to establish a support level where it's no longer selling off, but it's not really recovering just yet.

This is where i would enter with about 10 to 20, so the example of a thousand dollars. This is where i would be in with either 100 or 200. A real world example of this with facebook would be when it hit lows of 137. We still didn't know that that was the bottom, but it's beginning to consolidate around this general area.

It didn't just recover right away, it begins to consolidate, it establishes a support level and then it breaks above ema and then it begins to indicate signs of an uptrend. This is when it's actually indicating signs of an uptrend. This is the why. Why am i going to buy here? Well now, it's actually recovering.

So now my. Why is well, i want to put my money in something: that's actually recovering, just guess what it was bullish it sold off it's now recovering. I can get it for a good price and the directions in my favor, so this is the third stage confirmation where it's actually indicating signs of an uptrend. This is where i can step on the gas with 20 to 100 of my position, and it's viewed as a little bit more of a low risk.

It still doesn't have to go according to plan. Anything can happen as a negative news can be shared. The stock can drop, which is why risk management always has to be top one priority. But you are at least taking steps to approach this by the dip, just concept and a much more conservative way, and that's what i'm here to do to keep it a little bit more simple and to make sense of things right that you don't have to do Everything blind or you don't have to do everything with a hopeful mentality, but that you have a why behind something, and that's exactly why i'm making this video right.

I want you to understand the reason why someone does what they do, which is, i think, one of the biggest reasons that our live trading sessions are so of value during these live trading sessions. How cool would it be where you can watch me? Trade live every morning at market open and see why i buy a stock. Why i sell a stock? Why i cut losses and see it in real time? It's not a recorded video. You see an hour later a week later, or you message me and then i message you back a little bit later, it's real time and at least with the market, the market's always changing and real-time value is always the most valuable and that's what i will actually Want you to see in the next video, i want you to see what it's like to watch someone trade live so only one last video and it's a live training video if you're excited for that, make sure you drop a thumbs up and move on to video Number three: i hope you enjoy.

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