Hey hey: what's up my friends, so welcome to today's presentation where you'll discover how to beat the markets, the stock markets in less than 30 minutes a day without getting killed in a bear market or a recession, and the title of today's presentation is called stock trading Secrets so let's get started so here's what you'll learn right in this presentation. Number one secret number one: the easiest way to make money from the stock markets, and it's not what you think secret number: two: how to instantly improve your returns and reduce your risk. Using this one simple technique that not many traders are aware of secret number three: a simple stock trading strategy that works without getting you killed in a bear market or a recession, and finally, secret number. Four.

I'm really excited for this one: how to scan for profitable stock trading opportunities in less than 30 minutes a day without paying for a stock scanner or a subscription service sounds good. Let's get started so when it comes to stock trading. You pretty much have one of two options: you can either number one buy low and sell high or buy high and sell higher. So now the question is: which approach is better so number one? What we're going to do is we're going to run a simple back test across the u.s stock markets and let the data you know, speak for itself and to do these back tests uh the first one we'll do is to buy low and sell high.

So the first rule is this right: we'll go along when the stock hits a 50 week low. So what do i mean by when a stock hits a 50 week low? So i'm just going to draw a simple thing. So, for example, let's say the stock is declining down, lower, lower and lower, and then it hits this price point. Let's say this price point is the 50 week low.

Some of you might be wondering hey ray now. What is 50 week low? It simply means right that the current stock price is the lowest price over the last 50 weeks, simple as that the lowest stock price over the last 50 weeks. So that's what we mean by we go long. We buy a stock when the price of a stock hits a 50 week low.

So moving on, we, our exit rule, is a 20 trillion, stop loss. So again, let me illustrate what this means. So let's say a stock goes down lower lower and it hits a 50 low 50 weight low. At this price point.

Let's say this price point is at 100 bucks. Okay, so how does this 20 trillion? Stop? Loss comes into play very simple. If this is 800, our 20 trailing stop. Loss means right.

Our stop. Loss is 20 of this value, so clearly, right 20 of 100 is 20. So if the price drops another 20, let's say it drops down to this. This point, which is 80 over here.

Okay, this means that we will exit the trade, so, let's put it across, we will exceed the trade when it drops to 80. So from 100 to 80 is a 20 drop in price. We will then exit this trade now. What? If? Okay, let me just do with you another variation of the example.

Let's say the price goes down lower to the 50-week low you buy over here, and then you catch the bottom. The price heads up higher now and right now, let's say initially, you've got it. It was at 100, okay, and now the price has bounced up to a high of 200. So how does this 20 trillion? Stop? Loss work same concept right.

What we'll do is we'll take the highest price point that the stock has went to and calculate 20 of that value. So 20 of 200 is 40, so if the price of the stock were to drop 40 from the highest right now, let's say this is 160 price point. Let's say the stock were to drop right from 200 down all the way down to this price point 160. It means our 20 trailing stop, loss is hit and we'll exit the trade.

So this is pretty much the two ways the stock can go. If it drops down lower and heats, our 20 trailing stop loss or it goes up higher. Then he reverse and then hits our trailing. Stop loss, okay.

So this is what this means. So the next rule to share with you is this: sometimes when a stock right all of them drop at the same time right there are many stocks to choose from. So how do we filter the stocks to choose? So what we'll do is we'll pick the top 20 stocks that has the largest price decline over the last 50 weeks. So, in essence, what we're trying to do we, we are trying to buy the weakest of the weakest stocks right whenever it hits the 50-week low okay, and we have 20 positions at most, so some parameters to make the back test more real.

Our transaction cost is one cent per share which is highly achievable when you're trading the u.s stock market. We will test this all only in the u.s russell 1000 stocks, the largest 1 000 stocks in the u.s. We will execute the trade at the market open when the market opens our position. Size is five percent, so let me explain what this means.

So, unlike our traditional, you know, five percent stop loss right. What this one means is that let's say you have a capital of hundred thousand dollars, so a five percent position size means that each stock will not be more than five thousand dollars. Okay, let's call it 5k. So this is what we mean.

So let me repeat once again: if let's say you have a capital hundred thousand dollars the position size, five percent means right that each stock that you buy the value cannot exit more than five thousand dollars. So let's say you want to buy stock, a okay, let's say the stock: let's call it stock a and stock a the current stock price of stock, a is at five thousand dollars, so how many shares of stock a can you buy? The answer is one because remember our value of each stock cannot exit five thousand dollars if we want to make sure that our position size remains. Five percent of our total account value. So now, let's see what we've, what if we have stock b and this time around stock b, the share price of stock b is 500.

How many shares of stock b can we buy? We can buy okay. Let's change this. To b, we can buy 10 shares because 10 multiplied by 500 is equal to 5 000. So this is what we mean by you know, position size 5, and by doing this right we won't allow any one stock right to kind of be holding too much weight in our portfolio.

So, for example, if you buy 10 shares of amazon and you compare with 10 shares of mcdonald's, it's not gon na be equal, because the price of amazon is so much higher than mcdonald's. So if you buy 10 shares of amazon right, your portfolio weightage will be more leading towards amazon than you know, mcdonald. So this is what we're trying to you know overcome over here. We want our portfolio to be equally distributed.

Among you know these 20 stocks up there, okay. So this is what i mean by position: size, five percent and then moving on our test period. Our back test period is from 1990 to 2018. So that's about 29 years.

You know taking account the financial crisis.com bubble, etc. So you can see over here. The results of the buy low and sell high number of trades you have taken over the last 29 years is 467. Winning rate is about 43.68 percent.

Annual return is about 9.28 with a maximum drawdown of 52.27. So let me break down these numbers for you, and some of you might not be familiar with it. So what i mean you know as number of trades, you know what's a winning rate and no return. How do we define this and no return? So very simple? Let's say you have a starting capital of hundred dollars and let's say your annual return is ten percent, so you have you made ten percent so hundred dollars.

Multi, you add, on 10, will give you 100 and 10 dollars an increase of 10. So let's say you make another 10 year: two. This value now becomes 100 and 920 but 121 because we're thinking 10 of this second year value. So the 10 of this 110 is 11 11 plus 110 gives you 121.

So over this two years right, we have a no return of 10. So what this number means is the annual return, no compounded return right over the uh last 29 years is about 9.28. So maximum drawdown, what does maximum drawdown means? Very simple, so let's say you have a portfolio value of a hundred thousand dollars when you have a maximum drawdown of 52 percent i'll make, let's make it simple. 50.

It means that 100 000 at one point in time, was only worth 50 000. That is what we mean by having a drawdown of 50, so in this case a maximum drawdown of 52. It means that your 100 at one point in time, was only worth forty. Eight thousand dollars, so this is what we mean by maximum drawdown.

So this is the results of buy low and sell high. So now, let's move on and have a look at, buy, high and sell higher. You know how much of a difference would that make? Would it be better, or would it be worse so again we'll go along when the stock hits a 50-week high? So this is now the opposite. Previously we were trying to buy when the stock price fell.

So now we're trying to buy when the stock price goes up. So, let's say stock is in an uptrend and it breaks out of the 50-week high. We buy okay. So now we can see that this is the inverse right of what we did earlier next thing.

We have a 20 trailing stop-loss exits, so it's again the same concept which i shared with you earlier so i'll. Just briefly do this, if you buy at let's say a 50-week high, let's say the price is at 100 right. If it drops 20 to 80, you exit the trade, but what if it continues to go up higher? Let's say now: it goes up to 300. Where is our trailing? Stop loss now, simple.

20. So 20 of 300 is 60. 300. Minus 60 is 240.

So if the price now reverse to - let's say 240 at this point - okay, it will exit the trade i'll put it across over here. It means you'll, hit your trailing, stop loss and exit the trade at 240. It's a bit messy, but you get my point. So that's what we mean by the trailing, stop loss and again sometimes right in bull market.

Many stocks will hit their 50-week high at the same time so which do we pick? We simply pick the strongest one, the top 20 stocks, which has increased the most in price over the last 50 weeks simple. This is how we kind of filter down. You know which are the strongest stocks to pick so again: transaction cost test universe, market open all the same as earlier, and here are the results number of trades now, the one in bracket or parentheses right. This is actually the results from the previous back test.

The buy low sell high, so the current result is the one bolted over here, so you can see for buy high sell higher. You have taken 707 trades compared to 467 earlier, winning rate has increased slightly to 48.66 compared to 43.68. Earlier. Annual return has increased to 12.81 compared to 9.28 for the buy low sell high back test earlier.

Maximum drawdown has been reduced to 40.75 compared to fifty two point, two seven percent for the earlier back test. So you can see that, for at this point in time the buy high sell higher right seems to be. You know, a better trading approach when it comes to stock trading. So if you wan na see the table or results right, this is pretty much the results on a month-to-month year-to-year basis over the last 29 years over here.

Okay, so i won't recommend you trade this on its own, but you can see that clearly this this uh, this thing to share with you is it's easier right to make money buying stocks in an uptrend, not in the downtrend. So this is the first secret that i want to share with you second secret: how to instantly right, increase your returns and reduce your risk. So here's the thing right. Many traders think that you know oh arena to increase your returns.

You have to increase your risk. Well, not quite because i'm going to share with you this very simple technique to actually you know, increase your returns while reducing your risk so to do that right, i'm going to share with you this picture of the the sea, the ocean, whatever you want to call It and because the secret lies in this image over here, can you can you, you know figure what it is. So let me share with you. It's actually quite simple because out there in the sea, when the sea type goes up, the ships in the sea goes up as well right.

It's common sense right when the tide goes up, the ships goes up when the tide goes down. When the sea levels go down, the ships which are underwater goes down as well. So what has this got to do with stock trading? Simple? You can imagine the sea i'm just going to draw. You can imagine this on the sea over here as the market, and you can imagine all these little ships over here ships, ships, ships, ships as individual stocks.

So if the market is bullish, it's going up higher stocks tend to go up as well, and if the market is in a recession, it's a bear market. All these individual stocks tend to go down with it as well, so as a stock trader as a stock trader. Who wants to put the odds in your favor, you want to be only trading when the market is bullish. How do you do that simple? Let me share with you this technique.

This is what we call a trend filter. I didn't come up with it right. You follow any trend following books, like you know, books from andreas, cleno, nick raj, etc. This is a concept they have.

You know uh shared and i'm just you know learning from this. You know great traders way way way ahead of me, so how you can use this trend filter for your own trading is again depending which markets you're trading. If you trade, u.s stocks, you can refer to the russell 3000, which is simply the largest 3 000 stocks in the u.s stock markets or the s p500. It's up to you.

If you trade, singapore stocks, you can refer to the sti straits times index. If you trade, the philippine stock markets can refer to the pse okay. So how do we use this trend filter so, first and foremost right? Let me just kind of you know, prove it to you right how a trend filter can improve your trading results. So let's do a back test again, but this time around we apply a trend filter with it.

So again, the rules are the same, but we are applying a trend filter, so we will only buy if the russell 3000 index is above the 100 week moving average, or else we stay in cash. So this is to help us this define or hey is the broad based market in an uptrend or a downtrend, so we will use the russell 3000 index. In this case you can use the s p. 500.

You can use the russell 1000. It's up to you. I'm just going with the russell 3000 index and since, if it's above the 100-week moving average, we will say that hey the overall market is bullish. Let's look for some buying opportunities, but if the russell 3000 index is below the 100-week moving average, we will say hey this market is bearish.

We remain in cash. So again the rules are the same. We go long when the stock hits a 50-week high. Our exit rule is a 20 trillion stop-loss and our filter is again.

Sometimes there are too many stocks to buy in the bull market. We just simply choose the top 20 stocks that has increased the most in price over the last 50 weeks. So let's have a look at the results, number of trades right. So, okay, let me just walk you through 905.

The one in bold is this: current back test right, buy high, sell higher with trend filter. The one in parenthesis in bracket is referring to the previous back test, which is the buy high and sell higher. So in this case we have more number of trades. 905.

Our winning rate has increased slightly to 49.17. Previously was forty eight point: six six percent: our annual return has further increased to fifteen point. Seven percent. Previously it was twelve point.

Eight percent maximum drawdown has been now reduced to thirty five point: eight percent. Previously, it was forty point, seven, five percent and if you look at the table the amount of money year and year results, you can see that this uh results are, is really looking much better than what we have seen earlier. So, yes, we have, you know, losing years along the way, but this you know losing years now have become more manageable and if a bit with a little bit of no tweaking, we can even make this into a quantitative trading system. But that's a topic for you know another day, so the secret number, two that i wan na share with you is this - is that a trend filter can improve your returns and reduce your risk and i'll show you later how you can actually apply this concept to Your trading and you know, get results with it so now, moving on all right, i want to share with you a simple stock trading strategy right that works without getting killed in a bear market or a recession, and the best part of it is that this strategy Will be based right on the three secrets, the three principles, the three concepts that i've just shared with you.

So let's get started so the first thing to look for is trend. So when it comes to stock trading, you really just want to focus on trading trending markets. Why is that? It's? It's simple right, as you've said earlier, it's much easier to buy, or rather to make money when the stock is in an uptrend than in the downtrend. So why do you want to fight this natural phenomenon of the stock markets? Why not just focus only on stocks which are in an uptrend even range stock markets just forget about it, just focus only on stocks which are in an uptrend and because there are so many thousand stocks out there, you can just simply focus on the best trending Stocks out there and i'll share with you later how to do that.

Okay, so first thing, first trend: what trend does is that it tells you what to do if the market is in an uptrend. You look for buying opportunities. If the market is in a downtrend, then you just stay out of the market. So how do you do this so first thing: first stock market index above the 100 week moving average.

So what this does is that it tells you what the overall market is doing is the overall market in an uptrend or is it in the downtrend next thing you want the stock to be above the 200-day moving average. This tells you what the individual stock is doing. So remember the c and the ship analogy i shared with you, so the stock market index is like the c and and the uh stock right is like the individual ship. So when the stock market index is in an uptrend when the individual stock is in an uptrend when you trade, you have a much higher probability of success.

So let me share with you how this would work. Okay, so let me just go through the charts. Russell 3000: let's go to the weekly time frame. So remember we want the russell 3000.

The stock market index would be above the 100 moving average. So in this case we use the russell 3000. So i'm just going to go back to the charts and change this settings to 100. Okay, and i'm just going to release this, so you can see that the black line over here is the 100 weight moving average.

So right now the russell 3000 clearly is above the 100 week moving average. So this means is that the overall market is bullish and we can look for potential buying opportunities, but we don't want to just randomly buy stocks. We only want to buy stocks which are in an uptrend, so what we will do is we will then make sure individual stocks are above their 200 moving average, and how do you do that very simple? Go back to the charts, in this case i'm going to the daily time frame. I will change this to 200 click.

Ok, and let's look at this kirkland right, you can see that this stock right now, it's above the 200-day moving average. This stock is trading here and the 200-day moving average averages here, it's above it, so this stock right now is in in an uptrend another one. How about apps the digital turbine right? You can see that this stock is above the 200-day moving average as well. So this is what we're actually looking for overall market to be bullish and individual stocks to be bullish as well, and the parameters that we use again is a 100 weight moving average for the stock market index and 200 day moving average for the individual stock.

So next thing right! So really, if you look at this right, you can look at this. A simple analogy to give you is: is uh, let's say you like a girl. I think most of you here are guys right. So you, if you like a girl and the girl loves baking baking, you know cupcakes, scones, etc and, and you know, let's say, you're interested.

You know what are the odds of her being interested in you. If you let's say you also like to beg, then clearly eat the odds are with you right because of similar interests right, because you guys are having similar interest, you guys are having interest in the same direction. She likes baking, you like making hey, you know, there's a good chance of you know things working out so same thing as the markets right. If market is in an uptrend you're looking to buy stocks in an uptrend, there's a good chance of things working out as well, so now this is for trend right next one just because the market or stock is in an uptrend doesn't mean you're going to blindly Hit the buy button because there's another thing that you want to look for and it's what we call area of value, so error value in essence.

Right it tells you where to buy so trend. Tells you what to do to look for buying opportunities or to stay out area value tells you where exactly to buy, because you'd want to just blindly buy. When a stock is in an uptrend, you could be overextended, it could be about to make a reversal. It could be, you know, about to make a pull back, so area value is where you want to trade from so this could be things like support swing, low, 50-day, moving average.

So these are really the three things i pay attention to when i trade stocks right, whether the stock is at support, is it at the 50-day moving average or at a swing low. So let me give you an example. So if stock is in an uptrend, okay stock is in an uptrend, and what you want to look for is for the market to pull back possibly to this swing low or this area of support. This is what we mean by the area of value, so this is really what we are looking for.

This is an example of an area of value at a swing, low or support. It could also be area of value using the 50 day moving average, especially in healthy trends. So, let's say market or stock is in an uptrend and you when you overlay with the 50-day moving average. You find that this stock tends to respect the 50-day moving average.

So this is another area of value that you can look to trade from so now, let's have a look at a few chart examples, so you can see what i mean so first one is this one here grow generation operation, so you can see over here this. We have this area of value over here, i'm just going to get this tool and uh to highlight that gear rectangle. Okay, we have this area of support over here. This is an area of value.

In this case the vox also have this area of value over. Here, and on top of it, i believe the 50-day moving average is also acting as an area of value for this okay, not quite he actually broke down recently. Okay. So in this case, this is this area of support right.

It's an area of value for this stock right now, and this is where you know you want to be looking to trade from so again, you can look at it eh this way right, you know, just because the stock is in an uptrend doesn't mean you want To blindly hit the buy button, okay, uh and with that said, let's uh kind of you know find out. You know what is the next step, so i'm just going to get rid of the drawing. So the third thing to look for is once the stock is trending higher once the stock is at an area of value. The third thing you have to look for is an entry trigger.

You know what is the thing that will get you into a trade, so we call this an entry trigger and for trading right entry trigger. In essence, i tell you tells you when to buy okay when to buy. So, if you think about this, the trend tells you what to do. Should i be buying right now, or should i be selling the area value, tells you where to buy the entry trigger, tells you when to buy the exact time when to buy okay, and to do this right, you can actually look at candlestick patterns.

It's actually a very useful tool right to help you define your entry trigger, so i'm going to walk you through some basic, simple candlestick patterns that you will encounter in your trading. First, one is hammer a very common pattern you might even heard of it before, but for those of you that have not right, i will just explain what this means. So a hammer simply means right that for the day this market has opened at this price. Let's call it oh and then, at the start of the day, the sellers were in control, they came in and they pushed the price down lower all the way down all the way down down the near the lows of this day, and then the buyers look at It they were, you know, saying, ah, hold up right.

That's enough right! That's as far as you're gon na push right now we're in charge and we're gon na push the price up higher, so they reverse all the selling that has occurred in the early part of the day and the buyers push the price up higher. At this point they decided hey, you know, let's inject some steroids and push it up further, so they push up even higher and close finally near the highest of the day. So you can see that the story of behind the hammer is that at the early part of the day the sellers were in control. They pushed the price down and then the buyers stepped in right and reversed all the earlier losses and close higher for the day.

So you can see that momentarily the buyers are in control because they have overwhelm right the earlier selling pressure, so this uh. This is what, in essence, the hammer is about. The other pattern to know is what we call the bullish engulfing pattern and really it's a very similar concept. The only difference is that it's happening over two days, so the first day polish engulfing pattern.

You can see priced open over here and then it closed near the lows of the day, so the sellers are like whoo right time to celebrate right. This is good news right. You know the market is going to collapse and the next day, somehow the seller, the buyers. You know step in you know uh.

Maybe they took an overdose of you, know steroids and they pretty much. You know push the price up near the highs, even above the highs of the previous day, and the buyers to control and close near the highs of the second day, and the highs of the second day is way above the highs of the previous down day. So in essence, you can see that again, these two patterns, in essence, what it's telling you is that the buyers have stepped in and pushed the price up higher. It has rejected lower prices right.

This is in essence, what this two candlestick patterns is telling you. It has rejected lower prices, rejection of lower prices and, of course, one thing to point out is when you study candlestick patterns, it's very important to understand the concept, the meaning behind it, because when you trade right the markets, there are so many variations to it, and You will see later when i give you, you know more chart examples that you know. Sometimes it might not happen in the form of a hammer or bullish engulfing pattern, but remember the key thing that we are trying to look for is rejection of lower prices. We want to see the price come down low and quickly get rejected and close up higher.

That's really what we are looking for, okay, and so with that said now that you've understand some basic candlestick patterns right. The next thing to look for is your exits right. So now you know where to enter using entry triggers so now the final part of the equation is exit when you exit the trade. So when it comes to exit right, it tells you in essence right when to sell right.

That's a very thing, a very important thing that you have to cover you can't just you know, think oh when to buy when to buy when to buy, because there will be times often many times where the market moves against you and you can just hope, pray. You know to pray to to to whoever you believe in and hope the market will reverse from there. No that's not how it works. You have to have a predefined plan to know when to cut your loss to exit right.

If the market goes against you and, of course, if the market moves in your favor, you will also need to know when to exit your trade to book your profits. You can't just you know, hope the market goes to the moon, because you know what you can see is that market can go to the moon and it comes back to earth and you feel like crap, because you know you didn't take profit. So, exit right is two part when to cut your laws and when to take your profits so to do that right. Let's first talk about a stop-loss part, so when it comes to stop-loss right, your stop-loss should be at the level right which invalidates your trading setup.

So what do i mean by that? So, whenever you put on a trade, what is it stock trading? Forex trading? You know crypto trading. It always have to have like a hypothesis behind it. So let me give you an example. So let's say: you're looking to buy and support stocks in an uptrend, okay, re-test support and you look to price bounce up higher and you look to buy over here.

So let me ask you right at this point right: where right will your trading setup get invalidated at what point right? Will this area of support break down and if you think about this right support is likely to break down possibly at this price point, because if right now the market breaks here, it has broke below support. And you know, this support has now been invalidated and you want to get out of the trade, because support is broken. So when you set your stop loss, it must be at a level which invalidates your trading setup, whether you're using trendline, support you know or whatsoever. So this is what we mean by you know at a level which invalidates your trading setup.

Well, let me give you another example. Let's say we are dealing with. You know some of you might be familiar with with chart patterns, let's say head and shoulders pattern like this: okay price breaks below support breaks below the neckline, so at which part right at which level on the chart right will this head and shoulders pattern be invalidated? Okay, so if you ask me right, uh, depending on how conservative or aggressive you want to be, if you're more, if you, you really want this pattern to be invalid invalidated, your stop-loss should go above this extreme high, possibly somewhere over here, because if the price now Breaks down, it goes back up higher. Clearly this head and shoulders pattern has failed right because no head and shoulders pattern right should have the price you know breaking out above the hit.

You know at some point in the future, so that means the pattern has failed and you want to exit the trade. So this is what we mean by having a stop loss right at a level which invalidates your trading setup. Okay, next one. Let's talk about! Take profit right: where do you take profit? Well, you want to take profit before opposing pressure steps in so there are different ways you can take profit, you can, you know, look to write a trend in stock markets or you can look to capture a swing, but for the sake of today's presentation, i'll just Go with swing trading because that's an approach that i believe most traders will will benefit from.

So how do you become a swing trader? So swing trading right in essence, what you want to do is to capture one swing in the market, and you want to capture that one swing before opposing pressure steps in like, for example, if you know you uh, i can't think of any example now, but let's Say you know this is a chart? Okay, let's say you buy near the lows of support, okay by near the lows of support the price heads up higher, so where will opposing pressure steps in assuming that this market is in the range? Well, if you ask me, opposing pressure is likely to step in at resistance right, because you know resistance is where it's an area where sellers might come in to shop the market. So if you want to take profits, it might be prudent to exit right before this sellers come in to take profit before resistance. Don't look to take profit, you know, above the highs of resistance or resistance itself, because remember support resistance. They are an area on the chart, there's a good possibility that possibility that the price might not reach the highest of resistance before you know reversing down lower, and if you set your your target above the highs of resistance you're, just you know putting the odds against You, okay, so we will look at this later in more details as well.

So with that said, let's have a: let's have a look at a few chart example right to the things that we have just covered. So if you look at this chart over here, this is fiverr. Okay, you can see that over here. Let's say you were to be buying.

Let's say the market is now as rallied from this swing. Low over here is really higher and you're looking to buy. So, where do you set your stop-loss at what point will this area of support be invalidated, so this is where now you want to set a proper stop loss and to do that, okay, we will go with the tool called the average to range indicator. So just go to indicator.

Look for atr pull out! I like to go with a 20 period atr, because there's 20 trading days in a month i like to go with sma, because i'm a simple man with a simple need: okay, so how do we use this indicator? So if you recall in the earlier slide presentation, i said that you know you want to set your stop-loss at the level which invalidates your trading setup, and you saw that you know there's actually some buffer. You give right for the price to break below support before you exit the trade, because you don't want to set your stop loss just smack under support like this. In this case, let's say just set it just below this lows, because what could happen is that the price could just come down lower bounce into support and then continue higher from there and then, if you set your stop loss just below it, you know you get Stopped up prematurely, you don't want that so give it some buffer and to know how much buffer to give right. This is where the tool right, like the average true range, comes into play.

So let me just explain to you how this works so at the average to range value right now, it's about 15 and six cents, as you see over here. So what this means right is that, historically this stock fiber over the last 20 days, it has moved an average of 15 dollars and six cents on each day, the range of the day between the highs and lows about 15. So when you set your stop loss, what you want to do is to then first and foremost find out. What's the low of this uh support? What's the low of this swing low? So let me just see, let's say the low in this case is about 129.

29.21. Okay for the low of this uh, this candle, one, two, nine dot, 21 cents. So you take 129.21 cents and six cents, which is one atr. So i got a calculator with me, one two, nine dot, two one minus 15.06 and it gives me a value of 114 dollars and 20 cents.

So if i were to plot my stop-loss, it will be somewhere about here. Okay, that's where my stop-loss will be, and in this case i'll just go with a rate color to signify stop-loss there, you have it. So this is where my stop-loss will be for this particular setup or trade. If you want to call it so from this low from here this low to this point is one atr, and you know the one atr value is about 15 and six cents, as shown over here.

So this is the buffer that we give for our stop loss. Just in case the price spike through below support any reverse from there, so we have some buffer right to give us this so-called protection. So let's have a look at uh. I don't think we need to look at another example because later in the trading example section we'll go through this once again.

So now, next thing that we want to talk about, is you know where do you exit your trade? Okay? So let's have a look at this chart over here. So let's say you know, for whatever reason: let's say you know, price has came into, has come into this area of uh swing. Low support had this a price rejection, let's say you buy you go long. So now, where do you exit your trade? So imagine now that you are long right, you're in this long trade.

Where do you think opposing pressure will step in so recall, right we mentioned that you know opposing pressure. If you have forgot right, you want to exit your trade before opposing pressure steps in, and it's usually before, resistance before swinking. So in this case, you can see that this is the nearest swing line, so you're gon na exit, your trade before this swing high over here, you don't want to have your target above this heist. No doubt right in this case, you would have, you know, made a profit but again what if the price doesn't re-test this high, what if it just comes up higher and then reverse from there, then you know you if you know watch the winner become loser.

So this is why we want to set our target before the nearest swing high or before resistance. So now that you have understood what i've shared with you, let's have a look at some examples right to take into account the uh different concepts that we have spoke about earlier, so first to start with. Okay first example i'll share with you winners and losers. So you kind of know what to expect when you're doing this on your own, so first one is kirkland.

So if you look at this okay, this is the remember what i shared with you. The few things to look for is number one, the trend. So, let's just assume that the overall broad-based market is in an uptrend right to make things easier. So the next thing that we're looking for is to make sure that the individual stock is in an uptrend.

So we overlay with the 200 period moving average. As you see over here, price is above it great. We can look for buying opportunities, so in this case, did the stock come towards an area of value and what you can see that, yes, it came into this area of value, this area of support, and not only that right, it has the confluence of the 50-day. Moving average as well pretty sweet right when you have area of support having a confluence of the 50-day moving average and the 50-day moving average, you know is respected by the market, like you know, tested once twice three times right and here a fourth time right.

You can see that this really is uh. It really sweetens the deal a lot. So yes, the stock is at this area of value. In this case it's uh.

Let's call it just s plus m okay sm. Just and the third thing do we have an entry trigger. So in this case, if you look at this remember, i said that you know when we talk about candlestick patterns right, there's no point trying to memorize each individual pattern, because in the real world of trading the pattern might have slight variations to it. So in this case, we have something that looks like a hammer, but only difference is that it closed slightly lower for the day.

But still i consider this a price rejection, a rejection of lower prices - and you know it's perfectly to me. It's a valid setup and you can look to buy on the next day open. So, let's say the next day in the market open at this price, it'll open here, so you can go along the next day, open stop-loss! Remember we like to set it one atr below the low. So let's say this is the nearest.

This is the low of support we set it one atr below it. So again, let's just pull out our atr indicator, just full hdr. I like to go with a 20 period - oh it's already there! So i'm just going to close this so over here. So you can see that the current atr value is about 2 and 90 cents, as you can as shown over here.

So what you'll do? Is you find out what's the lowest price point and minus 280 minus one here so in this case the lowest price point for this candle it's about 20.69? Okay, so 20.69, you minus, let's say uh: 290, 20, 20 and 69 cents. You might okay! In this case, the current ati is 286 minus 286., it's about 17.83. So you just pull out your stop-loss tool. I mean this is a horizontal line and your stop-loss will be at 17.83, so in this case 17.

and 83 cents click ok. So this is where your stop loss will be your stop-loss right. So, let's say, if you enter a next day open, which is this candle here, stop-loss is at this rate line. So now what about your target? You already have define right your exit in case the market, moves against you now.

What? If the market moves in your favor? Where will you exit your trade? So let's say this one here. I can't see this right. This is the rate the stop loss. This black line here is entry.

Where would you exit if the market moves in your favor, so remember from a swing trading perspective? We want to exit our trade before opposing pressure steps in then you can. I didn't identify that this is the recent swing high, so sellers might come in at around 32 price point. You know, and you know - and you know, uh exit selling pressure in this market. So to me, it makes sense to you know: have your target profit before 32 dollars, maybe somewhere about here in this case? Okay.

So, let's see in this case uh. Clearly this is a winning trade. That's the market! That's you know really higher and uh pretty much. If you don't hit your target, so this is how the concepts which i've shared with you know how it works.

So, let's have a look at a few more examples before we kind of sum it up, so etsy is another one over here. You can see in this case stock is in an uptrend right. It came to this area of value this area of support. I believe it has the confluence of the 50-day moving average as well as you can see, uh it did break below it.

But remember one thing to point out is when you are identifying your areas of value right. Remember it's an area on your chart, not a single line, so in this case the 50-day moving average notice. How the price you know tends to come in towards this area of value then hit higher breaks below it hit higher in this case it breaks below it and then hit higher as well. So again, you have to expect this right in your own trading.

We are dealing with an area of value, not a line on the chart. So in this case you can see again we have the number trend this one trend - that's one trend, is up uptrend number two. We have the area of value at support and number three. Our entry trigger, in this case we have something that looks like a hammer again it closed slightly lower for the day, but it i would say this is bullish because it shows you rejection of lower prices.

Look how much the price! At one point: nine. You was trading near this lows only to get uh overwhelmed by the buyers to reverse and close near the opening price of the day. So this is, i would say this is a rejection of lower prices, so you can call this uh. You know.

I won't call this a i'll say a hammer close to him. Let's call it. A hamden hem is close to a hammer and you enter on the next day, open, okay, so next day open at this price point over here. Okay, now what about stop loss? Again? You know it's one atr below this low, so i'm gon na guess it's probably somewhere about here.

It's your stop-loss as for target. We want to exit before opposing pressure steps in and if you look at this, this is the recent swing high. We want to exit around the 240 price point somewhere about there. Okay next example.

We can have a look at up work. Okay, we talked about that earlier, but we can look at this example as well, so up work again. This one here same concept stock is in an uptrend, as you can see over here is definitely above the 200-day moving average area of value is this over here. This swing, low support and then number three we have this now this doesn't look like a ham.

It looks like a hammer right. This is a hammer okay, so we can enter on the next day open if this has a valid entry trigger, so once they open. We enter on the opening price here, stop loss again 180 below this lows target again just before this most recent swing high and let's have a look at one more example in this case uh it's actually a losing trade, but i just want to prepare you to Uh the reality of trading - it's not all not always going to be winner. There will be losers along the way.

So in this case, you can see that this is zoom. In fact, i really like this this setup a lot. I thought it's really a good legitimate setup number one uptrend area value: you have this uh swing low, plus 50 day moving average. You can see over here.

Actually it's an area of support, right support, tester once twice over here with the 50-day moving average. So we have this area of value, or rather two area of value, and then we have this entry trigger. In this case, we have a a gap up. You can see over here this candle here gap up and close near the highest of the day.

So that's nice as well so over here will be our entry trigger enter on the next day, open, which is somewhere here. Stop loss will be 180 below this lows, probably somewhere here in your target right just before the most recent swing high, possibly somewhere about here is your target. So again, in this case, uh the trade didn't quite work out it pretty much collapsed and uh. It got stopped out, so that's pretty much it all right.

So those are a few examples to to share with you. So you know you know what to expect. You know when you're doing this on your own and now the question is: hey: rainer, hey raynor! There are, like you, know, thousands of stocks out there in the u.s stock markets. How do you know find such trading opportunities or every chart that you picks all in an uptrend rainer, you know, do i need to know.

Uh have some cheat code. You know find a way to it. So yeah, the cheat code is this: how do you actually quickly scan for trading opportunities and the best part yeah? You don't need any. You know software tools or any paid scanners.

I want to share with you how to do it so the way you're going to do it is you go to this website called finvis right. It's just go findvis.com i'll, just walk you through, so you can see how this works. Okay. So when you go to the website, if in this it looks something like this and you could click on screener, so i'm going to walk you through step by step, so on this screener page there are three things that you want to look for.

So first thing you're going to look for is the market cap of the stock. I don't want to be trading, you know micro stocks or you know, penny stocks and stuff like that. I want to be trading the more liquid stock, so i use it a filter as the mid right anything above two billion dollars. I am perfectly comfortable trading it.

The next filter that you want to use is, under the technical part, okay, the first one was the descriptive filter. Now the technical filter. You want to make sure that the 52-week high low, which is this one over here - you want the stock right to be five percent or more below the high. So this means that the stock is not currently making a pullback right away from the 52-week high at least five percent or more, and the final thing that you want is your performance right? You don't just want any tom dick harry stock.

Remember we want to be trading stocks which are in an uptrend. We want to be trading in stronger stocks, so what you can do is to pretty much look for performance. Any stocks right there for a year has increased more than 200 right. You want to be focusing on this stock.

So again, this this parameter here is can be a little bit subjective because it depends on the current nature of the market. If, let's say the market now is in an insanely strong bull market, then you want to be more uh picky with your setups. You can maybe choose only stocks that has, you know, increased more than 500 over the past one year. But if the market is a bit choppy up and down you're, not really going anywhere, you can, you know, adjust your this uh parameter accordingly, but in this case right now, i'm going to go with stocks right.

That has increased right, at least like 300 percent. Over the past one year, okay and once you've done it tada what's going to do - is that it will speed up to you all the stocks. So let me just share with you uh how to actually use this, so we go to company. We want to see the uh okay.

I can't remember this: what is the technical performance? Okay, click performance, so once you have performance, you can see the best the strongest stocks right rank all the way to the lowest one. So, in this case, you have just like you know four or five fields to look at so in this case uh. Let me see you want to rank these stocks from the strongest to the weakest and what you want to do is to click. You see this.

One over here, you click on this. Now it's the bottom one right at the top, so this stock sono has increased 301 percent. If you click it one more time, it has ranked the strongest one mara right at the top right, six thousand eight hundred forty percent. So he ranks from the strongest all the way down to the weakest ones.

So what's that left through very simple, if you can just you know, go to this two over here, you look at mara. It pops up a little bit of chart a glimpse of a chart. Then you can see what the chart is like. So if you look at this one one glimpse right, you can know instantly.

Is this stock in an uptrend or not? If it's in an uptrend, you can add it to your watch list. If it's not, then just you know move on to the next one look at riot, so it seems to be an uptrend fair enough. Apps we had this earlier. I just want to show you a bad example.

If you look at this ostk, this one clearly is not in an uptrend, so move on. Don't bother adding this to your watch list this one bad example: don't edit your watch list, because this stock is not in an uptrend based on the chart that you see the chart that pop up you can see that it's not in an uptrend next one si Not too bad maybe might pass. We can add this to a watch list. Expi this stock is pretty much looking like in a downtrend or range.

Let's, you know leave it. So what you want to do is you know all these potential stocks which are in an uptrend edit, your own watch list, and this is actually what i do myself you can see over here this i have a watch list of stocks which are pretty much. You know all over here, okay and now this watch lists. Our stocks are pretty much stocks right, which are in an uptrend.

Let me show you kirkland stocks in then uptrend apps, grwg, ibrx, pen, okay, so once you have all the stocks in your watchlist which are in an uptrend what's next well, the only thing that's left to do is to let the market come to you. Let it come to your area of value. That's all you need to. You know look for for the upcoming week, so in this case let me just share with you uh a few trading opportunities that i'm looking at for this coming week and again, using the same concepts, the same strategies that i've shared with you.

It's all from this free scanner over here, okay, i've - just you know, spent like you know, uh some time on the weekend and you can pretty much. You know get all this uh potential trading setups worth trading. So let me share with you: let's have a look at this right, so i have prepared a few hri. This is one upcoming trading setup.

Okay, so if you just overlay the 50-day moving average, you can see this is a stock in an uptrend.