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Hey hey: what's up my friends, so in today's training i want to share with you the secret behavior of the u.s stock market, that nobody tells you so let's get started so have a look at this chart over here. This is the chart of the s. P. 500 over the last 10 years - and let me ask you right: do you see a pattern here on this chart, so you might want to pause your video for 2-3 seconds and ask yourself: is there a pattern over here on this chart? Okay, so i'm going to move on and share with you another chart, so this chart here is the chart of the s p 500 over the last 30 years.

Do you see a familiar pattern here on this chart? So again, you might want to pause the video and ask yourself: is there a familiar pattern here? And finally, this is the last chart that i have for you over here. This is the chart of the s p 500 over the last 90 years. So if i am moving too fast, this video just rewind a little bit or just pause the video okay. So so, after viewing these three charts, i want to ask you this question: what is the common recurring pattern that you've just seen among those three charts? Think about this okay, and i'm going to give you the answer right now.

The answer is this: the answer is the u.s stock market is in a long-term uptrend, you've seen right the last 10 years, the last 30 years, the last 90 years. The u.s stock market is in a long-term uptrend now. The question is why: why is that right and here's a very simple layman explanation? So, as a country as a nation, it progressed and developed, what's going to happen is that the citizens of the country, their income, will go up and when you have greater income, you're going to have more greater spending power, you have more money to buy more products And services, and when you have more money to buy products and services, the company, their earnings will go up and when the company earnings go up, the stock price goes up. So this is why, in the long run, the u.s stock market is in a long-term uptrend.

So what does it mean for you as a trader? Well, this means that as much as possible, you want to look for buying opportunities right in the stock markets and avoid short selling, not that you can't make money shorting stocks, but it's going to be much easier right if you are staying on the right side of The long-term trend in the u.s stock market - okay - so that's the first secret for you moving on, buy low, sell high right. Well, that's not the only way to make money from the financial markets, and it's also, i don't really recommend, buying low and selling high right when trading stocks and here's. Why, when you buy, when the stock price is low, it's likely in a downtrend right like this stock price is low. You buying the downtrend, and the problem when you buy stock is in the downtrend is probably because the stock probably has poor earnings, negative earnings.

That's why the stock price is heading lower over time or maybe the company is not well run very poor management, and, if you think about this right, you can't exactly reverse the management within one day or two days. You can't exactly reverse the earnings of a company within one or two days, unless you know you're kind of like doing a forgery, and you know, scam and stuff like that. So otherwise, if you think about this, it takes time right for earnings for the company's structure management to become better. So this is why, as a trader, if you buy stock in the which is in a downtrend, it's likely to stay that way over the next few weeks or the next few months, because change needs time to happen.
At the same time, if you buy a stock which is already in an uptrend, it's likely to continue that way over the next few weeks, or next few months, like this right stock in an uptrend and when you buy stock in an uptrend. Why is it likely to continue higher over the short term because chances are when the stock is in an uptrend? Earnings is healthy right, it's beating expectations, it's positive, or maybe the company is, you know, being well run and again, it's not so easy right, like within one day, earning some lingo to zero. Unless you know it's a scam or suddenly the management you know becomes uh evil right within overnight. So this is why, right when stock, it's in an uptrend, it's likely to continue high over the next few weeks in the next few months.

So this is why, as a trader, what this means for you is this right is that you want to focus on buying strong performing stocks. You want to buy stocks right. That has shown strong performance over the recent six to 12 months, because these are the stocks right that are likely to continue higher over the next few weeks or months. Okay, so that's the second secret for you and finally, this one over here day trading versus overnight trading, which is easier to profit from the stock market.

And to do this right, i want to credit to uh odman groet from uh quantifiedstrategies.com, because this is a technique that i learned from him, so, okay, so what he did right is that you can actually run a back test on the s p. 500. In this case, we're using the spy, which is the smp 500 etf, and then we can find out you know, is it easier to be a day trading overnight trading and the way to do this is number one. The first black test, we'll do is that we'll buy the s p 500, the etf edit open - and we sell it at the close.

So this is kind of like to simulate day trading right. You buy near the open and you sell before the market closed. For the day, so this is to simulate day trading and the second back test we'll do is that we'll buy at a close and sell at the open. This is to simulate overnight trading, where you hold your position for overnight.

So, let's find out and see the results right of this two uh strategy. Okay, so having a look at the first one, this is the excel spreadsheet. You can see from open to close right if you do this right for the smp 500 etf from 1993 to 2020. You can see that this is the equity curve.
You can see that you pretty much didn't make money over the last 20 plus years at all. Right, you didn't make money at all. If you want to look at the details, you actually lost money down about 0.66 percent. This is for buying any open and selling at the close.

On the other hand, what if you buy the close and sell at the open? How would the results change so this is buying at the close and selling at the open? You can see that your equity curve see the difference. This one is actually sloping up higher, so you can see that there's. Actually, these buyers right, where the stocks right have a tendency to you, know, move higher right after the overnight uh session. Okay.

So what does this mean right? So this means that it's going to be easier for you as a stock trader to make money from overnight trading and, of course, it's not to say that day trading doesn't work. It's a scam, but we talked about you know uh, which is easier to make money. Clearly, overnight, trading right will be much easier for most traders. Okay, so this means that you want to hold your positions for at least a few days or weeks right to take advantage of this phenomenon in the stock market and by the way right.

If you want to learn more about the u.s stock markets and how you can you know, use it to generate an extra source of income right, then i'd like to invite you to this event. This free webinar called our stock trading secrets. The link is over here: trading, foreign.com, sts i'll, put the link somewhere in this video below this video as well. So this next event is on december.

But again you might be watching this video and it might be january february, et cetera, but don't worry i'll host. This event right, uh, one or two times per month, so just come down to this page and i'll share with you. When is the next date right, then i'll be hosting this live webinar, and during this webinar you'll learn right: a simple stock strategy that has generated 2421 over the last 21 years. I'll share with you right how you can generate consistent profits from the stock markets right even during a recession or a financial crisis, and even share with you how you can actually grow your account to seven figures and beyond.

Even if you have a small starting capital. So all this and more during this free, this free webinar, just click on this orange button, you'll be brought to a zoom registration page like this just sign up for it, and i will give you the details right. The link to attend this webinar live okay, so i'll put the link again somewhere below this video sign up for it, and i will talk to you soon.

By Stock Chat

where the coffee is hot and so is the chat

4 thoughts on “Stock trading cheatsheet 3 secrets nobody tells you”
  1. Avataaar/Circle Created with python_avatars Badmash john says:

    Hey hey will u be my techer your teaching style unique 100% purety❤️❤️❤️🙏 🇮🇳

  2. Avataaar/Circle Created with python_avatars Paisa to yhi baneyga says:

    Always look same in this SUPER MAN OUT FIT

  3. Avataaar/Circle Created with python_avatars Paisa to yhi baneyga says:

    Great

  4. Avataaar/Circle Created with python_avatars _1don_official_ says:

    Yessir🙏

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