In today’s episode, you’ll discover the top 5 newbie mistakes you must avoid when trading stocks.
So go watch it right now...
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Check out my FREE trading strategy guides
#1: The Ultimate Guide to Price Action Trading: https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
#2: The Monster Guide to Candlestick Patterns: https://www.tradingwithrayner.com/candlestick-pdf-guide/
Check out these TOP trading videos
#1. Ultimate Forex Trading Course for Beginners: https://www.youtube.com/watch?v=RqwTcg0EuJU
#2. Support and Resistance Secrets: https://www.youtube.com/watch?v=PuboYnBc0t8
#3. Ultimate Candlestick Pattern Trading Course: https://www.youtube.com/watch?v=C3KRwfj9F8Q
#4: Price Action Trading Secrets: https://www.youtube.com/watch?v=eddj9v1CfA4&t=2s
#5: MACD Indicator Secrets: https://www.youtube.com/watch?v=eob4wv2v--k
And finally...
If you want to level-up your trading and beat the markets, then check out Pro Traders Edge: https://www.tradingwithrayner.com/pte/
So go watch it right now...
👇 SUBSCRIBE TO RAYNER'S YOUTUBE CHANNEL NOW 👇 https://www.youtube.com/subscription_center?add_user=tradingwithrayner
Check out my FREE trading strategy guides
#1: The Ultimate Guide to Price Action Trading: https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
#2: The Monster Guide to Candlestick Patterns: https://www.tradingwithrayner.com/candlestick-pdf-guide/
Check out these TOP trading videos
#1. Ultimate Forex Trading Course for Beginners: https://www.youtube.com/watch?v=RqwTcg0EuJU
#2. Support and Resistance Secrets: https://www.youtube.com/watch?v=PuboYnBc0t8
#3. Ultimate Candlestick Pattern Trading Course: https://www.youtube.com/watch?v=C3KRwfj9F8Q
#4: Price Action Trading Secrets: https://www.youtube.com/watch?v=eddj9v1CfA4&t=2s
#5: MACD Indicator Secrets: https://www.youtube.com/watch?v=eob4wv2v--k
And finally...
If you want to level-up your trading and beat the markets, then check out Pro Traders Edge: https://www.tradingwithrayner.com/pte/
Hey hey: what's up my friend, so in today's episode I want to share with you the top 5 beginner's mistake to avoid when trading the stock markets. Okay, so mistake number one: is this right? You want to avoid buying stocks in a downtrend and here's. Why, according to a research right by Larry Conners, he has done extensive testing right in the stock markets and stopped above the 200-day moving average, then to have a positive median return. This means that stock above the 200-day moving average tends to continue moving higher and likewise right when stock is below the 200-day moving average.
The median written is negative. This means stocks below the 200-day moving average tends to continue moving lower. So this is why, right you don't be behind stocks which are in a downtrend, because it's likely to continue heading lower, ok, so very simple technique, then you can Apollo, is to only buy stocks when it's above the 200-day moving average. This ensures certain that you are buying stocks which are in an uptrend mistake, number two right, many new traders.
They love to treat penny stocks right. After all, you know that's where the big money is making right now. The stocks querido explode up. 30.
40. 50 hundred percent within a few hours a few days, but here's the thing about penny stocks right is that the more money there is low liquidity in this type of stocks. This means right that sometimes, when you want to get out of the trade you can't get up at a price you want, because there's no seller and a price point or there's no buyer. That's telling price alright, depending whether you're long or short, and this could you know, cause you great problems right.
If you're, if you can't get out of a stock right, then you want to get out off and I'm a right penny stock. They are easily manipulated because of their low liquidity right. The price. Can you know you can push it up really high right few hundred percent just like that right, because there is a low liquidity in this type of stocks and when you chase alright such a stock.
Guess what this is when the stocks about to make your pullback it's about to make a reversal, and the last thing you want to do is to be buying near and absolute highs. So unless you are sure of what you are doing, don't rate penny stocks, especially when you're new to stop trading right, go with stocks right, which are logic, apply large cap stocks right those stocks, they move slower. You have no more time to make a decisions and you can get out of your trades. I buy and sell it pretty much any time that you want all right.
Number three don't buy legate's right. So let me share with you right. So in my early years of trading right, I realized that in the Singapore market the STI, it seems to be lagging the US stock market and I was thinking. Okay, that's a good thing right.
I should be buying more of the straight times index right because it's lagging to the US markets and really catch up right. There's a huge potential price increase right that I could profit from and guess what I bought the laggard and it stays a leg for the next few years. So when the stock is a laggard, when a sector is in a leg, that's a good reason for it. Usually, okay, I recommend right. If you want to trade stocks, you wan na trade, like certain countries in this us ETS or whatever focus on buying a stronger ones. Those are the ones that tend to outperform the market from a training standpoint right. If you buy the laggard right like like what I did right in trading, it tends to remain a laggard right for the next few months, the next few years. Okay, so focus on buying strength, not weakness, number four: when you trade stocks, you don't want to take a huge position right into earnings, because the thing about Ernie's is that you have no idea whether the price of the stock will go up or down stock right.
You can go up on bad news. Stock right can go down on good news. How do you explain it? It's all about. You know perspective in the markets right, it's all about people's beliefs and expectations in the market, not just the news right, but any expectations towards the news, and you can predict right how people will react to that piece of news.
So when you have a stopped position, maybe a huge stock position coming into earnings right, you don't want to be holding the stock position into earnings, especially you know it's it's something that no could really rattle the markets up and down right so be aware of it. Right, don't hole a huge position into a nice, even whole position. Fine right trimming down to a very nice comfortable level where you can sleep peacefully peacefully at night, and the fifth and final thing is that as a stock trader, you don't want to be buying during a bear market right. This means, if the market is doing a recession right, you don't wan na be buying stocks.
Why don't you just hold on to cash as I've shared with you earlier right? If the stock is in a downtrend, it tends to continue moving lower over time. Is the same for the general stock markets? If the S & P 500 is in a downtrend and guess what more stocks are, I tend to be in a downtrend, so it's better to hold on to cash or during such period, make sense. So with that said, let's do a quick recap: number one avoid buying stocks in a downtrend number. Two right avoid trading penny stocks right focus on large cap stocks, I'm a tree don't buy legged right done by weak stocks.
I focus on buying strength. Number four. Don't take a huge position into earnings right because you've never know right how the the earning results will will turn out to be or how how the market will react to it, and a fifth and final thing is that don't rate or don't go long stocks during A bear market is much better right to hold on to cash or to treat some other markets altogether, which are you know more favorable to you all right so with that's it. I wish you good luck and good trading. I will talk to you soon. You.
Very simple and helpful. Thank you.
I am the one of your thousand fans in your blogs and you are my mentor/coach. Can you teach me a binary what is the procedure as a swing trader? Thanks
Goodvibes with that intro
How is this information free just started trading a couple weeks ago and haven’t been doing to well my reads are getting better but hopefully learning your videos will take me to the next level
How can i buy the stock when its low and sell it when its high because when i tried to sell stock when it was high the broker didnt let me sell it. Im interested in day trading but since i cant buy or sell whenever i want is giving me hard time. Any ideas please. Thank you
Nice one boss I always like your talks you one thing I like most is the racap but bro can on go on multiple position in one currency is it advisable?
Thanks Raynor! Erudite advice as always.
Sir what are the best books on price action trading? From beginner to advanced
Hi Rayner two weeks ago i paid for the "Price Action book" that youwere advertising saying you will give ie for FREE but we need to pay the delivery costs. Ive paid but still waiting for it two weeks later. Can you help Please ?
brother kindly upload full concept explaining all the principle of eliott wave theory and neo wave theory.. u have a lot of knowledge amongst all…. love from india ..pls bro
Im glad theres ppl like u who really explain the key of the market, not only chasing adsense
How important do you think "Market Sentiment" is in the trading business??
I haven't learned Sentimental Analysis.
COULD YOU PLEASE SHED SOME LIGHT ON THIS TOPIC?
Thanks, love your videos!!
Hi Rayner
Your video is very helpful. Please make a video on flash crash. How to mitigate the risk of blowing up my account in a flash crash? Thanks in advance.
Haeyy… Do u trade in Indian mkt. Means BSE or NSE
Hay hayyyy Whatsup my friend…luv from India…
Mukund
You are an inspiration bro
HI RAYNER WHEN U MEAN NOT TO BUY IN DOWNTREND BELOW 200 MA , IN DIFFERENT TIME FRAMES 200 MA MOVES UP AND DOWN ,WHICH ONE TO TAKE IN TO CONSIDERATION / PLS ADVICE
Sir plzz..tell CPR strategy…how 2 use..
Hey man. Good job doing stuff like this. Uhhmm. Can I request something from you? Can you do a video for harmonic patterns? As I learning stuffs, there are other stuff that turns the world upside down again. Thank you man. Keep doing what you do.
Hey rayner well first of all thankyou so much for all this great knowledge that you share with us. Just wanted to ask that do you have a course or a video series indicating that how to actually start from the beginning with downloading the software and opening up the account and etc. Please reply thankyou ✌🏻
12 seconds into the video and directly show what the title says it is, You're the best Rayner.
You need a better camera, bro.
Interesting thought on the Laggard ones and never betting against the main trend.
Hi Rayner, Can you make video on how to overcome on fear of taking trade after continuous loss.
Can you please talk about bull & bear Traps?
the second hey 😬😬😬
Thanks Rayner for the valuable information.
Q: If a good large cap stock has gone down by 35 percent from the 52week high, due to overall world market situation, and picks up again to cross the 50day moving average, can I Buy at this stage or should I wait until it crosses the 200 day moving average?
GMK
Hey Rayner my friend. You have helped me a lot through your videos
In a bear market we should avoid trading at all or can we go short?
Hi Rayner, Thank you … when you say buy above the 200 MA, on which Chart Time Frame would this be or does this not matter?
I am struggling to analyse trend and therefore making 1st mistake repeatedly.
Not all penny stocks have low liquidity. The manipulation is predictable.
Sorry man but are stocks and forex the same??
Hey Rayner, thanks for advice. A must see video for all new traders. Blessings from Puebla, Mexico.
He heiii…Thanks….