Hey everyone. Welcome back to Swing Trading 101.. We're gon na continue breaking down everything., I'm lead trainer with StocksToTrade Tim Bohen., We're gon na work through the worksheet part, two, the second half of the worksheet.. Hopefully you've already gone to StocksToTrade.com/freetraining and you have the worksheet..

If you haven't maybe pause the video hit the link below or go to the link and check it. Out. Drop your email in., You get a free watch, list. You get a free worksheet and you get access to all of the archive of the other mini courses.

I've been doing., It's a great win-win across the board., All right, picking up where we left off. We're now gon na move on to a little bit more kind of fundamental type. Things.. So you'll hear me talk about this a lot with these swing trades..

We really want to look for higher quality stocks. And the reason I do the air quotes is we still wan na trade momentum-speculative companies? Okay, So the whole idea behind the air quotes is typically, these aren't gon na, be the Apples, the Microsofts. You know The Amazons. Some of the most profitable companies in the world, and the reason we do that is the market cap on those stocks, is so large, so big that they just ...

It's like an aircraft carrier.. You know they talk about trying to turn an aircraft carrier while it takes 10 square miles to turn an aircraft carrier.. What we wan na do is kind of balance between the aircraft carrier and the wild jet ski. You know If you've ever been around people jet skiing, especially if they got a couple of drinks into them.

It's bad. They fly everywhere., But anyway we're trying to combine a little bit of both to maximize our potential reward without taking the crazy risks.. So we act unlike day trading.. If you check out the day trading course very seldom did I even talk about anything fundamental because we're just talking about mania madness, hot sectors..

So now, when we're talking swing trading, we want something that the media, that hedge funds, that your grandpa, your dad your uncle, can get behind, because we need buyers, you know And listen at the end of the day. Most people that are more risk-averse want nothing to do with penny stocks. And that's why they make the wild moves, because it's mostly crazy people that are trading with no risk management. Watch the day trading course I'll help you out with that..

But what we like about these little more fundamental data, We can attract some of those real buyers, whether it be pensions, hedge funds, your dad, your uncle et cetera.. So next criteria we're looking at. Is it a good company And again notice? That's in quotes. What we typically look for to consider it.

A good company is we're looking at sales and profits. Okay, And you can see DATS we're continuing this from the last video DATS is the ticker we're focusing on. They have .... Oh, I scan buyer.

They're. Very speculative, no revenue, but the nice thing is they're only losing a million dollars. Okay, So they're not like bleeding cash, and things are improving.. They've got announcements..

Things are getting better. This first financials they just went public.. So that's kind of a knock at the end of the day., So here we are working through the worksheet.. I'm gon na put a neutral on whether or not this is a good company because they don't have gangbuster profits and sales..

So when I do that, I check the box between the yes and the no, which I consider to be a neutral.. Now I'm curious to see this stock in the future.. I think they will be profitable next quarter because I've been following this.. I've been researching it., So I'm gon na give them a neutral..

That's not a pro! It's not a con, but I've checked every single other box.. Now, depending on when you see this video, it might be a month down the road and they've announced earnings again.. If they're posting profits, then you're gon na check that box, which probably sends the stock higher by the way. Next, is it a good and/or hot sector? If you remember from the last video, we did touch on that a lot., It's blockchain related it's social media related..

It's an IPO. So again, that's almost a double checkbox on the good/hot sector. Next thing, we'd look at to look for is back to a technical idea.. Is there a whole dollar? Half dollar break Yes at nine, but then, let's fast forward to today., I don't wan na talk about necessarily the past..

We also broke 14 today.. So let me show you. Yeah. If you go to my screen, you can see that that this stock broke 12 broke.

13 and also broke 14 and almost touched 15.. So now I'm gon na look at those whole dollar, half dollar areas of, say 15 going into tomorrow and probably risk off of 14 the area the stock is trading at that would give me a goal of 18. A three to one risk to reward. But point is: I have a whole dollar half dollar..

I have a previous 52-week high. Today's close et cetera.. I can stack up all of these key levels to risk off of. And ultimately, let's say this stock trends up tomorrow.

It breaks back below 14 you're, probably gon na see that first red day. You're, probably gon na, see a lot of profit taking., It's not a stock. I wan na stay in long., So that being said, good signs so far on that whole dollar, half dollar break.. Next, we look for the float..

We typically like to have a lower float stock and DATS is exactly that.. You can see it's a 14 million float stock, which we look for anything less than 10 million float is what we consider to be a very speculative low float stock and we tend to avoid those.. Vice versa. We don't like the 200 300 billion float stocks because you're back to the aircraft carrier.

Great mix, here. 15 14 15 Million chairs in the float nice mix of high potential reward with lower risk.. Then I fill out the rest of the stuff.. I fill out my support area.

Going back to tomorrow. My support area would be 14.. That would be my risk area.. Then it's a rating of the catalyst..

How do I rate that catalyst? You probably heard me as I've worked through the last couple of videos.. I give this probably an eight or a nine.. Now you might ask: how do I do that It comes with experience, data tracking, seeing where these stats go., But I can tell you, as I've said several times: IPO blockchain social media, big breakout, good earnings, lot of pie in the sky lot of true believers in This thing., So I'm not gon na, give it a 10. I like to hold back on the 10s, but a solid, eight or a nine.

When it comes to the catalyst., Then the next thing we're gon na do we're gon na fill out the sheet going through. I'm gon na look for my good entry.. What would I like for an entry Going back to tomorrow? I'd put 15 in there. I'd! Look for that dip that reclaim of 15..

Then I'm gon na grade my setup. Again a little bit arbitrary, a little bit unique to you.. I'm gon na give this an A minus just because I'm tough with the A's., Then the last part is actual execution.. Where did you enter? What was your goal and what was your stop? Remember: it's not a trade without a stop and a goal.

Okay, Even if we're talking swing trades, if you don't have a goal, you'll turn winners into losers because you'll overstay. And if you don't have a stop hey. It's not gon na work for you.. I don't care what style of trading you use..

If you don't have a stop, it's gon na get bad and it's gon na get worse., And then this also allows you to review at the end of the week. The end of the month end of the quarter end of the year, et cetera, because you can go back through your sheets, see what happened. Usually in the margin, I'll write down the profit and loss. I'll date.

It and then I can go back and match this up to my trading records to my review and ultimately see okay, I checked nine out of 10 boxes on this stock.. Basically, the only thing I didn't check was: I gave a neutral to the good company.. Was this a profitable trade Answers is yes.? Well, I need to look for more of these okay, Or maybe I got 10 of these that worked and one didn't. Again.

I need to look for a lot of these.. This needs to be my focus because I've found something here., Vice versa: hey, maybe you try it and nine out of 10 are losers.. Well, then that tells you you either need to modify the system or you need to try something. Else.

Use your data to create better results down the road. All right, everyone. Coming up in the next episode, we're gon na be talking about the best swing trade pattern for mornings.. I like to focus on time of day for a lot of these patterns and listen one of the best times to enter these swing.

Trades like a DATS is in the morning., We're gon na be breaking that down.. If you haven't gone to StocksToTrade.com/freetraining head over there. You'll get emailed as soon as the video drops, you'll get the worksheet. You'll get the watch list and we'll see you next time.

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