Getting Started with Stock Investing

welcome everyone to our webcast on

getting started with Stock Investing I'm

Connie Hill if you are new to the

markets this is the right webcast to

come to now I have a question for each

of you to think about how many of you

have been through the uh stocks stocks

trading with technical analysis course

out on the Schwab website if you have I

commend you good job if you haven't

you're going to find it's a great

resource to you today we're going to

kind of condense and get the uh talk

about the key takeaways from that class

that course that you go through we're

going to condense it into about a 

minute session here today now we've gone

into detail on each of the individual

topics week by week but today we're

going to bring them all together now I

am joined in the chat by Lee Bohl Lee is

such a great veteran of the markets good

coach and friend if you have questions

go ahead and ask them we want you to get

your questions answered if you're

listening to this on the recording I

know lots of you do when you have a

question put it in the question or in

the comment section and I'll go back and

review those throughout the trading days

and get your uh question answered

quickly as well so go ahead and let us

know hope you're following me and Lee on

X I'm Connie Hill CS he is Lee Bohl cs put

out some different educational content

we'll notice things in the market things

that we think you might find interesting

we're going to share that information

with you so do yourself a favor and

follow along and Phil feel free to do

just exactly as Roger did to answer if

you have gone through that course let's

go through some disclosures here and

we'll lay out our agenda for the day

what we talk about today is intended for

educational and informational purposes

only it shouldn't be considered a

recommendation of any sort we will talk

technical analysis and fundamental

analysis in this class they may assert

different views from each other uh past

performance is no uh past performance of

any security or strategy does not

guarantee future results or success we

will be using the paper money software

application it's what you download to

your computer it's the most most robust

version of thinker swim we'll be using

it here

today uh talk a a little bit about our

overview of the series that we've spent

individual weeks going through uh we

talked growth and value technical

analysis entry signals all of these

topics we have addressed uh in

throughout the different weeks now I'm

want to just take a quick look at the

chat and I want to see who has already

gone

through the course and maybe Roger maybe

you're the only lucky one that has done

that oh Sheena has Sheena has as well

okay as well as Ambrose good I hope you

found it helpful and interesting you

know they always say the book is better

than the movie today we're kind of going

to do the movie but the a lot of the

details are definitely in the course so

don't uh don't skip over that all right

use that that as your your base

Foundation of learning and then what we

do in our class here is we augment that

and support that show you how do you

utilize that information now I hope last

week's class of candlesticks I hope that

was helpful to you and I hope yesterday

when we had that big

bearish uh bearish engulfing candle I

hope that you recognize that from our

lesson from last week now as far as our

agenda we are going to look at each of

the elements that we've been going

through week by week instead of

discussing Ju Just one aspect we're

going to go through a lot of it here of

course we're going to look at some

different examples so uh our first

initial week we talked about different

reasons why people might want to use

stocks why they want want to invest in

them we talked about those that might be

doing it for a growth perspective that

they see a stock at a price they think

it's really going to go up in value or

maybe they see a value stock which is

maybe a stock that's been beaten down

but they crunch some numbers and they

think you know I think I buying it here

at a bargain I expect it to go up in

value over time and with some patience

or there could be an approach of income

investing those of you that want some

dividend paying stocks in your portfolio

and receive an additional benefit from

them by the dividends that they pay out

now the one that we've really focused

the most on that we're going to review

today is going to be the growth

investing we are going to combine both

technical analysis and fundamental

analysis and we're going to do that as

we look at our scan that I showed you in

week

one all right let's jump over there now

I'm going to take a slight detour here

we're going to go out

to the calendar where you can see the

events that we teach how many of you and

I want you to answer this in in the chat

there how many of you have been tracking

your trades how many of you have been

paying attention whether they're paper

trades or in your Live account I know

some of you use your Live account how

many of you really tracking those trades

maybe in a journal of some type

something we've been excited to roll out

to you is a trading journal it's finally

available I want to show you where to

get it what I've done is I've come out

here to schwab.com

coaching brings up the calendar and then

I have on webcast selected it has both

webcast and Schwab events I went over

here to the right and I went

to put in a coach name kenrose okay Mark

kenrose Ken's a great great coach and he

teaches a class on Wednesdays called

short verticals it's in that link for

that class that you can find the trading

journal so as we go in here I just

select on it you can pick from any week

you want this happens to be the one that

he did earlier and then right here

you're going to see um

resources you're going to see trading

journal when you select this it's going

to download that trading journal to your

Excel put it in the downloads file so

you can go ahead and pull it up and then

Ken has two tutorials here there's a

couple of different tabs and they

calculate things differently Ken has

taken the time to do a couple of V

videos on each of those tabs so that you

can if you want to use this as a

resource you can start having an

understanding what goes in the different

places and where some calculations uh

might be done for you a way to kind of

help you automate as you're tracking the

trades so I'm going to look through here

real

quickly at who has been tra tracking

their trades sandep you said you started

first of May perfect I'm glad that you

did uh David tracks great Ambrose says I

do with the Live account paper money not

daily yeah maybe once you do a

transition you're doing more of your

Live account yeah you're I absolutely

know that's where you're going to put

more attention Okay so here is the

trading journal now while we're out in a

browser real quickly here I want to

remind you to subscribe to our YouTube

channel all right when you come out here

and you're a subscriber to our Trader

talks Channel you'll be able to see this

page and it organizes our content it

shows you what's coming up shows you

some recent webcasts that have taken

place and if you're somebody that maybe

is a little bit new uh to our classes

one that you might find interesting

would be to go down here a little bit

see where it says start here if you're a

new person you're trying to really

understand uh the different items that

we're going through we have a series

here for you just take them in order

this will be the W the last week of the

current series and so we'll probably

update that and put the more recent

links in there but you can just go along

from lesson number one all the way to

lesson number seven okay so take

advantage of that all right

let's jump over to the Thinker swim here

we talked about in our very first week

we talked about girl stocks and I laid

out for you a scan that you could use

I'm going to pull it up here because of

course I saved it saved it a long time

ago and I made it and I just named it

growth stocks for our

class we went to the trading journal or

not the trading joural the um example

sample ex uh investing plan in the

trading stocks course that's a resource

in there and it outlines some things

that we might be interested in looking

for so we built these into this scan

here now uh if I'm not going to go

through tick by tick about exactly

what's in the scan but essentially we

want stocks to be at least

$ we looked at a couple of fundamental

filters here one's a PE ratio and we put

in a range from  to  and then we were

looking for return on equity and this is

a really I'm going to say healthy return

on Equity we start here about % we

don't limit it okay we let it go as high

as we want then we want stocks that are

trading we don't want stocks that are

you know trading  shares a day here

and there we want things that are really

exchanging hands makes it so much easier

on your trading and so there's a couple

numbers you might look for in the sample

investing plan it says look for stocks

to be about , some may have lower

threshold than that so may start at

, for our scan here we did ,

right that means people are trading in

and out of it makes it easy for you to

get in and out of it and then we have uh

actually all three of these are come

from an indicator or a filter over here

that is called studies and I do want to

warn you that studies only works in your

Live account side it doesn't work in

your paper money side of things okay so

that's important for know and then we

built in Trend here and we said okay we

want stocks that are short-term trending

up as well as

intermediate term trending up we'll look

at stocks or we'll look at some charts a

little bit and talk about Trends so

forth so we said all right that

intermediate Trend we're going to look

for the price of the stock to be at

least % higher than it was  bars ago

bars are essentially trading days that's

about a quarter's worth of information

okay so we're looking for them to be up

pretty decent in then in in the last

quarter and then we're looking for them

to be upward trending in the last month

so we're going to say % in the last 

bars that's about a month's worth of

trading activity

there that's it for the scan I'm going

to hit scan we'll see what it brings

back today I will uh share this scan

with you but no it changes every time

that you run it okay it's um anytime we

share a link with you it's not

guaranteed as down accuracy and timing

and this one I want you to know changes

continually it if there were changes in

it in a given day then it would it you

go run it again it's going to change the

results by and large a lot of them are

going to be similar because if they're

in an uptrend and they already meet this

criteria yeah it may be that they stay

on the results list frequently now I'm

going to come over here to where the

flame is and it says share scan query

this is a little bit more advanced those

of you that are stumbling on this the

for the first day could be possibly

right uh you might go whoa Connie this

doesn't sound very beginning and it's

it's a slight slight step up from that

okay I'm going to call this growth

stocks class because that's what I've

called it I'm going to share it with you

how do I do that this little URL is is

created here I am going to put this out

in in the chat I'm going to paste it

over to you those of you that are here

live you can take that and copy it and

then what you would do is you would come

up

here uh to the setup menu upper right

hand corner say open shared item it can

be a scan it can be some columns that

we'll use sometimes and then you can

either type it in or you can copy and

paste it now I'm going to move my mouse

out of the way those of you that are

listening to this on a recording that

might be a little bit small for you to

see in a minute I'm going to post it

over in a chart so you can see it bigger

and you either grab the whole thing or

grab everything after the front slash

starting with the exclamation point they

are it is Cap sensitive so you have to

do it just exactly the way it is on here

okay then if if you saved it with the

same name when you're ready to run your

scan your query you would just come over

here and say load scan query uh after

you've brought it in and imported and

saved it and then it'll show up in your

personal scans that you've done okay it

would show up just like mine does down

here with grow stocks class all right

that'll give you a little bit of a head

start here now I said I would go put

this over on a bigger screen I am going

to jump to the SPX I'm going to do a

little text note I'm going to stick it

in the middle here and make it big so

again those of you on the recording can

see that or those of you that just need

a little bit better look at it it's a

little bit bigger here on the chart uh

what I was talking about that I said I

hope those of you that were on our class

last week and we talked about

candlesticks uh being something to pay

attention to if they happen to be

reversal candles and I said I hope you

saw and you noticed yesterday what this

was that was one of those candles we

talked about that could be an indicator

of a change of momentum turns out today

we we had some bullish momentum right

quite a bit of a recovery here but that

was a definitely a bearish engulfing

candle okay so those of you that noticed

that and saw that good job hope that

helped uh let me look at you real or

look not you exactly you let me look in

the chat window here real

quickly uh see if there's anything that

I missed uh Sim says you've haven't been

trading since November Sim Amsterdam

couldn't be that bad and busy on you

we'll have to get you back into the

swing of things but good to see you here

Sim

and looks like we are doing good okay

dooger says yeah I saw this scan but you

lost it and couldn't find it again okay

when you bring it over open shared

item I hate to bring it over again CU I

don't want to junk up my charts and you

hit preview and you click on import then

that should save it for you but yeah you

have to remember what you called it if

you go with the name I left it with

that's what it's called or change it so

you can recognize it that's one of the

big Keys when you when you import these

uh links that we share with you those

think scripts yeah you've got to

remember what you call them all right

and again if you're

new that might be a little bit too much

for you let's move on to the next piece

all right we ran our

scan and it brought us back  results

which is nice I have some extra columns

in here that you probably don't have on

your scan don't worry about that for

example I came in here and I added the

sectors some of the sectors aren't

showing up here I'm not sure why but I

have them breaking them down into the

sectors sometimes that can be helpful

and then I also have a couple of columns

here a one month return and a

three-month

return where did those come from well

their little calculations done in what's

called things script it does some easy

math for us that's one of the things

that think script is really helpful I

find helpful for and so I do have a

three-month return and a one month

return I'm going to copy both of those

out into the chat again for those of you

that are here live if you're on the

recording you may have to pause this so

that you can pull it up okay so here's

the one month here's the three

month send those off to you same

thing come to setup open shared item

give it a good name okay don't say

Connie's return or Connie's formula

you'll never know what that is right but

maybe call it one month or three month

or whatever makes sense to you to call

it now this is nice that we have quite a

few results here uh remember when you

run a scan it's for the purpose of

creating a watch list not necessarily

for the purpose of finding something

that might have an entry signal today

right but you want to kind of be

watching it and like identify when it

gives you the entry signal that you're

looking for which we'll talk about in

just a moment now one aspect that we

brought into the uh stocks that you

might consider important qualities to

have on your watch list we talked about

doing something called a topdown

analysis and a top- down analysis

essentially is identifying which sectors

are the best performing sectors and

looking for the better performing stocks

or stocks that meet this criteria in

that sector now what's a quick and easy

way to know what sector has been

performing well well I have it over here

in the watch list I'm going to expand it

and open it

up I have here a watch list called S&P

sector indices it's a public watch

list come down to public and the S's and

then come over here to pu S&P  sector

indices uh it's a pre-built watch list

for us which is is nice the ticker

symbol looks like this now that's not as

intuitive or as something like AAPL or V

for Visa right uh so what I've done here

is I've kind of brought in another

column how do you bring in columns click

on this gear and I'm going to go make a

mark around it maybe you draw your

attention to it you click on that gear

that gear allows us to customize what

the columns are that we see and so I

actually have different columns in here

than what are the default columns when

you first open up your thinker swim so I

have the symbol in this case we're going

to use the description we can see what

the percent change was today sometimes

that's helpful more so when you're

looking at individual stocks than

actually sectors and then I have that

one month and three-month return okay

calculating for us so I've got this

currently Set uh tracking or shorting I

should say on the three-month return

here fact we don't really need today and

I'm going to squish that up a little bit

so we can see more

description uh so in the last  months

would you believe utilities has been the

strongest sector % followed by

communication Services significantly

less followed by information technology

these two are about the same

communication services and Technology

little bit over uh % but remember

that's the whole sector that includes

the stocks that are doing well and the

stocks maybe not doing so well right all

of those that are in the S&P  in that

sector what if we I mean we can use that

but what if we're kind of like of the

opinion that we want to know when things

are changing hands when leadership is

changing then we might use something a

little smaller in terms of time frame

and sort it on that so I'm going to

Resort this based on the one month and

let's see how much of a change there is

remember utilities communication and

information technology

as we go to the one month oops that's

the worst one on top I'm going to click

it again now we have information

technology is number one then utilities

then communication Services now one

thing that's interesting is many time

well I'm going to say it this way

usually these three sectors are not

usually the best performing sectors

together why is that utilities has a

tendency to be a little bit more on the

sight of things that are

conservative okay uh meaning maybe the

rest of the Market's not doing well and

so people maybe shift into something

more conservative like utilities I don't

want my water cut off or something like

Staples Consumer uh sector uh we call

what do we call that cons uh Consumer

Staples it's what we call that right I'm

going to eat food I still want that

those types of things and and so

sometimes we'll see a shift of money so

it's unus usual to see both of these

here however I will tell you did a

little bit of research why some of the

utility stocks were doing so well and

it's because they're adding in some AI

technology to help them become more

efficient and I thought that was kind of

a cool thing to learn that that was

going on with some of the stocks in that

sector all right now we're going to take

our search and we're going to say great

let's focus on these guys those

particular sectors so our scan is going

to be the same we're going to look in

all stocks but we're going to intersect

with we're going to come down to buy

industry and because information

technology is the best in the last month

come down here to Information Technology

we're going to grab all these are all

the industry groups within there but we

want to grab all of them okay now with

this added in we're going to rerun our

scan and we have quite a few we've got

stocks in that sector that all o meet

this criteria so we are going to save it

to a watch list all right I'm going to

click on this little let me highlight

that for you sometimes when I point it's

a little hard for you to tell exactly

where I'm pointing okay there's a

there's a box around that icon that menu

bar and we're going to hit save as a

watch list and we're going to give it a

name and I'm going to give it to today's

name or today's date rather so I'm going

to put in May

all right you guys it'll help me

find it sometimes I have to name it easy

stuff so I can go find it again all

right now we're going to update our

watch list here instead of having the

sectors we're going to open that watch

list we're going to open our personal

I've got to go down to the

M's and here is our May   all right

so these are the stocks and now we're

probably a little bit more interested

in just the ticker symbol we don't need

to see the name of the company so much

and we can see what some of these stocks

have been doing over the last one month

and the last three months so some of

them you'll be able to see maybe they've

been trending really well for a long

time or maybe some of them maybe you're

doing well in the one month but not the

three month and so maybe it's something

that's just starting to come into favor

starting to perform a little bit better

now let me check the chat here make sure

that I have not missed any

questions as since the uh cycle rotation

seems to be doing something here it is

and so that's why we kind of want to

keep track of it right see which ones

are the better performing stocks all

right now we're going to do something

really quick which is we're going to say

okay we also have communication services

and utility stocks let's just run it

quickly and intersect it with those two

sectors as well so we're going to go

come down here to utilities first I'm

going to select all utilities rerun scan

there's only one stock that comes back

peeg okay that meets all of this

criteria again some of it fairly

aggressive so I'm going to come to the

bottom of our watch list and I'm going

to add

Peg okay uh next we'll do communication

Services all right so we're going to

intersect with bu industry communication

Services we're going to do all the

industry groups same thing we're going

to

scan we get two stocks which uh are the

same company Google and Google right so

we will add those some might just only

want one ticker symbol they look and

track very closely to each other uh

what's the difference one has voting

rights as a shareholder uh and the other

one doesn't Okay so the one that's the

GL is the one that has the voting rights

for those that are interested in that

sometimes people could care us all right

uh they but both of them have trade

quite a bit uh they trade similar with

each other and you can kind of see over

here over the last one month and three

months yeah they're pretty very similar

especially in that three-month column

all right next thing once we find some

stocks we're interested in next we we

want to be looking for some entry

signals so that takes us to technical

analysis so we're going to start out

here

and we are going to go to the

Chart I think that was the first one we

had on our list there we're going to

start with a different stock uh that

we're going to take a look at simply

because it has some good technical

pieces in here that might be helpful to

us okay uh this stock I looked back I

looked at its maximum history and it's

at all-time highs so everything we're

seeing on here has been getting higher

higher

higher uh sometimes we can see patterns

out on the chart we can see where it's

maybe trending you can see drew a

channel in here because it seems to have

a significant low point that it comes

down to and bounces back up and then

this top line here and I should just

maybe show you how I did that this is

our drawing tools I hit my mouse button

in the middle and then I picked the skis

okay this slanted line double line okay

is a channel and I just kind of

eyeballing it here decided where looked

like maybe this move was coming from at

this angle and all I did was this now

I'm going to be redrawing it kind of

close to it

okay uh so I've got I'm connecting the

bottoms here might be almost right on

top of it and then you click and it

anchors it in and then you can start

pulling in the other side and for it to

create a a channel make sure you connect

at least two points okay you don't want

uh for example to grab this outlier

clear up here cuz it's the only touch on

it so bring it down here where you get

several touches

we put it into place okay there's our

channel that can be a form of support

and resistance clearly it was upward

trending almost the whole year had a

little bit of a pullback here recently

but just went to another all-time high

last

week uh I'm going to get rid of one of

these lines I think this was the second

one I drew it's not as perfect so I'm

just going to get rid of it we also have

areas that act as support and resistance

and remember resistance is when the

stock runs to a certain place it could

be diagonally we we focus a lot on

horizontal but it could be diagonal like

what we're seeing here right that that

could be resistance these areas could be

support but also

horizontally right we may

see I'm going to pick a a point here it

looks like maybe that was resistance for

a while or maybe that was resistance for

a while that very short while you know

we see this peak where it ran up to this

area and so we're trying to see where we

notice that because when the price runs

up and then it kind of stalls out and

pulls back that's because shortterm

people in the market are selling off and

causing that basically a place where

sellers start selling okay when the

price bounces up that's a price where

buyers start buying again after sellers

have done selling okay so this is a

little bit tricky we're going to draw

using the uh tools our drawing tools

that we have in our charts I'm going to

draw in some support resistance areas

like what we talked about now I'm going

to come here to this

area click click draw anchored in

place and what's interesting is it kind

of looked like maybe it was support for

the short term support and resistance

are ranges right think of this I'm

drawing it with a big old Sharpie or a

big crayon or something like that so

that it's not exactly

okay so it could be a range but

what's interesting to me is then it kind

of came through this range and then it

tested it again oh are you going to be

my support you were resistance so you my

support now and then

today well yesterday it closed down

below this so now it's going to become

resistance again all right and you know

sometimes remember it's an area but many

times people might say well I don't

really want to get in at resistance I

want to get in after it busts above

resistance right kind of like a day like

here where the stock really pushed

through clearly closed above had some

good decent volume that day in terms of

what we call breakout volume uh or

volume sustaining the breakout right we

see a lot of volume in here than the

stock is more likely to stay there if

it's weak volume you know below average

volume then sometimes it it has a bigger

chance to not really stay that it's just

a short period of time above resistance

and then many times you'll see it fall

back so that can just be something that

you look for additionally now I need to

come check the comments here see if

there's some things that I need to

address oh Sim is s sharing sharing

sharing uh his experience with you about

importing thank you for doing that

Sim uh China is happy about

that uh China are you having difficulty

finding the

videos Sim Ro not you hope you figure

out when you watch the video again later

oh maybe it was a certain point you know

uh CH you retracted your message so

maybe you figured it out all right let's

move on now some people might hesitate

about getting in here they might say you

know I I like the trend the -day

moving average is coming back up again

of course it's a lagging indicator right

but we can see higher highs higher lows

all-time high just last week but this

might scare some people and so you might

keep it on your watch list and say let

me get in after it gets Above This

resistance okay so that's a good stock

to maybe keep an eye on see if it does

meet an entry signal like a Breakout now

if somebody did not notice the

resistance being there I'll just remove

this some people might look at this as

man a nice little not little kind of you

know a nice steep run up a pullback and

then what was this candle we had

yesterday do you guys remember from our

Candlestick

discussion in a pullback when a stock is

at support or possible support and it

has a real long Shadow and a smaller

body in comparison to the shadow we call

that a hammer candle that can be a

reversal point then we look for

confirmation the next day the next day

was today and we definitely had a

bullish candle here so did today confirm

the hammer yeah it actually did what

else is it supposing you weren't say you

didn't notice maybe some short-term

resistance there okay well it might meet

an entry signal for some Traders because

it is closing

above the high of the low dat

today well let's make sure that's the

case it was earlier yeah it looks like

it barely did this is our low day in the

pullback of an uptrending stock the high

is

and where did it close today

so today at the closing we got a

close above the high of the low day this

was our low Day candle so some people

might consider that for an entry all

right we're going to use it as an entry

if we have an opportunity to look at

another stock we will do so I've got

several from this list that some people

might use as opportunities they have a

little bit different signals on them all

right Next Step we have to decide things

go wrong where do we get out we decide

this even before we place the trade

we're going to go through that analysis

now we had our support and our

resistance uh something that some people

we'll do is they'll they might identify

support and go a bit below that or in

this case we're going to do what we call

a short-term swing trade where we put in

a Target we haven't done a lot of these

in this class we've done a lot of Swing

uh what we call Trend trading where we

let the stock swing up and pull back and

swing up and pull back and as long as

the trend stays intact we stay in the

trade okay this one we are going to put

a particular Target here let's put it up

here at  although could it go past

there yeah absolutely if it went that

high certainly could go past there it's

been making higher highs and higher lows

okay so let's walk through the next step

where should we get

out since this candle here is

confirming kind of the cold entry if it

were to come down below its low and

close below there some Traders might

want to get out or even if it starts

trading down there some Traders would go

oh the momentum's changing it's

weakening we only want to be in if it's

continuing in a positive momentum okay

so for our purposes today we're going to

see what today's low is looks like it's

let's go a little bit below 

let's go um

because sometimes things bounce at

even numbers you don't know if you've

noticed that sometimes people may have

automatic or ERS sitting there to go off

at even numbers like  is an even

number or  would be an even number

okay so we're going to go a little bit

lower than that we're going to go to

right that is going to be our stop

so I'm going to say Target which we

haven't done a lot of here is going to

be

stop is going to be what did I say $

and just put your mouse in that

area and make sure yeah if the stock

really goes there you want to be out if

the

stock maybe you calculate it and you put

your mouse there and you're like I think

that's a little too close adjust it okay

I'm going a little bit below that 

number and many times we'll just go a

little bit under the low so here where

the low is  maybe somebody would go

well let's do you know

uh  you know go  cents lower

right you got to determine how how much

wiggle room you want to give the stock

and and not put it too tight to choke

that you're choking the stock that it

can't even move what would be an example

of choking it I would say if I put my

stop at one penny below the low that

does not give it much wiggle room okay

so you're trying to balance that where

would you want to get out so we've got

our Target we've got our stop now we can

decide how many shares to buy and I'll

tell you this is one of the most

important pieces to trading is to manage

a risk okay you can get good at spotting

entries you can get good at spotting

exits you can get good at spotting what

industry groups are stronger sectors are

stronger but if you lack discipline in

saying I'm going to treat every trade

the same I'm going to risk only what I

should and not

overcommit that will be so helpful to

you uh to making it a longer term

situation for you versus oh man I I just

didn't follow any rules and I didn't

exercise any discipline and you could

have some problems with your account so

in our class we are assuming we have

$, portfolio and we're assuming

and you'll see this out on that sample

investing plan we're assuming that we

could risk you know some people use you

know % or half a percent in terms of

what they are willing to risk risk means

lose potentially in a trade and think of

it you know if you lost this amount say

five times in a row would it break you

would it like do real damage to your

account well suppose we only risked half

of a percent each time and say we had

five bad trades in a row could we

recover from that well then our account

could possibly theoretically be down two

and a half per. that's not a big hit

right that's something that I think most

people would feel comfortable they could

manage that but say you didn't exercise

discipline and you said I'll take a %

loss per trade well that's a lot

different right then we're talking uh if

it's a % we're talking a

$, hit per trade which means you got

five in a row whoa that is painful okay

so in your thought process think more uh

protection protecting your account and

getting out when it looks like things

just aren't going the way we need them

to go doesn't mean you're a bad Trader

doesn't mean you're not good just means

the stock isn't following through with

what we thought it did or news came out

right all those types of things so on

this trade we're going to walk through

the process we're going to bring up our

calculator here we've got our  that

we can risk per trade it's called our

portfolio risk right your number could

be different your portfolio could be

different you know I have an

example you know down here well where

did it go I have another example here

that basically says okay if you have a

$, account just do the same thing

right whatever that percentage you're

comfortable with and then have that be

your risk for your trades and as your

account grows or if your account goes

down then you're going to adjust that

number all the time you're going to

continually make changes there but for

right now we're going to risk  now

the risk we have in the trade we're

going to figure out from our entry price

and our stop price so we're going to

assume we could get in on Monday well

Tuesday at

that was our last price today so

we're going to assume we could get in

pretty close to that so let's go

minus our stop

that gives us risk of  per

share we're going to take a  divide

that into

so  divided by  we don't want

to trade any more shares

than this is saying

and that's probably pretty close I

would be rule number one we wouldn't

want to buy more than  shares but

what if by buying  shares we stayed

within our risk management but we were

putting too much of one trade

into uh into our portfolio some people

don't want a particular trade to take up

more than five uh % of their portfolio

some people will go you know they don't

want it to be more than % of their

portfolio so let's just see if we bought

shares

here times  what would what would we

be

spending uh we'd be spending

$, of our

$, portfolio is that very

comfortable to you or does that kind of

feel like gee we're we're putting too

many eggs in that basket yeah we might

be putting too many eggs in that basket

so then what we do we're just going to

scale back and we're going to say we

don't want to put more than

$, into any trade okay so we'll put

in , here not  divide that by our

entry price we're only going to do

shares okay so some of you might feel

oh that's a little bit more comfortable

right we're not loading the boat on just

one stop let's go put our order in

always want to show you a sample trade

if we

can uh the ask price here is a little

bit higher than the the last price so

we're going to change that but I'm going

to do a right Mouse click buy custom we

haven't done a lot of these in this

class we're going to do an Oco bracket

Oco stands for one cancels other and it

gives us the opportunity to put in our

stop loss and get out there if we need

to or remember that Target I told you

we're going to shoot shoot for which is$

we're going to put that on one side

so we're going to change our shares to

here going to click on this link to

make those equal the green is our buy

order these are our two exit orders and

we'll see which one gets hit first okay

I am going to change our entry price try

to get in a little bit closer to where

it closed at so

and then we said all right this

first order here is intended to be our

stop loss okay it takes up two rows well

I take it back first one's intended to

be our Target the second one is intended

to be our stop so we said our Target's

going to be

I get that number right we're going

to make this good until canceled right

that save is it have we have it for

about  months hopefully we'd be out

before  months then we're going to put

in our stop loss price here to

or whatever number you're

comfortable with we're going to make it

good tell cancelled you get to this

price or lower it triggers a market

order and a market order says get me out

at the next available price it's not

necessarily going to get filled at that

price that's never guaranteed so I want

you to be aware of that we're going to

hit confirm and send make sure we

remember this is reminding us that with

stops it's not a guaranteed price it

just lets us know that we're going to

send it

on all right we just covered the key

takeaways from this class from the

course did we cover absolutely every

little dinky thing no I'm not that good

okay but but I was definitely trying to

cover as much as we possibly could I'm

going to check and see if we have any

questions that I need to answer as we

wrap up uh some Frankie said hey it kind

of looks like the -day seems to be

acting a support very well could be I

only have the -day moving average on

there but absolutely you can use

different moving

averages uh Sim noted we had a couple of

flags in there we did they weren't

pertinent exactly to our the where we

were trading so I did not tell you about

that sometimes Che uh protective put can

be good as well this is a beginner class

so I don't even go there all right but

certainly use all the knowledge that you

have um okay uh ISO ISO hick I don't

know I probably massed that name you

imported the three Monon script but you

can't find it what did you call it you

have to go look for what you called it

okay and what you could do is you could

go over to the columns in your watch

list customize that and then look for

that if you put three Monon return or

whatever then you can pull it up there

that's how you're going to find it find

it all right very good well Lee thank

you for helping us out today these guys

didn't wear you out too much with uh

questions but that's all right as we go

into the long weekend remember markets

are closed on Monday therefore we won't

be here you should should be out having

a barbecue with friends or family doing

something fun all right that's uh my

encouragement to you today so we did our

overview went through all those steps in

a quick fashion and of course looked at

a couple of examples uh what do I want

you to do I want you to practice trading

in your paper money account if you

haven't started or some of you that are

trading live then maybe the next step is

really tracking those trades so you can

learn from them track uh you want to do

paper trading with a purpose all right

you guys we're going to Turn You Loose

we'll see you back here Tuesday Morning

: Eastern Time right at the opening

bell we'll be there with our Trader

talks have a good weekend