Stock Markets Next Week

Stock Market Trading Strategies for Next Week

Fascinating insights into what the stock markets may do this week and how the stock market works, in 'stock trading master' stock market report in his video (scroll down for the video). Lots of uptrends and strong uptrends for the first time in months. Lots of 'resurrection crosses' (a good sign - and also known as 'golden crosses') - when a shorter moving average crosses over a longer moving average on the way up.

Whether you're a total beginner to stocks and shares or an experienced online stock trading professional the 'master' is a good mentor and his videos are always full of useful information and an indication of which stocks, commodities or indices to buy.

The major stock market indices have broken out above their October 2011 highs. The S&P 500 has a Resurrection Cross with the 50 day moving average moving above the 200 day moving average.

Institutional traders were buying across all sectors last week, - this can be seen by the TICK closing at 835 (explained in the video).

The strongest sectors for institutional traders were Energy +2.28% and Technology +2.17%



So hats off to the stock trading master for all the priceless information he shares, there are many online stock trading courses that don't do such a good job of teaching beginners what to look out for when trading stocks. If you are looking to learn about the stock market and stock charts then you would do well to check out his videos.

Don't forget also our old friend Warren Buffett - his stock trading strategies are somewhat different and in fact he is not a stock trader as such, but a long-term investor and it was in this capacity that he was busy buying $750 million worth of the UK firm Tesco last week, after the share price slumped 20% in one day. Tesco is the largest retailer in the UK and always makes money, so WB helped himself to a chunk at knock-down prices. The price could fall another 6 or 7% but even at current prices it looks like a bargain. UPDATE : The recent Tesco trading update (June 2012) was very lacklustre - so I persoanlly expect to see a slump down to around 270p at some point, at which point it wil be even mor einteresting than it is at present (stuck around 300p).

See also - One Easy Stock Trading Strategy for How to Trade Stocks

Stock Trading Video Insights

How to Trade Stocks Using Charts

For the absolute basics about how to trade stocks click here - how to trade stocks online

Stock trading master is an interesting guy, his analysis of stock charts is easy to follow and a genuine education. He also tells you why you can't trust stock trading subscription newsletters (fairly obvious really but it bears repeating). Here are his ideas for the next week's trading. The markets are still in a downtrend and fell a lot last week ! So much so they made the news again.



Personally I have been waiting for the markets to drop back for a long time and maybe finally we will get it. One trader on CNCB said 1080 on the S+P is a key level and he expects us to see it soon. So keep an eye out for 1080 and then decide what to do next.

The markets in Europe appear to be bouncing yet again, but for how long, Greek is finally well on its way to defaulting so just what effect will that have on the markets? We shall see, but bear in mind that European politicians are totally hopeless, they haven't got a clue what to do and are just hoping their bank accounts will be OK and they might still be in a job when this whole mess finally works itself out.

How to Trade Stocks One Easy Strategy

How to Trade Stocks - Make Money using just Support and Resistance - a Video

For the absolute basics on trading stocks see - how to trade stocks online . If you are looking to make money from the stock market using the easiest stock trading strategy then remember that many professional traders use nothing more complicated than the notions of support and resistance.

The video below is very clear but basically you just need to identify a stock that is trading in a channel - see when it hits its support level then buy it and wait till it moves back up and hits its resistance level, at which point you sell it. This applies to stocks but it also applies to the market as a whole if you just want to trade the indices.

Stock trading info. for beginners and experts

A trend can be up, down or sideways but as long as you can correctly identify the channel then you can trade by buying at support and selling at resistance. This is clearly a short-term trading method but if you get it right then it can be highly profitable and also easy to follow. Lots of professional traders just use this as their basic method. Remember though that you need to have 'stop losses' in place i.e. you need to ensure that if the stock continues tof all after you have bought it then you get out of the trade if it falls 5% or so. You make a loss but you don't get wiped out. In stock trading it is important that you only lose battles not the war.

Trading stocks is all about calculating the risk reward ratio, you can't possibly win every time, but you must make sure that your winners make you more money than you lose on your losers.

If you want to make your trading slightly more complicated then you can combine support and resistance with moving averages. In short-term trading it is not a good idea to buy a stock that is below its 200 day moving average and it is also not a good idea to by a stock when its 5 day moving average is pointing down - for details see this video on moving averages.

For a video explaining trend lines see - stock trading using trend lines

Stock Charts for Beginners Video

Stock Charts for Dummies - See video below

NB : For the absolute basics on how to trade stocks - click here for the no-nonsense no frills lowdown ---> how to trade stocks online

Hurricane Irene has been and gone leaving a lot of damage in its wake. The damage is expected to total around $10 billion and some say it will negatively affect insurance companies, but in fact, allegedly, it is just the opposite. Large events like this one actually allow insurance companies to increase their premiums ! So long-term people see them as good. That's money for you.

Stock trading master's videos at guerillastocktrading.com and youtube are really good as an introduction to stock charts and how to trade stocks, not because they are basic stuff but because they are videos from a guy who clearly knows about stock trading and the significance of the various charts and indicators. He also explains it all in a way that beginners to stock trading can understand and follow.

He says we are still in a downtrend in the stock markets, which is good because I agree with him. We have had a slight bounce in recent days but I expect the downtrend to resume, especially given the mess that is Europe at the moment, I can't see that being cleared up anytime soon.

Bernanke is also going to speak which could spook the markets even further.

One stock that I think could do well in the long-term is Amazon, because of the rapid rise in ebook sales - want to be a best-selling author and millionaire ? Then self-publish an ebook on Amazon - here's how it is done - ebook best-sellers and here's a survey t hat shows how many people actually make money writing and publishing their own ebooks for the Kindle - http://www.ebookstore.co/how-to-make-money-writing-ebooks

Stock charts for dummies video


For further info. on how to interpret stock charts see - stock charting basics and how to trade stocks

Stock Market Heading Down or Up ?

How to Trade Stocks for Beginners - How Far Can the Stock Market Drop?

The DOW is down another 430 points to 11,011 after being at 12,600 just a few days ago. But how far can the markets fall? Some traders think we might be heading back to the lows of March 2009 whereas others think this recent fall represents a good buying opportunity. So what's a trader to do?

First of all if you are a beginner this is a very dangerous time to be considering buying stocks. It is not a good time to be a hero, or as Art Cashin likes to put it "it is usually the second mouse that gets the cheese". So don't stick your neck out unless you are absolutely certain what is going to happen next. Don't forget that Standard and Poors have just downgraded US debt for the first time since 1917 !

For one take on what may happen take a look at Oscar in the following video (if you are in a hurry you can skip the first five minutes). He is not convinced that the markets are as bad they appear to be, and points out that we may in fact be at a crucial support level, if this level holds then we may soon recover from this recent drop.


Professional traders themselves don't know which way these markets are headed - some saying we might rocket back up and some saying we plunge even further today. So very risky trading times!

Personally I am rather pessimistic and am waiting for the markets to fall even further - but Oscar makes an interesting argument and I will be watching market developments with interest over the next few hours and days.

How to Trade Inverted Hammer Candlestick

How to Trade Stocks for Dummies - Trading the Inverted Hammer and the Shooting Star Candlesticks

NB : For the basics on stock trading - click here for the no-nonsense info. --- how to trade stocks online

If you are just starting out trading stocks, this video gives a very good description of how to trade both the inverted hammer and the shooting star candlesticks



For more detailed information on the inverted hammer pattern see - inverted hammer candlestick for the shooting star pattern see - shooting star candlestick - for the basics of stock trading online for beginners see - how to trade stocks

Investing for Beginners - One Trading Strategy

Investing for Dummies - Trading Moving Averages

As we have said before - stock charts for beginners - it is important if you are just starting out stock trading to understand the basics of stock charts. Why is it important ? Because professional traders use charts and if you don't understand them you will be at a disadvantage.

One of the basic concepts involved in stock charting is the 'moving average'. This is the average of a stock price over a given period of time - often 50, 10 or 200 days. Any financial site such as Yahoo will show you the moving averages, there's no need to work them out for yourself.

The aim as can be seen from this video from informedtrades is to buy a stock when it moves above a given moving average and to stick with it until it drops back down below the moving average again. This can be quite profitable if the stock is in an uptrend.

Another strategy is to track two moving averages such as the 50 and the 200 day - and to buy the stock when the shorter time frame average crosses over the longer time frame average while they are moving up. Some people refer to this event as a 'golden cross'.

If you are new to stock trading then these concepts may seem fairly alien, but a look at the video will show what is meant.



Moving averages are very basic indicators in stock charting but very widely followed by professional traders. Many traders for example will not buy a stock if its stock price is below its 200 day moving average, but once it crosses back over again then that could be a good time to start buying.

Swing traders also do not like buying a stock if its 5 day moving average is pointing down, so that's worth checking out too before wasting your cash on a risky gamble.

Apart from moving averages, another basic indicators that many stock traders use is that of support and resistance - see here basic stock trading strategies

Stock Market for Beginners Charting

Stock Market for Beginners - Basic Stock Trading Strategies

If you are new to the stock market, my word of advice is to take care ! The stock market is not a level playing field, it is highly tilted in favor of the insiders. As a stock market newbie there are some basics that you need to understand before parting with your money.

Firstly, you need to understand that the stock market and therefore stock prices are driven higher or lower by professional traders for reasons of their own. It may even be the case that there are certain stock market insiders who drive the stock market up or down based on nothing more than a whim or a desire to cause everyone else to lose money.

As a beginner you can only hope to compete if you have a basic understanding of stock charts. Professional traders use them all the time so you need to understand what they are seeing when they look at them.

Stock Market Charts Support and Resistance

So, where to start with charting ? The most basic aspect of a stock chart apart from whether the price is heading up or down is the concept of support and resistance. Some people trade shares on the stock market using nothing more complicated than this basic notion.

How to make money on the stock market using support and resistance levels ?
Stock prices will often move down to a certain point on the charts before turning round and moving back up again, if you knew when it was going to turn round then you could make some money by buying the stock at that point. This low price is known as the support level. The high point is called the resistance level. Stock prices often bounce around between this support level and the resistance level - if you can spot this trend in the stock charts then you can take advantage of the situation.

When a stock bounces around between the resistance level and the support level it is said to be in a trend. The aim is to buy it when it reaches the bottom of the trend and sell it at the top. This stock trading stragey does not bring in enormous profits in one go, the aim is to make around 7 - 10% profit over and over again. Once you have made a profit you sell the stock and look for another one that is following a similar trend.

It is very basic, but the aim of the stock market is to make money not to devise complicated strategies for trading stocks. The trick of course is to find a stock that is following a predictable trend.

You must also limit your losses. If the stock you buy starts heading down instead of up then at some point you need to get out. You do this by setting a 'stop loss' - i.e. a price at which you automatically sell. Your 'stop loss' should be around 3-4% below your buying price. This way you have the possibility of making a 10% profit but are only risking a 4% loss. The stock market is all about risk/reward ratios. If the risk is too great then you don't do the trade. Above all a stop loss is designed to make sure that you don't lose all your capital in one trade !

So to apply this basic stock trading strategy you need to look at the stock charts and find a stock that is following an upward trend and where you can make a minimum 7% profit. Then identify the support level and buy the stock when it falls back to at or near the support level. Don't buy all your stock in one go, buy half of what you intend to spend then watch the stock to see if it starts moving up. If it does start moving up then buy the other half.

If it starts to move down then sell up when you have lost around 4% of your money - in stock trading it is all right to lose battles as long as you don't lose the war.

For further reading on basic stock charting see - online stock investing
Home : Stock Market for Beginners

Charts for Beginners Shooting Star

Stock Market Charts for Dummies - Shooting Star Candlestick Bearish Reversal Pattern

For the basics on how to trade stocks online - click here for the no frills lowdown ---> how to trade stocks online

Understanding stock market charts is important for stock trading or investing. It is not necessary to understand the meaning of every tiny move but a knowledge of the basics that professional investors use will help in interpreting what is happening to a stock price, and more importantly, what it might do next.

As explained in a previous post - see candlestick stock charts for beginners - Japanese candlesticks are commonly used as they provide a lot of information in an easyily understood graphic format.

The pattern known as the shooting star is one of the more important candlestick patterns. It has a small body (which can be either white, black, green or red depending on the trading software you use) and a long upper shadow with a very small or even non-existent lower shadow.

The upper shadow needs to be at least double the length of the body and the difference between the high point and and the low point should be significant. The low/high range needs to be wide compared to the range for the last 10 to 20 days.

A candlestick is called a shooting star if it gaps up from the previous day. This is not a hard-and-fast rule however, particularly in so far as concerns trading indices and stocks, as it is not unusual for these to open near the close of the previous day. If there is a gap up this indicates a stronger shooting star, but even if there is no gap up the reversal still holds true.

A bearish reversal must also be confirmed. A reversal means that there are less buyers than sellers for one or more days, but there is no guarantee that it will continue. Confirmation is needed. This confirmation is provided if there are further moves to the downside, such as a gap down, major decline in volume or a long black candlestick. Bearish confirmation should be clear within 1 to 3 days.
This video from yourtradingcoach.com gives a more detailed explanation

Further reading : Investing in Stocks for Beginners

For how to trade the shooting star video - shooting star candlestick