Stock Trading for Kids Students and Beginners

every one today I'm gonna give you a nice introduction on stocks and stock training my name is day trader rockstar it's what they call me on my radio show a day trading where I each and every day teach you about the stock market more specifically how to trade the market now this might be brand new to you you might be in school you've never had an interest in the market this is a you know hopefully we're gonna have a nice little series of videos that kind of introduce you to the market what it's about and some of the basics of trading alright there's a tremendous history with the market and there's a lot of information on the internet you definitely worth checking that out and follow the history back of why we have the markets and stuff I want to get more into the technicals and what the how the market works and how you can actually trade and be part of it be a trader in the market just starting off looking at a chart you know and this is what this is you're looking at here and again we're gonna start on some basics here looking at this you might not even know what you're looking at well basically what this is is it's called a stock chart and it really tracks the most movement of the the stock that it's tracking this in this case it's Ford and Ford is a very popular car company and a car company has stock and the stock is the symbol is F and you can actually follow and track how the the stock has been performing and take it even on a more basic level just remember that many many country companies have their own shares out in public where people like you and me can actually own part of the company and their publicly traded companies Ford Disney you name it basically name if it's big enough it's probably trading in the stock market and you can actually probably be you know an owner on a small level by owning some of the stock now what people like to do is actually take this stock and trade it meaning they buy it at one level and they sell it on another level and they keep the profit and that's what the markets are you know the markets are a market just like any other market you go in to buy something so the markets are where these publicly traded companies Nexon you know you name it like I said IBM Apple computer these are where these trade these their shares are on the open market and people buy and sell them based on what they feel the value is so when you do see that you actually see a chart it's left over it's just a little map a historical map of what happened with this with this chart and this Ford you know you can actually see just was up here it came down in the most basic sense and then started pushing back couple what does that really mean what does each one of these bars mean you know each one of these bars represents one day of movement in the stock price and you can see over here it says 1042 it's ten dollars and 42 cents as of today when it closed and that's how much one share would cost but maybe throughout the day it would actually went up to 1070 and came down to 1030 so you had this forty cent range throughout the day and it actually forms a candle and really that candle is as big as the range of the day and there's other aspects of the candle we're gonna go into on more detailed videos but basically each candle in this chart being that daily chart represents the range of the of the stock in that particular time timeframe now there's different timeframes that you can use you know daily means it's you know throughout the whole day you could use a 5-minute bar or a timeframe and each candlestick would represent five minutes time here it is like that but again we're gonna just look at the basic underlying factors of the charts and why they move and the daily is gonna be a fine one to look off for that so that's what you actually see right now but how do you start predicting how do you know that the stock is actually gonna make a move from here to here or where should you buy where should you sell and how does that all come in just looking at a chart like this unless you really you know knew the company or you work there it felt something you know felt like you knew something better about what you're looking at you have really no clue what's what you're looking at here so that's why a lot of traders you know we start learn the basic and the fundamentals and a good foundation we when a trend is we learned support and resistance lines and we learned something about averages and these are the three topics I'm going to cover today here's a three important topics that you can learn basically the first one really important is determining what type of trend you have and a trend is basically when something's trending that happens they can you know it happens in a row over a period of time and meaning there's two type of trends we can have here we could have a downward triangle we can have an upward trend and that's usually over a period of time we start to recognize that the price level here is moving down so we have a downward trend trying to happen in until finally we break that downward trend and now we have this kind of upward trend moving in there to move into pieces you know but again that could be broken down and learned but the important thing is recognizing how to recognize trends and trends are just basically a line you know connected to pivot areas and again a pivot area is really an area where the market might move up to a level and then pull back you know or move down to a level and push up and it leaves a little angle there it leaves it corner and that corner represents a pivot so every time a market comes down and bounces or pushes up and pulls back it leaves a pivot area and from those pivots you just draw a line and if that drip line is pointing down then you know the trend is down if the line is actually you know pointing up then the trend is up and that's the basics of you know just following the trend and understanding where the trend is here we have a chart of the S&P 500 index and this is really the the group of stocks that are traded in the S&P what we call the S&P 500 500 stocks and this is the average of those and it could be traded just like anything else but I just want to show you as a basic chart the directional how the market is moving and again understanding trends you could just another example of a trend basically you're taking a pivot area there's multiple pivot areas here here's a pivot area here's a pivot area here's a pivot area you know even on the upside there's a pivot area here pivot area here in a very closely bound up but basically you're gonna try to connect those pivot areas and you know in this case you can actually put it up to there and stuff you know it doesn't really matter as long as you're catching the the you know the bottom part we're gonna get used to looking at price action and see that there's like what we have is a trend and what the trend mean is each time we pull back a little we push a little bit higher we pull back we push a little higher we pull back we push a little bit higher so as long as your trendline represents that and you're picking up the trendline on the lowest pullback here you're just you got one part of the formula there the second part of the form is understanding where that trend pushes up to so each time we get to move up we run into a level that we pull back to the trendline we move up and we possibly pull back to the trendline we move up and pull back to the trendline and that's how you develop and get strength on that trend and each time I train this touched it gets tested and becomes a little bit stronger and each time it comes down you can actually take a trade off of that but there's also another side of the trend and that's where the stock is going each time it pushes up and we see that there's a pivot area here versus here first this here you draw that trendline in here now you have to 2-channel lines or trend lines and that really represents a channel that the stock is trading it so just by learning where the trend is you could develop a couple different trend lines that really represents a channel and then from that channel you're actually breaking down the stock movement and actually seen on a tighter you know a smaller time frame that you could actually see the market move from here to here then it moves back down to here we're starting to track it a little bit better and understanding and because we know where it is we know that up here now it's probably a good there's probably a good chance of the stock the stock reacting off of this level right here because if it did here it did it almost here it did and so right here it makes a you know good good argument to look for the stock to actually move down and again you can actually maybe even profit off of that I know in which direction the market wants to move based off of these trend lines so it's very important a very basic thing most charts will form a trend all you have to do is connect the pivots some trends last longer than others but once you recognize them you know and you you have an opportunity to trade off of them you know these are giving you what I call the highest probability trade areas in a chart I hope I'm not getting too far ahead and I wish I could take questions but remember trend lines you developed you know you make those trend lines off a pivot areas you need to pivot points and make that extension that line that line will go up and each time a price will come up to that line there's a possibility of a reactionary trade back down and then from the downside you're starting to put in that a trend line underneath connecting the pivot areas and you see the directional trade so it's very important trends and how to identify trends and how to make trends this leads to figuring out what kind of channel it is and from that point on you could actually you know start to read the map a little bit better so on the next topic I'm going to go into is actually support and resistance this next section we're going to be talking about moving averages moving averages are an indicated that kind of tracks the history of of a stock price each each timeframe so if you have we're looking at the daily daily chart right now and each candlestick really represents one day's action but then the moving average that we place on this chart and moving average I'm going to show you how you do that again that moving average is going to represent the average of these daily bars all right the next section we're going to talk about is moving averages you might hear this term maybe not definitely related to stocks and the stock market moving average really tracks the the price history you know each each candlestick right now on a daily represents the range of the day say you know we're looking at the sp1 from like 1305 to 1325 set and had a range of you know 20 points well you know that's what that candlestick measures a moving average pretty much measures the price over a timeframe so normally the most active and more popular moving averages are the 20-period moving average the 50 period moving average and the 200 period moving average and just like it sounds the 20-period moving average or the 20-day daily 20-day moving average looking on daily chart represents the past 20 days and that those prices all added up and divided and it gives you an average and that average is exactly where that line is plotted so you kind of get an average of the price over the last 20 days if it was over the last 50 days it would put a different line in that would be the 50 period moving average and the same thing for the last 200 days of you know you take each one of these candlesticks you add up the price the closing price you divide it by how many days and that would give you the average so each day the average moving average line would go up with the price I want to put these moving averages in right now they're you know they're called they're my overlays and I'm going to add on to my chart and we're going to start those I'm just going to use the standard 20 all right apply and you can see how that one just plotted itself running right under there all right so we're gonna just start off with the 20-period moving average help actually I'll put one more on there I'll put the put the 50 on there too and then we'll worry about the to another day so here's the 50 apply it and then 50s in light green and you can see because of the longer the time frame the more that moving average is staying away from the price level right now the quicker one the 20-period moving average states you know stays closer to the price well one thing you can notice now that you see two moving averages here especially the 20-period moving average which is very valuable is you know a couple things that you can look at lots of times the stock and moves away from the average comes back to the average we was away from the average comes back so it's always looking for it to mean or medium area and you know when we were able to recognize a channel and put that moving average in there all of a sudden we're looking at two different things that kind of help us guess the direction of the market lots of times a moving average could you be used as support and support it means that you know a price l'm will come down and move in averages such a known entity in the market that other people see that and you have this kind of self-fulfilling price level being held up by this invisible average you know where it is and everyone else knows what it is but you know it's it's placed there but you it's not a real tangible thing and yet the price actually holds this and we pop off of it and continue to move up to the top part of that channel line so you know there's a you know there's definitely argument that the price is going to come back down eventually to that 20-period moving average and you know also you know trade-off of those scenarios so that's your 20-period moving average kind of just represents the average of the past 20 days plotted on the line the line is to then plot it and it just overlays the chart action and lots of times you'll see that you know that 20-period moving average continues to be tested by the price rise to move away it'll pull up – it'll push away from it pull back to it and you know back and forth and then the 50 period moving average is another average a little stronger than – 200 which will be plotted down here is even stronger than that and those act the same way and sometimes are even stronger because they have more what we call data behind them 50 days versus 20 days or 200 days versus 50 days that would make no stronger and stronger average so that's the concept of a you know basic concept of a moving average you could use moving averages to trade off of you can use moving average is averages to actually see the trend it's basically is the average moving up or the average moving down it's an easy it's a very highly reliable and easy to follow indicator so the combination of knowing your channels your trend lines moving averages or giving you a little more detail how this chart is working out all right this next section we're gonna concentrate on a topic called support and resistance and support resistance is beyond two important terms in the market it really represents more of the history of the price previous price action when a stock moves up to a certain level and pulls back or pulls down to a certain level and bounces each time that does something like that you know again we first we started putting those pivot areas that's one thing we you know that's identified as a pivot area but also if we look you know each each one of these levels becomes a level in the history of the stock and when those levels start to add up you know then we start to say well there's more weight to this average you know there's more weight to this level because right now we're starting to develop a you know kind of a series of tops here and this is really develops what we call resistance so we're trying to push through this we've used time we get up to that level we push back and the same thing on the bottom part if you actually see an area you know here's an area back here we have a nice pivot I'd look forward I actually see that we kind of gapped down and then we pushed higher and we start to actually react off at this level multiple times we reacted here we reacted here we came up to it here and then we broke out of it then we came here that makes sense now that this is really starting to develop its support level and it has to be tested a few times really to take hold just because it went there once doesn't mean it's that you know there is a little a little chance of a little resistance you know getting up to that level but until we actually put another point of interest there and compare compared to that one then this one becomes a more reliable one if it's just this one I wouldn't just count on that alone cuz that any pattern could play out but once you have two or more then that fourth the third and fourth one become more viable areas to look for a reaction well for that and you could see here we came back down to this level and we actually bounce and that's you know the basics of the support and resistance just understanding that levels that were once tested and they get tested again and they hold up become more actively important further on in the chart you know as you get to that level again you can actually take a trade off of that so that's an important concept in the overall a chart so today on this introductory video I hope it wasn't too complicated maybe it was you know basically we learned about trends and how to recognize a triangle with a trendline and sometimes you can put two trend lines and really represent that channel and see the space between that channel really is a trading range the moving averages are really tracked the historical price of the the the stock that you're tracking for the past 20 50 or 200 days depending on what your of averages and then we have support resistance which really represents different pivot areas which we learned about you know the pivot areas are just the market making a move from up-down or down-up and from these levels you can really develop trend lines you can develop support resistance lines and you would developed patterns as the channel will be the first pattern you you should learn and that's just represented by you know just an equal distance between two pivot areas all the way down the chart and from these levels you start to react and you can actually build and trade all of these levels and that's the basics of trading you know and that's really a topic we call technical analysis chart reading there's other parts of training that gets more involved you know the fundamental aspect of it you know being able to understand a balance sheet and making sure the company is a good company to invest in and that's all important stuff but this is basically reading the chart trading you know on a mourner a longer term like excuse me a shorter term timeframe longer term would be really considered investing and you've probably heard you've heard people talk about investing in the market you know going in there long term putting your money in there to work for it in this environment these days the market is very volatile and it's more you're more apt to make better money if you're able to capture the smaller moves versus you know wait and putting your money in here and take a bit out here and not seeing that move being able to profit from here to here back down to here back to here not gonna happen that way but it gives you a lot more opportunities to trade a shorter term timeframe using technical analysis than you do other ways of making money in the markets okay well that's it for today's video hopefully this is a good beginner video and my name is day trader rockstar I'm a DJ DJ on radio calm where I do this each and every day hope you enjoy this video I'll talk to you soon

23 thoughts on “Stock Trading for Kids Students and Beginners

  1. I love that you have visual along with your tutorial. This is the first time since I have been watching to learn stock trading that I learned something. Keep up the good work

  2. by that so all of this all the dividends you get if you were to reinvest them Look here also

  3. If the stock takes a turn and decreases a few dollars and you bought it, would you hold it till it comes back up? These are known stocks so they should come back up right?

  4. But if you decide to sell you would have to wait until someone wants to buy and in that time the chart will have changed, or how does that works?

  5. Hey day trader, I'm a 14 year old who started finance and learning investing this year, do you have any tips for me? Like how i Start, i know i need to train, but are there any other tips?

  6. If you guys wanna see this chart type shit with making your own lines and stuff get the app Stocks Tracker it has this exact chart

Leave a Reply

Your email address will not be published. Required fields are marked *