📚 FULL GUIDE TO TRADING IN ONE TWITTER THREAD 📚
This is everything you will need to start as a new trader.
Like this tweet to save and retweet to spread the word ♥
📚#1
Candlesticks
A candlestick shows the action between buyers and sellers. There are different types of candles that can help us best understand who is in control and predict the future trend. Here are just a few of the candlesticks :
📚#2
Support and Resistance
Support and Resistance are levels which show us where buyers and sellers will be looking to buy/sell depending on previous price action.
This chart shows a support level where we saw the stock bounce previously. We also see a resistance level
📚#2 continued...
We can potentially sell at or expect the stock to fall at. We can also buy when the resistance/support breaks if playing the down or upside. These are basic levels in trading that traders new and old use to identify potential entries and exits.
📚#3
Day Trading Scanner
To find tickers for day trading, you can use the top gainers tab on your broker. You want to sift through the list and find penny stocks trading 20-30%+ from open and usually under $20-25. Keep maximum 6 tickers on watch from this list.
📚#4
Swing Trading Screener
You can use this screener at finviz.com to identify potential swing trade setups. You want to input these settings and take a look through the charts and information listed to form a watchlist.
📚#5
Trendlines
Trendlines are a form of support/resistance that are characterized by higher lows/lower highs. We can expect a stock to reject or bounce off these levels at a new price rather than the same price as it would with a simple support or resistance.
📚#6
VWAP
The VWAP is a great tool for intraday trading as it provides a makeshift support/resistance level to base trades off of. You can add when a ticker breaks above or comes down to the VWAP as the best ways to play it. Below is an example of VWAP acting as support :
📚#7
Gaps
Gaps are created when the open of a ticker is significantly lower than that of the previous trading day. Gaps usually get filled and are a great way to find price targets based on the start/end of the gap. This strategy works for both large caps and penny stocks.
📚#8
Stop Losses
Stop Losses are used to prevent a losing trade from going an further into a loss. We use this to cut bad trades early and good trades late. We can move our stop losses mid trade as well and it doesn't have to be automatically set and can also be mental (cont.
📚#8 continued
A stop loss can also be put into profits as a green trade continues running to prevent it from turning your trade into a loser. We usually place our initial stop loss below a support zone. In the example below, we can see that a good stop loss would be below $9.95
📚#9
Price Targets
Similar to a stop loss, we use price targets to define where we we exit. You can either set your price target(s) at % levels or actual levels of the ticker. We can use resistance levels to see where we can to exit. For example, on the chart below (cont...)
there are a few levels you can scale out of your ticker at listed as resistance levels
📚#10
Level 2
The Level 2 is an extended bid/ask that you can use to find support/resistance levels. You are looking mostly for levels where there are big amounts of buying/selling to identify where there will be a big area for either side. For ex., $8.40 would be a support
📚#11
News
You always want to check the news on a ticker before playing it. If a ticker does not have sufficient/strong enough news and is up a crazy amount, you should be wary of it. You can check for news on the ticker by going into the twitter search and typing in the name
📚 #11 continued
of the ticker with a $ before it. It will bring up articles and news headlines for you to determine if your ticker is worth playing.
📚#12
Volume
We want a ticker to have volume accompanying a breakout or bounce. As we can see, there is an above average volume bar that accompanies that high of day breakout on $PETZ , so this shows to me there is potential on the trade and not a false breakout.
That is all for the current guide, if you guys want more I will be posting more educational content on my other social medias and twitter so make sure to shoot me a follow :)
YOUTUBE :
TIKTOK : tiktok.com/@nitrotrades?l…
INSTAGRAM : Nitropennyking
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.