So, at this point, you should know how to use support and resistance, and you should know how to chart levels and candles pretty easily
You also may OR may not try to use a million indicators on your charts thinking the more you use, the more money you will make
After watching the price action video from level 2, you should immediately watch this video right here:
Ok so at this point, you have a decent amount of knowledge and one thing that starts to make you become a successful trader from this point, is SURROUNDING yourself with other people like you that are motivated to learn, AND 10x BETTER TRADERS. (VERY IMPORTANT)
Here’s some discords I recommend joining that will DEFINITELY help you see other people’s ideas, other peoples charts, and overall just connect yourself with other traders such as yourself. Talk in the trading/chat sections and don’t hesitate to ask other better people questions
When I joined all these discords I used to ask a TON of questions (and STILL do), such as why someone charted something the way they did, or asking someone about a chart that I made myself and asking for their verification on it…and it’s helped/helps me a ton!
All of these discords have good traders in them and talking in the chats is a good thing because you’re going to see many ideas you can bounce off others with similar ideas, and you will also find a TON of education in these discords. Some of the education I am
sharing here to make it easier for you and all in one place.
Next: If you haven’t already, start listening to the Pennies Going in Raw podcast (spotify) hosted by @DipDeity and @Hugh_Henne@PGIRPod. Because most of you are probably busy and have school or jobs, listen to it
as much as you can while you are in the car, or maybe in your headphones if you have a moment or you’re walking somewhere. I’m halfway through it so far and it’s easily the best podcast for beginners trying to learn and you will learn so much.
It’s probably going to take you a while to get through it, but stick with it, TRUST me it’s extra very useful information that is easily accessible. Next: you want to follow very experienced traders on twitter. Just like me, there are many other people who post chart setups
and other really good psychology lessons that are very important to understand, so if you go through the people I am following, check out about 100 or so and consider following many of them (make sure they are stock people since some people I follow aren’t…most are).
If I had to tell you guys 1 person to follow it would be @MTradess. You can DM or ask him as many question as you want and he knows his stuff and is VERY good at reading price action, and I have learned a ton from him. But make sure to follow more people other than him for more
exposure to other traders strategies. Following these people and joining these discords will NOT HELP UNLESS YOU ARE ACTIVE. The more screen time you have of actively participating and engaging in others tweets, the more knowledge you will gain. I know you guys are busy but try
and squeeze as many minutes on twitter and discord throughout the day as you can. Other people you NEEEEEED TO FOLLOW. 1. @singlesdoubles 2. @maplestax (twitch streams) 3. @LunarAces (best educational threads) 4. @stocksnipa (options) 5. @TreyScalps (twitch streams)
Other than this, if you are one of those people who have learned all these indicators and think “oh well if I have 100 indicators on my chart I could make so much money!!” That is DEFINITELY not the way to go about it. I know everyone has their own strategy, but using too many
indicators will clog up your chart when you could literally be making money solely on price action. I love and PREACH the idea of SIMPLICITY and the more experience I get, the less indicators I use. I’ve shared some charts and setups in the past weeks where I show how simple
some of my callouts are yet how profitable they are. By the way, try using 100 indicators, because after a week you will realize how unnecessary they are and how I was right, I don’t want to tell you guys not to, I want to see you guys find out for yourself. And hey, maybe
you actually like 100 indicators and some people do, but most good traders don’t use 100 indicators, all your choice though, not telling you what to do:)
Alright here’s where I dump a load of information on you regarding supply and demand. This will take a bit to get through but it is SO WORTH IT. Supply and Demand is another VERY important strategy like support and resistance, they both have their benefits, and you can decide
if you want to use supply and demand, but I recommend you try it out.
First, read these threads from my fellow friends @Givvy_Stocks and @LunarAces.
After reading those threads and watching those videos, you should feel like the luckiest person in the world, and please dm them thanking them. The only other video I found about S & D that helped other than those was this, which u NEED to watch:
After all this, study moving averages. Just like support and resistance, those are probably in the top 5 most used indicators. If I could only tell you to use 5 indicators it would be moving averages, supply and demand,support and resistance, volume, and VWAP.
Moving average video you need to watch:
1. (for scalps/day trades) 2. (this will help if you swing over multiple days) 3. (general)
Now you need to study VWAP. If you don’t use moving averages, I suggest using VWAP (I recommend to use 1 to start off so you notice how it impacts the price). The VWAP is a single line and it’s best used for day trades on the 1, 3, and 5 minute charts because it acts as S/R
VWAP Videos:
(FYI I like VWAP better than moving averages because of simplicity but try both)
they will flush (meaning people take profits when market opens) and bounce in the first 30 minutes ending up in a 50%+ run. This is where you have to watch volume, if you notice a TON of premarket volume (meaning the premarket volume is already HIGHER than yesterday’s total
volume), AND then the volume triples at market open, that’s usually a good sign and results in a huge run throughout the day (not all the time but a good probability).
I have a little secret for you though, if you are new and this seems like all too much, follow people like @notoriousalerts@Mini_Tradez (you will find others) who post alerts throughout the day. They usually are already on top of the stocks that day
I’ve been getting TONS of dms asking how I find my plays/setups and I’m going to give you the most honest/helpful answer I have. This is for option and shares plays.
When I first started trading, I was like you guys, I would always DM/reply to people asking how they found their plays and I would get a TON of different answers. Overtime, this is what I learned:
This is going to be a lot to explain, and I’ll try to organize this the best I can, so try and bear with me. It will probably take two threads to explain all the different options to find stocks, so the next thread will be linked at the end of this one.
Ascending triangle on $SPY (3 min), paper traders try practicing playing the breakout (wait for 5 min close above line for confirmation). Super popular setup you should know.
BTW this won’t always break above, could break below which is a good time to short or buy puts for more experienced traders
It broke under, which means could see drop to 446. Under 446.40 would be confirmation because that was the last higher low
🚨EXTRA BONUS THREAD OF STUDY MATERIAL/MOTIVATIONAL TWEETS I LIKED:🚨
This will also include some other awesome threads I’ve read in the past that are SUPER useful
Awesome advice from @singlesdoubles about stop losses. Reasoning, levels like this are where beginners would normally set stop losses because it’s usually under a psych support, and that’s where market maker try to stop loss people out before going up again
At this point, you know tons. You have put the time in studying, you are either a hard worker or a smart kid in school lol, but some of you guys (not all) are still not seeing success. This is the level where you would learn/know options.
Before I get into the psychology part of trading, which in my opinion is the most important part of trading, I’m going to go over some options stuff. If you don’t know what options are, you’re going to have to watch a couple videos to learn them first.
Before thinking about trading options, I definitely recommend paper trading them first on Think or Swim (TD Ameritrade) because they can be VERY risky. I would also put 2% or less of your account in them when first starting to play them on your actual account
Alright, you know a lot at this point . You are a master at supply and demand, know support resistance, know the indicators you like/use, and can identify trendlines.
I’m going to be talking about volume in this thread and at the end of this, you’re going to realize that price action is good to use, but price action + volume is the GREATEST combination you can ever have in trading
Volume, or volume price analysis, is the one of the most important skills to know in trading and you should definitely drop a follow to @Brady_VPA as he is the volume master where I learned everything regarding volume from.