Download - Trading Stocks for Starter
Started trading at age 16 in 2009
About me
Hometown: Tabriz, Iran
Current Location: Oklahoma City
Fun Fact: First stock ever bought was NYSE: C
Questions to ask yourself?
What amount of money if I lose won’t
dynamically change my lifestyle?
How involved do I want to
be with my assets?
Motivation?
Getting Started
Terms to understand
Paper Trade vs. Live Trading
Blue Chip Stocks vs. Penny Stocks
Bid vs. Ask
Long vs. Short
Order Type (Ex: Limit, Market, and Stop Limit)
Time in Force (Ex: Good ‘Till Canceled and
Extended)
Blue Chip vs. Penny Stocks
Pink Sheets (OTC)
Low market cap
Low liquidity
High volatility
Lack of History
Refer to DJIA
High market cap
High liquidity
Lower volatility
Higher daily volume
Long vs. Short
Long = Investing with the expectation of
increase in value
Short = Investing with the expectation of
drop in value
Order TypeMarket = Most recent current traded price
Limit = Set specific price of transaction
Stop = Activates the order after the price surpasses a set
price
Stop Limit = Activated after a set price is hit to a set limit
Trailing Stop = Stopping a loss by a set margin
Market-on-Close (MOC) = Last minute transactions
Limit-On-Close (LOC) = Places values to near market
close
Time in Force (TIF)
Day = Order activated only during 9:30 to 4:00
EST for that specific day
Good Till Canceled (GTC) = Order activated
every trading day during 9:30 to 4:00 EST until
canceled
Extended Hours (EXT) = Order activated
outside of standard trading hours
GTC_EXT = Order activated inside/outside
standard trading hours until canceled
Identifying Basic Patterns
Basic Technical Analysis Terms
Volume = Amount of shares traded
Momentum = Rate of change (ROC) in price
Breakout = Price penetrates a specific level
Resistance = Level that may lead to a selling breakout
Support = Level that may lead to a buying breakout
Fundamental Analysis
Think like Warren Buffett
Overall economy
Industry condition
Specific company news and factors
Look and compare company financial statements
Underpriced = Buy
Overpriced = Sell
Create an IndexPair similar instruments that are correlated
Example:
Oil & Gas Index
Major Exploration & Production
Tips
Identify which type of securities and
how you will play them
Ask your brokerage service for margins then
ask for an increase
Don’t underestimate the power
of Twitter for news
We are in a time where trader psychology is
matched with computer algorithms
Tips - Mistakes to Avoid
1. Day traders need to have $25,000 at all time
2. Cutting a loss at anytime is a profit
3. Overtrading is costly
4. Extended Hours provide valuable information
5. It’s a blank slate everyday
Thank you & Further Contact
Title in here
https://www.facebook.com/AslanMaleki
https://twitter.com/AslanMaleki
http://www.linkedin.com/in/AslanMaleki
https://plus.google.com/+AslanMaleki
+1 (405) 609-0024