Casually Explained: How to Read the Stock Market

so a lot of people want to get into investing or day trading them they don't know where to begin and in my opinion the best way to get started is by learning to read market trends so you can reliably make simple trades and start making money right away so the first thing you need to know about the stock market is of course the two directions the stock price can go which is up or down and if you think a stock is going up we'd say that you're bullish and if you think a stock is going down we'd say that you're bearish so with that terminology to start with the easy trading pattern so you probably recognize from your stereotypical stock chart we have what's called a rising wedge a bullish pattern where the value steadily climbs as the trading range narrows which of course means you should invest and the reverse of that is called a falling wedge which is a bearish pattern and of course means you should be selling our shorting the stock and shorting simply means borrowing the stock from a broker to sell the current price and covering it later at hopefully a lower price now these are the two most fundamental patterns and by combining them together you can get pretty much every other pattern for example you'll often see a rising and then falling wedge in sequence which creates a triangular shape where traders called the isosceles Buffett and well this doesn't mean too much all alone if you see two adjacent isosceles buffets with the big buffett in the middle we have what's called a Warren range and what you want to be doing here is trading on the neckline right where the Berkshire breaks so you're going to want to measure the distance between the hairline and the neckline and enter short where the neckline meets the descending slope with an equal point target while placing the stop-loss just above the point of highest resistance to the right of the Warren range should just be easy money really okay so moving on if we step back and you see a pattern of two or more Warren ranges in sequence all trending towards a higher peak we call this a bullish bill which is really where the big money comes from so if you see this pattern it means that right away you should all tap close your 24 tables of Limit Hold'em and start dumping money into tech call options like your child's future doesn't depend on it on the flip side if you see a pattern of two or more warm ranges continually trending towards a lower and lower trough this is what we call cryptocurrency so now that you know the basic trading patterns you're ready to get investing and you don't need any special equipment besides the computer however if you do decide you want to take this seriously I would recommend getting some additional monitors most traders like to have at least four screens running simultaneously which allows you to lose money on up to four trades at once this is called getting four stocked so with that said you have to remember that your portfolio can only drop in value by 100% well it can go up by way more than that which is why it's important to consider how to manage your money in the event you accidentally make a return on your investment of 10 100 or a thousand times your initial buying so you have to ask yourself in the event you massively increase the value of your portfolio in a short amount of time what's your strategy going to be to reinvest that money and there's actually a few different options you have that I'll go through with their different pros and cons so the biggest advantage of the amaryllis is definitely the dining space and fumed oak trim although you could definitely argue the sauna is a bit lacking well on the other hand the apt Asia is also a good choice because it comes with several jet skis and an array of tenders which are highly coveted in the trading world but unfortunately they have omitted the stripper poles for this year's charter model once again but either way you can't really go wrong and if you're really not sure doesn't hurt to go for both [Music]

Channel: Casually Explained

Views: 2,525,971

Rating: 4.9426303 out of 5

Keywords: stock market, casually explained, how to read the stock market, how to invest, how to make money on the stock market, stocks, how to day trade, cryptocurrency, how to invest in bitcoin, speculating, investing tutorial, stand up comedy, funny stick figure, wall street bets, envelope laser rectangle, stock market for beginners, financial education, stock market crash, how to invest in stocks, investing, stock trading, stock market investing

Id: 0auyx6MlUEM

Length: 3min 24sec (204 seconds)

Published: Thu Jul 05 2018

Reddit Comments

[u/CasuallyExplained]

Next time we talk about about advanced portfolio management, including such topics as

• picking an index based on the aggregate value of their ticker symbol scrabble score

• taking advantage of chinese ipo's and other lessons from the finance module of duolingo cantonese, and

• how to avoid tax on capital gains by not making any

[u/_neorealism_]

This dude is definitely on this sub.

[u/[deleted]]

Fuck I was about to post this

[u/BobSagetV2]

He definitely lurks this sub lol

[u/Whaty0urname]

Lol look at this guy with his only 2 yachts.

[u/neuronbullets]

Getting 4-stocked fucking lol

[u/NoDisappointment]

You beat me to it dammit. AyyMD, tendies, tech calls, it’s all in the video.

[u/grids]

>"isosceles buffett"

muh tendies

[u/weissergspritzter]

fuck me. 28 minutes between me and at least 50 karmapoints. would have been the best trade ever