How to find a REAL pattern.

you [Music] what's up guys team doctor welcome back to another youtube series and today i'm gonna talk about two important concepts that i developed that for beginners - how to really recognize and you know what's the most useful patterns out there and other people with are inventing patterns and some of their skin some of an areal and as a beginner I know that confusions of you know you don't know which one is real which one is fake I don't know we're trying to study because you don't always times on a fake ones I know something most don't so today I'll give you two concepts that could help you recognize those patterns much easier to really figure it out know which one can be profitable which one's not so I'm gonna introduce the first one it is changeable factor so changeable factors are people who are inventing factors that it's already out there so what does that mean that means like something like double top cup a hand oh a lot of well-known pattern like moving averages RSI those are very basic standard knowledge that I have to know I'm still getting to stock market you know what it's market cap but in terms of indicators that RSI moving average VWAP then double top double Balan and those type of indicators that everybody knows we're trying to learn how to really find the correct pattern to charity if you put this concept into ninety percent people lose one in stock market ten percent people make money in stock market you can kind of notice that a lot of people trying to learn the same thing which is all those indicators out there that is in the books and everybody's talking about because of those indicators they're not very stable there are changeable factors in it that means if there's a lot of people using it and it can turn to the opposite ways the fundamental thing about stock market is let's say we have 10 people then we have this one trend going back and forth it's a fresh chart and nobody has touched it yet before and you now some type of news and everybody is using the same pattern so nine people are using the same pattern and nine people are doing the opposite now the results will be that one person will Wayne pretty much win all the money from all those nine people and those time people will likely to lose money if you put this concept and correlating with what I just talked about that everybody is trying to learn the same thing same indicators to be doubled ap moving averages and RSI so the reason why all those indicators that only work about 30 or 40 percent of the time is because all those concept that existed behind it which is nine people lose money when people win money and that's the fundamental of the stock market if you're not trying to be profitable you I think outside the box now let's talk about how changeable factors and now there's two things that you cannot be changeable especially when the stock already formed its own pattern where it's already form its own history that's why a lot of people talk about history tends to repeat again and again that somehow right and somehow around so today I'm going to give you like how-to recognize you know some history do repeat some time - history doesn't repeat let's go into from the very basics so we are now offering warrants and financing those are the three things that can be you know really mess with the technical analysis and when I start decides to do offer an ad such that your warrants stop instant drops about 70 to 75 percent of the time in one candle so you can't really exit out of that position and when you're going long into stock you're pretty much going to lose all your money now that's a unchangeable factor it's because think about like this way so if there's only certain amount of shirts for you to be able to trade that let's say it's a simple supply demand question let's say if you only have ten shirts to trade and there's 10 people you trade this stock and that can be you know bouncing back normally because those 10 people are buying and selling now suddenly in one day and the supply instantly count 100 there's too many shirts for 10 people to buy in that specific day volume then supply demand if supply goes up demand goes down or stay the same suddenly stocks drop smash agree that's the very basic things about no supply and demand now let's talk about opposite things so unchangeable factors can be also applying to the opposite way now when the star decides to do a reverse way they will increase the stock price and reduce its float now that's how small caps tends to survive in the overall market they are trying to reduce the entire you know flow size which is how measures are available for an investor to trade or retail people to buy the reduce about you know 20 times 50 times an answer need 20 million shares becoming two measures or like two hundred caters when they reduce the flow that means they're reducing the supply now if that specific intraday is generating a lot of volume that means there's a lot of demand plus really low supply that means the stock exactly to go up that's why I smoke absence to go a thousand two thousand three thousand percent of the time now those are unchangeable factors that means that if stock decides to do that and you can't really change the outcome but you can take advantage of that outcome so hopefully you guys understand all the concept that's a Bobby there's too many people using the same strategy it tends to fail if that's a changeable factor unchangeable factories start decides to do something that everybody can see it that increase in the flow sides or reducing the flow size let's say a massive event already happened and outcome is already there now you can take advantage of the outcome that's where note the patience comes in other people are talking about you know you need to have massive patience patience always wins and you need to know how to really use that patience to take advantage of people already mass spawning and tend to make better money to use their psychology to benefit your trading odds so let me give you example so let's talk about history tends to repeat again there's two unchangeable factors that be that can exist out there one it will be a warrant and offering reverse split can reduce or increase its full size so amount of supply can be changed within a day now let's give you a really good example about Bitcoin so back in two years Bitcoin increased to almost $20,000 at that time everybody's talking about Bitcoin and how good Bighorn is and suddenly a Bitcoin drought from you know to twenty thousand to four thousand or three thousand in drop almost ninety percent of its own again now the reason after that is when you're trying to guess how high Bitcoin can go was you know pushing to that twenty thousand you never know because you don't know why we're having a future now once the Bitcoin failed from that 20,000 and you formed a chart already you becomes outcome the big coin went parabolic so 20,000 it cans back down wind up a little bit and consolidating a fifteen thousand dollar area for like a couple months then boom dropped it into a ten thousand and it's six thousand three thousand so this is one of the unchangeable factor about the big points so if Bitcoin tends to keep going flat for two years and it tends to spike into that $15,000 area again you won't know there's a lot of people trying to sell because they're popping corn at 15 and they have no idea by becoming works and how Bitcoin works when the Bitcoin tends to go back to the same level were they bad they're likely to sell so that is an unchangeable factor and also is a human nature so those two concepts should answer Alba Casas question what's the difference between the market conditions on no 2018-2019 and wide overall market is changing you know a lot of people are learning the same fundamental thing that a lot of people are trying to learn at the same time it's all the indicators that are using that doesn't really work because there's too many people using it and you don't really know the psychology behind it or how it works what's the human injury behind RSI what's the human nature behind you know double-top I will say 90% people don't really know what's the psychology behind it and also what's the human nature behind moving averages as well if you don't understand it do not learn that type of indicator because it will not work trying to find a pattern that also involves human nature I think this type of method works in every single market doesn't really matters options futures and Forex you need to find a pattern that involves human nature involves history now the third thing you need is data which I always talk about so once you find a pattern it's a beginner you will be very easy for you to stay very consistent profitable because you only need to find one pattern and you just trade that one pattern for a while in the meantime you can research further patterns as well so personally I tend to look for that type of no three conditions at the same time to find to create new patterns to find new patterns I know we will be a little bit confusing I know at the counter and the concept will be to be confusing I'll try to go back at the beginning to the video and watch about two or three times so if you have any questions please leave a comment below make sure to click the like button and subscribe I'll see you guys next video [Music]

Channel: Steven Dux

Views: 196,829

Rating: 4.9081769 out of 5

Keywords: Penny stock millionaire, learn to trade, stocks, market, trading, daytrading, day, trade, how, tomake money, online, business, millionaire, Asian, selfmade, income, invest, investment, finviz, hot, low, float, profit

Id: _nJx2gsKKAg

Length: 9min 27sec (567 seconds)

Published: Thu Jan 02 2020