How to Buy a Stock: Tips to Help You Make the Right Investment

hey what's up youtube this is foxtail digital  coming to you again with black girl stocks and   in this video we're going to talk about when you  should get into a stock trade like literally the   exact second and okay so the main focus here is  going to be your entry strategy this can work   on day trading or swing trading and the only  difference will be the stock chart time frames   that you're using we're going to talk about  swing points indicators like the rsi macd and   moving averages trend lines and consecutive  price patterns i'm sure you guys have heard   about most of those but there's a couple on  there that are going to be fairly new to us   but first if this is your first time watching  this video please make sure that you click   that thumbs up button it really helps bring  more people to the channel and also subscribe   and click that notification bell so that you get  notified anytime i upload a new video for you guys   and also if you're new to options trading and  you're stuck on what stocks to trade options on   or even different option strategies like credit  spreads earning report plays and more there's   a service called two that offers amazing stock  option picks and a great selection of strategies   to choose from so make sure that you check them  out they update the list within every hour of   the trading day with the best stock picks so make  sure to check out tiblio i'll leave a link in the   description below also make sure that you use my  link for 20 off of your first month yeah make sure   you do that alright so let's go ahead and let's  jump right into it with any stock trade the entry   position is going to be one of the top three most  important steps in your stock trading setup period   dang then of course you have your stop  loss levels and your profit target range   basically that's how much you would  expect to get from this trade so   you know what's the what's the profit that we're  going to get so it could be 1 5 10 or 2 even 100   whatever your preferred outcome is now all of  this is going to be subjective and you're going   to develop your own criteria for trading as you  go along be mindful of that for example you may   have rules in your entry strategy that you'll only  enter a trade when the stock moves xyz so and so   dollar amount from a previous resistance point or  maybe after a 5 and 10 day ema crossover and then   at the same time it has to have an rsi value of at  least 30 and below something like that like i said   it's all subjective and it's gonna be up to you so  you're gonna have your own criteria for when you   want to enter a stock trade let's go over a few  good entry signals that you can use to find your   perfect stock entry point okay so the first thing  that we're gonna find is the swing point i know   a lot of you are gonna expect it to be the stock  trend because i literally say that in every video   but for this i'll just say leave that to the stock  picking process and that's the process of actually   picking the stock that you you know that you want  to trade and deciding if it's even something that   you want to invest in period so i have a previous  video that's talking about finding stock value but   for this video we already know what the stock's  value is we already know that we're interested   in it and right now we're looking specifically  for when we want to get into the trade so the   swing point is an easy chart pattern to find  that has three main candlesticks that you're   gonna focus on so the swing points are gonna  happen during bullish and bearish patterns so   it'll happen in both uptrend and downtrend let's  say if you're wanting to get into a stock trade   and like i say i like to trade up trending stocks  so what's the best time to get into an uptrending   stock you probably don't want to get into it  when it's at its highest point because after   that a lot of people might capture their profits  and sell off and then you're gonna you know   have some losses there you know who knows how long  that's gonna last so what i'm saying is finding   the best point to get into this stock and to do  that you're gonna want a slight trend reversal   okay and a trend reversal will only happen after  a swing point develops okay so let's actually   get into the swing point for entries on up  trending stocks you're going to look for a price   pullback or a swing low point so when you have a  stock that's trending upwards the most profitable   time to enter is going to be on a price pullback  think basically buy low sell high okay so for an   uptrending swing low the first candle is going to  make a low so the first candle that you're going   to see is going to be a low dipping candlestick  the second candle is going to make a lower low   so it's going to be lower than the first one and  then that third candlestick is going to make a   higher low so that third candle is going to tell  us that the sellers are weaker than the buying   power at that time and so the stock is more likely  to reverse and go upwards so i have a picture that   i want to look at so see how the pattern consists  of a low a lower low and then higher low this is   a classic swing point low so this is the one two  three a low another low and a higher low our entry   strategy would be to enter this stock on the day  of that third candle because you know after that   it's up baby is up so this is going to be for  an uptrending stock for entries on down trending   stocks you're going to look for a swing point  high the first candlestick makes a high the second   the second candlestick makes a higher high  and then the third candlestick is gonna make a   lower high that third candle tells you that the  selling power is stronger than the buyers and then   the stock is likely to reverse downwards so now  this is going to be on a downturning stock so if   you were shorting a stock or maybe if you even  had options or something like that when you're   gaining profit on the stock going down this is  how you would enter that so this would be the   best time to enter you know a down trending  stop looking at this stock chart right here   you see how the patterns consist of a high that's  number one a higher high number two and then a   lower high that's number three so we would look  for entry on that third candle day and actually   i wanted to show okay so i wanted to show some  examples of this on an actual stock chart so um   yeah so we're on the fn ko so this is fnko right  now okay so looking at this stock chart right here   we have different uh different candlesticks so let  me change the time frame here all right so looking   right here where we had a trend change and we're  going from a downtrend to uptrend so we're looking   for a swing low all right it's kind of hard to see  okay so right here where you see that change you   have a low you have a lower low and then you have  a higher low so this would be you know a good day   to get in there boom then you have an uptrend  so this would have been a good time to get in   on that trade and let's see maybe another area  essentially this is kind of day trading really   let me change the time frame i'll change it back  to that okay so let's look right here now actually   let me try a different stock i'll try tesla oh  tesla's not doing so hot right now so uh i want   to see okay right here so tesla was dropping and  so right here you see a low a lower low and then   a higher low and then the stock you know starts  to rise there now that's not a huge rise okay but   there are different patterns that you can you  know kind of look for low lower low high or low   and then she starts to increase in price that's  something to look for and then on that let me   look on the opposite end too where it was  on an uptrend and then it starts to drop   you know high you have a high a higher high and  then a lower high and then the start the stock   starts to drop there so i mean you know there's  just some some candlesticks that you can look for   high higher high lower high starts to drop there  so just different little patterns the important   thing to remember is that not all swings are  going to be powerful so some missed the mark fully   changing the trend you know some of these are  just small ripples as you'll see they didn't have   a full trend reversal no so know that for the best  result with this method is going to be matching it   with signals from other indicators you know like  the rsi or you know moving averages uh the macd   to name a few and then of course trend lines  so you got to use the trend the trend is your   friend and support and resistance and also volume  so there's there's so many different indicators   that you that you can use together just with using  the candlestick so for example looking right here   i see that the rsi is extremely overbought right  here so i know right now the rsi is very high   more than likely the stock might have these macd  lines in signal r so right here okay you okay   right here you would know you have a a larger  drop matched with this rsi and this high macd   dropping here and then you see this signal trades  on top so there's obviously there's going to be   different things that you can use like this dip  here just dip and then when you see the macd start   to fall below the center line here then you know  that you're really going to have a deep dip and   then of course the low rsi too so matching that as  far as an entry point an entry point like i said   also uh you would look for a lower rsi value so  you see like i said before in the beginning of   the video you might only want rsis that are around  20 to 30 for an entry point so you can enter there   look down at your rsi look at your candlestick  what do you have a low a lower low and a higher   low and then boom you have low rsi and you can see  right here a crossover with the macd so there's a   few different things um that would signal to you  that that would be a good time to get in now maybe   the ema lines wouldn't be the best because you  see here i don't have a crossover until the middle   of this uptrend i always want to use different  indicators together different indicators together   we're not just going off of just one so the best  the entry point may be found by finding the three   swing candle chart along with an rsi of 40 on an  uptrending chart or maybe even an ema crossover so   make sure to pair with indicators like that and  lastly you're going to want to find consecutive   price patterns consecutive meaning something that  is arranged or happening in sequential order so   it's really it's pretty basic just think of three  consecutive days monday tuesday and wednesday so   with the consecutive price movements you want  to trade stocks that have consecutive down days   before the swing point low begins so just an  example right here you know marty i'm already here   excuse me before this swing low we've had  a consecutive down day let's go here all   right just right here we have some lows we have  low days right here so i have consecutive lows   little high there consecutive low and then we  have one you know really good run or an uptrend   where it hit a high of 900. so what is this this  is tesla i don't know to be honest with you tesla   she's really that stock chart is hard to even  look at because you know she goes up and down   based on elon sending out tweets and mess going  on snl so maybe we should use somebody else   somebody that's a little bit more stable honey but  i think you guys you guys pretty much get what i'm   saying here so you can use all of these different  indicators together to give you entry signals um   like i always say the rsi low rsi well that's not  the best time to get in so you see right here you   have a low rsi but it's still on a down trending  stock so the rsi is really going to give you the   strength of that trend right now we're in a trend  like i said you want to you want to trade stocks   that have had consecutive down days before the  swing point low begins uh begins developing you   know we're going to move into our new trend and  then i'll be the opposite it'll be the opposite   for a down trending stock in that case you want  to look for consecutive up days prior to the to   the swing point high develop you see here before  the stock started to drop we had you know a few   consecutive up days and then we have a huge drop  so that's just it that's just that's the way it's   gonna go that's the way that's the way it plays uh  you're gonna have pullbacks everybody is trying to   get into a stock before the other traders do okay  if you get in too early you're going to lose money   if you get in too late you're going to lose  money so it's challenging but this is what   makes the game so much fun to play yeah make sure  that you're reading every day even if it's just   10 pages in a in a book make sure that you're  reading books on business finance and then also   on personal improvement you know your personality  conversation how to be a better speaker everything   like that we're always constantly improving  to be our better self so um yeah but i guess   that's pretty much all i wanted to say yeah i  really appreciate you guys watching this video   make sure that you subscribe we are on our way  to 100k i think we have maybe 79 000 now while   i'm filming this so thank you guys so much for  watching the channel and support once again make   sure that you guys click that thumbs up button it  really helps the channel also make sure that you   subscribe click that notification bell so that you  get notified anytime i upload a new video for you   guys and yeah that's foxtel digital i'm out i'll  catch you guys on the next video all right yeah you

Channel: Black Girl Stocks

Views: 16,426

Keywords: stock entry, stock entry point, stock entry points, entry point in stock market, when to buy a stock, black girl stocks, entry point, how to trade stocks, stock entry and exit strategy, stocks, swing trading, when to buy stocks, when to know to buy a stock, when is the best time to buy stocks, when to buy into a stock, when is the right time to buy a stock, chart technical analysis, When to buy a stock day trading, stock market, how to buy stocks, Stocks to buy now

Id: 6cT8wgP-GOU

Length: 13min 32sec (812 seconds)

Published: Thu May 13 2021