Basic June 30 2025

 

🔹 Step 1: Start with One Stock

“For the first 6 months or even a year, focus on trading just one stock.”

• This helps you understand the behavior of that specific stock.
• For example, Bank of America (BAC) is a popular choice because it’s a well-known, relatively stable stock.
• Even if the price drops, if it’s a strong company, you can hold long-term without panic.

🔹 Step 2: Understand Supply and Demand

“Learn to understand supply and demand.”

• Supply = how many shares are available to be sold.
• Demand = how many people want to buy them.
• If demand is higher than supply → Price goes up.
• If supply is higher than demand → Price goes down.

🔍 Tip: Look for volume spikes on charts to see where demand is increasing.

🔹 Step 3: Read the News Every Day

“Follow financial news daily.”

• Stay updated on:
  
• Economic indicators (interest rates, inflation)
• Company earnings reports
• Industry news
• 
  
• News can impact a stock’s price and momentum.
  
• Example: If Bank of America has strong earnings → stock price may rise.
• 
  

🔹 Step 4: Think Like Institutions, Not Retail Traders

“Don’t think like a retail trader. Analyze from the institutional side.”

• Retail traders = individuals like you and me
• Institutions = hedge funds, banks, investment firms

Institutional traders have more money and influence. If you follow their moves, you can better predict trends.

• Use tools like:
  
• Level 2 data (shows bid/ask orders)
• Unusual options activity
• Volume analysis
• 
  

🔹 Step 5: Learn Chart Patterns (Especially Double Top & Double Bottom)

“Focus on chart patterns like Double Top and Double Bottom.”

• Double Top:
  
• Price hits a high, pulls back, goes up again to the same level, then falls → often signals a reversal (bearish).
• 
  
• Double Bottom:
  
• Price hits a low, bounces, returns to the same low, then rises → often signals a reversal (bullish).
• 
  

📈 Learn to spot these patterns with candlestick charts. They help you decide entry and exit points.

✅ Summary in Simple Steps:

1. Trade only one stock at first (e.g., BAC)
2. Learn how supply & demand move prices
3. Follow daily financial news
4. Study what institutions are doing—not just retail traders
5. Focus on reading chart patterns like double tops and double bottoms