This is a follow up thread of my previous thread linked below
US Stock Market, Even Playing Ground, Learn To Trade and Better Your Life
https://www.nairaland.com/2460429/us-stock-market-even-playing/1

This thread is to teach anyone interested on how to trade the US market and earn better returns compared to keeping your money in the bank, onlyto be used by other fund managers.

Why

The "why" you are doing anything is more important than the "what". When you understand the “why”, then the “what” is not much of a question.

• Improve our income by working for money, and making money work for us.
• Positioning ourselves anywhere in the world and make foreign currency as if we were based abroad.
• Spend more time with our family, being able to work from home or any location.
• Know exactly what happens when you lose or make money, so that you know exactly what to do when opportunity knocks again.

For me, the freedom outweighs all, am sure you can speak for yourself.

How

The "how" is the next step following the "why", these are followings things you need to start.
• Computer system with reasonable internet speed.
• The desire and will to learn.
• Keep an open mind.
• Do not be a pessimist, for every dollar you lose is a learning curve, and every dollar you make confirms your trading rules. Doctors spent years in the university to become qualified, so do not expect margic.

The Rules

• The Rules are as follows
o Let your profit run
o Cut all loses as soon as possible
o Do not buy stocks going down in price (averaging down).
o Listen to the general market ( 75% of the stocks follow the market direction)
o Approx. 10,000 stocks are traded on the market, Buy the best of the best stocks, one with the following features

 Good Earning per share EPS.
 Stocks making good sales approx. 25% every quarter.
 Stocks with good return on Investments. ROE.
 Stocks with high profit margin.
 Stocks with increasing sales per Quarter and year.

I will provide you with information on how to carry out technical analysis and suggest some of the stocks with these traits for you. Moving forward Classes will be organised online where you can log in and join a training session if you feel you need to broaden your knowledge on the specifics. Right now just keep an open mind and watch this space on weekly basis. I will post a topic at regular interval. If there are no questions I will assume all is fine and move onto another topic.

Check my link on
https://www.nairaland.com/2460429/us-stock-market-even-playing/1
These are my current positions – Join me, ask questions and we can all learn together.

WHAT AM NOT

• Proffessional trader
• Millionaire on the market.
Everything I have learnt, I have done on my own in the corner for my room and on the internet. Now I have an idea of what I talk about and await to translate it to money.

By doing this, I will clearly define a logical trading strategy and sharpen my skills further.

We are all in the learning train, see you in the next thread.

xbone? Present... ride on bro

STOCK MARKET

A stock index or stock market index is a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

US MAJOR INDICES ARE

NASDAQ Stock Market
Is an American stock exchange. It is the second-largest exchange in the world by market capitalization

New York Stock Exchange (NYSE),
sometimes known as the "Big Board",[4] is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York, United States. It is the world's largest stock exchange by market capitalization of its listed companies at US$19.69 trillion as of May 2015.[5] The average daily trading value was approximately US$169 billion in 2013

Dow Jones Industrial Average /Industrial Average, the Dow Jones,
Simply Called theDow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow

These are the major averages on which our stock market analysis will be based and referenced as we go along.

WHAT DRIVES STOCK PRICE

The move movement of a stock/equity is determined by several factors, which include but not limited to the following

1. The general market movement - 75% of stocks follow the direction of the general market.
2. Institutional ownership - Funds, banks, insurance companies, these are the big boys that inject significant money into a stock that affect price.
3. Fundermentals - The fundamental are the factors that interest the fund managers to invest into the stock. The fundamentals are derived from
the comany's books. it include, sales, earnings per share (EPS), return on investment (ROE) debt e.t.c

There are factors that need to considered in buying a stock. First of all, you need to have a list of at least 30 stock with solid fundamentals, we will discuss how to come about these values later. You then have to make sure you general market is an uptrend and your stock are at the right buy point. The right buy point is determined by your technical analysis. Once you have all these considered, you need to determine you entry, price, your profit taking Zone and your stop loss ( total risk) before entry.

Once the factors are determined the market will take you into the trade rather than you pressing a buy. Buying a stock by pressing the buy bottom is a beginners way of buying stocks. Experienced trader will set all his criteria for a buy at least an hour before the market opens, and when the conditions are right, the trade will execute. No emotions of any sort in such trade. In fact you can set your conditions and walk away from your trade.

We will discuss all these and others in the coming weeks and months.

TOPICS TO COVER

PART 1
1. HOW TO READ CHATS
2. BIG AND ACCELERATING QUARTERLY EARNING AND SALES PER SHARE
3. ANNUAL EARNING INCREASES - LOOK FOR BIG GROWTH
4 NEWER COMPANIES, NEW PRODUCTS, NEW MANAGEMENT, NEW HIGHS OFF PROPERLY FORMED CHAT BASES.
5. SUPPLY AND DEMAND, BIG VOLUME DEMAND AT KEY POINTS
6 LEADER OR LAGGARD; WHICHIS YOUR STOCK
7. INSTITUTIONAL SPONSORSHITP.
8. MARKET DIRECTION.

PART 2

9. WHEN YOU MUST SELL AND CUT EVERY LOSS.
10. WHEN TO SELL AND TAKE YOUR WORTHWHILE PROFITS
12. MONEY MANAGEMENT, SHOULD YOU DIVERSIFY, INVESTING FOR LONG HAUL, USE MARGINS, SELL SHORT OR BUY OPTIONS.
13. 21 COSTLY MISTAKES INVESTORS MAKE
14. WATCHING THE MARKET AND REACTING TO THE NEWS.
15. IMPORTANT TIME-BASED PROVEN RULES AND GUILDLINES TO REMEMBER

we dey follow

TOPIC 1 HOW TO READ CHARTS – THE PHILOSOPHY OF TECHNICAL ANALYSIS

To understand the tools and techniques used in technical analysis, I would start by defining what technical analysis is.
“Technical analysis is the study of Market action, primarily through the use of charts, for the purpose of forecasting future price trends”.
The term Market action includes 3 principal source of information available to technicians, they are
(Price, volume and open interest) Open interest in mainly used in futures and Options. For stock analysis, we will be sticking to Price and volumes.

The philosophy of technical analysis is based on three premises
1. Market action discounts everything.
2. Price moves in trends.
3. History repeats itself.

Market Action discounts everything.
Here, the technicians believe that everything that could possibly affect the price of a stock (fundamentally, politically, psychologically or otherwise) is actually reflected in the price of the market. By studying the price chart and a host of supporting technical indicators, the chartist lets the market tell him/her where price is likely to go.

Price move in Trends.
This is based on the premise that price move in trends – at trend in motion is more likely to continue than to reverse.

History Repeats Itself.
Most of the chart pattern that has been developed over the years are based on human psychology which tends not to change. These patterns are based on well identified psychology of human behaviour in the stock market. This is based on the fact that the action of human in the market is directly related to “greeed” and “fear”.

CANDLE STICK PATERN

Please take a close look at the candle stick patterns I have shown below, and try to read up on them. Before the end of the day, I will provide a short description of what each does and what it explains. I need to find one more diagram that shows how those candles are formed. Once you have a good understanding of it, you will undertand the behaviour of Traders in relation to a stock on a day and most importantly by the end of the week.

NOte, a weekly (End of Friday candle stick) is more important than a daily candle stick, this provide the average behaviour rather than a one off.

Please read up on candle stick, when i start a paid course, i will organise a video session and explain this better.

ok. following

Please click this link, it will show you all you need to know about candle stick.

Please read and digest it, It is very crucial in your daily and weekly understanding of the market behaviour.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks

Pls I am an investor in the Nigerian Stock exchange. I am interested in investing in the US stock exchange. I saw your tread and I appreciate it. But I will like u to pls tell me how to go about registering and opening an account with tdameritrade. And also I HV done forex b/4
But I must say I prefer stocks. But I thought US brokers don't accept clients from some countries like nigeria.? Thirdly, what documents or their alternative will I need to open the account? I am really tired of the NSE.

Jideams:
Please click this link, it will show you all you need to know about candle stick.
Please read and digest it, It is very crucial in your daily and weekly understanding of the market behaviour.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks

[quote author=Jideams post=36761319]Please click this link, it will show you all you need to know about candle stick.

I am soooo appreciative of this opportunity...and I cant wait for your next post

My brother let's face reality.....these international stock brokers don't accept nigerians (cos of our percieved fraudulent reputation)except maybe forex brokers but not stockbrokers.PlS tell the house which american stock broker or international stocker accepts nigerians.

stokfrick:
Pls I am an investor in the Nigerian Stock exchange. I am interested in investing in the US stock exchange. I saw your tread and I appreciate it. But I will like u to pls tell me how to go about registering and opening an account with tdameritrade. And also I HV done forex b/4
But I must say I prefer stocks. But I thought US brokers don't accept clients from some countries like nigeria.? Thirdly, what documents or their alternative will I need to open the account? I am really tired of the NSE.

For those who are anxious to trade on the U.S. market, you got to understand that the market is not like that of the NSE. The U.S. market is vey dynamic and fluid. Though it offers zillion opportunities to make profit it also offers opportunities to loss big time especially if you do not have the ability to get information on a timely and real time basis. A lot of people are paid in the US just to watch the market ticks and report to traders. The market responds to vital news items almost instantaneously so I am not sure if someone in Nigeria can meet the challenge
Besides, investment gains including dividends are taxable depending among other things on the holding period and location of the investor. As a foreign investor you may be required to pay higher tax rate
The brokers also charged per trades especially sales trades.
Please do your home work well before diving into the deep see of Wall Street

Hi all,

The US market is very fluid, moves very fast, but there are tools to protect yourself. You need to understand what you are doing. One of the biggest advantage of trading the US market is that you can sell within 5 seconds and get your money within 2 seconds to buy your next stock. The control and decision is on your finger tips and all the information you need to trade is in public domain.

You must know where to look to get the information, hence you need to learn, but experience is the best teacher. Regarding the taxes, you can always ask questions.

Regarding accounts, you will have to shop around on line to see which broker would allow this... Really I cannot be too sure as I am based in London and opened by account when i was living in the Netherlands. Please if anyone is lucky enough to find a broker, Please Inform the house.

I will be on the look out and inform the house once I have any information in relation to this.

Hello ,

Finally a thread i love, just joining , hope i have missed to much sha...

Hello team,

I used to own an account with TD ameritrade until the returned my funds,however heard i could start using the account again.

due to research i fund several banks offer services to Nigerians that want to trade us markets, SAXO BANK and interactive brokers. the reason i didn't follow up was that the minimum deposit is US$10,000. interested guys should check them out and send them an e mail. also check out stockbrokers.com for a list of brokers.

Am trying to re activate my account, once done,i 'll be back.

keep the mail coming guys, increase the temple.

ken

kentoto:
Hello team,

I used to own an account with TD ameritrade until the returned my funds,however heard i could start using the account again.

due to research i fund several banks offer services to Nigerians that want to trade us markets, SAXO BANK and interactive brokers. the reason i didn't follow up was that the minimum deposit is US$10,000. interested guys should check them out and send them an e mail. also check out stockbrokers.com for a list of brokers.

Am trying to re activate my account, once done,i 'll be back.

keep the mail coming guys, increase the temple.

ken

Nice one good research

kentoto:
Hello team,

I used to own an account with TD ameritrade until the returned my funds,however heard i could start using the account again.

due to research i fund several banks offer services to Nigerians that want to trade us markets, SAXO BANK and interactive brokers. the reason i didn't follow up was that the minimum deposit is US$10,000. interested guys should check them out and send them an e mail. also check out stockbrokers.com for a list of brokers.

Am trying to re activate my account, once done,i 'll be back.

keep the mail coming guys, increase the temple.

ken

ok Join me here

https://www.nairaland.com/2460429/us-stock-market-even-playing/4

When will u finish this?

@Jide .....I appreciate ur very kind gesture,trying to help out brothers in naija. U have my unalloyed support.

To add some tips. This is not a get rich quick scheme, it requires months of learning and focus. And even when u start making dollars.......u need discipline to stick to ur rules,otherwise u could get stoned . losses r real people.

Nigerians can trade the us equities wella ......I am a sure witness to that, a few brokers allow that, but some don't. Am sure Jide will help with a list to that effect.


Am on standby......

Anybody know anything about CFD? I've heard its a lot different from regular stock trading.

allandutch:
Anybody know anything about CFD? I've heard its a lot different from regular stock trading.

contract for differences . its lucrative once you get it right

Chief jide abeg kwontinue

Whats up Jide . We need u