Dekmar Trades

What is Stock Market – (the big board) 11 Wall St – Stock Exchange in NY

Place where stocks and bonds are traded

Day Trade – short term (stock snipers)

Make money right now, right away.

You buy stock – you become a shareholder

Buy low, sell high. Company shares go up, you earn money, company shares go down, you lose money

Investing – putting in sum of money for a better return in the future

Inverstopedia –

Primary and Secondary Market

Primary – IPOs, institutional investors

Secondary – myself and institutional buyers

What is a stock – piece of that company – we trade public companies; owners sell control of company to
stockholders to gain additional funds to grow the company. This is called IPO – Initial Public Offering

Scanners – News Streamer

Bid – Buyers

Ask – Sellers – offering/asking price

Level 2 – who is buying, who is selling

Intro to Stock – Indexes

The DOW – DJIA – 30 largest and most influential companies of the USA. ¼ of value of US stock market.

S&P 500 – Standard and Poor 500 – 500 widely traded stocks in the US. Good indicator of the market as
a whole. About 80% of market as a whole.

Finviz.com

NASDAQ – technology stocks are traded. Some companies not based in the USA.

Stock market sub categories – DJIA, S&P500, Nasdaq

Recap – stock market, stocks, shares, indexes

Lesson 3 – Terms to know

Stockcharts.com (support and resistance)

Visualcapitalist.com – 40 terms every beginner should know

Buy – take a position and buy shares in a company

Sell – getting rid of shares that you purchased (achieved goal or cutting losses)

Bid – what you are willing to pay for a stock

Ask – What people are willing to sell shares at

Bid / Ask = negotiation (think of buying car on craiglist – price of car is 15K, Seller says 15K, buyer says
12K)

Bid – Ask Spread – difference between what people have to spend and what people want to get. Spread
must be resolved before transaction can happen. (EX: buy at 5.19, Sell at 5.21 = .02 cent spread)

Bull Market – market where stock prices are expected to ride

Bear Market – market where stock prices are expected to fall (short sellers market)
Limit Order – provides instruction to only execute at or under a purchase price or above a sale price.
(pick the price you want) doesn’t mean you will get the price fulfilled.

Market Orders – provides instruction to execute as quickly as possible. (don’t use on long term
investment). On day trades use Market orders, short term stocks move FAST. Eliminates wasting time,
quicker you can get in better off you are. If a stock is slow, limit order is ideal.

Good Till Canceled Order – means order stands until you cancel it and will be executed whenever the
stock comes to your price even if it’s 2-3 weeks down the road.

Day Order – order only good for the day it’s placed

Volatility – How fast a stock moves up or down, more a stock moves, more you can make.

Liquidity – How easy you can get into and out of a stock. More volume = easier to buy/sell.

Trading Volume – number of shares traded each day. A factor that has huge implications for a stocks
liquidity. Volume = activity, Activity = profit. More people trading = more potential to spike. How many
people are playing the stock. Can go on a nice rip.

Going Long – You’re betting that the company stock will increase in price. You’re a buyer and looking to
sell high.

Averaging Down – buys more stock when price goes down. Result in a decrease of the average price at
which investor bought shares. (example buy at 1.50, then again at 1, average is 1.25. Can break even
more quickly easier if stock starts to move back up.) Good if you know how to do it. Expecting a bounce
back up. Limit losses.

Capitalization – Refers to what the market thinks the value of a company is

Public Float – Number of shares that can actually trade. Once companies C-suite and early investors
control are subtracted. Under 5Million float is low, shares worth more.

Authorized Shares – Total shares a company can trade, always bigger than public float

IPO – Private company becomes a publicly traded company in order to raise money.

Secondary Offering – Stock doing well, they may do another offering in order to sell more stock and raise
more money

Blue Chip Stocks – Largest industry leading companies offering stable dividend payments (apple, Netflix,
amazon etc)

Forex – Foreign exchange involved foreign exchange currencies

Hedge Funds/Mutual Funds – two types of investment accounts that you can buy into. Turn around
invest money in dozens, hundreds, or thousands of stocks.

ETF – Exchange Traded Funds, like stocks, you buy and sell shares, but also like mutual funds because
they track an index.

ADR – American Depository Receipts for foreign companies that trade in the US.

BETA – Measure of the relationship between price of a stock, and movement of the whole market. (EX:
If stock ABC has a 1.5 beta, means for every 1 point move in market stock ABC moves 1.5 points.)

Broker – Person who buys or sells an investment fund for you in exchange for a fee.

Day Trading – buying and selling in the same day. Trades can last hours or minutes. Buy and sell same
day. Most risky but most profitable.

Long Term Investment – slow, not as much return, less risky.

Dividend – portion of a company earnings paid to shareholders, the people that own that companys
stock, on quarter or annual basis. Bigger plays.

Exchange – place which different investments are traded. EX: Nasdaq, NYSE

Execution – when an order to buy or sell has been completed.

Margin – Margin Account, lets a person borrow money to purchase an investment. Difference between
the amount of the loan and the price of securities is called the margin.

Moving Average – stocks average price per share during a specific time period. Some time frames are 50
and 200 day moving averages.

Portfolio – collection of investments owned by an investor.

Quote – info on stocks latest trading price. LVL 2 is instant/real time.

Rally – rapid increase of market or specific stock. Stock spiking, stock rallying

Sector – group of stocks in same business (technology)

Stock Symbol – 3-4 character alphabetical group that represents that company

Yield – measure of return on investment received from the payment of the dividend.

Shorter –
Lesson 4 – using Yahoo Finance

Yahoo Finance homescreen,

How can it help? Find news, use news scanner or Yahoo finance.

Stock page, symbol, stock price and up/down, what market index it trades on

Up or down is based on previous close. Can trade before or after market closes/opens, this makes
change from close to open price.

Bid/Ask – use your lvl 2 broker (yahoo will be off/delayed)

Range – high / low for the day

52 week range – high/low for year

Volume – todays amount of shares traded. Compare to average volume to see if it’s up/hot.

Avg Volume –

Market Cap – value of company in a dollar amount

Beta – measure of volatility or systematic risk.

PE Ratio – Price Earnings (ratio to value company that measure a share price relative to its per-share
earnings). Market Value per share (divided by) Earnings per Share

$ amount investor can invest in company to earn 1$ of that company’s earnings. (P/E of 20) = $20 for
1$ of earnings.

EPS – Earnings Per Share – last four quarters, trailing P/E. – calculated by company share value @
beginning of 12 month period from its value at the end of the period and adjusting for stock splits

Forward P/E – taken from analysts estimates from next 4 quarters.

3rd way – sum of last 2 quarters estimates of next 2 quarters.

EPS – portion of a companys profit allocated to each share of common stock. EPS is an indicator
of companys profitability.

EPS = (net income – preferred dividends) / weighted average common shares

Earnings Date – (earnings company report quarterly), date shows when earnings come out sometimes a
range or specific.
Forward Dividend & Yield – est of years dividend expressed as a % of the current stock price. Projected
dividend measured by stocks most recent actual dividend payment and annualize it. Forward Dividend
is calculated by dividing a years worth of future dividend payments by a stocks current share price.

Ex-Dividend – declared dividend is owned by the seller than the buyer. Literally without the dividend.

(biggest mover) News, Stocks follow Chart Patterns.

Statistics and trading info on yahoo stock info.

Low Float, big Spikes

Lesson 5 – Scanners / Brokers

Brokers – E-Trade Pro ($5 stock trades) 1K min, TD Ameritrade 1k min.

Best for Shorting – centerpoint securities (50K)

International Broker – Sure trader

Scanners to find stocks – Trade Ideas, Equity Feed (news stream) pricey, bazinga pro

TC2000 (20$ month)

Broker, Scanner, papertrade,

Free – finviz, yahoo,

Lesson 6 – Indicators

50 day moving avg, 200 day moving avg, 13EMA

Stockcharts.com

Moving Averages – smooth price data to form a trend following indicator. (do not predict price
direction but define current direction with a lag.) They lag because they are based on past prices. They
form building blocks for many other technical indicators. SMA – Simple moving average, and EMA
(exponential moving average.
Help to understand support and resistance (where the bounces and falls possibly)

CRUCIAL – SMA & EMA

How to use MA to buy stock – MA cuts noise to get direction of stock. Angle up = stock up. Angle down
= price down. Basically tend lines

Daily chart – up = bull , drops = bear.

Downward trend

13EMA – Flexible trendline (up or down) Bear or Bull for longterm investment. 13EMA with

Create a watchlist

News (newsletter), top stocks in news, chart setup plays

Chart Setups – Previous day top gainers, High of day momentum scanner, Stocks potentially rip at start
(come down, then don’t do anything), hot stock recently,

Previous runners, big rips in past on high momentum scanner or in press release

Morning News: News streamer, headlines (show float)

Alert box history on Dekmartrades.com

Dip Buying

Buying after declined in price or a dip ion price on inclining gaining stock. Get in where price will
reverse. Bottom for support, bounce reversal. WHEN?

Get in on dip off hot top gainer! Solid blue chip or stock that spikes hard and bounces back up. Do at
right times.
Follows buy low sell high, - sharp decline in price and inclination it’ll rise again.

Penny stock – breakouts, bounces. More rewarded, more safe,

Finviz – 7000+ stocks

Hope stock breaks out –

Hope stock has volume

Runner of day stock

Wait for confirmation, eliminate risk

Top 5-6 gap up in premarket >

Where the volume is at, halt strategy, old support to buy in at a low position.

Trend lines to get bounce plays, happen in up and downtrends (support/resistace)

Don’t buy at the top, wait for bottom bounce play

Shoulder, Head, Shoulder pattern

Take 0 risk, more predictable, breakout, where volume is, where MOB goes.

Volume = activity, activity = profit

Best dip buys? - support lines, past history chart, Detail, (Support / Resistance) Part 1 & 2 (youtube
videos)

Master Support Areas – every .25$ with the .50$ and $1 being strongest

Detail – indicators,

Past Chart History Pattern

Actual strategy – managing risk, if you don’t get filled, you cant lose money. If you do get filled you can’t
lose.

We want to look for hardest cracks and hardest dumps (do not want to see downward trend)

Ex: spike, rip n run, will want to see a sharp drop (not a slow trending downward.)

Trending stock, wait for the big drop off. Quicker fall to support, better you jump back up.

1. Top 3 hottest plays (premarket research

2. Out of these 3, 1 will be the morning spike.
3. Look for strongest support line throughpre market and entire past chart history. (if gapping up,
look at premarket or the morning spike)
4. Wait for stock to spike
5. After spike look at chart to determine where support will be
6. Set limit order and leave pending to be filled.

How to build watchlist (lesson 7)

Morning newsletter Dekmar watchlist,

premarket scanners,
Chart Setups,
high of the day momentum scanner low float stocks and check on stockcharts.com

Previous runners, news streamer, and low float

(if stocks are moving up check em out to find rip) Be relevant in market.

Stocks that have been hot recently. Look at coming down to moving averages and EMA

News – streamer, newsletter, Look at Dekmar stock alert history

How to grow a small account (lesson 8)

At least $1K - every trade at least 500-1000 shares. 1000 = $10 per penny moved on stock.

Before you open an account – should not trade until you learn everything in stock. Live trades and live
recaps. STUDY!!!
Paper trade at least 3-6months! – this is practice! Do it!

What can help you grow

Margin account –

Wait for play, don’t trade everyday, wait for the one that’s 100% sure. Slow plays where you know you
will make $.

Low risk high reward pattern – slower plays.

Press Releases – keywords –

Get in early on a play, Early Swing traders, breakout traders,

What you need:

1. Enough funds at least $1K

2. Invest nearly entire account on every trade
a. If not going your way, get out. (only take small losses)
b. If up, lock in profit and get out!
3. Be smart trader, 1000 shares per play if possible
4. Low float past chart rippers,
5. Up early and early into play (look at news and premarket scanners
6. Low risk patterns
7. Paper trade what is best new to get in
8. Lock in profits on 200-300$ gains, 50-150 losses at most
9. Cannot trade more than 2 times a day6

Trend Lines (lesson 9)

Price is trend. Trendline is a straight line connects 2 or more price points and extends into the
future to act as support or resistance.

Up trend – positive slope connecting 2 or more low points. The second low must be higher than the
first line to have a positive slope. Support

Uptrend act as support and indicate that net-demand is increasing even as the price rises. Rising price
with increased demand is Bullish. Shows strong on BUYERS. As long as price is above the trendline, the
uptrend is solid and intact. A break below the uptrend indicates net-demand has weakened and a
change in trend could happen.
Down-trend – Negative slope. Connecting 2 or more high points, 2 nd high must be below the first. At
least 3 points for a trendline.

Downtrend = resistance. Indicate net-supply is increasing as price declines. Declining price combined
with increasing supply is very Bearish and shows strong resolve of the seller. As long as price remains
below downtrend, the downtrend is solid and intact. A break above downtrend indicates net supply is
decreasing and change of trend could happen.

Connecting 3 dots.

Use trendline to eliminate risk and understand when to get out. Use stop losses

How we can use this?

Chart Patterns

TIME FRAME

Time frames are settings to adjust trading chart, each candle represent that period. 1, 2, 3, 5
min and daily.

Help to see support and resistance.

2 charts open, one daily, one minute chart (only adjust minute chart)
Minute chart moves the most, adjust throughout day to be in correct timeframe.

Limit Order Strategy –

Above PDT rule –

Limit Order – where we set exactly where we want to buy and sell.

Imaginary box, filled at multiple areas. Learn Support and Resistance lessons* (part 1 & 2)

How predict where to get in. Find support lines, imaginary box around main support line.

$0.10 box around support line; example $5 is support, box at $5.07, $4.92.

Put limit orders at 5.07 (100), 5.00 (200), 4.92 (300)

Limits will help with average order price come down, must know support lines first

Bigger bulk at bottom, better your average will be.

Reverse this and use it for Shorting – find top resistance line, make the box, tiered shares

Indicators Lesson

Indicators are lines that help understand support, resistance, etc.

1. What fit your preference specs.

2. Use popular indicators. Will provide best feedback

Indicator – line within chart that helps understand if Bull, Bear, under or oversold.

Lets us understand mindset of trade

2 types, overlays, and Oscillators.

Overlays – tech indicators that use same scale as prices

Oscillators - Oscillate between min and max (macd or RSI)

Stock Charts.com – 50 / 200 day moving average. (50 and 200 day where price has been) above =
Bullish, Below = bearish

Moving avg – above = support, below = resistance line

Overlays = moving averages

Oscillators – RSI & MACD understand if overbought and undersold. Over 70 = overbought, under 30 =
undersold.

Fav Overlays = 50MA, 200MA. Why – moving avg data points over time period (50 day vs 200 days) sum
of days divided by result.

Why SMA50 & 200 SMA – low risk area to place transactions to correspond avg price over time.

USE ONLY ON DAILY CHART!

Support or resistance around 50MA

Shows dip buys and bounce plays, long term investment areas. Most popular and have the most
strength.
SMA – simple moving average

EMA – exponential moving average. 13 and 20, most recent data. When stock crosses 13EMA it’ll go
down.

Most people in 1-2 minute, some in 5 minute. Always have on Daily chart. Use these lines on DAILY
Chart

Do use 1 indicator on minute chart… VWAP (volume weighted average price) – majority of trader use it.

Daily – 50SMA, 200SMA, 13EMA

Oscillators – above and below charts.

RSI – relative strength index – evaluate overbought/oversold. 0-100 rating. Use only on DAILY
chart. This changes every minute.

Below 30 = oversold above 70 = overbought

Other indicators - Bollinger Bands, RSI, MACD, SAR, Stochastic,

Most traders lose from one thing, lack of experience. You probably have heard me say this a
million times in chat already, but if you just started day trading this is a completely different
world than regular stock investing where you hold a long term investment. This is fast paced in
and out action based on momentum. The absolute #1 reason new traders fail is they trade before
they are ready. If you never picked up a football, don’t expect to be ready to play in the NFL and
if you never touched a basketball don’t expect to be in the NBA. When I first started stock
trading, I was awful, but after a few months of paper trading it clicked. The reason I am a
successful stock trader today is because I paper traded first. If I used real money right away I
would have lost everything. You need to allow yourself to learn before jumping in and trading
against the best traders in the world. :star:
DekmarTrades
10/15/2020, 1:40:53 PM:star: PART 2: After you do the paper trading and studying it is then time to
build up your emotional tolerance. The best thing to do when you first start trading is WEEK 1:
Trade with no more than 50 shares. I know this means you wont make much, but you cant lose
much either. It is more about learning to deal with the emotions of trading real money. WEEK 2:
bump it up to 100 shares per trade. WEEK 3: 200 shares etc. Each week your mind and emotions
will learn to cope with trading real money… You can just jump to 2,000 shares per trade and
expect to be okay. Follow the process!