NOTES 4.16.22 Session 3

Royal mail IPO went racing up.

Facebook IPO- went down. really good, shorted it made money on the way down.

IPO you can subscribe and own it as soon as it gets on the market,  You own it. 

Is it a good thing to do?  Depends sometimes they go well, like Royal mail, sometimes they don't, like Facebook. 

Wait until they go unto the market, see which way they are going to move, then trade. See what happens, then trade in that direction.

SHORTING

- A way to make money in a stock broker account as prices go down. 

Down bet, in a stock broker account is called shorting.. way to make money as price drops. 

100k for Mercedez sports car. He says I'm going on holiday for 6 months you can borrow my car. you can do anything you want with the car as long as you give it back on the same condition. 

I go to the showroom, they give me the 100k back, I return the car. 3 months later, Dad says i'm coming back tomorrow. I go to showroom, I say I want the same model. But there is a new model, they say everyone wants it. That old model no one wants anymore, the new one actually you can get it for 70k. The more the price dropped the more money I made. I made 30k. 

That's shorting. You are not borrowing a car, its shares. and instead of your dad, its the stock broker. 

someone said, shorting is more risky than buying shares. its the same, just other way around. AS LONG AS YOU USE SALES STOCK ABOVE THE PRICE.

SELL STOCK ABOVE THE CURRENT PRICE. SAME THING AS MONEY SHARES. 

What am I drinking? 50 different herbs powdered, and I mix it with water. Helps with throat and lot of talking.

When I started, how much money did I start trading on?

22k pounds when I started investing. When I saw investment trading course, I took it. It was 2 days, cost me 4k pounds. It was a good training course. The instructor told me he ran 3 month coaching program. We would be able to see him do trades. it was 10k pounds for his coaching program. 

He said: everyone needs to do my coaching program. You will fail if you don't take it. If you do take it, you will succeed. He said if you are thinking you cant afford to do it, then you cant afford to NOT TO DO IT. 

What did I do? I didn't book it. Once I've used what I'm already learned and then take his turns.

First month, I got first bad results. Lost about 8k. I had 10k. I thought, interesting. I then booked a place in his program, which took my account to 0. I started working more overtime, took home loan. I got 5k pounds. He looked at my trades, he said you are making 3 mistakes. Correct them, you will be find.

The more mentoring, coaching I got, the better I got. That's kind of how I got into it all.

I took this approach with anything in life. I thought HEALTH.

Paid, took top health courses, paid them to mentor me, coach me. Did the same in business. I found the best people. Jay Abraham? heard of him? YES!

I paid 20k to mentor me one to one. Using what he taught me, I started another business made me millions of dollars.

What do we have a limited amount of? TIME.

If you can do anything to accelarate the result, DO IT. 

CHART PATTERNS

-Lots of different patterns to pay attention to, what are the ones that make us money. What we are after are High probability Chart Patterns.

How many different chart patterns are there? hundreds. 

Candlestick, like the book had 137 different patterns. WHICH ONE WORKS AND MAKES MONEY TO USE THEM?

I learned all these different patterns then I test them to see 

HOW I LEARNED THIS STUFF:

15 years ago. 5 day investment course. 5k pounds cost, only thing we learned was 1 chart pattern a day. I went home, tested them to see if they worked. Just 1 worked. I paid 5k for 1 chart pattern.

I didn't know it, and it was good. I will save you years and years and work because I will you chart patterns, short cut the ones that work.

2 main types of chart pattern.

REVERSALS AND CONTINUATIONS:

THEY DONT WORK EVERYTIME, BUT IT GETS PROBABILITY ON YOUR SIDE.

EXAMPLE: DOUBLE BOTTOM, DOUBLE TOP. 

FACEBOOK TRADE WAS A DOUBLE TOP, I GOT INTO IT AT A 15 MINUTE TIME FRAME. 

This page is worth 10k pounds. master 10 of them. 

chart patterns 1 to 5 work upside down as well. 

-we text each other when we find a good trade. the market a lot of tech companies had done massive drop down. he saw it before market opened. facebook was 20 percent down pre market. He said we gotta ride it on the way up. I went into the trade. 

Tomorrow I'll teach you how to look it up pre market. I was waiting for reversal pattern. 

I was showing my daughter, really nice, double bottom. in  minutes, I made 5k pounds. then made another 5k profit. that was using a 20k pound account. that was a good lunch. 

Fibonacci: great mathematician, wanted to look at math patterns in nature. then people look at patterns in markets. And they found it .

Move is: drops down 50%. 

Most stocks retrace 50% (others 38% or 62%). 50% is most common. 

Biogen

-one of the guys he worked for free. SP500. 30 companies, see what happens before trend r

DOJI BAR: open and close doesn't have to be exact, as long as its close enough. If I do a bar like this, close enough. It's a short term pattern. Good to combine with are to other patterns. 

TAILS: each of these is a candlestick. The rectangle bit is at the end of the bar, we call it a tail. It means something special had happened on that day. for example, on this day here, tell me what happened. 

Reversal pattern, pattern should now change direction. 

IMAGINE: BALLON WITH HOT AIR (when the tail it at the top of the candle) . other down, concrete on piece of string, it will start going down. 

MARKET WIZARDS

-author interviewed the world's top traders. did not share their strategies. 

All traders keep a trading journal. (so you can learn from your mistakes and learn from your successes) 

He has a template on Excel that he uses as his trading journal. I put reason bought, reason sold. 

goign over notes in the slide: VOLUME IS UP. If price is going up and volume is going up is that a good thing? yes. RSI AND CCI LOOKED GOOD. indicators I will show you what they mean tomorrow. 

*dont buy at the resistance level, wait for the bounce then buy***

The most important bit is this bit here, lesson learned: fill it in here. 

HOW I LEARNED WEALTH PSYCHOLOGY.

-Read books, took all the Tony Robbins courses, day course in London, Unleash Power Within, Date with Destiny.  overall, general mindset stuff. took a course 

12k and bough a friend with me, paid for his ticket. It was 24k for me. 

write down your goal, higher chance of achieving it. I will share with you what I learned, save you 24k. short, positive, and its present tense. 

Between now and July 2022 I will make around 100k through trading. fill in your amoutn and your date for investing. I know someone that started with 10k grew their account to 1 million oin one year. 

POSSIBILITY:

I had the idea to train a few people to elite traders. William, complete beginner, got a lot of money. 40k pounds. He called and asked would you be able to help me with my investing? staff said Darren is looking for a volunteer.

I want to test it on one person before I have my small group. I worked with him over the next 12 months. Every month he sent me trade, i sent him a video told him his mistakes. Each month I taught him a bit more. I also every month he saw me live trading. within a couple of weeks. He did well within that year. Lost complete contact with this guy. 2 years later, I was at an investment conference, he came through the crowds. he said thank you. I said how have you been? 

40k didn't add any money over the last 2.5 years I made 2.5 million pounds profit. I said I'm about to go on stage, would you mind coming on stage with me? So what  did you do?

He said I was one of Darren's unofficial apprentices. I did exactly what he said. I realized my mistake, I should do a profit share program. First 100k they keep it all. After that, I get 10% profit. Up to a certain amount. He did it totally on trust. 

Q&A: Next Session is all about setting goals. 

Investing.com has good charting software, clear to see on an iphone. 

Doji bar- opens at one price, flunctuates between the two and closes at the opening price 

Its a reversal pattern. Clear indication that price is going to reverse. Its a candlestick pattern. 

Q: 

when price bounces off trend line, it means it potentially will go up. Doji bar at trend line, signal its going to go up or down depending on what the direction trend is going. 

Trading comes down to probability. I look for clear foundation for where the price is at. At the same time, if we can incorporate indicators, its only going to increase the probability of your decision. 

I trade the US markets, I don't like getting up so early. 

Crypto markets. 

Me personally I'm a huge investor in crypto. Us market act in cycles. It always breaks it all time high, over the past 30 years. I thin crypto is the future. CEO of Mastercard, CEO of Visa, CEO of Meta that are backing crypto currency.

 spread betting, only available in UK market. In US, you can do options trading. 

When did you get into trading and why?

I used to work Full time, 60 hours a week and traveling on top. For myself, I was really fed up on getting up super early. When I came across Darren, he made it look so easy. I bought into the fact that trading can be easy. I got into it at 23, now 29. It gave me the life that I wanted, that freedom and that flexibility. 

I understood trading fully when understating the psychology. who is driving these markets, its human beings. you gotta think how other person is thinking on the other side of the chart thats when i saw my personal trading take off. understand reversal patterns, trend patterns, support, resistance. TRADING IS LIKE A CORRIDOR. You start in one end, want to get to the other end. 

a prize on anything it goes one of two ways, up or down. if we can use technical tools, if we can use support, resistance. reversal patterns, its all elements of probability. its all about sticking probability in your favor. You are already starting at 50/50. 

Q: HOW DID PANDEMIC AFFECT YOUR TRADING?

markets went down. great time to buy. We looked at it as a opportunity and we all bought. You couldn't go wrong. Huge return on investment. But most people were so scared they were selling. Volatility was created by the scarcity in the market. 

FOREX- it's a day trader's playground. its very volatile market. We want to trade on decisiveness. Probably not the best place to start as a beginning