Trading Stocks for Starter

Stocks for Starters

Aslan Maleki

Started trading at age 16 in 2009

About me

Hometown: Tabriz, Iran

Current Location: Oklahoma City

Fun Fact: First stock ever bought was NYSE: C

Context

Brokerage Services

Terms

Trading Patterns

Examples

Tips

Questions to ask yourself?

What amount of money if I lose won’t

dynamically change my lifestyle?

How involved do I want to

be with my assets?

Motivation?

Getting Started

Brokerage Services

Terms to understand

Paper Trade vs. Live Trading

Blue Chip Stocks vs. Penny Stocks

Bid vs. Ask

Long vs. Short

Order Type (Ex: Limit, Market, and Stop Limit)

Time in Force (Ex: Good ‘Till Canceled and

Extended)

Paper Trading vs. Live Trading

Paper Trading Live Trading

Blue Chip vs. Penny Stocks

Pink Sheets (OTC)

Low market cap

Low liquidity

High volatility

Lack of History

Refer to DJIA

High market cap

High liquidity

Lower volatility

Higher daily volume

Bid vs. Ask

Buy

Bid

Sell

Ask

Supply and Demand will help determine the

Bid-Ask Spread

Long vs. Short

Long = Investing with the expectation of

increase in value

Short = Investing with the expectation of

drop in value

Chart Types – (MSFT)

Line

BarCandlestick

Area

Order TypeMarket = Most recent current traded price

Limit = Set specific price of transaction

Stop = Activates the order after the price surpasses a set

price

Stop Limit = Activated after a set price is hit to a set limit

Trailing Stop = Stopping a loss by a set margin

Market-on-Close (MOC) = Last minute transactions

Limit-On-Close (LOC) = Places values to near market

close

Time in Force (TIF)

Day = Order activated only during 9:30 to 4:00

EST for that specific day

Good Till Canceled (GTC) = Order activated

every trading day during 9:30 to 4:00 EST until

canceled

Extended Hours (EXT) = Order activated

outside of standard trading hours

GTC_EXT = Order activated inside/outside

standard trading hours until canceled

Identifying Basic Patterns

Basic Technical Analysis Terms

Volume = Amount of shares traded

Momentum = Rate of change (ROC) in price

Breakout = Price penetrates a specific level

Resistance = Level that may lead to a selling breakout

Support = Level that may lead to a buying breakout

Head and Shoulders Patterns

Inverse Top

“U” Shaped Chart Patterns

Cup and Handle Rounding Bottom

Triangle Continuation Patterns

Ascending

Triangle

Descending

Triangle

Other Continuation Patterns

PennantFlag

Fundamental Analysis

Think like Warren Buffett

Overall economy

Industry condition

Specific company news and factors

Look and compare company financial statements

Underpriced = Buy

Overpriced = Sell

Create an IndexPair similar instruments that are correlated

Example:

Oil & Gas Index

Major Exploration & Production

Prime examples - GRNH

HEMP

GERN

VEND

KORS

UA

Tips

Identify which type of securities and

how you will play them

Ask your brokerage service for margins then

ask for an increase

Don’t underestimate the power

of Twitter for news

We are in a time where trader psychology is

matched with computer algorithms

Tips - Mistakes to Avoid

1. Day traders need to have $25,000 at all time

2. Cutting a loss at anytime is a profit

3. Overtrading is costly

4. Extended Hours provide valuable information

5. It’s a blank slate everyday

Thank you & Further Contact

Title in here

https://www.facebook.com/AslanMaleki

https://twitter.com/AslanMaleki

http://www.linkedin.com/in/AslanMaleki

https://plus.google.com/+AslanMaleki

+1 (405) 609-0024

Thank you