There are basic stock trading lessons that every trader needs in order to succeed.
Not knowing just one of these key lessons can prevent you from succeeding in the market. Worse, it can cause tragic losses without you ever understanding fully as to why it happened to begin with.
In this video, we explore some of these basic stock trading lessons such as trading methods, values, beliefs, congruency, using a rules based approach, signals, entries, and more.
All of these key factors help form the foundation to your success.
Most stock trading beginners start out the same way – trading stocks with a small account.
Every major stock trader has usually started out by working their tail off and saving a few thousand dollars as a stake to set out and find success in the stock market.
And, to be honest, the odds are stacked against most aspiring stock traders. Why? Because the lack both the experience and a reliable framework to grow their trading capital.
To help you avoid this trap, learn a workable approach to grow your account.
A price lap is a powerful indicator that a stock’s price trend is gathering strength.
Traders of any experience level know that to compete you have to know how to read price action. Technical analysis was created to help traders master price action. Methods such as Elliot Wave, trend-trading, price pattern analysis, and more to help you understand price action. One such pattern to master is the “lap”.
What is a price lap?
A price lap is when a price bar opens above or below the previous price bar’s price range. An open above the previous price bar’s close for a bullish move and below the close for a bearish move.
A price lap can be significant at key price points. Depending on the context of the price action it can signal an entry or reveal the strength of the trend.
So, which points are those key levels?