 Oh why? Hi there, how you doing Russell Moore, dedicated to financial literacy. Hey, what's my motto? What's my quote? If you don't learn, you won't earn. All right, so keep learning. Good to see everybody. Good to see you again. Yeah, it's second installment, the second video of this year coming up. Stock market for beginners 2022, and I'm excited. I hope you enjoyed the first video. I covered the first five. If you want to know what I said, you got to go back and check out that video. Please hit the subscribe button, notification, give me a thumbs up. I would love to tell you and give you what me, Kevin or Grant Stevens might say. Algorithms, forget all of that. Just hit a brother up, okay? If you like the content and I'll keep pushing it out to you. 2022, I definitely want to do more on the title of the channel. The name of the channel is dedicated to financial literacy. If you didn't hear me the first time, and I'm going to jump right into part two. And remember, I remember saying I want to get the video down and not be on so long, okay? I know I can run my mouth, all right you guys? But I think you're going to enjoy it. I'm going to continue. I'll do this third five. I'm probably going to do it in the next day or so. I want to do the last two pretty quickly. I'm thinking about adding a fourth one that just talks about every day trading and just answering questions. A lot of people have questions out there. And if you have any questions that you want answered, I'll do my best. Like I said, I'm not an economist. I don't have a background as a hedge fund manager or anything like that. I've just been studying the markets for 10, 15 years trading here and there, investing. And I've done really well. I could do a lot better. And by no means perfect at this. And anybody that says they are acting like they know everything about the market, no, you're going to constantly be learning. There's so many things I still want to learn. And that's one of the things I'll tell you as a goal for 2022. It's for you new investors. Find one thing concerning the market that you're going to learn and spend a lot of time learning. Whether it might be fundamental analyzing, which I'm going to go over today or technical analyzing. Say you want to learn about charts or candlesticks. Make a dedication that you're going to read a couple of books and read them all the way through and not just the first couple of chapters. Anyway, we're going to go ahead and get started. And again, I want to thank you for joining the channel. And let's get right into it. Are you excited? All right, let's go. I ended the last segment on what is an IPO? All right, so we're going to start at number six. Number six, what are the three trading strategies? What are the three trading strategies? You might ask me, okay, why would I add that in there? Because when you're just beginning, you don't know where to begin. You don't know where to start. You're like, okay, well, what do I do? How do I, I went over what you need to do is the last video I talked about getting opening up a brokerage account. Now that you have your brokerage account, okay, say it's Robinhood or Webull or Fidelity, you got your account, you opened up your account, you funded your account, say you put $100 in. Now what, now what do I do? And so when I talk about what are the three trading strategies, the first strategy I want to talk about is day trading. Now day trading, it means exactly what I just said, day trading. You're trading stocks selling, buying one day and you're selling the same day. So you buy a stock that one day and the same day you sell it, that's all a day trader does. I've just made it simple for you. So if you ever hear the term day trader, they're trading their stocks, buying and selling in the same day. Now there are several rules and I'll throw this in there too. The police for the stock market and all that happens, though the group or the division that regulates the stock market and all the actions that happen in the stock market, and this includes Bitcoin as well, is the SEC, Securities Exchange Commission. So you want to make sure you remember that. When you first start trading in stocks, if you don't have $25,000 or above, you cannot day trade. Now well, let me put it to you this way. You can day trade, but you have a limit and there's an actual rule that you cannot exceed four day trades in one week. After meaning you buy and you sell the same day, you buy and you sell the same day and it doesn't matter, it doesn't matter if it's the same stock that's going to be counted. If you buy and sell the same day, you're going to be counted. In Robinhood, you can in most platforms they will warn you when you get there. Now if you have $25,000 or more, you can day trade. Unlimited. So remember the day trading rule that if you have under $25,000, you're going to be subject to that rule. So you want to make sure you remember that because some people they buy and they're like, oh no, it's dropping and they make an emotional decision and they sell the same day. Oh, I should have bought that stock and then they sell it. That's one day trade. If you wait to the next day, it won't be counted as a day trade. If you wait to the next day, here's another thing I want to tell you. The market on the West Coast opens at 6.30. The East Coast 9.30. The West Coast closes the market at 1 p.m. So you have until 6.30 in the morning to 1 p.m. Now there's some people that are privy. You're not going to go over in this video have privy to after hours trading and pre-market trading. So there are pre-market traders and there are after or post-market traders. But for the most part, you're brand new to the market. You're going to be trading between 6.30 in the morning on the West Coast and 1 p.m. 9.30 and 4 p.m. on the East Coast. 9.30 a.m. The second one is swing trading. Swing trading is anything after a day and I would say to about two to three weeks. You could say a month or two, a month or two, but pretty much swing traders, they're somewhere around after that day trade the second day until two to three months. That's the range. So that's swing trading. The last one is buy and hold or long-term trading where you buy the stock and then you hold it. You hold it for eternity, but you're willing to hold it for years. Most traders or investors, I should say, that buy and hold are using in it for a long time. Here's what I'll say. Well, I don't want to get ahead of myself. So that's those are the three strategies. You want to decide and here's what I would suggest for a new trader, a new investor. Buy and hold. You might want to try a little bit with swing trading where you purchase a stock and you keep it for a day or two or a few days, five days, see what it is. But I would suggest, this is only suggesting you decide what's good for you. Some people, they jump right off into day trading and they get excited and go for it. But you want to be careful with day trading. I'm not going to go over it that today. I'm just kind of going over the strategy. I'm not going to go into them that deep. I've got four other questions to cover. So those are the three strategies. Number seven, fundamental analyzing and technical analyzing. This one, I'm going to try to condense this answer really quickly. Fundamentals studies, researches, and studies the company. Technical analyzing studies the stock. So fundamental analyzing, and I'm not going to go over dollar cost averaging either. I'm not going to go over that tonight, but I want to talk about dollar cost averaging in one point. But fundamental analysts, and this is, I think, the foundation, everyone should get a foundation. Fundamental analyzing is you're studying the actual company, their profits. Are they making money? Do they have a competitive advantage? And you can write these down. Do they have a competitive advantage? Are they profiting? Does it appear that they're going to be profiting in the future? Do they have something unique, a niche, that nobody's really doing? I'll give an example, Tesla. People were really concerned whether Tesla would ever make money, but they really have the EV market locked up right now because they're doing things that no other company is doing. And everybody's playing catch up. All the other auto industry companies are playing catch up. Many of them don't even have their cars out there yet. Some of them are talking about 2023 before they even have a car that they're selling. And Tesla's already established on the way to establishing four gigafactories, one in Germany, one's already running in China, Texas, and here in Fremont, California. And who knows? They're going to probably do another one somewhere. And his goal, Elon Musk, the CEO, said, look, I want a gigafactory on every continent. That way we can get cars to people much quicker. And what they've done with manufacturing cars, EVs, the robotics that they use, everything that they're doing, their chips, it's just they're ahead of the game. That's what you want. You want a company like that. So you want to study that company. Are they going to profit? Another thing that I do with fundamental analyzing is I check out the CEO and the leadership team, the CEO, the CFO, the C00. Check them out. Study them. Find out where do they come from? Are they homegrown? What was their background? Were they fired from their last position? A great place to study a company and find out what it's about is if you go to the company's website and look up investors' relations, their investor relations page. You usually can scroll down on their website. Most companies will have that. Or you can Google investor relations page and put in the company. It'll take you to a page, several pages. And what you can do is you can look at the finances. You can find out about the company, a mission of the company's mission, their vision, what they're really about. Because here's the thing about companies. If you don't study the company, most companies, a lot of big companies, you hear about what they're doing. You know what they're doing. For example, Coke sells drinks, right? AT&T, cell phones, wireless, Dell, computers. But what you don't know is other things that those companies are doing that you don't hear about. Give me an example. Atria. Outria. They sell Marlboro cigarettes, right? But they also have a very strong wine division that makes a lot of money in the U.S. They also sell beer. So they own Miller beer. So here they are, a company that sells cigarettes, but they also are doing other things. They have other avenues where they're making money, which says something about their leadership team. So that's what fundamentals is about. Technical analyzing is a little different. Technical analyzing studies the stock, the past history of that stock, the price action. And so it's mostly seen on charts. So people that are linear, who are more logical and more technical, technical analyzing is perfect for them. I think you should learn both. But technical analyzing deals with the study of the stock and its patterns. It looks at past patterns, past trends, and determines and predicts what that stock is going to do in the future. So you can Google both of these. Mainly, I would say you can Google, I'm sorry, YouTube. You can YouTube technical analyzing and just get a little grasp of what it's about. You can learn about candlesticks. You want to learn about resistance and support. What is resistance? What is support? What are indicators? You'll be using indicators a lot to determine what you're going to do with your price, with your stock, determining whether it's going to go up or not. Here's one I want to tell everybody though. Anybody that says they can time the market is lying. That's not true. No one, not even the Great Warren Buffett, will tell you he can time the market. Nobody can time the market. You can make educated guesses based on historical data, based on things that you see in the market and what's going on, and based on what's happened in the past. But no one can time the market. I'll never tell you that. I'll never tell you that I can time the market. We don't know what the market's going to do tomorrow morning. Bad news can come out and boom. Great news can come out about the feds or about our economy and the market goes up. You don't know. But there are things that you can do to protect yourself. Next one. Let's speed it up a little bit. What is a dividend? A dividend, divvy, meaning divvy up. A dividend, a company, what they will do. Microsoft. Let's give an example because I own Microsoft and I get a dividend every quarter. What a dividend is is that when a company is established and they're strong and they're making profits, they'll sometimes reward their stockholders, the owners of the company. Remember, you're an owner. Once you own the stock, you are an owner and they'll divvy up and they'll give you a percentage of those profits. That's called a dividend. So not only do you gain money from the appreciation of the stock, but you can gain money from the dividend and they will send you a check. Now, you can do what's called or you can take your profits automatically or your dividends and have them automatically reinvested into your stock. So instead of you getting that money and spending it, reinvest it and buy more of that same stock. But a dividend is given to you by a company from their profits. Now, not every company gives a dividend. For example, Tesla does not, Amazon does not. So a lot of companies will take all of their big profits and it goes back into the company. Sometimes they'll give their team's bonuses and stuff like that. But a dividend is actually given to the shareholders, preferred and the common stockholders every quarter. Some dividends are given twice a year or annually, but most of the time, every three months, you get money. And it's based on your shares. So in other words, say the dividend is 50 cents a share. So if you got 100 shares, if you got 200 shares, if that dividend is a dollar and you have 500 shares, every quarter you'll get $500. You don't have to do anything for it. You don't have to earn it. It's just because you own the stock. All right. So that's a dividend. Growth stocks versus value stocks. Growth stocks. And this is to me, when you're first getting started, I suggest people go into growth stocks, meaning stocks that are making a lot of money and have great earnings. They are a machine like Amazon. Yeah, Amazon's about $3,000 per share right now. So if you don't have the money, of course, but Microsoft is a good place. It's a good growth stock. That's an example of a company that's making money, that's doing well, that you know it's going to be around for 10 years. It's the bigger companies. Growth stock investors normally are not so much concerned with price. They're concerned with that company growing. Growth stock. It's a grower. It's moving. It's making money. It's doing things. Value stocks. Value stocks are you're looking for a great value. You're looking for value. You're looking for not necessarily cheap, but yeah, cheaper stocks. They're usually stocks that are overlooked. They have great potential and they have great gains, great profit, but nobody notices them. But they're at a cheap price. They're undervalued. Those are value stocks. I suggest in your portfolio you have both. You have the good, great stocks that you know are going to be around. We know McDonald's is going to be around. We know Amazon. We know Google's not going anywhere. Great growth stocks. But then I'm also looking at Alibaba, which was a growth stock, but now it's come on hard times due to the regulations in China, and they've gotten some heat in China. Their stock right now is very undervalued. It's cheap to me. Alibaba, ticker symbol, B, A, B, A. By the way, ticker symbol is basically an abbreviation for each stock, Microsoft, so that you don't have to spell out Microsoft, type it out online. That's a practical reason of why they're ticker symbols. They're an abbreviation, so Microsoft is MSFT, Alibaba, B, A, B, A. So that's called a ticker symbol. Forgive me, this is not COVID. Anyway, all right, let's go on to the next one. The last one I want to talk about is what type of companies do you invest in? I kind of hit it up just now, but when you're just getting started and investing in the stock market, here's my suggestion. Again, this is just my suggestion. Get companies that you understand and that you know about. For example, say you have a job in IT, you know IT, you know the companies that are doing well that are big, but not only that, even if you don't know, you understand that industry. Seek, look into a stock in that industry. For example, Microsoft, I told people last year Microsoft was at about $170 at one point, 108. And I said one day this stock in the next year or two is going to be a $500 stock. You guys jump on it. Even people laugh at me online, but look, you know where Microsoft is today? It's already, it's at $330. It's at $330. I mean, it's basically, it's basically $170 away from $500. It will get to $500. Okay. I'm not telling you to go, I'm not telling you to go invest in Microsoft. That's my disclaimer. Okay. I never tell people, my friends and family, I don't tell them what to invest in. That'll get you in a lot of trouble. Nothing's promised. Nobody knows what a stock is going to do. There could be some bad news about Microsoft that happens in a couple of weeks that sends it plummeting. So I'm not going to say that, but the fundamentals, they got a great CEO, great team. They got a great vision. Their products are doing very well. They're making a ton of profit every quarter. Their earnings are growing. Their profits are growing. They got great cash flow. I mean, they've got a lot of things going for them and they've got a great future and they've got a niche. There's a part of the market that they've got locked up. Okay. All right. So buy a company, a stock in a company that you really trust and that you know something about. If you don't know anything about biotech, unless you're going to do the research and really dig down, don't buy it. So anyway, the other thing about companies that you want to look at, that you want to invest in is, I want to say this too, don't exceed, don't get a lot of stocks when you're just getting started. Just start off with three to five, three to five stocks. That'll keep you busy and make sure you study the companies. Even if you know anything, know something about the company like, I love Microsoft, but I still had to do my research and check out and keep your eye on the news and things that are happening, especially with China. China, keep your eyes on China and keep your ears up to what's going on in China. What happens in China is going to affect the world, especially in the next 10 years. All right. So that's the first, that's the next five. I'm going to end the other, I'm going to end this segment. After my next video, I may have a question and answer series. So if you have any questions, please put it in the comment section and I'll try to do the best I can to answer. If not, I'll point you to the right people. Okay. All right. I love you so much. I wish you the best. I know you're going to have a great, great 2022. All right. So get started. If you are not investing in the stock market, go ahead and get started. Don't be afraid. Okay. I'm going to talk about next time also dispelling lies and excuses that people might have for entering into the stock market. Okay. So stay tuned and I'll see you later. Have a great day. Oh my God, 25 minutes. I wasn't trying to go that long. Have a great day.