This is one of the best stock trading courses online because you will see how a former public school teacher made over $10,000 in just 10 days with this stock trading method. Anyone can do this.
Stock Trading Courses for Beginners
The stocks to screen for are liquid small caps. These are companies that trade with a market cap between $100 million and $2 billion.
The reason the oversold chart pattern is superior to all others is that it takes advantage of traders irrational fears. Think about it. If you are in a stock that drops 30%, you are probably going to sell. That is going to push the stock down to a very low level. Our goal is to scoop these stocks up at these low levels and find the best technical entry to do that.
An oversold stock probably will not go any lower in a bearish market. An oversold stock often will not go any lower even when it has had more bad news. The reason is that the stock could have a huge amount of short sellers already in it. If it’s down in oversold status, it’s safe to assume that traders are short at much higher levels. Those people who are short need to cover, and to cover means to buy. If somebody is trying to buy a stock that is oversold and not going any lower, their either on the bid or they are going to hit the offer. Either way, it is providing support, or it’s hitting the demand on the offer and that stops the stock from going lower.
The chart of FNMA is a great example of a stock that was oversold and would not go any lower no matter what bearish news came out.
Stock Trading Courses Summary
The big take away from this stock trading course is that you should not treat the oversold chart pattern with equal respect to any other pattern. When you first begin trading and you start learning about all the different chart patterns, it’s easy to lose sight of the fact that the oversold chart pattern has always been, and will always be, the greatest money making chart pattern to trade.
Frequently Asked Questions about Oversold Stocks
What is a oversold stock?
An oversold stock is any stock with an RSI reading of below 30.
How do I trade an oversold stock?
You trade an oversold stock by waiting for it to break back above the RSI 30 line on a candle over candle pattern.
InformedTrades posted the excellent video below called How to Trade the Relative Strength Index (RSI) Like a Pro.
What are the top stock picks?
The top stock picks are oversold small cap stocks, with a high probability of a short squeeze starting, a beta of 2 or greater, and that have formed a candle over candle pattern coming out of an RSI oversold level.
These will always be the top stock picks because they are lower risk but with a high reward potential.
What stock trader is best?
How can I become a stock trader?
You can become a stock trader simply by opening a stock trading account with an online brokerage firm.
The best way to become a stock trader is to subscribe to my daily stock trading lessons. You will get one lesson a day for the next 50 days. You will also get answers to almost every question you can think of such as what online brokerage firm should I use? How much money should I start trading with? How many computer monitors do I need for trading? How do I set up my trading station? What are the best stocks to buy? How do I find and use the best free stock screener on the Internet? How do I use fundamental and technical analysis? And hundreds of more questions with answers.
There is no better way to become a stock trader than by filling out your name and email address in the boxes below:
Life Changing Stock Trading Courses
When you were younger do you remember what you dreamed of?
You probably didn’t dream of being where you are now: stuck in a job you can barely tolerate but wouldn’t dare to quit.
You might be weighed down with so much debt that it gives you an upset stomach to even think about it, but it never really does leave your mind.
Thoughts of bills that are due always looming in the background. Too much stress and not enough joy.
That’s why you started stock trading in the first place, isn’t it? To make money and thereby relieve that stress. To relax a little and enjoy your life.
But if you’ve been stock trading for any length of time, you already know a dirty little secret that surprises tens of thousands of people that start stock trading for the same reasons as you.
IT’S HARD TO MAKE MONEY AT STOCK TRADING!