5 Trading and Investing Tips for 2020

5 Trading and Investing Tips for 2020


5 Trading and Investing Tips and Strategies for 2020 — with David Moadel what’s up everybody this is David Modell
looking at the markets in this video I’m going to give you five trading and
investing tips that you can use for 2020 for the year 2020 and Beyond really and
actually you can use them right now it’s not even December yet but you can still
use these and if you want to support my channel and this won’t cost you anything
except maybe five seconds of your time I really appreciate it I’m gonna drop a
sponsored or promotional video pretty soon about cryptocurrency ways to make
money it’ll be sponsored and all you have to
do is just click on that video and give it a thumbs up that’s it alright so and
that way I can keep this channel going and I can keep on putting out the free
content like I’m doing with this video so please make sure that you click on my
sponsor videos and give them a thumbs up doesn’t cost you anything show your
support thank you so much for doing that I appreciate it all right so tip number
one I really want you to consider trailing stop losses okay and now what
is a trailing stop loss and I’ve made videos on this in fact pretty much
everything I’m going to talk about today I’ve made videos you can go through my
archive for that one but yeah trailing stop loss first of all if
you’re not using a stop loss you might want to consider it that that’s a tip
right there especially if you’re a short-term or medium-term trader you
might want to consider it okay if you’re very long-term investing if you’re like
Warren Buffett we hold for years and years yeah maybe you don’t need it as
much or maybe you still do but if you’re a short-term trader you want to consider
using stop losses to limit your risk and if you’re using one maybe consider the
type of stop loss where you know you buy here and then yeah you got your
stop-loss below you know 5% below or whatever percent
below it is okay it doesn’t have to be 5% and then as the price goes up maybe
it goes the way you want it to then you automatically are raising that stop-loss
you’re trailing it upwards okay don’t trail it downwards I don’t recommend
okay don’t I do not recommend lowering your stop-loss as you go I recommend
maybe considering trailing it meaning raising it as you go okay so you buy
something here you got your stop-loss below okay and then hey things go pretty
good so the price starts to go up and up and up what you can do is you can raise
your stop-loss as the price goes up price goes up more you got a big green
candle there raise your stop-loss some more that way you’re locking in your
profits now no matter what happens even if it falls down really hard that’s okay
as long as you’re paying attention as long as you get out at that stop-loss
that you say for yourself you know you’re locking in those profits now
you’re playing with the house money as they say you can’t even lose at that
point alright and then you know maybe go sideways that’s okay you still got your
stop-loss and then it goes up some more more green candles keep raising that
stop-loss until you get that big red candle or that big gap down or a bunch
of red candles in a row and then it hits your stop you’re out but you’re out way
up here and you got a huge huge profit nice right okay and at at all times your
stop-loss was still 5% or whatever you said it at maybe if your short-term
trader maybe your stop-loss is 1% 2% 3% whatever it is consider trailing stop
losses ask your broker about it or your software platform platform whatever
you’re doing whether they offer that just something think about you don’t
have to use it but it’s just a tip just a strategy to help you lock in that
profit all right another tip or strategies to consider using some sort
of different methodology in order to filter out the noise all those little
micro movements I call them okay these are Renko bars okay also known as
Renko bricks I’ve made videos on all these things actually go through my
archive if you want to check them out and what they do is if this is not
time-based you probably accustomed to every candle you know being a certain
amount of time you know a minute or a week or a day or a month or five minutes
whatever Renko is different it’s not time-based and so it doesn’t create a
new candle or bar or brick until a certain amount of price movement or
price action has been reached you know whether it’s a dollar up or a dollar
down whatever it is okay you said it okay but Renko bars I’m not gonna teach
you everything about Renko bars I’ve made videos about that you should check
them out if you want to but Renko bars they filter out all those little micro
movements all those little head fakes that head fake people out and they end
up taking a loss when they don’t need to okay and so you can filter out a lot of
the noise of Renko bars another way is with point & figure charts I’ve made
videos on that okay Hika naxi candles whatever you use all
right or maybe maybe you got a volume bars at the bottom okay and you’re not
taking any move seriously until reaches a certain volume level okay or obv on
balance volume indicator whatever you use to filter out your noise considering
you know maybe adding something to the mix or subtracting something from the
mix maybe to filter out all those little micro movements that don’t matter so
much especially you know maybe if you’re day trading and you got to watch every
single little minute okay maybe you need that kind of noise and in the mix but
maybe you don’t okay maybe you need maybe keep getting head faked maybe keep
getting stopped out too many times you got to filter out some of that noise are
you thinking about it consider it okay that’s tip or strategy number two number
three tip or strategy number three for 2020 and beyond is I do not recommend
buying in descending channels and this is a channel okay where the I call it a
channel because the trend lines you know the support and the resistance are
parallel and notice that’s descending as a descending channel also a falling
wedge where they’re not necessarily or they’re not parallel lines okay they’re
converging toward each other the support and resistance that’s more of a wedge
whereas this that you’re looking at right now it’s more of a channel because
they’re parallel okay but either way whether it’s a wedge or a
channel if it’s falling I I’m not gonna recommend for the next year that you buy
in a descending channel okay and you might be thinking you know hey Dave but
yet you know if I bought here and sold here I would have done okay you know if
I’d bought here and sold here I wanted I would have done okay yeah it sometimes
sometimes it does sometimes it does okay but you know what else often happens is
that it hits the bottom and a channel then keeps going okay especially if it’s
all all trending downward yes you can play a
descending channel I’m not saying you never can I’m not saying that never will
but you may want to just avoid it try maybe avoiding it for a year if you’ve
been doing it you know or avoid it for a week or test it out for a month avoiding
it okay and then see if you’re trading improves and and commit to only buying
in either horizontal you know channel sideways or better yet upwards channels
alright because that means that the overall trend is up or at least sideways
as opposed to trying to catch the pops in an overall falling knife you know
that may not be something you want to do so at least I would recommend with your
demo or virtual trading account maybe test out just not buying in a descending
channel some people short-sell if it goes to the top of a descending channel
that that’s a bit dangerous it’s not for everybody don’t do that if you don’t
know what you’re doing okay don’t do any of these things if you if you don’t know
what you’re doing so that’s strategy number three all
right so that’s more trading but I also want to talk about investing as well
some people are a little bit longer term all right and so I’m going to give you
right now to two things for investors that you should do or I’m not gonna tell
you should but you might consider doing in 2020 at least test them out with
virtual trading demo trading all right another one you know you really ought to
consider not buying things that are you know asset classes that are extremely
popular in the moment okay right now it’s all about Apple okay but
look back in history Apple wasn’t always hot Apple wasn’t always the biggest
thing in the stock market okay at one point going way back it was a Microsoft
for a while and then General General Electric believe it or not yeah look at
look at General Electric look at the chart for the past couple years okay
compare it for the past three years five years okay but believe it or not there
was a time when General Electric was 4% of the weighting of the S&P 500
okay Cisco was at once okay Cisco is still big but it’s it’s
naughty I wouldn’t even put it in the top five top ten of biggest market cap
companies anymore okay Exxon Mobil look what’s happened to oil stocks in the
year the last two years last three years all right
yeah okay so this is a chart the companies that reached a 4% weighting in
the S&P 500 going all the way back to 1990 and how long they were able to stay
there Microsoft was 4% mean that’s huge for
one stock to be 4% of the S&P 500 which is 500 different stocks the biggest ones
to have a 4% market capitalization weighting that means you’re huge it
means you’re dominating all right Microsoft is dominating it was
dominating in the moment and then well we all know what happened you know in
the late 1990s okay in the early 2000s it went way up and
then all those tech stocks took a dive alright so just because something is 4%
of you know the market cap now doesn’t mean it’s gonna be that way forever
okay GE believe it or not 4% of the sp500 it’s unimaginable now because
General Electric has fallen out of favor so much since then Cisco okay and
Cisco’s not even I wouldn’t even say it’s in the top 10 now ExxonMobil and
look what’s happened to oil stocks since then alright and now it’s Apple and
right now it feels like Apple is gonna be the biggest market cap forever it
doesn’t happen like that markets are cyclical they happen in cycles so
whatever is hot whatever is it’s okay to buy something that’s hot but if
something’s just boiling hot if something is just everybody loves it so
much I recommend just consider maybe avoiding that for the time being okay
especially when it gets up to like look at this this is 5% when something gets
up to 5% market cap of the S&P 500 which you know Apple hit it recently you might
want to just you don’t have to go so heavy on that you might want to you
could still own it but maybe own less of it just something to think about for you
know 2020 going forward all right and then finally this is kind
of the opposite of what I just said and yet it’s in the same vein which is
instead of buying things that are really heavily favored considered if you’re
consider if you’re a long-term investor looking at things that are not heavily
favored things that are actually hated but things that are cyclical that tend
to come back like commodities for exam well this is commodities versus stocks
or is S&P 500 stocks commodities are so undervalued right now not every single
commodity by the way right now okay but you may want to look at base metals I
made a video on that not that long ago okay
so look through the archive you might want to consider agricultural
commodities which had just been devastated by you know because a trade
war concerns all right our agriculturists our farmers are
struggling right now my heart goes out to the the farmers in the United States
and worldwide okay so but that doesn’t mean that commodities are gonna be
undervalued forever you know last time they were hugely undervalued look what
happened okay boom right and I really mean boom okay and so they’re even more
undervalued than they were in the dot-com you know during the dot-com
bubble imagine that all right so like I said base metals agricultural
commodities you may want to consider that you also might want to look at
uranium okay I made a video on that recently or made a video talking about
that recently uranium seems undervalued as a commodity to me now you cannot just
go to a you know your local Walmart and buy uranium okay but there are ways to
trade it I’ve mentioned some ways in the past I may make a video on that again
something to think about all right so five tips five ideas
whether you’re a trader or investor and once again thank you for clicking on and
giving a thumbs up to my sponsored promotional videos okay I’m not telling
you to buy every single thing that’s recommended that’s a decision you have
to make but if you support me support my channel by clicking on those you know
those videos that are promotional that helps to support my channel and I really
appreciate that that way I can keep on putting out this content for free that
you like so much alright thank you so much for watching and for listening I’ll
talk to you again soon

4 comments

  1. Another great tips ideas for 2020 and more years to come i am looking forward to watching all of ur promotional videos esp u said Crypto i have been watching crypto but i just cannot see the real value or idk how to value i missed 3000 dollars area so FOMO Anyway so some brokers do not provide trailing stop loss, do they? idk if i have to pay to use trailing stop loss then i may not want to maybe i misunderstood u??? but this is two thumbs up video U do really know how to teach NO B.S. Have a Aloha week Mahalo

Add a Comment

Your email address will not be published. Required fields are marked *