There are several different ways for traders to be successful and to make profits off of the stock market.
Regardless of your background or your experience, it is essential that you know what pump and dump schemes are, what the double catalyst rule is, as well as a new rule I've found that works really well in our current market.
Despite the fact that Wall Street has heavily invested in making the stock market appear overly complicated, it is actually not so difficult to master the techniques.
The key lies in understanding the methods that people are using and which ones are working today.
The most classic method is the pump and dump scheme.
You might have seen this in The Wolf of Wall Street, where, essentially, people were buying a cheap stock, pumping it up to a large value and then dumping it at the top of its growth while everyone else was still holding onto it.
It is common for companies to send out massive email campaigns advising the readers to purchase a specific stock, even if it holds no real value.
As awareness increases, interest in the stock goes up, more shares are purchased, which in turn generates even more interest.
After the stock has been pumped and its value has increased, the investors behind this scheme are ready to dump the stock, making off with their profits.
Finviz is a resourceful stock streaming platform that gives you current news updates and how the news impacted the stock price around that time.
If you look at an Xnet, a stock that is currently being pumped and dumped you can see you the change in the price of the stock on a certain date.
You can note that Xnet was pumped up all the way to $25 and then it got dumped over time.
Around October 9th, 2017, a lot of websites, promoters and stock email lists must have been sent out or published in order to create this growth.
Finviz.com is a great tool because it has a lot of information on their homepage, at the end of the stock market.
The double catalyst rule is basically taking two different parts of a stock trade and using that information to ensure that you'll get a decent amount of profit off it.
Volume is the fancy word for how many shares were bought and sold on a given day.
This is all part of fundamental analysis.
How can you tell when the price of the stock is going to go up or down?
A key aspect of these trading strategies is understanding support and resistance.
When you do a technical analysis of any stock it is important to look out for the double top.
The double top rule means there is more than one point on a stock's price chart where the peaks reach the same height or value.
Usually, the double top rule applies in a smaller interval, within a one day range.
The only time it's going to break out is when there's a catalyst that happens, which is when there's a new high on the day.
We were confident, looking at the double top rule, that this stock went up to a certain point, it went down and then up again to the same peak.
That's when you should set your alerts on your stock or your trading platform that, "Hey, let me know when this stock HOTH, goes past this point."
When there's a new high on the stock people are generally confident that something's going on in the market to cause the stock price to go up.