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1. Simple Steps Anyone Can Master
1. Title Slide
2. Hello everyone, this is Roger Scott from Market Geeks and I have a new video
tutorial for you today. Before I begin I want to remind you to subscribe to our
video channel for trading videos and don’t forget to visit MarketGeeks.com for
your free swing trading report.
3. Today I will show you a simple process so you can learn how to analyze stocks
in a systematic way. I will show you some of the same steps that I teach my
students and practice myself daily. This tutorial won't include every step but it will
give you a good idea of how to approach basic stock analysis the right way from
the start.
4. One of the biggest pitfalls that beginners make is not looking at the big picture
and only focusing strongly on certain pieces of the puzzle. Unfortunately, learning
how to analyze stocks involves looking at several different pieces of the puzzle
and putting them all together the right way.
5. If you ever read How To Make Money In Stocks by William O'Neil, then you
probably know by now that stocks correlate to the Index about 70 percent of the
time. This means that stocks that have reasonably good volume tend to follow
and mimic the Indices. All you have to do is take a look at a few popular stocks
and you will see that for the most part they follow the index. This is not always
the case but it happens enough of the times that you want to consider what the
Indices are doing. If you are trading Technology stocks then you would monitor
the NASDAQ and if you trade Blue chip stocks you would most likely keep your
eye on the Dow Jones and the S&P 500 Index.
6. One indicator I especially pay attention to is the 52 week high/low figures. You
can get a great idea of the current stock market climate by looking at how many
stocks are making 1 year highs or lows. If you notice large percentage of stocks
breaking above their yearly high the odds are the index is strongly trending and if
you notice that most stocks are not breaking out of the 52 week high/low you can
be assured the stock market is in a range bound cycle.
7. This step is often avoided by traders especially beginners. You have to force
yourself to go through this step because not monitoring fundamental news is one
of the biggest pitfalls beginners make. I don't suggest you read the Wall Street
Journal cover to cover, I'm suggesting you take a quick look to see if any
fundamental news that can affect your stock is going to be released in the
foreseeable. There are several sources of news that are available at Market
Geeks Resource page that provide daily schedules of news that is going to be
released in the upcoming hours, days and weeks. Avoid trading particular stocks
prior to earnings and other news that may cause random volatility to your

2. position. This is one of the biggest reasons traders get stopped out of their
positions prematurely.
8. Last few days I spent some time discussing market cycles and the important of
knowing which cycle your stock is in. You need to know if the stock your trading
is in a trending cycle or a range bound cycle. Many traders avoid looking at the
market in this way and don't match the right cycle to their trading strategy. Cycles
typically alternate so always look at the previous cycle to give you clues in
determining the stock’s current cycle. Basic cycle analysis is a great way to begin
learning how to analyze stocks and other markets.
9. One you determine the current market cycle you can begin applying basic
technical analysis tools to help you gain better understanding of the current
market environment. For example if the stock is in a trending cycle you want to
apply basic trending tools such as moving average indicators and trend lines to
determine if the stock is breaking out, retracing or beginning to reverse. You may
want to see if the stock fits into any classic chart patterns to help you decide what
phase of the cycle the stock is currently in.
10.The final step is to apply the correct entry and exit strategy to the stock. If your
analysis shows that the stock is in a strong momentum phase and the general
stock market confirms this as well a breakout strategy with wide stop loss to take
advantage of the volatility that comes with momentum would probably be the
best strategy. If on the other hand you notice that the stock is in a range bound
trading pattern you may want to apply an oscillator to help measure divergence
and overbought and oversold levels. If you notice that a reversal pattern is
underway you would want to look for Gaps and reversal entry patterns such as
the Gap Tail method or other method that works well with this type of pattern.
11.If you follow these steps you should have a better idea of the current market
cycle and the current stock cycle as well. Always begin with the big picture and
work down from there. Looking at stocks through a microscope is not something
you want to do before you enter your position and while you’re in your position.
You have to look at the big picture and following these steps will help you do just
that.
12.Thanks for joining us for today’s tutorial. Please don’t forget to visit Market
Geeks.com and subscribe to our video channel. This is Roger Scott wishing you
the best in your trading
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