How to use Basic Economic and Finance classes in Trading

In college, I was taught supply and demand, standard deviations, and mean. I would ask my Economic teacher and my Finance teacher on what they invest in.  Most of them would say they do not invest because they tried, and lost money. So, I am sitting here and thinking how are you going to teach this class and test me correctly. School makes everything harder than it is. The clear fact is they do not know how to apply the tools they teach. Let first look at Economics. We learned the supply and demand curve, and we want to have the equilibrium price to be efficient.

Scanning

I get the question asked all the time on how I find momentum stocks.  I feel people’s pain because I remember when I first started to trade I could only find one good idea here and there.  Remember, I am mostly a momentum trader. But, I do have other scanners I use and strategies. For this post, I am trying to help you find momentum stocks.  Let’s think about this.  What is a momentum stock?  A momentum stock has traffic and/or catalyst. 

“A Basic Look into Day Trading”

 When I first got into trading, I thought it was looking through financial statements all day. There are some types of traders that do, but I am mostly a day trader. Day traders mostly look for catalyst and/or momentum and/or stocks that may lose momentum to short, but we rarely go through financials in depth. We do pay attention to the environment of the market for example the VIX, SPY, and sectors etc.  I am going to tell you a secret.  A company can be a great company but if there’s no buyers, is their stock really worth anything?  It is like saying, your house is worth 200k but no one’s willing buy it, is your house really worth 200k? The share price is only worth as much as someone is willing to pay for it, PERIOD.  Therefore, the name of the game is what are people