Swing Trading A Beginners And Advanced Guide For Effective Trading Tactics, Make More Money And Reach Financial Freedom

By Michael Branson

Swing trading can be a fun and very lucrative way to make a living off the stock market. While it's slower paced than day trading, it does require that you have some tolerance for risk, that you're willing to do technical analysis of the stock market and understand what you're doing, and that you use sound judgment and don't "risk it all" for the sake of a single trade.  

 

If you follow the principles outlined in this book, you are on your way to becoming a successful swing trader and I hope that you have found the presentation in this book to be helpful, practical, and useful.

 

Think of swing trading as a business, and that will help ensure your success. Owning a business means you take reasonable risks and guard your capital. We have discussed ways to do that in the book, and I hope that you don't give in to all the common mistakes made by beginners. It can be too easy to give into emotion when trading on the stock market and large amounts of money are on the line.

 

Don't fall prey to that temptation. 

 

I wish the best of luck to everyone who read this book.

 

What are you waiting for? Download your copy today!

• Language: English
• Publisher: Michael Branson
• Release date: Jul 24, 2019
• ISBN: 9781386388777

Michael Branson

Many years ago I was listening to a teaching tape by Pastor Chuck Smith of Calvary Chapel in Costa Mesa, California. He was talking about Jesus's selection of the men who were to become His disciples. He said that Jesus did not choose perfect men for the job, but rather He used normal, everyday people, people with flaws and failings just like the rest of us. The phrase Chuck used was, "Jesus built with crooked sticks." That phrase made a huge impression on me. My thought was, "I want to be a crooked stick. I want to do something useful, something that would be pleasing to my Lord." After many years of thought and study, the result is this book. My hope is that this book can help resolve doubt or help restore faith or lead just one person to a path that will result in the acceptance of the truth of the Holy Scriptures. Along the way, an additional hope would be that someone out there would also become excited about being a "crooked stick."

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Introduction

Swing trading is about taking a short-term position in the market where by you identify recurring patterns in a stock price line, and then use that to your advantage to ride the wave and make a profit. It can be described best as the middle ground between the highly hectic and stressful world of day trading and the much more academic and studious approach of position trading. It can be said to be the best of both worlds as you don't have the stress of making a quick decision as you have the time to think things through. You can, for example, look at the recent data to see if you are trading on the correct side of the market, which is always a good thing. But as you also don't have the time and resources available to the position trader you do not get too caught up in your research which can lead to procrastination. Whereby the more you study a company's stock, the more confusing it becomes as you are trying to make sense of conflicting indicators which leads to analysis paralysis. 

In swing trading, however, you are working on positions that last more than a day but in most likelihood less than a week, as you should focus on only one leg of a swing. That means you have the luxury of time to research and hone your strategy but not too much time to over think things.

Swing trading is, therefore, for many, a happy medium between day and position trading where you do have the opportunity to research and make informed decisions, but at the same time, you are looking for quick entry and exit points within a trade that makes you a profit on that price swing. After all, this is the core principle of swing trading; you study a trend then find a good low-price entry point, and then you ride the wave till the crest and quickly exit pocketing the profits.

Swing trading, however, is not easy, it requires that if you want to be successful that you perform diligent research and use wisely the subsequent knowledge you have discovered. This information is found through your fundamental and technical analysis – it is your analysis of the fundamentals of the company that makes you want to trade their stock, but it is the technical analysis that lets you manage and safely exit a trade.  Never lose sight of the fact that wise account management and preservation of your capital is what will keep you in the game. Therefore, in this book, we strive to provide you with good advice and best practices that will enable you to build a sensible strategy that enables you to stay on the right side of the market.

With these good intentions in mind, we will give you, through the course of this book, profound advice on trading strategies, capital preservation, risk management, and position sizing. But it is not all doom and gloom because we will also show you how to identify emerging high-performing stocks and when and where to enter and exit a trade so that you optimize your profits. We will also show you how to lock-in your profits while you continue to ride the wave to even greater profits.

Swing Trading is by no means easy, but if you follow the advice in this book you will firmly have put the odds on your side, you will be confident in trading with the correct strategy in the market as well as in balancing your risk and reward dilemma - and you can’t really ask for more than that.

Chapter 1: What is Swing Trading?

In this first chapter, we are going to introduce the concept of swing trading. It’s essential to distinguish swing trading from other common methods of trading and investing and you also need to know what the requirements for entry are. After introducing the concept of swing trading, we will explore how swing trading differs from day trading and also how it differs from long-term or buy and hold investing. We will also explore the question of who is best suited for swing trading. Before you start, you need to know if this is something that would be good for you and your financial situation. We will do that in the chapter with a discussion of the tax implications of swing trading.

What is swing trading?

The concept of swing trading is deceptively simple. All it means is that you buy and sell stocks or other investments to make short-term profits. In other words, swing trading seeks to profit from short-term price movements on the stock market (or other markets such as currency trading). However, unlike day trading, the price movements we are interested in last from days to weeks or possibly up to a couple of months or so.

It differs from day trading in one key aspect. Swing trading involves holding securities overnight, possibly for weeks at a time. Therefore, you can be looking for short-term swings in the price of a stock, for example. However, you aren’t looking for that swing in price to occur over the course of a single day, but rather over a few days, or weeks. Some people who swing trade can even lengthen that time period out to a couple of months or so. You might even say you are a swing trader if your strategy is to hold stocks for several months, but buy low and sell high over that period. 

As you might guess, the level of involvement and stress in swing trading is lower than what you would find with day trading. We are going to explore the differences between swing trading and day trading in detail in a later section. Nevertheless, generally speaking, it’s going to involve less upfront capital and a lower level of involvement in the daily movements of stocks or whatever market you are involved with. Swing trading can be used on stocks, Forex, commodities, and even with crypto currencies. However, for the purposes of this book, we will generally focus on the stock market. The principles are the same no matter what you trade. 

Where can you use swing trading?

Swing trading can be used in virtually any market. It’s a technique, rather than something specialized for a specific market like crypto currency. Nevertheless, swing traders primarily trade on stock markets. But you can use swing trading as a technique when trading commodities, currencies, and anything else that will see price swings up-and-down over the time periods of interest, and that means you could apply swing trading to anything that gets traded. You could even think of trading options as a form of swing trading since you’re hoping to profit on the same moves of the stock, although options are quite a different ball game overall. 

Our focus in this book is going to be on stock trading. But keep in mind that you could use the exact same techniques, including the methods of analysis for the most