Swing Trading: From Zero to Hero Learn How to Make Money in the Stock Market in this Simple Guide for Beginners

By Destination Publishers

Do you want to make money in the stock market with a simple easy-to-learn strategy?

Money is hard to manage and the numerous costs are stealing from our bank accounts.  But trading a various selection of securities in the stock market with a refined proven strategy and a safe plan makes this much easier.  
"There is a huge difference between a good trade and good trading."
-> Steve Burns, a successful investor in the stock market for over 20 years

This book teaches you how to become a good trader and reproduce profitable trades, instead of the hundreds of books out there which teach you the bare minimum.

In this book, you will discover swing trading strategies proven to work and refined to perfection.
Technical analysis is a growing part of the stock market and entering this world can be unbelievably profitable. 
What makes swing trading so different yet so attractive? 
Swing Trading: From Zero to Hero offers a perspective on a commonly misunderstood strategy. It sheds light on the right way of swing trading, to create high profitability set-ups that reward traders.
Swing trading isn't a strategy requiring as much time commitment as day trading yet can be more profitable. The book explains just how. 
Many books can often misunderstand and therefore 'teach' incorrectly what the strategy entails.  Swing Trading: From Zero to Hero cuts past this to inform traders what it's really all about. 
With profit potential much higher than those of day traders or scalpers or long term investors, the opportunity for success is right in front of you.

On average, swing trading presents traders with up to 80% annual capital gains, rewarding an average salary of $85,000. AVERAGE! The scope can be so much higher IF the motivation, the inspiration is there. /But to make money you need money, right?/ Absolutely not! Build your own portfolio with funds a broke teenager could provide. 
Handpicking stocks, trading them and managing your portfolio's risk: everything you need to know, you'll find in Swing Trading: From Zero to Hero. 

Why are you still reading? You can decide your future with the click of a button. Press Add to Cart and start your journey.

• Language: English
• Publisher: Destination Publishers
• Release date: Mar 7, 2020
• ISBN: 9781393064633

Book preview

CHAPTER 1: THE OCEAN OUT THERE

What Is A Company’s Stock or Share?

OFTEN, THE WORD ‘STOCK’ is thrown about. It is the basis of the stock market, of course, and the single thing on which it is built.

Think of yourself as an investor. Right from your childhood, you've had a love for making clothing and wears. Right from college, you put some money in your savings together and you pushed to establish your own small clothing brand. Due to years of hard work and persistence, your clothing brand has begun to make steady profits and also steadily increase. You have decided not to participate in 'fast fashion' and so, all your clothes are quality, durable, and slow fashion. At that point, the company is yours. This simply means that every Euro spent to acquire assets and to return profits belonged to you. The monies put in might have been borrowed or outsourced, but in any case, they were yours. All in all, your business is now worth £20,000.

Now imagine if suddenly demand for your business goes up. People start to note just how quality your clothes are.  They realize that when they buy your wears, they last longer and in addition, they find that everyone who works for you works under safe conditions and is paid a very fair wage. The result is that you will get more customers, right?

Logically, what is the next step? You decide to expand. More and more people are beginning you know of you and hear the name of your business. It would be lazy of you not to take the opportunity to expand your business and because you have huge dreams for your business, you decide to expand. But there comes the problem. You will need a bigger space, more workers, more money to buy materials, some money for advertisements, promos, and the likes, and you’ll need some money to pay your workers until profits start coming in. You’ll also need some money to keep yourself afloat. All in all, you find that you need £80,000. So what do you do next? Well, you try saving but after three months, you find that you still do not have a lot. So, you go to the bank and you find that the interest rates would cripple your business which is undergoing changes. After exploring several options, you realize that there is nothing else to be done.

However, that statement is not true. There is one very obvious step that you can take. When your various options fail you, you decide to contact several persons who know your business and can gauge its potential. You offer them a percentage of ownership of your business in exchange for money. Let's assume to need £80,000, as we have said before. Your savings amount to £20,000 and so, you still need £60,000. Eventually, you get 6 persons. These people will contribute £10,000 each totaling to £60,000. When you add this to yours, you have the full £80,000.

It goes without saying that the money wasn’t given freely. In essence, what you did was to divide your business into parts and sell them for ten thousand each. If your business was worth a mere £20,000 before, with the addition of £80,000 it is now worth £100,000.

Now, let's take a look at the investors who contributed £10,000 each. Each of them now owns a part or percentage of that business. But how many percents do they own? If they own £10,000 in a £100,000 company, they essentially own [£10,000 / £100,000 x 100] 10% of your company.

Those parts you divided your company into are called shares. Essentially, you divided went public. This means you opened your previously privately-owned company to the public to buy shares. Of course, you still own a part of your company. The previous £20,000 which was the worth of your business before any investors combined with the £20,000 which you saved up gives you £40,000. In essence, you own [£40,000/£100,000 x 100%] 40%. Your investors own ten percent worth of shares each and you, still own 40%.

In summary, shares are financial instruments which one acquires that give them part ownership of a company. Note that stocks are also known as equities and shares in some contexts. These words are likely to be used interchangeably as you read on.

When people hear the words 'shares', they tend to allow themselves to imagine an overly complicated scenario. It is not really. It is simply breaking or cutting up a company into parts and allowing others to purchase ownership of your business by paying for these parts. Of course, the above scenario was a very simplified explanation. It does get a little bit more complicated but definitely nothing close to rocket science. If you relate this to your highschool business knowledge, you'll find that it is quite simple to understand.

One of the commonly asked questions is Is it possible for a company not to have shares at all?. No, it is not. Shares are ownership percentages. Saying that a company doesn’t have shares is saying that a company has no ownership or is controlled by no one which makes no sense and is not possible. What most people actually mean to ask when they ask that question is Is it possible for a company to be privately owned? And the obvious answer to that is yes.

The moment a company is created, it is created with its shares. The word ‘shares’ just means ownership. If a company owner never decides to go public, he would forever own all his company shares and in essence, will fully own the company. The major reason that companies go public, that is, sell shares to the public is to raise capital. Even companies that are owned by millionaires and billionaires will sell shares when they need to raise capital to expand their business simply because they do not want to sink all their personal funds into it. Even the mightiest companies will need capital at one point or the other when they discover new opportunism they can chase. This is how big companies get bigger.

Why Would I Want To Own A Stock?

THE ANSWER TO THIS one is pretty simple; to make money. When you buy a stock, you are buying ownership and that ownership gives you an entitlement to assets, profits, and even decision making.  When you own a stock, you also possess limited liability. This means that you can lose money but whatever money you lose will not be more than what you put in. However, let’s not talk about losing money just yet. This is because the main reason for purchasing a stock is to make money.

How Can I Make Money By Owning A Stock?

THERE ARE TWO MAJOR ways you can make money when you purchase or acquire a stock. I also use the word 'acquire' because stocks can be given out. When you buy a stock, you are at liberty to give out to anyone except the agreement states otherwise. Moving on, when you acquire or purchase your stock, the first way to make money is by receiving dividends and the second is by buying or selling.

DIVIDENTS

The main aim of any business is to make profits. When companies make money, they subtract expenses and every other thing put in order to attain profits. When these profits are derived, a section of it is reinvested and some sections are put to other uses. A section of these profits is also used to pay dividends. Dividends are amounts that are paid annually, bi-annually or quarterly to shareholders. Companies pay dividends usually to encourage their investors so that even when they have problems and stock prices drop [we'll get to this], investors still have a modicum of trust in them. Dividends are not always paid. The main reason for giving out shares is to raise capital and so most times, companies will choose to reinvest their profits rather than pay dividends. Not all companies pay dividends. In fact, companies are not required to pay dividends. Companies mostly do because historically, when companies focus on paying and increasing dividends, they do better in the long run.

BUYING AND SELLING

It is in this aspect that the real money is made. Buying and selling shares is one of the best ways to make money on your shares. There are several methods of trading shares that follow different and