Summary of Brian Pezim & Andrew Aziz's How To Swing Trade

By IRB Media

Get the Summary of Brian Pezim & Andrew Aziz's How To Swing Trade in 20 minutes. Please note: This is a summary & not the original book. "How To Swing Trade" by Brian Pezim & Andrew Aziz is a comprehensive guide to the strategy of swing trading, where investments are held from a day to several weeks to capitalize on expected market moves. The book differentiates swing trading from day trading and position trading, offering strategies tailored to various trader profiles, from beginners to experienced traders...

• Language: English
• Publisher: IRB Media
• Release date: Mar 26, 2024
• ISBN: 9798330006564

IRB Media

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Summary of Brian Pezim & Andrew Aziz's How To Swing Trade

Overview

How To Swing Trade by Brian Pezim & Andrew Aziz is a comprehensive guide to the strategy of swing trading, where investments are held from a day to several weeks to capitalize on expected market moves. The book differentiates swing trading from day trading and position trading, offering strategies tailored to various trader profiles, from beginners to experienced traders. Pezim shares insights from his own trading journey, emphasizing the importance of education, strategic planning, and risk management in trading success.

The authors discuss the significance of understanding market psychology, which can be gleaned from charting techniques, and detail the use of different securities like stocks, ETFs, and currencies for swing trading. They highlight the importance of a favorable risk-reward ratio and not risking more than 2% of the trading account on a single trade.

The book covers fundamental and technical analysis, chart patterns, and trading strategies, advising against holding stocks during unpredictable events like earnings reports. It underscores the value of establishing a routine, keeping a trading journal, and the benefits of swing trading over day trading. Pezim advocates for starting with a business plan and practicing with paper trading before using real capital, aiming to equip traders with the knowledge to improve their swing trading skills.

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Swing Trading Essentials

Swing trading is a strategy where investors hold stocks or other investments for a period that can range from a single day to several weeks. This book provides a comprehensive introduction to the fundamentals of swing trading, distinguishing it from day trading and position trading, and presents a variety of strategies. While simply reading the book won't automatically make you a successful trader, it lays the groundwork for further education, practice, and market analysis.

For those new to trading, the book offers advice on how to begin, what to expect, and how to develop a trading strategy. More seasoned traders can glean insights into Brian Pezim's specific trading approach, rules, and strategies that have contributed to his profitable trades. Pezim's fascination with stocks started in his preteen years, inspired by his father's trading activities, and he even became a shareholder of The Bell Telephone Company of Canada, a share he retains to this day.

The authors stress that trading is not a shortcut to riches; it demands dedication, strategic planning, and effective risk management. Traders should approach it with the seriousness of a business or consider consulting a professional advisor. Successful traders are characterized by their adherence to a well-thought-out plan, their ability to manage risk, and their flexibility in adapting to market fluctuations.

Pezim underscores the significance of grasping market psychology, which can be achieved through charting techniques—an essential skill for traders. The book also details the various tools and securities that can be utilized for swing trading, such as stocks, ETFs, and currencies. It discusses the critical aspects of risk and account management, emphasizing the importance of maintaining a favorable risk-reward ratio and the rule of not risking more than 2% of one's trading account on a single trade.

The book delves into the realms of fundamental and technical analysis, chart patterns, and trading strategies, including tactics for engaging with hot sector plays and market scanning. Pezim shares his core principles and rules for swing trading, cautioning against holding stocks during unpredictable events like earnings reports.

Establishing a routine for swing trading is vital, as is keeping a trading journal to document and analyze trades. The book concludes by highlighting the benefits of swing trading over day trading, such as the extended time available for making decisions. A glossary of common trading terms is provided for easy reference.

Pezim advocates beginning with a business plan and practicing with paper trading before committing real capital. The book is designed to be a valuable resource for both novice and seasoned traders who wish to learn or enhance their swing trading skills.

Swing trading involves holding stocks for a period that spans from overnight to several weeks, with the aim of profiting from predictable market movements. This is