Swing Trading For Dummies from For Dummies
Swing Trading is a style of trading where a trader holds a position longer than one day, but not longer than a month, or two.
This book covers trend lines, support and resistance levels, and other chart formations that are vital for timing swing trades. All important swing trading topics are covered such as technical analysis, fundamentals, risk and money management, screening, entries and exits, and more.
What I really like about this book is that it also covers how currency and bond markets impact the trends swing traders use. I highly recommend this book for anyone who wants to learn how to swing trade.
This core subjects covered in this book are:
Calculating investment returns: This is one of those unglamorous topics but if you don't properly calculating your returns, you will never know how well you are doing versus the overall market.
Keeping a trading journal: I use a blog and website to track my trades but you don't have to be so elaborate. A simple journal will do. A journal is like a trading coach that tells you what you did right and what you did wrong. The idea is to use a journal to stop you from making the same mistakes over and over again. Swing Trading For Dummies shows you what you should be recording in your trading journal.
Managing your risk: Probably the most important chapter is chapter 10 that deals with how to manage your risk. As the famous trading coach Van Tharp once said, even a totally random entry system can be profitable if your risk management system is sound.
Focus on fundamentals: Most traders make the mistake of just focusing on technical chart patterns for swing trading. Don't make this mistake. This book covers what fundamental metrics you can quickly focus on when considering entering a trade. My personal favorite fundamental indicators I use are to look for rising EPS and rising revenue, with a low P/E ratio, and evidence of institutional traders accumulating the stock.
Focus on the Most Important Chart Patterns: Dozens of chart patterns appear from time to time but not all of these patterns are good for swing trading. This book focuses on the most important patterns to use.
Want to know the strategies of successful swing trading? This friendly guide covers the ins and outs of this risky but profitable investing approach, explaining all the basics in plain English. You'll see how to use the two investment approaches - technical and fundamental analysis - to indentify promising securities in strongly trending markets. In addition, this guide covers how to calculate investment returns and, most important, how to manage your portfolio's risk.
- Learn from a highly experienced trader, analyst, and portfolio manager - the author shares his insider knowledge
- Understand often overlooked topics such as money management, journal keeping, and strategy planning - key areas that will largely determine your success
- Focus on the fundamentals - often overlooked by swing traders, fundamental analysis can increase your chance of success
- Determine your entry and exit points with technical analysis - read charts, apply indicators, and compare markets
- Evaluate companies with fundamental analysis - grasp the basics of financial statements and the criteria to screen for undervalued or overvalued stocks
- Develop and implement your trading plan - outline what you trade and how often, decide your risk tolerance, and calculate your performance
Open the book and find:
- The differences among swing trading, day trading, and buy-and-hold investing
- The pros and cons of technical and fundamental analysis
- A step-by-step anatomy of a trade
- A wealth of charts and screenshots
- Real-world examples of swing trading successes
- The 10 deadly sins of swing trading - avoid at all costs!
- Sample trading plans
- Useful resources for navigating data