SWING TRADING
A Comprehensive Guide of the Best-Proven Strategies to Start Making Profits Investing in the Financial Markets with Options, Futures, and Stocks
MARK ZONE
Copyright 2020 Mark Zone
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Table of Contents
Introduction
S
wing trading can be one of the most profitable and rewarding methods of trading and playing the markets. Done right, you can make a living, watch your account balloon up, and enjoy huge profitability that surpasses any buy and hold strategy and uses far less stress than day trading ever has.
But the markets are a wild beast, known for stripping people of their money, turning to get rich schemers into impoverished criers, and the emotionally unsteady into mental messes.
That's what makes the markets so exciting to begin with. Its what makes the entire thing such a wonderful experience to be a part of. I know that you could buy any book on this subject, as theres a plethora of them out there and new ones coming out every day. That you decided to get this book, we are thankful for and we are excited about what you are going to learn and be able to come away with.
This crash-course is going to show you everything that makes the markets so amazing. You will discover how to look at charts and discern the emotions, greed, and fear that every trader is playing with. At any moment, at any time, the markets are the only place that takes into consideration all of these things, and, if you know how to look and what you are looking at, you can see it yourself. We will show you how to think about the fundamentals of businesses, how to take that information, use it, and create economic forecasts based on it.
We are not going to spend hours on fluff or theory but on real trading principles that have helped thousands take millions out of the markets year in and year out. Some excitedly watch their accounts grow from a few thousand to hundreds of thousands of dollars in just a year. And the best thing is, there is a market for every personality, every account size, and every type of trading style. You just need to figure out what works for you and who you want to be in the market. And we are going to help you do that.
Now, look, most of the time, when you want to get this type of information, you would have to buy dozen-plus books. From the psychology needed to trade to massive hefty tomes of 800 to 1,000 pages on how to analyze and tear apart financial statements, to Encyclopedias of Chart Patterns, and in the midst of all that, you would need a book on how to trade. Here, we are combing everything into this one, brief, straightforward tome. With the straightforward and simple rules, you will need to trade, the major things to look for in any business to know if they will be a good trade, and the best chart patterns (with real charts taken from the market at the writing of this book).
So get comfortable, sit back, and ready yourself to learn swing trading. Id love to receive your feedback about this book! Why? Leaving a review may help future readers sharing your experience!
Chapter 1: What Is Swing Trading?
I believe that only short-term price swings can be predicted with any precision.
Linda Bradford Raschke, The New Market Wizards
D
epending on your experience in the market, you may not know what Swing Trading is or you might not know how it differs from other forms of trading. For a lot of traders, there are a bunch of different definitions floating around out there and a lot of different styles of trading that it is easy to get confused.
Most people know what day trading is, with people spending their time sitting in front of a screen and trying to catch a stock or a future making a big enough move that they can take a big position and make a huge profit. It is one of the most active forms of trading and people are divided on the process of it. Day trading was the usual method of trading for those originally on Wall Street who traded in the pits, men and women who scalped in and out of positions as fast as they could to get a few points of a move with as many shares as they could get. Computer technology has made it a far easier process, and the lure of day trading can draw a lot of people to thinking it can be a quick buck. Truth is, like any form of trading, it has its pros and cons, and it has those who make a fortune and those who lose everything.
Next is Position Trading. Position Trading is a lot like swing trading, as it is all about getting in for a big move in the market and then getting out. The difference lies in the amount of time they spend in these positions. A position trader might have realized back in 2013, when Netflix was selling off due to it publicly stating a plan to deprioritize its DVD and Bluray shipping, in favor of focusing on a streaming service, that they were setting themselves up to become a competition to cable. He might take a position and sit back and hold until these things come to fruition. In this case, his position could be three to five years before he sells out when the competition starts to enter the fray. Now, this type of analysis is not to be mistaken for value investing or growth investing.
Value investing is the process of looking for stocks that are undervalued based on fundamental analysis and purchasing shares in the company with the idea of treating your purchase of the company as becoming an actual owner of the company. Benjamin Graham was a fan of saying that. You should never buy a single share of stock in a company you would not personally own. We will go into everything involved in fundamental analysis and what Benjamin Graham and David Dodd made famous with their book Security Analysis.
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