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- Herausgeber: Neil Sharp
- Kategorie: Fachliteratur
- Sprache: Englisch
Do you want to be a swing trader and start making money riding the waves of the market? If so then keep reading…
Do you have problems protecting your investments and funds? Analyzing the markets for the best entries? Reading charts for picking the next hot stocks? Or having the correct trading mindset? If you do, within this book many of the top leaders in the field have shared their knowledge on how to overcome these problems and more, most of which have 10+ years worth of experience.
In The Advanced Swing Trading Guide, you will discover:
- A simple trick you can do to always keep the market odds on your side!
- The best way to determine the best entry and exit timings for swing trading!
- The one method used by all expert traders for organizing their trading day!
- Why creating an effective strategy will help you to optimize your profits and minimize your losses!
- Understanding why some people will fail to learn and apply swing trading!
- And much, much more.
The proven methods and pieces of knowledge are so easy to follow. Even if you’ve never tried swing trading before, you will still be able to get to a high level of success.
So, if you don’t just want to transform your bank account but instead revolutionize your life, then click “Buy Now” in the top right corner NOW!
Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:
Veröffentlichungsjahr: 2020
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Neil Sharp
The Advanced Swing Trading Guide
Table of contents
Introduction
Chapter 1: How Swing Trading Works
Chapter 2: Tools and Platforms for Swing Trading
Chapter 3: Financial Instruments for Swing Trading
Chapter 4: Risk and Account Management
Chapter 5: Fundamental Analysis
Chapter 6: Technical Analysis
Chapter 7: Swing Trading Guiding Principles
Chapter 8: The Routine of a Swing Trader
Conclusion
Introduction
Congratulations on downloading the book: The Advanced Swing Trading Guide. The book is well-organized and provides a beginner’s guide to the best Swing trading strategies, tools, tactics, and psychology to make profits from outstanding short-term trading opportunities on currency pairs’ and thank you for doing so. Technology and globalization have impacted the world in many ways and one of the things that have taken a forefront in swing trading is the foreign exchange.
Many people are interested in trading the forex market but lack the correct information required to succeed. Downloading this book is the first step one can take to understand the different aspects of swing trading. The first step is always the easiest but it is also the most essential. Note that the information contained in this book can help you come up with strategies and identify the indicators and styles required for a successful swing trading experience.
To that end, the chapters will discuss the basic principles of swing trading including a clear definition of forex markets, how they work, the strategies and styles used in swing trading, different terms used in the market, the indicators of the market, merits and demerits of swing trading, cryptocurrencies, technical analysis, and how to manage risks.
There are many books and sources of information on the market about swing trading, thanks again for choosing this one! Every effort was made to see to it that the book contains as much useful information as possible, kindly enjoy reading.
Chapter 1: How Swing Trading Works
Swing trading is a trading technique mostly used by traders in different trading markets. It is a short-term technique that involves selling and buying stock over a tight time period, normally less than two weeks. Swing traders use technical indicators to predict trends of the market and make some short-term profits.
Swing trading can be used as your main trading strategy or as one of many different strategies. In this swing trading guide, we will look at the important information you need to know if you decide to give this strategy a try.
What does swing trading involve?Which technical indicators should you use?What are the benefits?What are the risks?What Exactly Is Swing Trading?
Swing trading is often compared to fundamental trading, which is a trading strategy in which investors monitor and analyze company-specific events to decide when to buy a specific stock, how long to hold it and when to sell it. If you are trading in fundamentals, you are usually swing trading, since any company-specific events will tend to affect stock prices over a few days or even a week or so, rather than on an hour-to-hour basis. There is a little more to swing trading than that, however. Most swing traders use a combination of different technical indicators to decide which markets to invest in and how long to hold their stock.
The trading behavior of a typical swing trader generally sits somewhere between that of a day trader and that of a trend trader. Day traders may hold a stock anywhere from a few seconds to several hours, but all their trades will be completed within a day. A trend trader focuses on long-term fundamental trends and may hold stock for weeks or even months. A swing trader will tend to hold stock for anywhere from a few days to two or even three weeks. Swing traders are aiming to make a fairly quick profit, but they are looking at price changes over a slightly longer period of time than day traders and are trying to predict longer-term price movements, usually using a combination of a few different market indicators.
What Technical Indicators Do Swing Traders use?
If you are interested in this strategy, you will want to learn about the technical indicator’s traders use to try and predict price changes. This involves a lot of examining charts and tracking price movements, but there are various apps and software that can help you. You may want to consider:
A moving averageA relative strength index (RSI)A point & figure (P&F) chartA Fibonacci retracement chartMany swing traders use either a simple moving average or an exponential moving average to identify or confirm a market trend. There are various charting apps that incorporate a moving average. A commonly used system based on an exponential moving average is the Bollinger Bands system. You can also use an RSI indicator. Many traders consider this the best technical indicator for swing trading, giving you a strong indication of when conditions are optimal for entry into a market. You can use your RSI indicator alongside a system that incorporates a moving average. Other indicator options include a P&F chart, which presents periods of rising and falling prices as a grid view, and a Fibonacci retracement chart. Technical indicators only become stronger (in terms of accurate predictions) when used with other indicators. It makes sense to learn your way around one technical indicator at a time, but when devising your own trading strategies, be aware that the more indicators you are monitoring, the more accurate your market predictions are likely to be.
When to Swing Trade
Swing trading is a strategy that can be used in different markets and on any trading platform by traders of all levels. Before you start, you’ll have to decide which broker to use, and your broker comparison research should look closely at trading fees and commissions. You’ll be buying and selling regularly, so your cost per trade is an important figure. You can use this strategy when trading stocks, futures, options, and Forex. While you can deal in any kind of stocks as a swing trader, you will find that there is often an advantage in trading large-cap stocks, simply because they are the most frequently traded stocks on all major stock exchanges.
As a swing trader, you will benefit when markets are fairly quiet and ranging, as you will be able to make a lot of small short-term gains. A sudden upwards trend will afford you an opportunity to make a bigger profit if you buy at the right price point. An extreme bear market or bull market, however, makes things challenging for swing traders. In these markets, momentum will tend to take prices in only one direction for a relatively long period of time. You will not see the same small fluctuations in stock price that you see when the market is stable for a long period of time, and it is those continuous fluctuations that allow swing traders to make small but regular profitable trades.
Strategies Used in Swing Trading
This method is, of course, a strategy in itself, but you will also have to develop your own specific trading strategies based on the technical indicators you want to use, the stop-loss limits you want to set and other variables important to you. Take time to consider all these factors and get everything in place before you start trading. In a ranging market, you will probably want to go with a very straightforward “buy low, sell high” strategy, but it is also possible to swing trade in a trending market. Even in an uptrend, for example, there will often be a step-like or zigzag pattern as a stock pulls back slightly before continuing an uptrend.
Bullish swing traders will use a stock rising out of a ‘step’ to try and take a profit before the next small pullback. For most swing traders though, a ranging market is an ideal one to work in. Many swing traders will start with a very simple strategy, often using a tool such as Bollinger Bands, which use that exponential moving average we referred to earlier to create a ‘support and resistance’ system. Once you can accurately use this system to find a ranging market and identify the best times to buy and sell, you have one of the most straightforward strategies used by swing traders at your disposal, and you can begin to experiment.
Learning to Swing Trade
Swing trading refers to the longer-term trading style which requires a trader to hold his/her trades for a number of days. Unlike the day trading style, this trading style is appropriate for people who cannot monitor their charts for many hours during the day but can spare some time to analyze the market. For example, someone who is fully employed during the day may use a couple of hours at night to study the market. These traders have a tight schedule but they have some time to stay updated with the happenings in the world economy. Swing trading seeks to identify the swings occurring within a medium-term trend and the trader enters when he/she sees a high chance of winning. For instance, a trader should aim to go long when the swings are low and go short when the swings are high to benefit from the countertrends. Considering that the trades last longer than a day in the swing trade, the trader has to select large stop losses so as to whether volatility. This must be included in the money management plan. There is a possibility that a trader will see trades going against him/her because the price scan fluctuates a lot during the short time frames, A swing trader should remain calm in these timeframes and trust his/her analysis. A swing trader usually has larger targets theretofore the spread price does not have a lot of impact on the overall profits. Consequently, trading pairs with lower liquidity and larger spreads are acceptable.
One may participate in the Swing trade if he/she; does not mind holding the trades for a number of days, Is willing to make more careful decisions based on thorough analysis and selecting only a few trades at any one time, is very patient, does not mind large stop losses, and is able to remain calm when the trades go against the expectation. If one likes action packed and fast paced trading, is impatient and wants immediate results, cannot spend time doing a thorough analysis of the charts, then he/she should avoid swing trades.
Swing traders analyze the swings which consist of two parts; the swing point and the body. The swing point Is the point at which the trend starts moving in the opposite direction while the body is the bend between one swing point and the next. The trader has a task of timing his/her entry in a way that facilitates the catching of a majority of the body.
Catching a swing point can be very lucrative but it is not compulsory. In fact, a trader might lose more while trying to catch the extreme swing points on the top and the bottom. One good way of approaching swing trade involves waiting patiently for a signal to buy or sell. In any market move, the swing body is the most profitable part.
Comparison between day trading and swing trading
The main difference between day and swing trading involves the time required for holding a position. In day trading, the trader must close out all the positions within the day. On the other hand, swing trade requires a trader to hold a position overnight and take on the risk of the ups and downs of the chart that occur at night. Consequently, when a trader takes a swing trading, he/she takes a smaller position size compared to the day trader. Day traders utilize leverage to hold large position sizes.
Both swing and day trades do not rely so much on the commodities that one wishes to trade in, for instance, oil and stocks, rather it all a matter of time. Consequently, the day trader will be interested in the changes within the day for example at four hours intervals while the swing trader will pay more attention to multiday charts and patterns. Some of the patterns that the swing trader will watch include head and shoulder patterns, double bottom, cup and handle patterns, triangles, shooting stars, flags, and moving average crossovers.
Another difference between the day trading and swing trading involves the stop-loss approaches. Stop losses in the swing trading normally wider than the day trading because of the difference in profit targets.
Swing trading is a trading style preferred by many retail traders because firstly, they contain entry and exit strategies that do not require one to keep checking the charts every few minutes or hours and secondly, it is a long-term strategy. The trading style is well suited for people with busy lives or even full-time jobs, therefore, cannot afford to watch the charts every other minute.
Traders that use the swing trading technique may use timeframes on the charts from as low as 5 minutes to an hour. Swing traders may combine both the fundamental and technical analysis to draw conclusions and make decisions. To a large extent, it does not matter whether the market has a long-term trend and/or that the market is range bound because the forex swing trader will not hold the positions long enough for these factors to count.
