How To Swing Trade - A Beginners Guide to Trading | eBook reader enthusiast
How To Swing Trade - A Beginners Guide to Trading Tools, Money Management, Rules, Routines and Strategies | eBook reader enthusiast
Brian Pezim's book How to Swing Trade: A Beginner's Guide summarizes that swing trading involves holding positions for several days to weeks to profit from short-term price movements. Key takeaways for beginners include learning basic strategies, using technical analysis tools, applying disciplined money management and risk control, and establishing a consistent routine.
Tools, routines, and money management
Trading tools:Essential tools for beginners include:
A reliable trading platform (e.g., TradingView or thinkorswim).
Charting software to visualize price movements over multiple timeframes (daily, weekly, 4-hour).
Technical indicators such as Moving Averages (MA), Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD).
A stock screener (e.g., Finviz) to find stocks matching specific criteria.
A trading journal to document and learn from your trades.
Money management and risk control: The book emphasizes minimizing risk to protect capital.
Position sizing: Risk only 1–2% of your account capital on any single trade.
Stop-loss orders:Set a stop-loss order at a predetermined level to automatically exit a trade if it moves against you, protecting against significant losses.
Risk-to-reward ratio:Aim for a ratio of at least 1:2, meaning your potential profit is at least double your potential loss.
Trading routine:A disciplined routine is crucial for success.
This involves:
Performing market analysis and scanning for stocks, often outside of market hours.
Creating a detailed trading plan that defines your entry and exit criteria.
Monitoring open trades during market hours.
Reviewing your trades and performance at the end of the day or week.
Strategies for beginners
Fundamental vs. technical analysis:While swing trading primarily uses technical analysis to predict price movements, it also incorporates fundamental analysis to understand a company's underlying value and broader market conditions.
Trend following:
This involves identifying and trading in the direction of the dominant trend, often by buying during pullbacks to support levels.
Breakout trading:This strategy entails entering a trade when a stock's price breaks out of a defined support or resistance level with high volume.
Reversal trading:This focuses on identifying when a trend is about to reverse, often by using indicators like the RSI or MACD to spot overbought or oversold conditions.
Practice with a demo account: Before trading with real money, beginners should practice their strategies with a simulated or "demo" account.
INSTANT DOWNLOAD AFTER PURCHASE!
