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The Definitive Guide to Swing Trading Stocks Edition 5.0www.SwingTraderGuide.comCopyright 2002-20171
The Definitive Guide to Swing Trading Stocks Edition 5.0The Definitive Guide to Swing Trading StocksEdition 5.0DisclaimerThe information provided is not to be considered as a recommendation to buy certain stocks and isprovided solely as an information resource to help traders make their own decisions. Past performanceis no guarantee of future success. It is important to note that no system or methodology has ever beendeveloped that can guarantee profits or ensure freedom from losses. No representation or implicationis being made that using The Definitive Guide to Swing Trading Stocks will provide information thatguarantees profits or ensures freedom from losses.Disclaimer: Futures, FOREX, stock, and option trading is not appropriate for everyone. There is asubstantial risk of loss associated with trading these markets. Losses can and will occur. No system ormethodology has ever been developed that can guarantee profits or ensure freedom from losses.SwingTraderGuide.com makes no representation or implication that using the Definitive Swing TradingGuide's methods will generate profits or ensure freedom from losses.U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Optionstrading has large potential rewards, but also large potential risk. You must be aware of the risks and bewilling to accept them to invest in the futures and options markets. Don't trade with money you can'tafford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representationis being made that any account will or is likely to achieve profits or losses similar to those discussed onthis web site. The past performance of any trading system or methodology is not necessarily indicativeof future results.CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAINLIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOTREPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THERESULTS MAY HAVE UNDER- OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OFCERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMSIN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFITOF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR ISLIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.www.SwingTraderGuide.comCopyright 2002-20172
The Definitive Guide to Swing Trading Stocks Edition 5.0Copyright 2002-2017. All rights reserved. No part of this eBook may be reproduced ortransmitted in any form or by any means, electronic or mechanical, without written priorpermission from the author.This is NOT a free eBook. You are not permitted to give this eBook away or resell it or anypart of its contents without written permission from its author. You should have purchasedthis eBook from www.swingtraderguide.com. If you did not please inform the author de.comCopyright 2002-20173
The Definitive Guide to Swing Trading Stocks Edition 5.0ContentsIntroduction . 6Who Should Read This Trading Guide? . 8The Ground Rules . 9Rule #1: NO “secret” methods will work . 9Rule #2: Price is the ONLY reality . 10Rule #3: A high percentage of winning trades is NOT the answer . 11Rule #4: Risk is ALWAYS present . 12Rule #5: Trading is not an Ego Play . 12What Is Swing Trading? .14Day trading (Ultra short term) . 14Swing trading (Short-term) . 14Position trading (Long-term) . 15The Basics of Trading .16Trading Jargon . 16Stock-Price Charts . 17Comparing Candlestick Charts to Bar Charts . 18Order Entry: Best Practices . 18Market Orders . 18Limit Orders . 19Stop Orders . 19One Caveat (Warning!) . 19Other Order Types . 20All-or-None (AON) Orders . 20Good-till-Cancelled (GTC) Orders . 20Day Orders . 20An Overview of Trading Systems .21Trading System Components . 21Trading Statistics . 22Trading System Quadrant .24Some Common Trading Methods .26WD Gann . 26Fibonacci . 27Elliott Waves . 27Chart Patterns . 27Candlestick Patterns . 28Overbought/Oversold Indicators . 29Trading Only Long or Short . 29Trading on News or on Fundamentals . 30Why Technical Analysis? . 30Using Multiple Time Frames .31How to Choose Stocks for a Watch List .33Trading Volume . 33Stock Share Price . 34Stock Float . 35Identifying Trends Using Price Charts .37Identifying Pivot Points Using Price Charts . 37Trend Lines . 40www.SwingTraderGuide.comCopyright 2002-20174
The Definitive Guide to Swing Trading Stocks Edition 5.0Moving Averages. 42Trade Entry Setups .47Pivot-Point Breakouts . 47Stochastic Oscillator. 51Rate of Change (ROC) . 56Profit-Taking Methods.60Calculating Profit Objectives with Swing Trade LevelsTM . 60Stop-Loss Methods .65Conserving Account Equity . 65Initial Stop-Loss . 65Trailing Stop-Losses . 66Managing Portfolios .68Trade Management . 68Balancing Short and Long Trades . 69Number of Stocks in Portfolio . 70Pyramiding Your Position . 70Putting It All Together .72Trading Campaign Checklist . 72Business Operations . 72Frequently Asked Questions .74Brokers .76Other resources . 77www.SwingTraderGuide.comCopyright 2002-20175
The Definitive Guide to Swing Trading Stocks Edition 5.0IntroductionI have been involved in the investment markets for more than 20 years. I remember when Ifirst learned about stock trading: I thought it was truly amazing to be able to make moneyfrom anywhere in the world and all I needed was a computer, Internet access or a telephone.Trading, in many ways, is the perfect business opportunity.It offers a multitude ofunique benefits: no employeeslow overheadno physical inventoryinstant liquiditymultiple ways to leveragecapitalindependent of economyindependent of climateeasy to scaleeasy to automatefavorable taxconsiderationsthe ability to take time offat any timeI have been involved in the investment markets for more than 20 years. I remember when Ifirst learned about stock trading: I thought it was truly amazing to be able to make moneyfrom anywhere in the world and all I needed was a computer, Internet access or a telephone.Trading, in many ways, is the perfect business opportunity.People are drawn to stock trading for many reasons. Yours might include: Making additional spending incomeProducing capital for other investments, such as real estateSaving for your children’s educationBecoming self-employedBuilding your nest egg for retirementIn my library of stock trading books and courses, I have found that 90% of the information isthe same, just rehashed in some way. However, if I learned just one new thing, I consideredeach purchase worth my while. In this trading guide, I believe you will find not just one, butmany things that will elevate your trading to new levels. In the chapters that follow, you willlearn some of the best techniques I have found for extracting profits from the stock marketon a regular basis.www.SwingTraderGuide.comCopyright 2002-20176
The Definitive Guide to Swing Trading Stocks Edition 5.0I have written this trading guide in a very concise manner. You won’t find a lot of anecdotalstories or hypothetical filler. I tell you what you need to know, why you need to know it andhow I use it. I also include plenty of examples of what I am teachin
trades (long or short) involving stocks that everyone else is trading. Now think about this: If a method is secret, then very few traders are using it. But it takes more than a few traders to move a stock price. The preponderance of buyers or sellers is what causes a stock to rally or decline in the first place.
