A Practical Guide to Swing Trading

How to get started swing trading
• Read this book
• Open an account with an online discount broker (recommendations are
provided)
• Select a method for identifying swing trading opportunities
− subscribe to a service like MasterSwings and get several swing trading
suggestions each day
− use MrSwing Lite and get free swing trading suggestions each week
A Practical Guide to Swing Trading by Larry Swing
Visit: http://www.mrswing.com or email:
− use SwingTracker and identify swing trading opportunities yourself,
whenever you’d like
− Use the Master Plan to enter and exit your trades
− Be disciplined and have patience
2.3 What will this book teach you
• the rational behind swing trading
• how to identify stocks to swing trade
• when to enter a trade
• when to exit a trade
• how to maximize profits and minimize risk
• what tools are available to help you select stocks and monitor your progress
• what books to read to learn more about swing trading
The best part of my swing trading method is that you do not have to watch your
positions during the day. Simply enter an order to buy or sell short, give your
discount broker the buy order and two sell orders and go back to your daily life.
2.4 Prefaces
Suri Duddella, siXer.com
Traders and investors study markets through price charts. These powerful visual
tools offer a common language for all stocks, options, and indices. The theory
behind this is called Technical Analysis. Technical Analysis begins with a simple
observation that all market activity is reflected in the activity of price and volume
over time. These three pieces of information create a profound visual representation
when properly presented in a chart.
Prices rise and fall, with rising prices being stimulated by greed and falling prices by
the awakening of fear. This emotional war between greed and fear generates a
swinging price movement that provides a perfect opportunity for swing trading.
Swing Traders capitalize on the emotions of others while they carefully control their
own emotions and systematically enter and exit trades. Swing Traders recognize the
levels of support and resistance. They understand the concepts of momentum and
volatility and can identify a trading range or channel.
A Practical Guide to Swing Trading by Larry Swing
Visit: http://www.mrswing.com or email:
Equity trading provides a natural arena for Swing Traders. As price seeks an
equilibrium state, Swing Traders seek to exploit direct price thrusts as they enter
positions at support and resistance. By examining chart pattern characteristics they
make money in both trending and range bound markets. Swing Trading is a classic
strategy that involves holding stocks for a short period of time, typically between a
few days to a few weeks. Unlike day trading, Swing Trading is independent of time –
nevertheless, some Swing Traders will exit a slow-moving position and move onto
the next opportunity.
Swing Trading is very popular among short-term and medium-term traders. It offers
many virtues compared to the hyperactivity of day trading. With recent changes in
SEC regulations that affect the way brokerage firms administer margin to 'Day
Trading' accounts, many day traders have moved away from day trading towards a
swing trading style.
Larry Swing has developed a wonderful software program called SwingTracker that
allows users to scan all listed stocks using his Swing Trade Identifiers to identify
swing trading opportunities. The program allows the user to monitor their trades in
real-time. His technical analysis concepts of EquiVolume and Force Index coupled
with his Swing Trading tactics are a marvelous contribution to the swing trading
community.
Larry Swing has mastered the art of Swing Trading. His website –
www.mrswing.com – not only presents the theoretical underpinnings of swing
trading, but provides a detailed road map of how to use them. This book – A
Practical Guide to Swing Trading – communicates the essence of his ideas in a simple
and straightforward way. It describes the tools necessary to identify swing trading
opportunities, and the guidelines needed to implement his strategy.
This book is filled with innovative, important trading techniques. This book is a great
asset to both beginner and experienced swing traders.
Suri Duddella
President & CEO
siXer.com, inc.
A Practical Guide to Swing Trading by Larry Swing
Visit: http://www.mrswing.com or email:
Dr. Sergey Perminov, OptionSmart.com
Nowadays, when the number of online traders is