Swing trading
Book - 2024
Swing Trading For Dummies introduces you to a trading methodology designed to generate big profits in the short term. Unlike buy and hold investing, Swing Traders endeavor to enter a stock at the precise moment a major uptrend begins and exit for a large profit a few weeks or months later. In order to achieve this result, Swing Trading For Dummies covers the tools you need to get up and running as a trader before moving on to the two main analysis techniques swing traders rely upon: technical analysis and fundamental analysis. These two analysis techniques can be combined to maximize the chances of a successful trade. But no one is perfect, and the savvy swing trader must have a comprehensive risk management plan to deal with trades that fa...il to launch. New in this update to Swing Trading for Dummies is material on the types of positive catalysts a trader should look for to enter a trade, the best way to trade earnings reports, swing trading cryptocurrencies and why you should avoid investing in banking stocks. Learn how swing trading can generate profits in a short period of time Identify the most attractive opportunities and when to buy them Avoid the common mistakes that sink many novices Manage risk and set yourself up for success.
Saved in:
1 being processed
Coming Soon
- Subjects
- Genres
- Handbooks and manuals
- Published
-
Hoboken, NJ :
John Wiley & Sons, Inc
[2024]
- Language
- English
- Main Author
- Edition
- 3rd edition
- Physical Description
- xi, 346 pages : illustrations ; 24 cm
- Bibliography
- Includes bibliographical references and index.
- ISBN
- 9781394288427
- Introduction
- About This Book
- Foolish Assumptions
- Icons Used in This Book
- Where to Go from Here
- Part 1. Getting into the Swing of Things
- Chapter 1. Swing Trading from A to Z
- Understanding What Swing Trading Is (and Isn't)
- Just what can you swing trade?
- The differences between swing trading and buy-and-hold investing
- The differences between swing trading and day trading
- Historical Stock Returns Are Not What They Seem
- What Swing Trading Is to You; Determining Your Time Commitment
- Swing trading as your primary source of income
- Swing trading to supplement income or improve investment returns
- Swing trading just for fun
- Sneaking a Peek at the Swing Trader's Strategic Plan
- Why you should swing trade stocks
- More "what": Trading stocks consistent with your values
- The "where": Deciding where you'll trade
- The "when" and the "how": Choosing your trading style and strategy
- Building Your Swing Trading Prowess
- Chapter 2. Understanding the Swing Trader's Two Main Strategies
- Strategy and Style: The Swing Trader's Bio
- Two forms of analysis, head to head
- Scope approach: Top down or bottom up?
- Styles of trading: Discretionary versus quantitative
- Wrapping Your Mind around Technical Theory
- Understanding how and why technical analysis works
- Sizing up the technical advantages and disadvantages
- Learning two main approaches of technical analysis
- Appreciating the Value of the Big Picture: Fundamental Theory
- Understanding how and why fundamental analysis works
- Surveying the fundamental advantages and disadvantages
- Trading on catalysts
- Chapter 3. Focusing on the Small Stuff: The Administrative Tasks
- Hooking Up with a Broker
- Choosing a broker
- Opening an account
- Selecting Service Providers
- Providers to do business with
- Providers to avoid
- Starting a Trading Journal
- Creating a Winning Mindset
- Part 2. Timing is Everything: Technical Analysis
- Chapter 4. Charting the Market
- Nailing Down the Concepts: The Roles of Price and Volume in Charting
- Having Fun with Pictures: The Four Main Chart Types
- Charts in Action: A Pictorial View of the Security Cycle of Life
- The waiting game: Accumulation
- The big bang: Expansion
- The aftermath: Distribution
- The downfall: Contraction
- Assessing Trading-Crowd Psychology: Popular Patterns for All Chart Types
- The Darvas box: Accumulation in action
- Head and shoulders: The top-off
- The cup and handle: Your signal to stick around for coffee
- Triangles: A fiscal tug of war
- Gaps: An easy way to identify the start of a trend
- Letting Special Candlestick Patterns Reveal Trend Changes
- Hammer time!
- Double vision: Bullish and bearish engulfing patterns
- The triple threat: Morning and evening stars
- Chapter 5. Asking Technical Indicators for Directions
- All You Need to Know about Analyzing Indicators
- You must apply the right type of indicator
- Not all price swings are meaningful
- Prices don't reflect volume, so you need to account for it
- An indicator's accuracy isn't the best measure of its value
- Two to three indicators are enough
- Inputs should always fit your time horizon
- Divergences are the strongest signals in technical analysis
- Determining Whether a Security Is Trending
- Recognizing Major Trending Indicators
- The compass of indicators: Directional Movement Index (DMI)
- A mean, lean revelation machine: Moving averages
- A meeting of the means: MACD
- Spotting Major Non-Trending Indicators
- Stochastics: A study of change over time
- Relative Strength Index (RSI): A comparison of apples and oranges
- Combining Technical Indicators with Chart Patterns
- Chapter 6. Trend Following or Trading Ranges
- Trading Trends versus Trading Ranges: A Quick Rundown
- Trend Trading
- Finding a strong trend
- Knowing when to enter a trend
- Reversion to the Mean trading
- Managing risk by determining your pain threshold
- Trading Ranges: Perhaps Stasis Is Bliss?
- Finding a security in a wide trading range
- Entering on a range and setting your exit level
- Comparing Markets to One Another: Intermarket Analysis
- Passing the buck: The U.S. dollar
- Tracking commodities
- Watching how bond price and stock price movements correlate
- Putting Securities in a Market Head-to-Head: Relative Strength Analysis
- Treating the world as your oyster: The global scope
- Holding industry groups to the market standard
- Part 3. Incorporating Fundamental Analysis into Your Swing Trading Plan
- Chapter 7. The Macro (Economy) and Micro (Business)
- It's the Economy, Dummy
- Economic indicators
- Inflation indicators
- Central Bank (the Federal Reserve)
- Broadening your horizons (internationally)
- What Type of Businesses Are Publicly Traded
- Cyclical sectors
- Defensive sectors
- Why you should avoid financial stocks like the plague
- Sector Rotation
- Why Stock Prices Rise and Fall
- Earnings (really, cashflows)
- Multiple expansion/contraction
- Low Growth Means Less Profit Potential
- Chapter 8. So, What's This Company Worth?
- The Art and Science of Valuation
- Why Valuation Matters
- Do I have to be a financial wizard to do a valuation?
- The most critical fundamentals a swing trader should rely on
- How Swing Traders Should Approach Valuation
- 1. Determining the company's normalized cash flow
- 2. Determining an appropriate multiple to apply to the company's normalized cashflow
- 3. Adding cash, subtracting debt
- Saving your work
- Determining the upside in shares
- Grading candidates as Bucket 1s, Bucket 2s, or Bucket 3s
- Catalysts Are When the Swing Trader Pounces
- Earnings driven
- Healthcare
- Industry-wide events
- Bad positive catalysts
- Chapter 9. Assessing a Company's Stock: Six Tried-and-True Steps
- The Six Step Dance: Analyzing a Company
- Step 1: What is the Company's Business?
- Step 2: Determining a Company's Financial Stability
- Current ratio
- Debt to shareholders' equity ratio
- Interest coverage ratio
- Step 3: Looking at Historical Earnings and Sales Growth
- Step 4: Seeking out Companies Exceeding Earnings and Sales Expectations
- Step 5: Identifying if a Positive Catalyst Exists
- Step 6: Estimating a Company's Value
- Chapter 10. Sourcing: How to Find Swing Trading Candidates
- Seeing the Forest for the Trees: The Top-Down Approach
- Understanding the basics of the top-down approach
- Sizing up the market
- Assessing industry potential
- Starting from the Grassroots Level: The Bottom-Up Approach
- Using screens to filter information
- Assessing your screening results
- Deciding Which Approach to Use
- Part 4. Planning the Trade and Trading the Plan
- Chapter 11. Fall Fast: Managing Risk
- Risk Measurement and Management in a Nutshell
- First Things First: Measuring the Riskiness of Stocks before You Buy
- Looking at liquidity: Trade frequency
- Sizing up the company: The smaller, the riskier
- Avoiding low-priced shares: As simple as it sounds
- Limiting Losses at the Individual Stock Level
- Figuring out how much you're willing to lose
- Setting your position size
- Building a Portfolio with Minimal Risk
- Limit all position losses to 7 percent
- Diversify your allocations
- Planning Your Exit Strategies
- Exiting for profitable trades
- Exiting based on the passage of time
- Exiting based on a stop-loss level
- Chapter 12. Knowing Your Entry and Exit Strategies
- Understanding Market Mechanics
- Surveying the Major Order Types
- Living life in the fast lane: Market orders
- Knowing your boundaries: Limit orders
- Calling a halt: Stop orders
- Mixing the best of both worlds: Stop-limit orders
- New order types: Algorithmic orders
- Placing Orders as a Part-Time Swing Trader
- Entering the fray
- Exiting to cut your losses (or make a profit)
- Placing Orders if Swing Trading's Your Full-Time Gig
- Considering the best order types for you
- Taking advantage of intraday charting to time your entries and exits
- Chapter 13. Walking through a Trade, Swing-Style
- Step 1: Sizing Up the Market
- Step 2: Identifying the Top Industry Groups
- Step 3: Selecting Promising Candidates
- Screening securities
- Ranking the filtered securities and assessing chart patterns
- Identifying a positive catalyst
- Step 4: Determining Position Size
- Setting your stop-loss level
- Limiting your losses to a certain percentage
- Step 5: Executing Your Order
- Step 6: Recording Your Trade
- Step 7: Monitoring Your Shares' Motion and Exiting When the Time is Right
- Step 8: Improving Your Swing Trading Skills
- Chapter 14. Looking at the Scoreboard to Evaluate Your Performance
- No Additions, No Withdrawals? No Problem!
- Comparing Returns over Different Time Periods: Annualizing Returns
- Accounting for Deposits and Withdrawals: The Time-Weighted Return Method
- Breaking the time period into chunks
- Calculating the return for each time period
- Chain-linking time period returns to calculate a total return
- Comparing Your Returns to an Appropriate Benchmark
- Evaluating Your Trading Plan
- Part 5. The Part of Tens
- Chapter 15. Ten Simple Rules for Swing Trading
- Trade Your Plan
- Follow the Lead of the Overall Market and Industry Groups
- Don't Let Emotions Control Your Trading
- Diversify, but Not Too Much
- Set Your Risk Level
- Set a Profit Target or Technical Exit
- Use the Appropriate Order Type
- Use Stop-Loss Orders
- Keep a Trading Journal
- Expand Your Knowledge
- Chapter 16. Ten Deadly Mistakes of Swing Trading
- Violating Your Trading Plan
- Starting with Too Little Capital
- Gambling on Earnings Dates
- Speculating on Penny Stocks
- Monitoring Your Positions Minute by Minute
- Doubling Down
- Keeping Open Positions While You Travel
- Seeking the Opinions of Social Media
- Trading Illiquid Securities
- Overtrading Stocks
- Appendix: Helpful Resources for Today's Swing Trader
- Index