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Published:
November 27, 2024

Swing Trading For Dummies

Overview

Learn how to maximize profits and minimize risks trading over the short term

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 fail 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

For new and seasoned investors looking for a comprehensive and trusted reference on swing trading, this Dummies guide is the perfect solution.

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About The Author

Omar Bassal, CFA, is a Chief Investment Officer with thirty years’ experience trading stocks. He is a Chartered Financial Analyst and holds an MBA with honors from the Wharton School of Business.

Sample Chapters

swing trading for dummies

CHEAT SHEET

Swing trading is all about taking calculated risks to increase your portfolio. Because of the inherent risks of swing trading, it makes sense to cover the fundamentals before you get started. You need to know how to judge an industry’s strength in the market, identify good candidates to swing trade, and most of all, manage your risk as best you can.

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Articles from
the book

In swing trading, stock traders hold an asset for one or more days, hoping to profit from price changes or "swings."Swing trading can and should be enjoyable. But swing trading is still a business, so you must stick to certain rules designed to keep you in the game. After all, if you have no capital, you can’t trade.
Being a successful swing trader calls for many skills, including the ability to assess the relative strengths of various market sectors. If you determine which stage the economy is in and then use that information as you review the following chart, then you’ll have a good idea which economic sectors are likely to lead the market in the near future.
Swing traders rely on a variety of products and services to analyze potential trades and stay sharp in their work. This article provides more details on the top ten resources. These resources aren’t necessities, but they do help you quickly identify financial securities and monitor their activity. Other resources keep you sharp on your game.
When you know the maximum amount of capital you want to allocate to a single position — based on the percent of capital approach or the risk level approach — you’re ready to take a step back and see the forest for the trees.The risk of focusing on individual securities at the expense of your portfolio is a simultaneous breakdown of several positions.
The most important determinant of whether you'll be a successful swing trader is how well you manage risk. Ask yourself these questions before placing a trade to ensure you don't cut corners: Is the security liquid? Is the security a penny stock (hopefully not)? Are you prepared to limit losses at the individual stock level?
When swing trading, it's important to manage risks. When you know how to determine how risky a stock is, you can use that information to guide how you manage its risk in the context of your portfolio. Managing risk at the individual stock level means making sure that no single position destroys your portfolio.
To succeed with swing trading, you need to know how to read market indicators. Make a swing trade that’s more likely to yield good results by getting to know the following signs of favorable conditions. (Just keep in mind that no trade is a sure money-maker.) The market is on your side. A rising tide lifts all boats.
Swing trading is all about taking calculated risks to increase your portfolio. Because of the inherent risks of swing trading, it makes sense to cover the fundamentals before you get started. You need to know how to judge an industry’s strength in the market, identify good candidates to swing trade, and most of all, manage your risk as best you can.
Swing trading is the art and science of profiting from securities’ short-term price movements spanning a few days to a few weeks. Swing traders can be individuals or institutions. They’re rarely 100 percent invested in the market at any time. Rather, they wait for low-risk opportunities and attempt to take the lion’s share of a significant move.
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