When he was young, Brian would watch his father study the newspaper’s stock listings and then place orders by phone with his broker. One day, Brian asked his father if he could buy some stock. His father subsequently bought him one, yes, one share of “The Bell Telephone Company of Canada”. Although his future would include a Science degree, positions in the corporate world, and an MBA, Brian never lost his interest in the markets. He still proudly owns that one share, and he’s been trading for most of his adult life.
All of the points listed above are discussed and presented in much more depth in Brian Pezim’s book; “How to Swing Trade”. If you are a beginner trader, this book will equip you with an understanding of where to start, how to start, what to expect from swing trading, and how you can develop your own strategy based on your personal goals. If you are a trader with some existing experience, this book will give you some insights on the author’s approach to swing trading, rules that I follow and some strategies that I have used.
As a swing trader, you may find this type of trading more suitable to your lifestyle and personality compared to other types of trading such as day trading. These advantages include the following:
Given all of the factors listed above, swing trading may be a better option for you compared to day trading. However, as I previously mentioned, it is also possible to be a swing trader and a day trader. If you have the time, temperament and financial ability to do both, then that is an option you should consider. Many of the skills required to do swing trading, such as recognizing chart patterns, are equally applicable to day trading.
Like starting any other business and profession, be it part time or full time, you require a few important tools to trade. First, you will need to open an account with a broker if you do not already have one. Your broker will supply an online order execution platform. It will be up to you to learn how to use it, but all of the platforms are pretty straightforward and easy to use.Fortunately, there are numerous brokers and stock trading platform options available today that allow you to trade online. The brokerage choices available to you will depend on the country you are currently residing in.
If you do not have an active trading account, I suggest you do a Google search to find current reviews on brokers in your area that come recommended. The following is a list of factors you will want to consider when choosing a broker:
Fortunately for the swing trader, a number of excellent free resources and online tools are readily available. Listed below are several I have used in the past.
Some swing traders will chose to start out paper trading which can help you gain valuable experience before putting your real
There are numerous types of financial instruments that you can swing trade with and each one of them has its own advantages and disadvantages. The particular instrument you prefer over others may be based on your personal risk profile, your level of experience in the market, the current market conditions, your personal temperament, etc.
Below are a number of different instruments that you can consider for swing trading. The list is not all-inclusive but does cover the most popular vehicles for this type of trading. This list includes:
The level of interest in cryptocurrencies has dropped significantly in 2018 however potential for highly volatile moves in price remain.
As a trader, the money you are investing in the market, your capital, is one of your most important and vital tools. Without capital, there is no way for you to make money, no matter how many other tools and skills you might possess. Protecting this capital should, therefore, be the highest priority for any swing trader. To protect your capital, there are 4 very important processes a successful trader must use:
Both fundamental factors and technical analysis can be used by swing traders to assess the potential for a profitable trade.
Fundamental analysis is an analysis of hard data on a company, a commodity, a financial instrument, a sector, etc. That data can include one or more of the following:
Technical analysis of securities is based on the principle that past price movements in a financial instrument are a predictor of the future moves in the price. Trading volume (the number of securities being traded) is often combined with price movement to help improve these price prediction models.
Charts can be created to represent price movements over different periods of time. These charts of price movements sometimes trace out recognizable patterns that a swing trader can use to find entry and exit opportunities on securities.
Other technical indicators can be generated using established formulas such as simple moving averages, relative strength indicator and moving average convergence-divergence. These can also be used in a swing trader’s arsenal of tools to trade profitably.
Both fundamental and technical analysis are topics that are discussed extensively in the book “How to Swing Trade” by Brian Pezim. A basic understanding of these topics is critical for a trader.
There are a number of different strategies that you can use to identify swing trade opportunities. The strategies that you decide to use will depend both on market conditions and, of course, your own personal preferences.
The following 3 strategies are the ones that I discuss in my book and primarily employ:
These strategies do not work at all times and therefore you will need to be constantly tuned to the overall market to ensure that the strategy you are using is appropriate for the existing market conditions. As I have alluded to before in this book, sometimes the best trade is “no trade” at all.