SWING TRADING

WHAT IS SWING TRADING?

· Spend only 5 to 10 minutes a day analyzing stock charts and reading fundamental news.

· Buying at swing lows and selling at swing highs, typical trade could last between 1 day to 7 days, though some may last 30 days. Also consider shorting stocks at swing highs and cover at swing lows.

· Mostly TECHNICAL ANALYSIS, but fundamentals are important to guide the trade.

· Begin with fundamentals— finding stocks that are fundamentally undervalued or overvalued.

· Look at the charts— look for bullish or bearish patterns.

WHY TECHNICAL ANALYSIS?

· Most professional traders used them—self-fulfilling prophecy.

· IT WORKS! Because so many pros are using them, PROS force the technical patterns to happen.

WHAT TYPE OF RETURNS CAN I EXPECT?

· 30% monthly if you are good!

· 10% monthly on average

· 10% per trade

· Why 10% per trade and yet only 10% monthly?

· You do not trade 100% of your portfolio

· You do not win 100% but only 80% of the time

· You can trade 100% and win 30% monthly if you are really good! (THIS IS RARE!)

· GREED STINKS. SWING TRADING requires discipline.