What Are the Advantages and Disadvantages of Swing Trading

A swing trader typically catches short-term price trends that range from a few days to a few weeks. There are several advantages and disadvantages to swing trading. Some of the disadvantages are Swing trading involves more buy sell decisions, which implies the possibility of more mistakes, and also the increased costs of frequent movements (commission and slippage). It is unrealistic to believe that even with the best tools, we will be able to obtain the 77.7 percent profit stated earlier. I...

Three Pillars of Successful Trading Strategies

We saw in Figure 6.26 that the three pillars of a successful trading strategy for swing trading are 1. Have a good assessment of value so that you select a stock that is cheap, with an upwards potential. 2. Find the right trigger to enter the trade at a good time. 3. Time management manage the evolution of the trade, and shorten it if possible. Let's review the different traditional tools that could be used for the three pillars Value Assessment As explained in Chapter 2, I refer to the...

Effective Volume

When you are considering a stock to trade, you have to view yourself as a doctor treating a patient. You have three points of view to help you in your diagnosis 1. The patient's general condition age, gender, any preexisting conditions, regular exercise or not, smoking or heavy drinking, and so on. 2. The patient's symptoms pain, fever, swelling, and the like. 3. The patient's internal examination a blood test, a scan, an X-ray, and so on. When analyzing a stock, you may think that the general...