Registered User
Joined: 5/4/2010
Posts: 18
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Hi folks,
I am looking to begin swing trading, I'm doing alot of reading. Learning chart patterns, candlesticks and indicators. I have downloaded tons of material from the web. What I am looking for is recommendations from active traders on reading materials and /or courses that you believe in, or for that matter, courses to stay away from. I don't really want to trade somebody elses system, I would rather learn to trade using my own knowledge. I am laid off at work so have plenty of time to read and learn but am in no great hurry to jump in until I am confident in my knowledge.
Thanks for any and all responses.
Bill
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Registered User
Joined: 2/5/2006
Posts: 1,148
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if you have time you can practice your strategies on the intraday charts.
make sure you have a sound money mangement strategy. otherwise you'll be out of the game before you know it.
remember 80% of stocks trade in the direction of the market. an inter market analysis is important. use not only charting techniques, but also breadth and sentiment indicators.
i'd suggest newbies trade indexes and etf's.
as far reading, start with some of john murphys book, to get an overall understanding of technical analysis. although you will have to develope trading strategie's on your own.
we're not allowed to post links here, but google the "pragmatic capitalist" for some good reading, and "thechartpatterntrader.blogspot" for some free technical anaysis. but take everything with a grain of salt.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Why swing trade?
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Registered User
Joined: 2/19/2008
Posts: 193
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I was taught by Martha Stokes at Technitrader and was quite happy with her course. She provides ongoing support with daily analysis and availability by e-mail. She teaches both fundamental and technical analysis. She uses Telechart and Metastock to help with analysis. You can look her up at Technitrader or on Twitter for morning market bias.
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Registered User
Joined: 5/4/2010
Posts: 18
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Thanks funnymony.
Hey Tobydad. It seemed like swing trading would be the way to go to trade for income. Day trading seems like more of a video game and I am not that fast! What type of trading do you do?
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Registered User
Joined: 10/7/2004
Posts: 2,181
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I swing trade (mostly) but that's completely immaterial. I'll tell you what I've told many others. Before you start studying, why don't you sit down and write out what is it you really want. Ask yourself, "If, tomorrow, I had $1M cash to do whatever I wanted, what would I do with my life?" Don't come to an answer quickly; really think about it. Then start writing down what you really want and you have a chance of coming to the better answer with respect to what type of trading you should be doing. It will affect your entire approach, even the type of money mgmt systems that you use.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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WP, you are on the right track when you speak of trading your own system. Reading and studying the supposed experts is a good way to keep trading fresh on your mind; it can also remind you of facts and events that you have sitting on the back burner that inspires you to re-integrate them into your current methods. But ultimately one must become independent from outside noise and to focus more on the reality of his job.
Market bias is the fist step in Swing Trading in my opinion because with out the proper Market conditions then it will be very difficult for you to be consistent. I find that a strong bias or commitment in direction by the shapers and movers of the markets is the best time to swing trade.
The best times that I can remember that give me great confidence is just after a market correction has been resolved and price has nestled itself right above the 20day sma and the 45day is starting to look up. You might get a couple of false starts but soon enough the trades will start to work consistently and all is well.
Apsll
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Registered User
Joined: 2/21/2007
Posts: 797
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Just trade in no more than 100 share lots. $ amount not important, % is . Watch the downside, but allow enough room to run. If you figure that out, let the rest of us know your new found secret. KISS!
check the patternsite dot com you'll learn alot. hopefully
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Registered User
Joined: 7/11/2005
Posts: 34
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Keep track of every one of your paper trades and real trades. Analyze how you could have done better. After a while you'll see patterns develop in your own trading. You'll discover faults and you'll need to correct them. You'll develop rules and know when it makes sense to break them.
You'll always learn more from yourself than you will from any book or class. But you have to take the time to do it.
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Registered User
Joined: 10/26/2005
Posts: 238
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To swing trade you need to be in tune with the market. IMO thats number one, number 2 is proper position size to max profit and limit risk is a must, buying 100 share lots is not the best way, Sorry. 3 target and stops you must obay them, no exceptions. AB
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Registered User
Joined: 3/15/2010
Posts: 54
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QUOTE (allenbary)
To swing trade you need to be in tune with the market. IMO thats number one, number 2 is proper position size to max profit and limit risk is a must, buying 100 share lots is not the best way, Sorry. 3 target and stops you must obay them, no exceptions. AB
I strongly dissagree. I would say you need to be in tune with yourself.
Who make the most sucessful trades in the markets. Let me refresh - housing collapse. Who was in the opposite side of the credit default swaps. Were they in tune with the markets?
Are you really protecting your trade to find out sucess or failure?
Food for thought.
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Registered User
Joined: 10/26/2005
Posts: 238
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tdmartha Your comment makes no sence to me and all over the place.
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Registered User
Joined: 2/21/2007
Posts: 797
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[QUOTE=allenbary]
buying 100 share lots is not the best way,
AB: Did you read the original post? The guy was just getting started. What should he do, go buy 10,000 shares of something, have it dump, and he loses his account? This was supposed to be a learning experience. Stay in the game longer is what counts.
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Registered User
Joined: 10/26/2005
Posts: 238
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Yes I understand that John. but it is still not the best way even for a newbie. Position sizing is easy, the formula is......... entry price - stop loss price equals RISK per share,,,,,,,,,,, then 1% of your accout value divided by RISK SO if I buy at 10.00 my stop is 9.00 I am risking $1.00 per share right. if one percent of my trading account is 450.00 than 450 divided by 1.00 = 450 shares is the correct size. BUT i would suggest that newbie's risk no more than .5 % till they get some experence. PS this takes about 3 seconds if you use excel.
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Registered User
Joined: 2/21/2007
Posts: 797
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AB: Yes, but I think that being able to allow for a bigger stop, allows one to stay in the trade longer, allowing for more experience to handle insignificant moves. Thus the trader learns to stick with the trade , to prove that one's method is working. Therefore by trading smaller lots to begin with, the trader doesn't lose a bunch and give up. To each his own, i guess.
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Registered User
Joined: 10/26/2005
Posts: 238
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there is usually more than one right answer, a couple years ago I changed from round lots to position sizing, my monthly gains went way up, but sometimes i would not buy all the shares the formula shows I should. I did this thinking that it was safer and less risk. in my end of year review of my trading I add a column to my spread sheet to show the correct positions size, my total profit was more than double. I was short changing myself. now I stick to the proper position size.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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" Yes, but I think that being able to allow for a bigger stop, allows one to stay in the trade longer, allowing for more experience to handle insignificant moves."
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Well if you "position size" you will buy less equity the larger your stop is.
Thanks
diceman
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Registered User
Joined: 10/26/2005
Posts: 238
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wpalermo this is the reading list from my blog http://wallstreet2easystreet.blogspot.com
BEST BOOKS TO LEARN FROM (AVOID THE REST)
Technical Analysis By: Brian Shannon
Mastering the Trade By: John F. Carter
Trading in the Zone By: Mark Douglas
Methods of a Wall Street Master By: Victor Sperandeo
The Market Maker`s Edge By: Josh Lukeman
Master Day Trader By: Velez and Capra
If you`re very new start with Beginners Guide to Short-term Trading By: Tony Turner
also I have a link to freestockcharts.com its a good place to start chart reading. See the tc2000 chart of EXM it is the best set up for a swing entry . BTW I promote nothing and have nothing to sell.
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