Swing Trading For Dummies

Increase profit and limit risk with swing trading basics Swing trading is all about riding the momentum of brief price changes in trending stocks. Although it can be risky, swing trading is popular for a reason, and Swing Trading For Dummies, 2nd Edition, will show you how to manage the risk and navigate the latest markets to succeed at this lucrative trading strategy. In this updated edition, you'll find expert guidance on new accounting rules, the 2018 tax law, trading in international markets, algorithmic trading, and more. Plus, learn about the role social media now plays in moving asset prices, and how you can tap into online trends to ride price swings. Understand money management, journal keeping, and strategy planning Focus on fundamental analysis to increase your chance of success Evaluate companies to screen for under- or overvalued stocks Develop and implement your trading plan and calculate performance Starting from the basic differences between swing trading and other trading styles and progressing through plain-English explanations of more advanced topics like charts and reporting standards, Swing Trading For Dummies will help you maintain and grow your assets with swing trading in any market!

Auteur

Omar Bassal, CFA, is the founder and managing director of Shukr Investments. He has held senior investment positions in the United States and Middle East. Bassal holds the Chartered Financial Analyst designation, an MBA with honors from the Wharton School of Business, and has been investing since 1994. Omar wrote the first edition of Swing Trading For Dummies in 2008.

Texte du rabat

• Identify promising markets and sectors to trade
• Figure out how to profit from short-term opportunities

• Manage risk at the portfolio and security level Discover how to boost profits and manage risks There's no denying itswing trading has its risks. That's why you're bound to improve your chances of success when you equip yourself with the advice provided in this book. Author Omar Bassal, CFA, has made his share of mistakes and learned what works and what doesn't. Along with essentials such as chart patterns, technical indicators, and financial statement basics, he goes a step further with guidance on proper money management, journal keeping, risk management, creation of a complete trading plan, and the major changes in the investment landscape over the last few years. Inside...

• How to build your trading plan
• Understand how the market drives trading opportunities
• What the most important fundamental measures are
• Find out how to calculate investment returns
• Manage risk effectively
• How social media can impact your portfolio

Résumé
Increase profit and limit risk with swing trading basics

Swing trading is all about riding the momentum of brief price changes in trending stocks. Although it can be risky, swing trading is popular for a reason, and Swing Trading For Dummies, 2nd Edition, will show you how to manage the risk and navigate the latest markets to succeed at this lucrative trading strategy.

In this updated edition, you'll find expert guidance on new accounting rules, the 2018 tax law, trading in international markets, algorithmic trading, and more. Plus, learn about the role social media now plays in moving asset prices, and how you can tap into online trends to ride price swings.

• Understand money management, journal keeping, and strategy planning
• Focus on fundamental analysis to increase your chance of success
• Evaluate companies to screen for under- or overvalued stocks
• Develop and implement your trading plan and calculate performance
  Starting from the basic differences between swing trading and other trading styles and progressing through plain-English explanations of more advanced topics like charts and reporting standards, Swing Trading For Dummies will help you maintain and grow your assets with swing trading in any market!

Contenu

Introduction 1

About This Book 2

Foolish Assumptions 3

Icons Used in This Book 3

Where to Go from Here 4

Part 1: Getting into the Swing of Things 5

Chapter 1: Swing Trading from A to Z 7

Understanding What Swing Trading is (and Isn't) 8

The differences between swing trading and buy-and-hold investing 8

The differences between swing trading and day trading 11

What Swing Trading is to You: Determining Your Time Commitment 12

Swing trading as your primary source of income 12

Swing trading to supplement income or improve investment returns 13

Swing trading just for fun 14

Sneaking a Peek at the Swing Trader's Strategic Plan 14

The what: Determining which securities you'll trade 15

More what: Trading stocks consistent with your values 17

The where: Deciding where you'll trade 18

The when and the how: Choosing your trading style and strategy 19

Building Your Swing Trading Prowess 24

Chapter 2: Understanding the Swing Trader's Two Main Strategies 25

Strategy and Style: The Swing Trader's Bio 26

Two forms of analysis, head to head 26

Scope approach: Top down or bottom up? 29

Styles of trading: Discretionary versus Quantitative 29

Wrapping Your Mind around Technical Theory 30

Understanding how and why technical analysis works 31

Sizing up the technical advantages and disadvantages 33

The two main approaches of technical analysis 34

Appreciating the Value of the Big Picture: Fundamental Theory 37

Understanding how and why fundamental analysis works 37

Surveying the fundamental advantages and disadvantages 39

Looking at catalysts and the great growth/value divide 40

Chapter 3: Focusing on the Small Stuff: The Administrative Tasks 45

Hooking Up with a Broker 46

Choosing a broker 46

Opening an account 49

Selecting Service Providers 50

Providers to do business with 51

Providers to avoid 55

Starting a Trading Journal 57

Creating a Winning Mindset 59

Part 2: Timing is Everything: Technical Analysis 61

Chapter 4: Charting the Market 63

Nailing Down the Concepts: The Roles of Price and Volume in Charting 64

Having Fun with Pictures: The Four Main Chart Types 65

Charts in Action: A Pictorial View of the Security Cycle of Life 68

The waiting game: Accumulation 68

The big bang: Expansion 70

The aftermath: Distribution 71

The downfall: Contraction 73

Assessing Trading-Crowd Psychology: Popular Patterns for All Chart Types 74

The Darvas box: Accumulation in action 75

Head and shoulders: The top-off 76

The cup and handle: Your signal to stick around for coffee 78

Triangles: A fiscal tug of war 80

Gaps: Your swing trading crystal ball 81

Letting Special Candlestick Patterns Reveal Trend Changes 84

Hammer time! 85

The hanging man 86

Double vision: Bullish and bearish engulfing patterns 86

The triple threat: Morning and evening stars 88

Measuring the Strength of Trends with Trendlines 89

Uptrend lines: Support for the stubborn bulls 90

Downtrend lines: Falling resistance 91

Horizontal lines: Typical support and resistance 92

Chapter 5: Asking Technical Indicators for Directions 93

All You Need to Know about Analyzing Indicators 94

You must apply the right type of indicator 94

Not all price swings are meaningful 94

Prices don't reflect volume, so you need to account for it 96

An indicator's accuracy isn't the best measure of its value 97 Two to three indi...