Today we’re taking a look at some of the best swing trading books.
If you were looking to invest or are around people who do, you would use words like. Listen trade, technical analysis, Fundamental analysis, day trading, among others.
The spectrum of the investment time horizon shows day trading and trend trading at its extremes.
Day trading involves buying and selling stocks within the trading period on the same day.
Trend trading is comparatively long-term, which usually takes a few weeks to months.
Swing trading is a strategy that seeks to integrate something between steroid-driven day trading and sluggish passive investing.
Therefore, it is a near to medium-term investment on a time basis.
The advantage of such trades is that the investor can benefit from both short-term trends and emerging fundamental changes in the company. It’s like having the best of both worlds. It does not require participation like a day trader who would stick to the screen on all trading days.
Further advantages are:
- investment Returns are realized comparatively early, and strategy can be changed if necessary.
- It can give way regular monthly income for investors with less exposure when responding to short-term trends.
- It contains less risk as day trading.
- Returns as high as 1% to 2% over a month on an annual basis can be remarkably high.
Swing trading offers good returns, but it can be risky as short-term trends may not be reflected in stock prices.
You can expect a given drug company to have good annual results due to the increased demand in the pandemic. However, it could still be below market expectations and stock prices would fall rather than rise.
In addition, negative changes overnight, such as the rejection of FDA approval or the suspension of the acquisition, can result in significant losses.
Swing trading may not require a high level of commitment like day trading, but it still requires a significantly higher level of commitment than passive investing.
The margin requirements for swing trading can be too high for retail investors.
You don’t have to be an MBA Finance or CFA charterholder to earn low risk returns from swing trades. Several books geared towards this inexperienced investors are available and can guide you significantly. We’re going to take a quick look at some of the books that can get you started.
Mastering the Trade: Proven Techniques for Taking Advantage of Intraday and Swing Trading Setups – John F. Carter
The most current 3rd edition was released in 2018 and costs less than $ 50 on Amazon.
The author, son of a Morgan Stanley broker and shareholder, is a full time trader since 1996.
The book offers practical aspects of trading in the book and the salient features include:
- Contains easy to understand checklists for market behavior.
- Guidelines on entry and exit points for swing and day trades.
- Risk management techniques to identify risks and reduce losses.
- Forecasting techniques for market corrections.
- Elements of behavioral finance and investment psychology.
- Techniques for Detecting High Probability Trades.
- Charts and videos further expand the understanding of the trades.
The book ties in with the author’s investment experience and even a novice investor may find it enlightening. However, for a seasoned investor, it can sometimes be too lengthy with their case studies.
Come to my trading room – Dr. Alexander Elder
The Book by Alexander Elder is probably the bible of swing trading. First published in 2002, this 320-page book is available to purchase for just $ 19.99. Imagine opening up to one of the best strategies for less than the minimum wage. Dr. Alexander is a psychiatrist and technical analysis Expert.
Given his background in psychiatry, the author trains the reader to be psychologically strong through the ups and downs of investing. The book provides baby steps to building a well-diversified portfolio of stocks and derivatives.
One thing the reader will love is that the book starts by providing basic trading techniques and then provides practical tips to help you succeed in the current market. The focus is on 3Ms, mind, method and money, and traders at different levels can find it insightful.
How To Make Swing Trade: A Beginner’s Guide to Trading Tools, Money Management, Rules, Routines, and Strategies for a Swing Trader – Brian Pezim
Brian Pezim is a trading horse and placed his first trade in 1967. He serves other investors for various organizations. The book was first published in 2018, has 322 pages, and the Kindle version is available for $ 4.99. The book provides an introduction for a new trader and offers strategies and features such as:
- Difference Between Swing Trades and Other Strategies.
- Suitability of swing trading for different types of investors.
- Swing trading strategies based on the level of experience of the investor.
- Discussion of charts and tools related to strategies.
- Guidelines on appropriate entry and exit points for the stores.
- Selecting and brokering and managing your own money.
This book enjoys good ratings (4.6 / 5.00) on Amazon and has been tested and tested by a number of investors. It wouldn’t burn a hole in your pocket and teach you valuable lessons.
Stan Weinstein’s secrets for winning bull and bear markets
The book was first released in 1988 and has received great reviews for three decades now.
The author is a seasoned technical analyst and has provided techniques for readers to profit from swing trades. Some aspects of the book that stand out are:
- Timing investments to generate profits on a consistent basis.
- Execution of the first short position.
- Using market cycles to provide different trading opportunities.
- Hedging the risk by trading short positions in addition to long positions.
- Recognize the bullish and bearish market phases.
The author retired in 2000, but his book continues to provide some important lessons today.
The Master Swing Trader – Alan S. Farley
Alan is a seasoned writer and investor. He has appeared on CNBC and Bloomberg TV.
The book was first published in 2000 and provides an overview of technical analysis, charts and market sentiment to take advantage of short-term market movements.
The book includes:
- Macroeconomic cycles, momentum, pattern cycles to study long-term trends.
- Overview of technical indicators candlestick charts, bollinger bands to carry out swing trades.
- Identification of trend reversals and continuations using charts.
- Understand investor psychology and crowd behavior to predict market movement.
The book can help investors at all levels and is a must have for every swing trader. The dictionary on the back explains financial jargon with ease.
Swing trading can be your calling with a full-time job even in a non-financial field.
The books provide much-needed knowledge to survive the market and some practical guidance and experience to help survive the market.
The best teacher, however, is the trading floor, and no book can teach you to keep your nerve in critical moments.
What these books can teach you is to avoid common mistakes other traders have made in the past.
We don’t recommend any of these, and there might be books or courses out there that suit you better.
However, these books are proven and can teach you valuable lessons that you would otherwise have learned the hard way.
It is advisable to start with small investments for swing trades and to familiarize yourself with the markets.
Over time, you will likely develop the skills and sixth sense to make good trades.
As you become more and more comfortable, there are ways to increase your investments.
But remember, never get too greedy or too stingy.
Disclaimer: The information above is for For educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are unfamiliar with exchange-traded options. All readers interested in this strategy should do their own research and seek advice from a licensed financial advisor.
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