How to Swing Trade Summary (C1): Introduction

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If you want to earn an income from trading without having to stare at your computer all day (day trading) or wait years for an investment to mature, then swing trading might be for you.

Swing trading is trading where you hold a position from one day to a few weeks or more.

Profits can be realized relatively quickly, but you do not have all the stress that day traders have.

This book will give beginner swing traders fundamental lessons they can put into practice, including how to create your own strategy based on your personal goals.

For those with a bit more experience, you will gain some insights into the author’s approach to swing trading including strategies and rules he personally follows.

This book will not, however, make you a skilled trader. No amount of reading can do that. Take the lessons you learn here and stack them with ongoing market research and practice. That is the only way to build a skillset.

Buy low, sell high. Easy, right?

You may have heard stories of people putting money into a stock (or crypto) and becoming rich a short time later.

While this type of thing does happen, it is not typical.

In fact, many people make money, but then lose it all shortly after.

During a bull market, when everything is going up, making money can be relatively easy.

In order to keep your money, you need to employ risk management and market analysis.

In order to succeed in the market you need a few things:

• The right tools
• Motivation
• A risk management plan
• Emotional control
• An understanding of the charts
• A trading plan
• Adaptability
• Start-up capital

You will learn about and acquire all these things in this book.

One more thing you need is to treat trading like a business, because that is exactly what it is if you want to make an income stream out of it. Otherwise, you are just gambling.

Your trading plan is akin to a business plan. Learn what you need to learn, create a plan that suits your goals and lifestyle, and follow that plan while improving it as you gain experience.

The amount of money you have to trade is known as your capital, and it is one of the most important assets you hold as a swing trader.

You must manage both risk and capital at all times.

Here are a couple of rules of thumb for managing risk:

1. Have a minimum 1:2 risk-reward ratio. That means you will only enter trades that you expect will give you at least double the reward for the risk you are taking.

2. Never risk more than 2% of your total capital on a single trade.

A trading journal is where you record all your trades.

Not only does this help you keep track, but it also serves as a very useful tool for assessing what you did right or wrong.

It helps you make decisions based on reason as opposed to acting on emotions.

Read the next chapter here.

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