Swing Trading Made Easy
Before I get into how I arrived at the formation of an easy swing trading
system, let me first tell you my story.
Traders are always searching for the "holy grail" or a simple "cookie cutting"
way to make money. I started with the basics of charting and
technical analysis
and then thought that I would find the "secret" of how to make money trading
stocks. So the next step I took was to buy all the books on various so-called
"successful" trading strategies such as W.D. Gann, Swing Trading, Joe Granville
with his OBV, Stochastic, MACD, ADX, Relative Strength Oscillators, Point and
Figure Charts, Candlesticks, Bloomberg Money Flows, etc., and tried to learn
each methodology thoroughly.
I also kept my own advance/decline numbers from the Barron's Laboratory for over
five full years, (never missing one weekend!), dabbled in computerized "Neural
Nets," and flew to Chicago to take a very expensive weekend seminar hosted by
Larry Williams to look for the "easy million dollars." Maybe the "elusive
million dollars" would have been more appropriate for me!
But after trading unsuccessfully for the next several years with all this
knowledge at my fingertips, I was frustrated with how every time I entered a
trade, it just went backwards. You know that feeling, everything looks great
before the trade and once the order is executed, it starts losing money while
I lose confidence in the trade. Eventually, after watching the position bleed
even more, I decide to pull the plug and liquidate. And guess what?
Like day follows night, the minute I sell out, the trade starts going
back in the right direction and closes the day with a profit if I were to have
kept it! The pressure was gone and even though I lost money, it was off to the
next trade to repeat this cycle once again!
Since I still had some sanity left, I decided to write down the reasons why I
entered each trade. If the trade was a breakout of the 20% off a stochastic's
chart, I would write next to the trade: stochastic. If it was a moving average
crossover, like a 10-day crossing a 50-day, I would mark down: moving average
crossover. Simple. At the end of the year, I sorted my list and found out to
my surprise that the most profitable trades basically came from the easiest
concept of "swing trading" and not from any other areas of technical analysis
that would have required years of practice on the learning curve.
After that, I started to develop my own framework for swing trading and improve
upon what was written about this subject. I created exact entry and exit points
as well as stop loss parameters because these elements were always lacking
from the majority of books. And even though my new concept of swing trading
wasn't "the holy grail of trading," my trades did made more sense,
were objective, and most importantly, made money and did not have large losses
or drawdowns. Just by not seeing huge losses at year end was already a step up
the ladder! At least this new swing trading system provided me with a guide
as to when to get in and where to get out, all while maintaining proper stop-loss
orders. I now had a map that spelled out the exact directions and didn't have
to drive around in circles anymore.
This site will provide information as to how a powerful but yet simple swing
trading framework can be easily set up and used consistantly to give the trader
a better guideline for their trades. We will also have free real-time online
stock picks and commentaries updated on a daily basis to illustrate this
trading system.
So if you were like me and have been frustrated by learning everything you
can about stock trading but nevertheless had mediocre results and poor confidence
every time you entered a trade, read on and maybe you can draw something from
this site to help you put the probability of success on your side!
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