Introduction

Well, let’s start with the term “swing trading”. Swing traders also use technical signals/indicators (like day traders, for example) to recognize trends and “ride” them like a wave, so to speak. At the same time, however, trend reversals, support/resistance etc. should also be recognized in order to enter or exit a security as accurately as possible. After all, a share rarely or never rises over a longer period of time without a correction (or vice versa). This is the big secret that is so difficult to achieve.

Book content

In the introductory section you will be introduced to trends, ranges (i.e. the price movement in a range) etc.. This is done by an experienced and successful trader Alan Farley (long-time at thestreet.com), and there are the first technical indicators to admire. But the author immediately points out that he is not a fan of exotic, over-complex indicators. These are more for textbooks and, as experience shows, hardly add any value in terms of profit maximization. “Keep it simple, man!” could therefore be the motto. There is also a short introduction to algorithmic trading, and it always includes an example scenario from the real world.

The next chapter explains the pitfalls of the calendar, the time of day and other dates that can have a major impact on your shares (quarterly results, FED meetings, important expiration dates for stock options, etc.). This is followed by a section on relative strength, where possible reversals and similar phenomena are explained. It deals with moving averages, RSI’s (Relative Strength Index) and stochastic indicators.

This is followed by a chapter with general trading tips, risk management, enter/exit strategies, which are usually found in most investor books. This is followed by a more in-depth chapter with other indicators such as Fibonacci, corrections (retracements), further examples with moving averages, advanced trades such as trailing stops and similar profit maximization. This is followed by another chapter with survival strategies, including diversification, gaps, cup-and-handle signals, further risk management tips and, as in every chapter, it concludes with a summary (very useful for repeating what you have read).

In the fifth part of the work, the previous chapters are further refined with tips, and it is repeatedly pointed out that you need to be clear about your goals, your concept, etc. Every trader has his own style, goals, available money, special skills, psychological factors. Every trader has his own style, goals, available money, special skills, psychological factors. You are encouraged to think about these things carefully. Here, too, examples are specifically interspersed to illustrate what has been explained with many charts. More and more technical signals are added, such as bear/bull flags, double/triple bottoms or tops, head and shoulders (no, not the shampoo), false breakouts, breakaway, exhaustion and continuation gaps, etc.

The sixth part deals with trading psychology so that you can survive the ups and downs of trading. Classic trading mistakes are pointed out, and once again (and correctly) attention is drawn to correct, functioning risk management as well as tips on premarket/postmarket trading, which is not entirely without danger (due to low liquidity). Last but not least, there is a reasonably detailed glossary and a good, comprehensive index.

At around 300 pages, the book is a good length and can easily be read in a few evenings or weekends. Some of the sections are a little long, which doesn’t make it easy to read. Nevertheless, with a good knowledge of English (let’s say language level B2) you can understand everything very well, even if I would have expected the layout to be a little more relaxed. The style is sober and neutral, informative and peppered with many examples. Small summaries / checklists are interspersed throughout.

Conclusion

Particularly suitable for beginners who are looking for an introduction to share trading. But even advanced traders are sure to find valuable tips, although they will probably already know a lot. The book is certainly recommended for every trader (not just swing traders) due to the well-explained examples.

ISBN: 0071664009 (Amazon)