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Swing trading basics

8
Most active traders trade some kind of swing trading method. Swing trading has evolved over many years. No single person invented swing trading. Swing trading has been around for 100 years or more. Traders discovered swing trading is better way to trade through trial and error and empirical observation.
The objective of swing trading methods remains same since its invention: to capture the trending part of the move and avoid the pullbacks or consolidation or range part of a move.
The logic behind it is to find multiple such opportunities so that you can compound your money fast.
If you understand this you will know what swing traders try and do. they try and find entries near pullbacks/ consolidation or range in the hope that the stock will trend post such entry and they want to exit before next pullbacks/ consolidation or range.
To do this you can use charts, scans , indicators, statistics,  algo, bots, and so on. Some people also use witchcraft, sun/moon phases, astrology and so on...
Here is a stock which had a trend move 3 months ago. Had a orderly pullback. Offered a swing entry during the trend. Now again it is setting up for swing entry.

alt text


As we have seen the objective of swing trading method is capture the trending part of the move and avoid the pullbacks/ consolidation or range part of a move. The implication of that for entries and exits are: 
Swing Entry= consolidation/pullback/range zone or as stock is breaking out of it.
Swing Exits= start of next consolidation/pullback/range zone
A good entry will be at start of a swing move. Good exit will be at end of a swing move....
Few months back I did a exhaustive study of swing trading techniques commonly used by traders. For 90 days I focused on a systematic study of swing trading methods. Here is a quick summary of what I did to enhance my knowledge of swing trading:
  1. Searched Google for content on swing trading. Visited over 20000 pages showing swing trading related articles or comments.
  2. Searched Amazon for books on swing trading and looked at every single book showing up on  swing trading topics. Most of them are in my personal trading books library. So read them. Bought the rest and went through all of them.
  3. Visited popular trading forums and blogs and did a systematic study of swing trading posts/comments.
  4. Looked at most of the swing trading courses for sale starting from the scammy ones to serious ones.
  5. Looked at my old notes on swing trading.
  6. Talked to various traders who are very good at swing trading 
  7. Total money spent approximately 10K. 
  8. Total hours spent: no idea

The content generated during the study and the understanding gained from the study is now being used to conduct series of Swing trading bootcamps on members site. If you do a exhaustive study of swing trading methods you will discover there are thousands of variation of the basic idea.  
But if you look beneath the surface there are only three basic swing trading setups:
  1. Pullbacks 
  2. Breakouts
  3. Exhaustions

Are you serious about your trading?

If you are serious about your trading and want to build an enduring edge the Stockbee Member site might help you. Members tell me they have tried lot of things before coming to my site and it has offered them the most extensive and detailed methods to swing and position trade.

It is only for those who want to develop their own self sufficient trading method. It is not a stock picking service. It is service for you to build your own scans and trading method to have your own daily pick based on your method.

Be warned it will take you time to learn to trade. Learning to trade is difficult art and unless you are willing to spend months or years to perfect your strategy and also develop your mental edge you are unlikely to succeed in this game. Unless you understand that no site, no service, and no mentoring is going to work.

Why traders come to stockbee?

The member site is one of the most recommended site for learning to trade by other traders and bloggers. You will see no advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant twits self promoting the site, no free trial  and no tall claims of making you instantly wealthy, and yet the site attracts new  members everyday. Members come from all walks of life and all kinds of trading size and trading styles.

You will see that many trading bloggers have been using my market timing methods, scans , stock ranking lists and chart templates. They have developed their own methods based on my methods. Many paid newsletter site recommend my site to their subscriber for learning about trading and market.

Over the years thousands of traders have been members and those who benefited from the learning talk about the site to others or talk about the methods used and that is how new members learn about the site.





What will I learn in the members site?

The members site will give you in depth understanding to develop your own trading method. The emphasis is on making you self sufficient and confident of your own trading method and style.

As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.

You will learn about Stockbee Trend Intensity Breakouts method that uses momentum based swing trading to find 3 to 5 day swing trades for 8 to 40% profit.

You will learn about Stockbee Episodic Pivots Breakout method which uses Post Earnings Announcement Drift (PEAD) to find stocks that had a game changing earnings and that are likely to rally for 3 months to 12 months.

You will learn about  Stockbee Dollar Breakout method that uses momentum, range expansion and swing trading approach to find 5 to 40 dollar moves in high priced stocks.

You will learn about  Stockbee Lemonade Strategy for 401k which uses market timing and momentum to invest in 401k. You will get weekly update on how I am using the strategy on our 401k to do allocation decision.

You will learn about Stockbee Market Monitor method for market timing using breadth. It allows you to avoid risky periods in market and allows you to identify market turns. It is used for 401k allocation decisions.

You will learn about Stockbee Double Trouble method to find stock with confirmed upside momentum using anchored momentum and that are likely to continue their up move.

You will learn about Stockbee Night Time is Right Time method to find news catalyst based trade ideas for short term day trade and swing trade.

You will learn about Investor's Business Daily’s IBD 200 list and how it can be used to find swing trading candidates for explosive moves.

You will learn about Telechart 2000 and how to use it effectively to scan for swing and position trade ideas and to set up your 401k strategy.

You will learn about Jesse Livermore Range Breakout, Darvas Box setup, and many other member shared methods.

You will learn how to set up your own scans, select right kind of stocks, how to set up stops, when to enter , when to exit, how much to risk, how to track your trades and all other details about trading. You will learn about developing your own methods and not relying on others for trade ideas.

The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.

The site gives you opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different background and experience willing to help each other. The emphasis is on continuous learning and up gradation of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors and new traders.

If you are looking to develop your own trading strategy the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on members site. Every method, every scan, every nuance is detailed and all possible help is offered to design your own method.

Do you have a trial?

If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.

It is for those who are ready beyond the trial phase and ready to put serious months or years  of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.

The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.



How can I become a member?

To sign up go to www.stockbee.biz and follow the sign up process. The site uses Paypal for payment processing.
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8 comments:

Unknown said...

stockbee,

what ibd seminar did you attend? is it 4 or 5?

or did you attend them all? or none at all?

Pradeep Bonde said...

Attended IBD seminar many many years ago. That time they did not have these different seminars. Besides that I have every one of their Home Study course. I have studied IBD method in significant detail and have exhaustive and comprehensive information collected over the years about the method from various sources.

Unknown said...

i bought the book of katcher and morales. its nice but not that thorough.

Pradeep Bonde said...

When non writers write book there are always limitations in terms of how they approach a subject. Besides that most of their skill is procedural (they know how to make money) , but that does not mean they can explain it to others. Classic procedural memory problem. The knowledge is implicit.

Unknown said...

ive been using your pre-market top gainer scans. i did not catch BORN though.

were you able to catch it?

if so, can you explain how you did it?

it looked extended on the weekly.


thanks

Pradeep Bonde said...

Not in BORN.Missed it.

Unknown said...

IDT (shown in post I believe) looks very good Pradeep but it does have earnings on Thursday AH. I don't know how you feel about buying before earnings - just sharing.

How do you feel about looking at Pocket Pivots showing up right before earnings as a clue to a positive reaction as discussed in Kacher's book? PCLN on 8/3/10 would be an example. I am going to try and follow these this earnings season to see if there is a true correlation or not and how trustworthy that sign would be.

By the way, ALGN (very nice chart) had a PP today so I am interested to see if it does breakout tomorrow.

Pradeep Bonde said...

These are setups I am watching not necessarily going to buy before earnings. The pocket pivot is one way to skin the cat.