This book clearly outlines the most basic and traditional elements of any trading game plan - from psychology of trading and methods for spotting trading trends and patterns, to specific methods and tactics. But he also provides a wealth of new strategies he's perfected for trading in shorter-term timeframes. Of particular interest are the methods he presents for swing trading, a technique that's become increasingly popular in the last 10 years.
Nassar was at the forefront of the short-term trading trend when his first book, "How to Get Started in Day Trading," was released. Now - he pours his years of experience into this thorough new book which offers a complete and comprehensive trading game-plan. It walks traders through actual trading scenarios and provides real-world examples that demonstrate his proven techniques in action. In other words, he puts theory into practice. Whether you're a new investor or a seasoned trader, this book will enlighten you, and help improve your trading skills, by providing proven techniques in easy-to-implement terms. Definitely a good investment decision!
This book offers readers a solid resource on understanding the markets, how to understand themselves, and how to swing trade using various strategies. This 339-page trading guide is comprised of sixteen chapters, an appendix with interviews of the co-founders of Townsend Analytics, Ltd., a three-page bibliography, and a comprehensive index.
The book is divided into two major sections. The first five chapters cover "Psychology and Patterns". And the second section contains ten sections covering "Methods and Tactics".
The authors begin their journey by delving into the psychology- - personal and market--behind the market's movements and what information they use to find investing opportunities. Then they explain the difference between trading and investing, and explain cyclical markets and momentum trends. Also addressed are the random walk theory, elasticity trading (based on recent pre-established price levels), managing uncertainty, elasticity rules, and tactics and tips.
An entire chapter is devoted to "Market Symmetry" which are specific harmonious market patterns. The four stages of the business cycle (contraction, trough, expansion, and peak) are compared to the stock market's four stages (accumulation, markup, distribution, and decline). Fibonacci levels are explained in the context of finding price patterns. Numerous charts illustrate all the points being made.
Technical analysis is briefly reviewed in a separate chapter. Here there is a discussion of accumulation and distribution, support and resistance, daily, hourly and ten-minute charts, trends, volume, and moving averages. Plentiful graphic examples are provided to bring home the concepts.
Section two is the heart of the book and contains strategies, as well as the actual techniques that the authors currently use and teach others to swing trade the markets. Favorite indicators explained with charts include: RSI, TRIN, Directional Movement, true range, ADX, and stochastics with divergences.
Moving averages are described in detail in a separate chapter. Topics covered include simple moving averages, moving average crossovers, stops, and MACD. Other chapter cover momentum trading, use of Level II screens, reading the tape, trading volatility, rules and strategies for NYSE stocks, trading financial futures, systems and pair trading, seasonal trading and tax loss selling, and risk management strategies.
Those individuals who plan to swing trade should read this solid addition to the trading literature before risking a penny of their money.