The Swing Trader Bible Strategies to Profit from Market Volatility

CHAPTER 1 Determining Your Trading Style 1 Why Swing Trading is a Better Alternative to Day Trading 2 How to Successfully Implement Winning Trades 5 CHAPTER 2 The First Rule of Profitability: Stop Loss 9 The End Should Always Come First 9 Occasionally Unforeseen Disaster Strikes 10 Hard Stops as a Profit Tool 12 Using Trailing Stops to Increase Profitability 15 CHAPTER 3 The Second Rule of Profitability: Commonsense Fundamentals 19 Careful with ETFs, Indexes, and Option Valuation 20 Common Sense is King 20 Ratios Matter 21 Exuberance is Never Fundamental Common Sense 26 CHAPTER 4 The Third Rule of Profitability: Technical Analysis 29 What is Technical Analysis? 29 The Basic Chart 30 Introduction to Basic Technical Analysis Indicators 32

The Importance of Technical Analysis 38 A Beacon in the Night: The Chart is Your First Alert 39 Self-Fulfilling Prophecy 39 CHAPTER 5 Strategy 1: Take the Trends to Pieces 43 Note on Fundamentals and Trend Trading 43 Riding the Envelopes 44 Profits through Pitchforks 52 CHAPTER 6 Strategy 2: The RSI Indicator 55 Choosing an RSI Setting 55 RSI Swing Trading Strategies 56 Implementing the RSI Strategies Step by Step 60 Bringing It All Together 61 CHAPTER 7 Strategy 3: MACD and Stochastic 65 Understanding MACD 65 Swing Trading Strategies Using the MACD 67 Stochastic 74 How to Trade the Stochastic 76 CHAPTER 8 Strategy 4: The Tier II Play 81 Follow the Leader 81 Market Cap in Tiers 82 Example in Action 84 What to Look Out for: Hidden Correlations 84 Where to Find Tier II Plays 85 CHAPTER 9 Strategy 5: ETF Sector Rotation 89 Asset Class Money Rotation 89 Market Cycles 91 Short-Term Sector Rotation 95 Dow Theory 98

CHAPTER 10 Strategy 6: The Macro-to-Micro Play 101 Step-by-Step Macro-to-Micro Approach for Swing Traders 103 The Daily Macro-to-Micro Trade Strategy 103 CHAPTER 11 Strategy 7: Profit from Exuberance Premium 107 Technicals Tell a Ton 108 Identifying Exuberance Premium 109 Technical Entry and Risk Management 113 CHAPTER 12 Strategy 8: Japanese Candlestick Charts 115 Single Candlestick Patterns 116 Wrapping Up Candlesticks 125 CHAPTER 13 Strategy 9: Option Primer and LEAP Options 127 Brief Explanation of Options 127 Puts and Calls 130 LEAP Options 130 CHAPTER 14 Strategy 10: Piggyback Strategy Using ETFs and Mutual Funds 133 Finding International Swing Trade Ideas 134 Piggybacking Mutual Funds 139 CHAPTER 15 Strategy 11: Scanning for Swing Trade Ideas 143 Establishing a Daily Scan List 144 CHAPTER 16 Strategy 12: Swing Trading a Market Sell-Off 153 Shorting Stocks: Profit When the Market is Falling 154 Introducing Short ETFs

CHAPTER 17 Strategy 13: Swing Trading the Megatrends 165 Why Trade a Megatrend? 165 How to Trade a Megatrend 167 Current Megatrends 172 The Next Major Megatrend 175 CHAPTER 18 Strategy 14: Return on Assets and Return on Equity 177 Balance Sheet and Income Statement 177 Return on Assets 179 Return on Equity 179 CHAPTER 19 Strategy 15: Covered Call Options 183 What is a Covered Call? 183 Buying Stocks at a Discount 185 Deep in the Money 185 CHAPTER 20 Strategy 16: Straddles as a Profit Tool 187 Consolidation is Key 187 Straddles 190 CHAPTER 21 Strategy 17: Bull and Bear Spreads 195 Spreads: The Nuts and Bolts 195 Spreads in Action 199 Last Words 203