1 Table of Content ....................................................................4

Introduction ....................................................................................7

2 About the book ......................................................................9

2.1 Who should read this book ........................................................9

2.2 How to get started swing trading................................................9

2.3 What will this book teach you ..................................................10

2.4 Prefaces ...............................................................................10

3 Meet Larry ..........................................................................13

3.1 Contact ................................................................................15

4 An Introduction to Swing Trading ...........................................16

4.1 What is Swing Trading............................................................16

4.2 Let’s Look at an Up Trends ......................................................16

4.3 Let’s Look at a Down Trend .....................................................17

4.4 The Steps in Swing Trading .....................................................18

4.5 What Can You Expect?............................................................19

4.6 How Do You Identify Stocks that are Appropriate for Swing

Trading? .............................................................................19

4.7 What Tools are Available? .......................................................19

5 Pattern Recognition Criteria ...................................................24

5.1 Technical Analysis Measures used to Recognize Swing Trading

Patterns..............................................................................24

6 The Master Plan – Entry and exit rules that insure

successful swing trading ................................................26

6.1 WHAT is the Master Plan .........................................................26

6.2 Taking a Profit and Preserving Capital .......................................27

6.2.1 Profit is taken using a “sell limit” order – once the price

is reached, the specified number of shares are sold. ........27

6.2.2 Capital is protected using a “stop loss” order – when the

stop price is reached, all the shares are sold. .................27

6.2.2 28

6.3 When to Enter the Trade.........................................................28

6.4 How to Enter the Trade...........................................................28

6.5 What to do After the Trade is Executed .....................................29

6.6 What to do the Day After the Trade is Executed .........................30

6.7 What happens if the Trade is Not Executed ................................30

6.8 Once half the shares close at a 7% profit, the other half remains

open to “ride the wave”. When do we close the second half of

the trade? ...........................................................................32

6.9 The Short Swing – how we make money when we think the price

of the stock is going down .....................................................32

7 Preferred Brokers .................................................................34

8 The Essentials of Technical Analysis ........................................36

8.1 Intro ....................................................................................36

8.2 Why does Technical Analysis work? ..........................................36

8.3 The Basics ............................................................................36

8.4 Japanese Candle sticks ...........................................................37

8.5 Volume.................................................................................38

8.6 Equivolume...........................................................................38

8.7 Moving Averages ...................................................................40

8.8 Force Index...........................................................................42

8.9 Directional Moving Index.........................................................44

9 SwingTracker.......................................................................46

9.1.1 Features ......................................................................46

10 FREE SwingLab ....................................................................54

10.1 Starting with SwingLab...........................................................54

10.1.1 Starting to swing... .......................................................54

10.1.2 Cut and Paste...............................................................57

11 Case Studies .......................................................................60

12 Appendix A–Short Selling ......................................................69

12.1.1 What does it mean to sell short? .....................................69

12.1.2 Where Does The Broker Get The Stock? ...........................69

12.1.3 How Do I Sell Short? .....................................................70

12.1.4 Up Tick Rule.................................................................71

12.1.5 Why Sell Short?............................................................71

13 Appendix B– Ressources........................................................73