Om Swing Trading 5th Edition
The definition of swing trading varies from different folks. Basically it is not "Buy and Hold". Most well-known companies have great returns in the first ten years, but not the second ten years. If you follow this strategy, use "Buy but Not Forget". Holding index ETFs is better than "Buy and Hold" as they replace better stocks once or so a year. However, an index ETF may hold too many bubble stocks.We exit the market when the market is plunging and reenter afterwards as indicated by my simple technique. To me, "Buy and Hold" has been dead since 2000 as illustrated by the fewer articles praising it after 2000. The average loss of the last two major market crashes is 45%.Evaluate your requirements, your time available for investing and the size of your portfolio, and then decide which style would fit your requirements.I further subdivide swing trading into long-term (6-12 months), short-term (1-6 months) according to your average holding period. This book describes both strategies. Many tools are common to all the strategies. However, long-term swing stresses more on fundamental metrics than momentum metrics. P/E (Price / Earnings) is a fundamental metric and SMA-20 (Simple Moving Average for the last 20 sessions) is a momentum metric.The following belongs to even shorter terms: Momentum (less than 1 month), Rotation (1 - 2 month), Insider (3 months), Headlines (1 - 3 months), and Day trading (1 day, not discussed in this book). The holding periods are for guidelines only.First do not buy any stocks if the market is risky. Value stocks are important for long-term swing trading.This book is divided into 5 books. The first two (Evaluating Stocks and Technical Analysis) are tools for all strategies. Book 3 describes the common long-term and short-term strategy. Book 4 describes Momentum Strategy (a short-term strategy) while Book 5 describes Sector Rotation (a short-term strategy). Initial date: 02/2020.Last update: 01/2021.Size: 265 pages (6*9).
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