Swing Trading

The book I read to research this post was Swing Trading For Dummies by Omar Bassal which is a very good book which I bought from kindle. Swing Trading is similar to day trading but with the latter you aim for quick gains of a lesser amount often carried out in the same day, with the former you look for bigger gains over a period of time. You use methods like fundamental analysis & technical analysis to analyze the stock market or what ever else you invest in and ideally you make a profit. Something I did read in another book is things like the stock market can be unpredictable you have to remember the people deciding whether to buy or not to buy are only human and sometimes they can inexplecably go up or down against the trend of what they should do. When there is a strong dollar generally US industry does well & when there is a weak dollar generally commodities because they have to be imported and they are priced in dollars do well. Swing trading can be share dealing, commodities or ETF's or even other things. A lot of understanding swing trading is understanding charts especially candle stick charts which were originally used in Japan to track the price of rice. Obviously things like penny shares are best avoided and you want to make an educated guess when trading so minimize the risk. Don't forget you can get a return of 50% if you bet on black or red in a casino but only have a 50% chance of getting it right. The risk is too great and you don't want your trading to go the same way. You have to be reasonably sure the market is going to react the way you want. Even if stocks go down you can still make money by shorting the stocks which means you sell your stock and agree to buy stock on a certain date. Of course afterwards the stock has to go up in price and in the intervening period has to go down or you will end up owing money. I did enjoy reading this book and it is an interesting subject.