How to Swing Trade By Brian Pezim Book Review: Profile Traders
How to swing trade is a masterpiece by a veteran trader of several decades.
He shares his own experiences and defines practical steps that one can immediately implement in trading.
So, what are you waiting for? Let’s see what’s in store for us in this book.
Basics That Tilt You Toward Swing Trading
Some basic concepts and aspects let a beginner decide if their personality and lifestyle will fit swing trading. It gives you that breathing space that day trading or scalping cannot give.
The book discusses some advantages of swing trading that a retail trader can exploit early on. This lets the novice trader be more open to continuing if this is his cup of tea.
Aspects like liquidity are not a disadvantage for a retail trader if he opts for swing trading. Institutional traders are on the back foot if you consider only the large positions they trade in.
High-frequency trading has little to no impact on swing trading for the retail trader when compared to a day trader.
Swing Trading Tools and Advantages
Like any other profession or type of trading, swing trading has advantages. One major advantage that immediately comes to mind is commissioned. Swing trading results in lesser commission compared to day trading, as you take fewer trades.
The author describes that many brokers give tools for technical analysis to help make trading decisions. They provide price and volume patterns that allow you to do further analysis based on your trading setup to take trades.
With the advent of discount brokers, many of them provide scanning tools and alerts that make life easy for a swing trader. All you have to do is analyze using scanning tools, place alerts and relax. You trade only when you get an alert, drastically reducing your screen time.
Risk Management
Brian, just like a seasoned trader, keeps it simple. He rightly says your capital is the most important tool in trading. Without capital, you cannot be an active swing trader, as it may involve you being in trades for longer periods.
Some basic and fundament aspects of trading, like embracing emotionless trading, honoring stop losses, and trading as per the plan, are discussed.
These might sound redundant if you have already read through books on swing trading or general trading.
The author stresses the need to constantly review open positions to ensure that you don’t miss out on adjustments when required to manage your trades.
Some tips are provided on how to maintain a log of your trades as well. All important aspects of a trade that will help effective analysis and take corrective actions if necessary.
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