Stock Trading Basics to Swing Trading

LiveLife · November 13, 2005, 09:13:48 AM

= Update 04/21/06 = How to draw BUY/SELL Swing Trading charts
= Update 04/01/06 = Posted my reflection of stock trading, 3SOF, Swing Trading and knowledge base. I will continue posting more on Knowledge Base this weekend.
= Update 03/19/06 = Posted the Beta Rotational Swing Trading Template on below topic 5 below
= Update 03/18/06 = As I posted at the swing trading MB, I started the "Rotational Swing Trading" post below topic 5 below.

= Update 03/16/06 = See topic 5 below
= Update 03/15/06 =
Starting tonight, I am revising this knowledge base to benefit the "absolute newbies" to stock trading. My goal is to make this knowledge base very user friendly to someone totally new to stock trading so that they can benefit from this knowledge base and the complimentary swing trading MB. It will take some time for me to revise and write the content, but I will post the revisions in red for short time so that you can easily follow the new content. After a few days, I will change the color to blue.

For those in the "newbies" group, you can jump to "3. What is stock trading" below. I will try to have this "Intro" content cleaned up a bit soon. [/font]

= Welcome to Stock Trading Basics to Swing Trading! =

This 3StocksOnFire.org (3SOF) Message Board (MB) thread was created in the spirit of "community forum" of 3SOF for those new to the world of stock trading or traders seeking more information to become effective stock traders.

You are here because you have asked one or more of the questions below or someone kind enough has referred you to this "3SOF Knowledge Center" MB thread:

"What is stock trading versus investing?"
"What is 3SOF?"
"Who are David Randolph and Frederick Ramsburg?"
"After I buy, the stock goes down. Why?"
"After I sell, the stock goes up. Why?"
"I keep losing money stock trading, how can I start making money?"
"I am trading with quality stocks, but why are my entry/exit timing bad?"
"The stock keeps going down and I lost too much money already, should I sell it?"
"Why do I keep missing out on all the good stock buying opportunities?"
"Am I not making money because we are in a bear market?"
"Why am I losing money in a bull market?"
"What is swing trading?"

If you are in the right place, please go on to the next post. If you are not, thanks for visiting but do check back in the future because this MB thread will continue to develop and contain more and more effective trading information.

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.0#msg32735

LiveLife · November 13, 2005, 09:14:17 AM

= newbies update 03/18/06 =

The Swing Trading templates below (short-term and mid-term) have been developed at the Swing Trading MB as a stock trading tool to help you make buy/hold/sell decisions. As you learn the stock trading basics, the Swing Trading template will be an integral part of your stock trading activity, providing an objective guidance when subjective emotions run high (oh yes, and they will).

Once you have become effective with swing trading, you will learn the more advanced trading principles and techniques such as "Rotational Swing Trading" I have been using for some time, but have not posted on 3SOF MB or here on the Knowledge Base. I will start posting the "Rotational Swing Trading" info this morning.

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.0#msg32735

LiveLife · November 13, 2005, 09:15:13 AM

INDEX OF TOPICS:

1. Introduction
2. What is swing trading?
3. What is stock trading?
4. How does stock trading different from stock investment?
5. How does law of supply and demand affects stock prices?
6. Why does stocks prices move up and down?
7. What is Technical Analysis? (for newbies)
8. Why should I open a Roth IRA account?
9. What percentage of my portfolio should I "swing trade" with?
10. Why should I approach each trading day as "brand new?"
11. What benefit is keeping a trade log?
12. How do I set my "sell target?"
13. What is profit taking?
14. How do I select my stocks to swing trade with?
15. What is 20-40 stock list?
16. Why should I return to a stock that I just sold?
17. Why should I be concerned with "Institutional/Money Manager" buy/sell activity?
18. If I am still losing money swing trading, what should I do?
19. What is bullish trend?
20. What is bearish trend?
= To Be Continued ... =

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.0#msg32735

LiveLife · November 13, 2005, 09:15:39 AM

1. Introduction

= update 03/15/06 =
The primary focus of this knowledge base will be (for now) mid to longer-term swing trading (weeks to months). This was requested by majority of the people in the second group of newbies to stock trading that I am currently supporting. The short-term swing trading will be a secondary focus, but since it is a very important tool in minimizing stock trading loss, I will cover in detail later.

= upate 11/18/05 =

Repost from "application" MB (15th post from top) http://www.3stocksonfire.org/trading/index.php?topic=3635.30

I am going to "focus" the objective of this MB thread and the knowledge base thread to pursue effective stock trading (regardless whether you are day/swing/trend/long-term trader) based on definite disciplines, methods and techniques.

If the knowledge base and this "application" MB threads are to serve to introduce "newbies" to stock trading and to be "effective" traders, "critical and essential" principles MUST be covered so that "newbie" like me, start off trading on the "right" solid foundation (long before more advanced concepts and techniques are utilized).

I sent several emails out yesterday responding to new traders who HAS NOT made any money stock trading!!! 3StocksOnFire exists to provide service to all levels of traders, especially new traders. I will make it my objective to serve this segment of the membership with this MB and the knowledge base MB threads.

We are in the "transitional" phase into bullish market trends. To not make money, and worse yet, "lose" money in this market condition is not acceptable! 3SOF portfolio and members know how and made money during the worst "bearish" market trends of July - September, including this newbie. As we head into "bullish" market trends of November - January, stock trading should only get easier to make "more" money.

Let's trade!

= update 11/19/05 =

Repost from 3SOF MB (15th post from top)
http://www.3stocksonfire.org/trading/index.php?topic=3401.msg34056#msg34056

Wow... sometimes we get caught up and don't see the big picture.

First of all, I want to say this. I came to 3SOF as a newbie who was losing money stock trading. What I found at 3SOF was a welcome invitation from members who "openly" shared their trading knowledge and experience.

Secondly, there are supporters of 3SOF (premium and public members) who devote a tremendous amount of time posting valuable stock trading information (which by the way, I use on a daily basis). The entire swing trading and knowledge base MB threads are the "combined result" of what I have learned from 3SOF (David/Frederick and supporters) and countless Yahoo finance/Raging Bull MB threads. These two MB threads are my "thank you" and "passing forward" of the knowledge and wisdom shared by all of you who tirelessly research and post to share the wealth of information so that it can benefit "thousands" of 3SOF members and visitors each day.

You can call 3SOF a "collective" of individual "retail" stock traders (yes, that's what SEC calls us) that come together in a "community forum" to share "real-time" stock trading data on a hourly/daily basis. As I have emailed David and Frederick before, we are in the "infant/beginning" stage of 3SOF evolving and developing into an entity that I believe will be something "unique and amazing" in the months and years to come. I have visited many stock trading message boards and no other MB is as "professional and informative" as 3SOF.

As you can see from countless new members to 3SOF, the word about 3SOF is spreading fast around the stock trading/finance circles. David and Frederick have created (and now supporting this website project full-time. Thanks!

) a very special "community forum" for us that will now grow "exponentially" and potentially become an "influential" collective of individual "retail" stock traders/investors.

Can you imagine what 3SOF members do to a penny stock or micro- and even small-cap stock with their buying/selling volume? In the past, it was not a factor, but as the membership/viewership increase on a daily basis, this volume influence will be a factor (for some stocks, it probably already is) that cannot be discounted in the near future. Many 3SOF members are now moving 5K, 10K, 50K and even 100K+ blocks of shares!!! Combined, these are Institutional/Hedge Fund/Money Manager level of volume!!! Do you believe that various brokerages, fund managers, and stock brokers are maybe tracking and monitoring what is posted at 3SOF? Perhaps. But if they are, then what happens at 3SOF will now "influence" the movement of stock prices based on 3SOF MBs. Instead of 3SOF MBs "following" stock trends, 3SOF MBs may now "trend" the stocks they cover.

The numerous supporters of 3SOF who devote themselves to research and post at 3SOF (you know who you are

) are the "core foundation" of 3SOF, and this newbie is very proud to be a contributing member of 3SOF!!!

I thank you all, and applaud you all for what you have taught me and what you teach me on a daily basis! I post because stock trading is my "hobby" and I enjoy the "practice" of stock trading. I look forward to what 3SOF will become in the future.

Hi! My name is John (LiveLife).

Brief Bio: 39/M/Married/California/swing trader as a "serious" hobby.

I "dabbled" with stock trading about 6 years ago and tried to learn "Elliott Wave Theory," but got married and got busy raising a family. July of this year, I decided to get "serious" about stock trading and started back with $5,000 Scottrade account ($7/trade! Yes!).

After losing $1,200 in the month of July (Just about every stock seemed to go down after I bought them, and go up after I sold them

), someone on Yahoo finance Message Board referred me to 3StocksOnFire.org (3SOF). What a find! After having "less than desirable" experience at Yahoo MBs, 3SOF was a breath of fresh air!

I spent the next entire month reading as much as I could at 3SOF. Many "kind" and a lot more knowledgable stock traders than myself at 3SOF took "pity" on this "newbie" and shared with me some valuable information that I am sharing with you here. I am "passing forward" the generosity of David Randolph/Frederick Ramsburg and the supporters of 3SOF (along with "my" often crazy take on stock swing trading

). With renewed confidence and desire, in August, I rejoined the still bearish market with $30,000 (my wife let me have the extra $25,000 with a promise of a Corvette - I bought her a 2001 Corvette ZO6 this November)

"What is 3SOF and who are David Randolph and Frederick Ramsburg?"

(David/Frederick, correct me if I am incorrect)

David Randolph and Frederick Ramsburg are founders of 3StocksOnFire.org.

With about 9 years of stock trading experience, they started with $100,000 portfolio this April and currently experience a 189% gain. Their buy/sell records are documented with stock names, dates and buy/sell prices. This October, David and Frederick quit their jobs to pursue 3SOF website full-time and the website went premium ($50/month to access premium content boards and to receive David's daily 3SOF stock alerts along with other premium services).

David and Frederick have created an invaluable "community forum" based stock trading website for us individual "retail" stock traders, and the wealth of knowledge and experience of David, Frederick and the numerous supporters make 3SOF a great place for new stock traders and traders seeking stock trading information. Most of this wealth of stock trading knowledge and the membership is free. If you have benefited from 3SOF, donations can be made in any amount, or you can become a "premium" member to access all the "premium members-only" contents (believe me, it's worth the small membership fee!).

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.0#msg32735

LiveLife · November 13, 2005, 09:15:56 AM

2. What is swing trading?

Originally, I planned on doing "What is stock trading?" as my first topic, to cover the stock trading basics. But the many requests and support of newbie stock traders prompted me to "jump" right into the "core" of this knowledge base thread - swing trading.

Ok. First, some definitions:

Here's Investopedia's "simple" definition of swing trading:
http://www.investopedia.com/terms/s/swingtrading.asp

"A style of trading that attempts to capture gains in a stock within one to four days.

To find situations in which a stock has this extraordinary potential to move in such a short time frame, the trader must act quickly. This is mainly used by at-home and day traders. Large institutions trade in sizes too big to move in and out of stocks quickly. The individual trader is able to exploit the short-term stock movements without the competition of major traders. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks but rather in their price trends and patterns."

And here's more "expanded" definition from an introductory article on swing trading:
http://www.investopedia.com/articles/trading/02/101602.asp

"In reality, swing trading sits in the middle of the continuum between day trading to trend trading. A day trader will hold a stock anywhere from a few seconds to a few hours but never more than a day; a trend trader examines the long-term fundamental trends of a stock or index and may hold the stock for a few weeks or months. Swing traders hold a particular stock for a period of time, generally a few days or two or three weeks, which is between those extremes, and they will trade the stock on the basis of its intra-week or intra-month oscillations between optimism and pessimism."

My current swing trading practice doesn't exactly fit the Investopedia definition (I will cover more on my current practice later on this thread). I actually like the following definition better, although it still is not "exact" representation of what I do.

Here are some more definitions from About.com
http://daytrading.about.com/cs/educationtraining/a/shortterm_types.htm

Types of Trading
There are several types of trading styles that persons seeking to profit from short term trades in the market may wish to use. Here is a brief description of the most widely used short term trading styles.

Day Trading
Day traders buy and sell stocks throughout the day in the hope that the price of the stocks will fluctuate in value during the day, allowing them to earn quick profits. A day trader will hold a stock anywhere from a few seconds to a few hours, but will always sell all of those stocks before the close of each day. The day trader will therefore not own any positions at the close of any day, and there is overnight risk. The objective of day trading is to quickly get in and out of any particular stock for a profit anywhere from a few cents to several points per share on an intra-day basis.

Day trading can be further subdivided into a number of styles, including:

Scalpers: This style of day trading involves the rapid and repeated buying and selling of a large volume of stocks within seconds or minutes. The objective is to earn a small per share profit on each transaction while minimizing the risk.

Momentum Traders: This style of day trading involves identifying and trading stocks that are in a moving pattern during the day, in an attempt to buy such stocks at bottoms and sell at tops.

Swing Traders
The principal difference between day trading and swing trading is that swing traders will normally have a slightly longer time horizon than day traders for holding a position in a stock. As is the case with day traders, swing traders also attempt to predict the short term fluctuation in a stock's price. However, swing traders are willing to hold stocks for more than one day, if necessary, to give the stock price some time to move or to capture additional momentum in the stock's price. Swing traders will generally hold on to their stock positions anywhere from a few hours to several days.

Swing trading has the capability of providing higher returns than day trading. However, unlike day traders who liquidate their positions at the end of each day, swing traders assume overnight risk. There are some significant risks in carrying positions overnight. For example news events and earnings warnings announced after the closing bell can result in large, unexpected and possibly adverse changes to a stock's price.

Position Trading
Position trading is similar to swing trading, but with a longer time horizon. Position traders hold stocks for a time period anywhere from one day to several weeks or months. These traders seek to identify stocks where the technical trends suggest a possible large movement in price is likely to occur, but which may not be fully played out for several weeks or months.

= To Be Continued =

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.0#msg32735

LiveLife · November 13, 2005, 09:16:18 AM

= "newbies group" update 03/15/06 = Start here for now. You can cover the "introduction" content above later. Below is the first lesson. You can then review "2. What is swing trading?" next

3. What is stock trading?

This will prompt many simple to complicated answers depending on who you ask.

Simply, stock trading is buying and selling shares (stock) of a company.

a) Of course, the next obvious question is, "What is a stock?"

When a company reaches a certain level of growth, it will go "public" and sell shares of the company to raise capital (money) to continue the growth of the company. People that buy shares of the company buy in anticipation of this growth and either trade (buy/sell short-term) or invest (buy and hold long-term) with the shares of the company. This buying and selling of shares of the company is what we do - stock trading.

b) There are at least two types of stocks. Simply, common stocks are shares traded on the open market, but if the company goes bankrupt, common stocks hold the last position of interest (after debtors) and often common share holders receive none of the proceeds of the company assets (can you say "Enron?").

For the "newbies group," just remember that common stocks are what we (retail individual stock traders) buy and sell on the open stock markets (NYSE, Nasdaq, AMEX, etc.).

c) There are many ways you can stock trade. You can buy/sell with cash accounts. You can buy/sell with "borrowed money" on margin accounts. You can trade with options or "short" stocks. These different ways of stock trading will be covered later. For now, we will primarily focus on buying and selling of stocks with cash stock trading accounts. (I will cover how to open a stock trading account at a later lesson).

d) So, how do you make money stock trading?

This really is the most important question. Many people stock trade, but not all of them make money stock trading or make money on every trade they make. What I have learned is this - You can make money stock trading ONLY if you learn the basics of stock trading and apply the principles of effective stock trading. Once you learn the rise and fall cycle patterns of stocks, you can buy low and sell high to make money, and repeat the buy/sell on the same stock or move onto another stock.

e) What are basics of stock trading?

Following are the "Basics of stock trading":
1. Intro to stock trading - What is stock trading?
2. Basic knowledge - What do I need to know?
3. Stock trading account - Which account type to open and how?
4. When to buy - What is a good entry point?
5. When to sell - What is a good sell/profit taking point?
6. Practice - What is "virtual" practice trade account?
7. Stock trading with real money - Let's swing trade!

f) What are principles of effective stock trading?

Once you learn the basics mentioned above, you must then learn and apply the principles of effective stock trading. The stock trading basics will provide an objective "general guidelines" to stock trading. To optimize or maximize stock trading gains, you must learn more "advanced" stock trading principles and techniques (such as Rotational Swing Trading) to become more effective in stock trading.

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.msg51648#top

LiveLife · November 13, 2005, 09:17:00 AM

= newbies lesson update 03/16/06 =
5. How does law of "supply and demand" affect stock prices?

In every way.

We all know that large supply and little demand causes price drops in consumer markets. And that little supply and large demand causes price increases like the price of oil.

Stock prices are absolutely affected by this supply and demand influence.

How?

Let's say, there is one seller selling 10 shares of a stock and 10 buyers want to buy them. If they all want to buy the same 10 shares, the stock will be sold to the highest bidder in a typical "auction" style sale. In daily stock market trading, if there are more buyers wanting to buy stocks than sellers, "ask price" (sellers) of the stock will continue to go up as "bid price" (buyers) try to catch the ask price, often matching or surpassing the sellers' ask price.

On the other hand, what if 100 shares of stock are being sold by 10 sellers (10 shares each) and there is only one buyer. The buyer will pay the lowest price asked by the sellers in an "open price offer" sales situation. In daily stock market trading, if there are more sellers than buyers, the sellers will keep lowering the "ask price" to match the "bid price" by the buyers in the hopes of securing the sale. The sellers can ask a higher price than the "bid price," but the sellers may not find a buyer willing to pay a higher price when there are plenty of shares from sellers willing to match the "bid price" being offered by buyers.

a) So, the buyers ALWAYS dictate the price of stocks.
Don't believe me? Trying selling a stock at $10 when it is only trading at $5. You won't be able to find a buyer willing to pay that price. But when the "bid price" by the buyers is $5 and you ask $5 to match, you will find buyers all day long.

b) So how does buyers setting the price of stocks have to do with the law of "supply and demand?"
The amount of buyers (buying interest or buying pressure) is indicated as VOLUME of shares traded for each stock.

A good daily volume for a stock is generally 1+ million shares. If a stock has a 3 month average volume of 500,000 shares traded and one day trades 10 million shares, this volume increase in shares traded indicates something significant. Here are two opposite examples:

1. If a stock gains in price with matching volume increase, this indicates that there are more buyers willing to pay the higher "ask price" by sellers than sellers.

2. On the other hand, if a stock drops in price with matching volume decrease, this indicates that there are more sellers willing to take the lower "bid price" asked by buyers.

c) Daily volume of shares traded is one of "indicators" used to make buy/sell decisions by stock traders.
If a stock begins to gain in price with increasing volume, this is a positive indication to buy this stock. If a stock begins to gain in price with decreasing volume, this is not a positive indication and price may soon fall back down. (I will cover more on volume later)

d) "For every share sold, there is a buyer who bought that share"
This is absolutely true. We often hear of "stock selling off" or "profit taking." as stock price falls. If you think about it, every share that was sold was BOUGHT by someone.

e) The key to effective stock trading is to be on the "proper or right side" of the trade. Stocks in general either go up or down (and sometimes stays flat or go "sideways").

The goal of every stock trader is to be buying as stock is coming out of a bottom (rebound) and selling as the stock is peaking. If you are buying low and selling high, you are on the "right" side of the trade. If you are buying high at top and selling low on bottom, you are on the "wrong" side of the trade. For every share of stock traded, there is always one seller selling and one buyer buying. Which side of the trade you end up is your decision and the ultimate mission objective of this Message Board thread.

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.msg51648#top

LiveLife · November 13, 2005, 09:17:23 AM

= update 03/18/06 = Since I started my support for a new group of stock trading newbies and reposting of the knowledge base, requests have been made by those that have become effective with swing trading to move on to advanced stock trading principles and techniques.

So I started the "Rotational Swing Trading" posting at the swing trading MB. I will place the content here for now.

What is Rotational Swing Trading?

History:

Several weeks back on this MB, I outlined that the short-term swing trading template represents the smallest of the wave patterns of Elliott Wave Theory. http://www.stockcharts.com/education/MarketAnalysis/elliotwavetheory.html

With the short-term swing trading template proven to be effective 95%+ for trending stocks, many asked how they should stage and line up the next stocks to be short-term swing traded.

I have been thinking about finding indicators to represent the larger groups of Elliott Wave Theory wave patterns and initially developed the draft of mid-term swing trading template undergoing tests right now.

Then it hit me one day that my method of staging stocks off the 20-40 stock monitoring list needs to be improved. You see, I have been staging stocks that are "good" candidates but as I focus on the stocks I am holding, often good buy/sell entry/exit points pass by for other stocks. While wishing I had more money to trade on these good buy/sell points I realized something.

For the past month or two, I have been focusing on 1-3 stocks and buying/selling at short-term swing trading template buy/sell points. Often, I would be holding two or three positions at the same time. This often resulted in missing the bottoming of MACD/RSI for stocks that are lined up.

Creation of Rotational Swing Trading:

If you follow the short-term swing trading template's buy/sell indicators, you can essentially buy low as MACD is bottoming and rebounding with RSI at (30-50) and sell high as MACD is peaking with corresponding RSI hitting 70-80+.

= This is for advanced swing trader = What if you take several stocks you are familiar with and can accurately time the bottoming of the MACD of those stocks and put them on a "rotational schedule" and perform Rotational Swing Trading as each stock's MACD is bottoming and peaking? Impossible? Well, we have demonstrated that we can accurately time the buy/sell points of one stock based on the short-term swing trading template's indicators.

If you have been trading for some time, you will be familiar with a group of stocks and their previous performance (we need about 3 months time period). If you are willing to spend some time calculating the MACD bottom/peak cycle and projecting the bottoming of stocks that started their price correcting drop, you can estimate the bottoming of the MACD and schedule the stocks for Rotational Swing Trading, so you are always buying at bottom and selling at peak and immediately buying the next stock on rotation where the MACD is at or near the bottom and rebounding.

I have been doing some of this rotation this month and last month. My timing is getting better within 1-3 days, but I see potential for even more accurate timing because you only need 2-5 stocks to perform the rotation.

= Rotational Swing Trading Template Update 03/19/06 =

Ok, I finished my first "Beta" draft of the Rotational Swing Trading Template (see below). It is the first version and I need to put it to test next.

Like the Short/Mid-term Templates, it will continue to evolve and be refined as time goes on. Take a look at the Instructions and the Template itself and see what you think.

The Short/Mid-term Template represents the smallest of the Elliott Wave Theory wave patterns and the next group of wave patterns while the Rotational Swing Trading Template allows the trader to simplify the lining up and timing of the buy/sell cycles of multiple qualifying trending stocks on a single template.

= For newbies to swing trading = Since the Rotational Swing Trading Template is a Beta draft version, please master the effective use of the Short-term Swing Trading Template before moving on to the Mid-term or Rotational Swing Trading. However, you are more than welcome to practice the more advanced template use "on paper."

Have fun and enjoy!

to be continued...

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.msg51648#top

LiveLife · November 13, 2005, 09:18:05 AM

= Update 04/21/06 =

Here's a primer on how to draw the basic BUY/SELL charts for Swing Trading: (I will use CDIC as an example)

0. Select a stock (You can use 3SOF stocks, stocks off stock screeners/filters, etc.)
1. Pull a 3-4 month chart using daily period (I use stockcharts.com's free sharpcharts)
2. Draw the charts with 5/20 Simple Moving Averages, RSI (14), MACD, colored candlesticks
3. You can use the "Annotate" feature or draw the BUY(Blue)/SELL(Red) arrows and lines manually using ruler and colored pens
4. Wherever you see MACD bottom, drop a Blue BUY arrow and put a vertical line
5. Wherever you see MACD peak, raise a Red SELL arrow and put a vertical line

That's it! Really, it's that simple to draw the BUY/SELL chart for Swing Trading.

So, looking at the BUY/SELL chart, you can tell where the BUY/entry points are and where the SELL/exit points are. They typically correspond with RSI bottoms of 30-50 and peaks of 60-80+.

Once you got the Short-term Swing Trading down pat, you can then line up 1-5 stocks to do Rotational Swing Trading.

Keep practicing drawing the BUY/SELL Swing Trading charts. The more you practice, better and faster you will get. Really, Swing Trading CAN be this simple.

To post questions/replies/comments and discussions, click on link:
http://www.3stocksonfire.org/trading/index.php?topic=3635.msg51648#top

LiveLife · November 13, 2005, 09:18:31 AM