Swing trading refers to a means of generating short to medium-term profits from a stock (or any financial instrument) over a period of days to weeks.Don’t be in a hurry to invest in this without prior knowledge.
Swing trading is a unique style for many experienced investors in the stock market. Many novice investors try to master this art because of the high returns on short-term targets.
Why is swing trading so attractive?
According to swing traders, opportunity cost of capital is the driving force behind their strategy. In other words, swing traders are essentially momentum traders who are attracted to stocks whose prices are rising quickly and try to avoid investing in stocks that have no sudden upside potential.
Here’s a quick look at some of the best swing trading books to help you master this art.
“How to Swing Trade: A Beginner’s Guide to Trading Instruments, Money Management, Rules, Procedures and Swing Trading Strategies.”
Authors: Brian Pezim and Andrew Aziz
Brian Pezim and Andrew Aziz are the co-authors of the bestselling book on every shop and first choice. This is the perfect book for beginners. The book covers the basics of stock trading and offers professional-level strategies for everyday trading. The authors also describe short-term gains and many other principles beautifully.
If you are a veteran trader, you will not like the first few chapters of this book because of its fundamentals. Despite this, the following chapters will provide you with valuable information. Each chapter contains key points and summaries. This is a great guide to remembering all the principles of swing trading.
“Swing Trading for Dummies: by Omar Bassal”
Every book teaches swing trading well, but this book, authored by Omar Bassal, is the absolute ideal.
This book covers all the basic knowledge you need to use in swing trading, from basic to advanced. The author was formerly head of the valuation division of a major bank in the Middle East and now runs his own commercial firms. The book mainly covers technical analysis of stocks, followed by fundamental analysis of stock prices, and finally how to build and manage a portfolio. Throughout this book, it explains and demonstrates in detail how to avoid excessive risk and still make a profit.
“Mastering trading: proven methods of making swing trading profits”
Author: Alan Farley
Everyone involved in trading knows about Alan Farley.The book discusses charts, defining support and resistance, price action patterns, Fibonacci levels and how to identify and profit from short-term trading opportunities.
Farley devotes half of the book to describing his “7 Bells” — essentially seven swing trading setups that he considers the most reliable. Each trading set-up is illustrated. The risk/reward ratio is clearly described and trades are executed and managed accurately.
The book is intended not only for novice investors, but also for experts, who can extract valuable information from it.