A simple guide to the
basic rules to swing trading. The rational behind swing trading and the entry
and exit rules are presented very clearly along with money management and the
guidelines needed to implement this strategy. Both the beginner and the
experienced swing trader now have a simple guide to follow.
We will show you step by step, how to find and select stocks.
We will teach you how to know when it's time to get out, when to buy and when
to sell. You'll have several stocks just waiting in the wings for when you do
sell that are just as good as or better than what you already own. Many of
these stocks will have tremendous gains over relatively short periods of time.
Just follow the steps below:
Find a good
penny stock service to subscribe to. Many of the
suggestions above can now be covered by joining a trade advisory service. These
services now aim to pick stocks, offer trading and portfolio management
software and educational services too. If things go well, then by investing in
the stock market picks, the service can be paid for with profits. Though these
services are often not 'cheap' they are generally very valuable and can help to
make an investor or trader profitable whilst learning the ropes. This is a great
way to learn or experience the stock market for beginners.
Know
which stocks to reject off the bat: stocks that aren't
traded on one of the major U.S. exchanges (aka bulletin board or
over-the-counter [OTC] stocks)
·
companies that have
less than $10 million in revenue annually
·
any company
recommended in e-mails about penny stock trading (promoters are often paid to
create hype so that the shares will sell)
·
companies in
industries that you don't like or understand well (based on your experience)
Get somegreat investment management software. These days, a
speedy internet connection and good money management and investment software
costs virtually nothing. Why spend the time and effort trying to figure out the
best ways to do things when solutions already exist. Ideally, look to purchase
two types of software. One will be for personal money management. This can be
used for profit and loss and keeping track of the costs of subscriptions,
stockbrokers and the like. The other will be used for tracking stock and fund
prices, storing company news, technical and fundamental analysis and more.
Get an
education. Warren Buffett has suggested in the past that
every investor should be able to understand basic accountancy principles, an
annual report and stock market history. You probably do not need to become an
accountant, but being able to understand the scoring system of the game can
only help.
