Best Swing Trading Books to Read in 2019


Best Swing Trading Books

Swing traders utilize a trading technique that falls between day traders and trend traders. They hold a security for a minimum of one day or several weeks.

Swing traders aim to hold an asset long enough to profit from short-term price changes or “swings.” During this swing, the price of the asset may fluctuate. However, by utilizing proper technical analysis and some fundamental analysis, a swing trader can capitalize on sudden price spikes and lock in substantial gains.

Why Should You Try Swing Trading?

The swing trading technique is a popular trading style because of the freedom it allows. Unlike their day trading cousins, swing traders do not sit and read charts all day. In fact, there is less active trading required, which means less time commitment and you can swing trade in addition to another job.

Because you hold onto an asset for a more extended period of time, you naturally trade less. Fewer trades result in fewer commissions and fees. Fewer trades also translates into less risk per trade. Additionally, because swing traders usually take more significant positions on a trade, it can be more profitable than day trading’s smaller positions yet faster potential profit than trend trading.

There are several remarkable books on swing trading strategies available for beginner traders as well as more advanced techniques for advanced traders. All traders need to design a well-thought-out trading plan to keep their trades focused and to minimize losses. Because 95 percent of traders fail, the best swing trading books can provide the proper training to get you started or refine your current strategy for more profit potential.

The Best Swing Trading Books for Beginners

If you are an absolute beginner or have just started considering swing trading, consider these books on swing trading.

Best Swing Trading Book: The New Trading for a Living by Dr. Alexander Elder

What is Inside:

This book is a guide that teaches a disciplined approach to today’s fast-moving markets. Elder has revised and expanded his classic and internationally read book, “Trading for a Living: Psychology, Trading Tactics, Money Management,” which was published in 2007. This version includes updated studies and techniques for the modern trader, templates for how to pick stocks, templates to create your trading plans, and guidelines on how to assess when you are ready to begin trading. The book’s explicit rules for risk management as well as self-management, offer invaluable advice to help make you a successful trader while minimizing your losses.

You may also consider the supplemental Study Guide for The New Trading for a Living. This study guide tests your knowledge and what you have learned from your training. The 170 multiple-choice questions cover the entire range of trading subjects, from psychology to system design and refer back to the main book. Additionally, the 17 charts in the study guide are designed to test your ability to identify trading signals and patterns.

About the Author:

Alexander Elder, MD, is a professional trader and author of several best-sellers. His work as a psychiatrist offers unique insight into the psychology of training.

Best Swing Trading Book: Technical Analysis Using Multiple Timeframes by Brian Shannon

What is Inside:

Although this book was published in 2008, it is still relevant today for its insight on technical analysis, which is critical for short-term trading. This book teaches the foundations of technical analysis, as opposed to merely recognizing modern chart patterns. Moreover, Shannon offers a complete guide to understanding the market structure and the psychology of price movement.

Once a swing trader can understand the signals for an asset’s price movement, he can then enter established trends with lower risk and maximum profit levels. Additionally, you will read about specific strategies for entering, maintaining, and exiting trades. Also, how to properly analyze volume and moving averages or VWAP (Volume Weighted Average Price). Mark Douglas, president of the firm Trading Behavior Dynamics, said that 95 percent of the trading errors you are likely to make stems from your emotions and fear. Technical analysis teaches you the importance of controlling and removing your emotions from your trades, which can otherwise lead to costly decisions.

About the Author:

Brian Shannon, CMT, is the CEO and founder of AlphaTrends. He is an American author, a technical analyst, and professional trader, educating swing traders on the industry’s top tools and techniques.

Best Swing Trading Book: Long-Term Secrets to Short-Term Trading by Larry Williams

What is Inside:

Larry Williams first began sharing his secrets with the world in 1999 with his published book “Long-Term Secrets to Short-Term Trading.” As the markets changed, Williams also adapted his strategies. In the 2011 version, Williams has revised and updated his original best-seller to help a whole new generation of enthusiastic investors.

This book discusses market wisdom on various topics from speculation to profit patterns. Williams explains how to enter the trading world, when to exit a trade to minimize loses, and how to hold on to promising assets. The text also includes in-depth analysis of effective short-term trading strategies as well as proven technical indicators.

About the Author:

Larry Williams is a well-known, highly respected technical analysts of the past four decades. He is a seasoned stock and commodity trader and author of 11 books. In 2014, at the Traders Expo in Las Vegas, Williams recorded a series of videos discussing his 50+ years of trading.

The Best Swing Trading Books for More Advanced Traders

If you have some experience swing trading and would like to refine your strategy and push yourself further as a professional trader, consider these books on swing trading.

Best Swing Trading Book: The Master Swing Trader Toolkit: A Market Survival Guide by Alan S. Farley

What is Inside:

From the author who brought you “The Master Swing Trader,” Alan Farley has returned with a survival guide for more experienced traders. This toolkit is an application-oriented guidebook that is designed to help you weather a market crash, identify and profit from the result opportunities.

What makes this book unique is the use of authentic case studies to demonstrate his defensive trading techniques and strategies in action. The content goes beyond a basic understanding of day trading but dives deeper into tape reading and how to achieve more significant gains through convergence-divergence relationships.

About the Author:

Alan S. Farley is a long-time trader, tape reader, and trading strategist. He is a McGraw-Hill best-selling author, has published thousands of educational tutorials, and his writings are well-known. Farley is a columnist for TheStreet.com, a frequent contributor to CNBC, and has been featured in Forbes, Futures Magazine, MSN Money, and Fidelity Outlook. The author is also the publisher and editor of HardRightEdge.com, an online resource for technical analysis and short-term trading tactics.

Best Swing Trading Book: Mean Reversion Trading Systems by Howard B. Bandy

What is Inside:

The plain exterior of this book matches the no-nonsense writing style of Howard Bandy. This book offers practical and fully disclosed methods for swing trading as well as how to identify overbought and oversold conditions. It is heavily adapted around the AmiBroker trading and backtesting software. Bandy does not hesitate to explain the systems thoroughly, but he also gives the AmiBroker code so the reader can use the system for his own trading.

This book fits well with Bandy’s previous two books “Quantitative Trading Systems: Practical Methods for Design, Testing, and Validation” (2008) and “Modeling Trading System Performance: Monte Carlo Simulation, Position Sizing, Risk Management, and Statistics” (2011), which further contribute to a comprehensive theory of quantitative technical analysis.

About the Author:

Dr. Howard Bandy has degrees in mathematics, engineering, physics, and computer science. He designed a commercially successful stock selection and timing program and was a senior research analyst for a Commodity Trading Advisor.

Best Swing Trading Book: Dave Landry On Swing Trading by David Landry

What is Inside:

This book may not be ideal for beginners. Instead, it identifies Landry’s set-ups, entries, and stop loss points for profitable trades. He shows you where to find lucrative opportunities and the signals for exiting a trade. What sets this book apart is its emphasis on application, as opposed to foundational theories.

Landry focuses less on math and formulas and more on  how to read charts, how to manage your money, how to do proper research, and how to avoid common mistakes. The reader follows Landry as he executes his daily routine as well as his personal swing trading methodology from analysis to trading.

If you are a true beginner but enjoy Landry’s writing style, consider taking a look at his other books “The Layman’s Guide to Trading Stocks” and “Dave Landry’s 10 Best Swing Trading Patterns and Strategies.”

About the Author:

Dave Landry, CTA, is a co-founder of TradingMarkets.com. He is the principal of Sentive Trading, LLC, a money management firm as well as a principal of the hedge fund Harvest Capital Management. He is a published author of several trading systems and has been featured in Technical Analysis of Stocks and Commodities magazine.

Conclusion

Many successful traders have unique strategies and advice that they choose to pass on to the next generation of traders. Most traders feel that swing trading is not for the faint of heart. However, it is not impossible to learn.

By reading the best swing trading books, you can learn the foundations of the market, monitor stock market news, identify profitable opportunities, all while maintaining a strict money management system and swing trading strategies to mitigate risks.

These books on swing trading can get you started. Become a strong investor and always seek more information and tips on learning to trade. After all, if swing trading were easy, everyone would do it.

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