Wednesday, November 12, 2008

My Stock Trading Strategy

In the summer of 2006, I attended a stock trading seminar with my current trading partners that was extremely beneficial - I knew nothing before I went and left with an immense amount of knowledge about technical swing trading. In the end, we learned it was a "scheme" only because interspersed throughout the three-day crash course were hard-sell pitches to buy more training sessions, software, and one-on-one mentor sessions. Luckily, we did not buy in! We took our super cheap three-day course, the few strategy tid-bits it had to offer, and grew on our own and with other, cheaper tools like Swing-trade-stocks.com.

My current swing trading strategy is primarily derived from Swing-trade-stocks.com, a site found by one of my partners a few months after our crash course. Craig, the site's creator, lays out the basics, the strategy, and how to execute winning swing trades beautifully and for FREE. He's remarkably easy to understand and his "TAZ" - "trader's action zone"- strategy works! The "TAZ" may not be for everyone but his strategy is the secret behind my hefty returns.

If you're brand new to trading - start on the left hand side at "Trading Basics." He takes you through the market stages, stock trends, an explanation of the importance of moving averages, how to read candlestick charts, how to use volume (the number of shares traded per day) as an indicator, how to use support and resistance as a way to determine if a stock is worth your time, and he explains relative strength.

If you're not new to trading but are looking for a new way to trade jump straight down to"The Strategy." My favorite sections for really understanding the strategy are Trader's Action Zone, Entries and Exits, and Chart Patterns.

I refer back to Swing-trade-stocks.com every few months when I feel like I'm floundering a bit and refresh myself on the strategy. I find that I start getting confident and skipping over important checks before I enter a trade - and it's always there to steer me back on track.

Read about my Strategy Goals.
Read about Swing Trading Trend Changes.