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Best Books On Swing Trading: #2 Is My Favorite

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by Gavin in Blog
June 25, 2021 4 comments

Today, we’re going to take a look at some of the best books on swing trading.

If you are into investing or are around people who do so, you would hear words such as trading, technical analysis, fundamental analysis, day trading, among others.

The investment time horizon spectrum has day trading and trend trading at their extremes.

Day trading includes buying and selling stocks within the trading period on the same day.

Trend trading is comparatively long term which is usually a few weeks to months.

Swing trading is a strategy that attempts to incorporate something in between steroid fuelled day trading and sloth-like passive investment.

Therefore, it is near to medium-term investment based on time.

Contents

The Middle Ground Benefits

The benefit of such trades is that the investor can take advantage of both short-term trends and emerging fundamental changes in the company. It is like having the best of both worlds. It does not require involvement like a day trader who would be glued to the screen on all trading days.

Other advantages include:

  • Investment returns are realized comparatively early, and strategy can be changed if required.
  • It can yield regular monthly income for investors with lesser involvement if they act on short-term trends.
  • It involves less risk than day trading.
  • Returns of even 1% to 2% over a month compounded to an annual basis can be remarkably high.

Losing Out on Large Gains

Swing trading provides good returns but can be risky because the short-term trends may not reflect into stock prices.

You may expect that a particular pharma company will report good annual results due to increased demand in the pandemic. However, it can still be below market expectations and the stock prices would fall instead of rising.

Additionally, overnight negative changes such as FDA approval being rejected, or the acquisition being dropped may result in significant losses.

Swing trading may not require high engagement like day trading but still requires significantly higher engagement than passive investing.

Margin requirements for swing trading can be too much for small investors.

Best Books on Swing Trading

You do not have to be an MBA Finance or a CFA charter holder to earn low risk returns from swing trades. Several books that cater to novice investors are available and can guide you significantly. We will have a brief look at some of the books that can get you started.

Mastering the Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups – John F. Carter

The most recent 3rd edition has been published in 2018 and is priced less than $50 on Amazon.

The author, son of a Morgan Stanley broker and a shareholder, is a full-time trader since 1996.

The book provides practical aspects of trading in the book and the salient features include:

  • Easy to understand checklists for market behaviors included.
  • Guidelines on entry and exit points for swing and day trades.
  • Risk management techniques to identify risks and reduce losses.
  • Prediction techniques for market corrections.
  • Elements of behavioral finance and investment psychology.
  • Techniques to recognize trades with a high likelihood of profits.
  • Charts and videos further augment the understanding of the trades.

The book links with the investment experience of the author and even an investment beginner can find it insightful. However, for an experienced investor, it can sometimes be too verbose with its case studies.

best book on swing trading

Come Into My Trading Room – Dr. Alexander Elder

The book by Alexander Elder is arguably the bible of Swing Trading. First published in 2002, you can get this 320-page book for a mere $19.99. Imagine opening yourself up to one of the best strategies for less than the minimum wage. Dr. Alexander is a psychiatrist and a technical analysis expert.

As a result of his background in psychiatry, the author trains the reader to be psychologically strong through the crest and troughs of investing. The book provides baby steps to create a well-diversified portfolio for stocks and derivatives.

One thing the reader will love is that the book starts with providing fundamental trading techniques and then provides practical tips to succeed in the actual market. The focus is on 3Ms i.e., mind, method, and money, and traders at levels can find it insightful.

best swing trading book

How to Swing Trade: A Beginner’s Guide to Trading Tools, Money Management, Rules, Routines and Strategies of a Swing Trader – Brian Pezim

Brian Pezim is a trading warhorse and placed his first trade in 1967. He mentors fellow investors for different organizations. The book was first published in 2018 has 322 pages and the kindle version is available for $4.99. The book provides an introduction for a new trader and provides strategies and features such as:

  • Difference between Swing Trades and other strategies.
  • Suitability of swing trading to different types of investors.
  • Swing trading strategies based on experience level of the investor.
  • Discussion of charts and tools related to strategies.
  • Guidelines on appropriate entry and exit points for the trades.
  • Choosing and broker and managing your own money.

This book enjoys good ratings (4.6 / 5.00) on amazon and has been tried and tested by a number of investors. It would not burn a hole in your pocket and provide you some valuable lessons.

best swing trading books

Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets

The book was first published in 1988 and has received great reviews for three decades now.

The author is a veteran technical analyst and has provided the readers with techniques to profit using swing trades. Some aspects of the book that stand out include:

  • Timing investments to provide profits on a consistent basis.
  • Executing first short sale position.
  • Using market cycles to provide different trading opportunities.
  • Hedging the risk by trading short positions in addition to long positions.
  • Spotting the bullish and bearish market phases.

The author retired in 2000 but his book provides some important insights today too.

best swing trading books for beginners

The Master Swing Trader – Alan S. Farley

Alan is an experienced writer and investor. He has been a contributor for CNBC and Bloomberg TV.

The book was first published in 2000 and provides an overview of technical analysis, charts, and market sentiments to benefit from short-term market movements.

The book includes:

  • Macroeconomic cycles, momentum, pattern cycles to study long-term trends.
  • Overview of technical indicators candlestick charts, Bollinger bands, to carry out swing trades.
  • Identification of trend reversals and continuance using charts.
  • Recognizing investor psychology and crowd behavior to predict the movement of the markets.

The book can help investors at all levels and is a must for any swing trader. The dictionary at the back explains financial jargon with ease.

swing trading best books

Conclusion

Swing trading can be your avocation with a full-time job even in a non-financial field.

The books offer much-needed knowledge to survive the market and some practical guides and experiences to survive the market.

Having said that, the best teacher is the trading floor, and no book can teach you to hold your nerve at critical moments.

What these books can teach you is to avoid common mistakes that other traders have made in the past.

We are not recommending any of these and there might be books or courses which may suit you better.

However, these books are time-tested and can teach you valuable lessons which you would have otherwise learned the hard way.

It is wise to start off with small investments for swing trades and get a hang of the markets.

Over a period, you are likely to develop the skills and a sixth sense to make good trades.

As you feel more and more comfortable you may increase your investments.

But remember, never get too greedy or too miserly.

Trade safe!
Gav.

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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4 Comments
  1. KK says:

    Can you share top books on Options Trading

  2. A. Nathroy says:

    Thank you very much Mr. Gavin McMaster for a very informative mail.
    I am A. Nathroy from India. I have bought almost all your books from Amazon and have read them. I very much appreciate your writing style … crisp, clear and to-the-point.
    Please let me know some good books on Trend Trading also.

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Options Trading 101 - The Ultimate Beginners Guide To Options

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