Stock Patterns for Day Trading and Swing Trading describes the trading strategies used by a professional stock trader in his own trading. The collection of trading patterns described represents one of the first full-fledged books of instruction on short term, swing and day trading in individual stocks.
Introduction:
This manual is your toolbox for finding high probability trades for success as you trade the stock market. The technical ideas are primarily crafted around the personality of the NASDAQ market but may also be implemented in New York trades. The theory behind what you’ ll be reading hinges upon stock price movement which is reflected in daily and intraday bar charts.
Many approaches to trading are espoused in books and address how to find, enter, and manage your trades. However, you will not find anything in publication or in training which provides you with the experience, dollar potential, and detail behind the trading methodology that is explained.in this manual. These methods are the same ones that have provided some of the earliest electronic (computer) day traders with profits which mounted into hundreds of thousands per year.
Although this trading style is sound and profitable, it also must incorporate the art and mental discipline of each person who applies it. This is why many actual chart examples are provided to give you a feel for what really works. You will learn to time your trade entries and exits from experience with the aid of some helpful tips in later chapters. Be a student of the market and learn how each individual stock moves, its personality, and how the main overall market indexes affect the stock’s movement on a daily and intraday basis.
This method looks for price patterns which typically set up for an intraday trend in a stock. Entering the trade is only the first (and probably the easiest) part of trading. How do you know where to exit ifthe trade goes against you? When do you exit if you have an open profit? You have to manage the trade based on the principle that the stock has chosen a direction for the day, and you are on board for the ride. This means you have to be willing to give the trade the room for price pullbacks against your direction of the trade.
The idea is that on a buy setup a stock will move up, then pull back some, move up to make a higher high on the day, pull back some etc. as it continues its upward movement into the end of the day. Likewise, on a sell setup, the stock will move down to make a new low, then rally some, move down to make a lower low on the day, rally some etc. as it continues its downward movement. You want to stay on board for as much of the ride as possible and not exit the trade too soon and miss out on a substantial profit. These pullbacks are known as “wiggles” and are explained under the “terms and definitions” section of this manual. Each stock usually has its own particular ยท”wiggle” which can be determined based on the information provided later in the manual.
Although there are times when a stock will reach a price where you will “cut” (or exit) the trade at a likely profit target, the key to this methodology’s success is letting your winners run by giving them ”wiggle” room.
Contents:
- INTRADAYTREND METHODOLOGY
- WIN USE PRICE BAR CHARTS
- TERMS AND DEFINITIONS
- HOW THE “WIGGLE” WORKS
- DAY TRADES
- INTRADAY CHART EXAMPLES
- SUPPORT AND RESISTANCE
- MARKET MAKER AND TIME OF SALE SCREENS
- SWING TRADES
- CHART EXAMPLES FOR DAY TRADING AND SWING TRADING
- EXTRA TIPS AND TRADING IDEAS
- PRICE FRACTIONS SHOWING DOLLAR AMOUNT
- TRADE SHEETS
- THE 10 COMMANDMENTS OF TRADING
Stock Patterns for Day Trading and Swing Trading By Barry Rudd PDF
Julian Bullock (verified owner) –
I’ve spent in the neighborhood of $500 on daytrading books in the past 12 months. If I could only purchase one daytrading book this would be the one. Over the past year of daytrading I’ve learned the three best tools for timing trades are 1 – real-time charts 2 – level II quotes & 3 – time & volume of sales. This book has more examples of charts than the other 10 daytrading books I own combined (that doesn’t include Barry’s second charting book which I also highly recommend). This book is all about keeping things simple. Forget about stochastics, MACD, & all the other things recommended in the Compleat Daytraders I & II books. Barry believes in the KISS method. Keep it simple stupid (thats my paraphrase of what he recommends). Part of my enthusiasm for Barry’s book has to do with my trading results before & after reading his book. Because his book was more expensive than others available I purchased some of the less expensive, introductory, daytrading books. I started trading & over about 7 months lost approximately $7,000. In the past 5 months (since purchasing Barry’s book) I have become more patient waiting for the correct chart formations & have become a profitable, part-time daytrader. The $7,000 loss I had 5 months ago has turned around and become a $53,000 gain. Some of this turnaround is naturally a result of my maturation as a trader. Everyone writes about having to pay one’s dues, so to speak, to get an education in daytrading. I certainly did. However, if I could pinpoint THE major turnaround in my trading activities, it would have to do with reading Barry’s book. Can I give this book six stars?
Shane Garner (verified owner) –
I’ve bought many books on investing and daytrading, and this book, along w/ the advanced volume, are by far on top of the list. Barry gets right to the point, no B.S. here. The books are loaded w/ actual charts so you can see (not just read) how the actual setups unfold.
Mauricio Snow (verified owner) –
Perhaps my expectations were too high, but I thought that this book would include numerous day trading patterns. The main advice given is to buy the breakout after the price has been steady for a period. The book does have a lot of good charts showing setups to stay away from, which is why I gave it 3 stars, but I didn’t think that it was worth the price.
Beatrice Ball (verified owner) –
Both of Barry Rudd’s books are specific and advanced, the “genuine pro trading stuff” that’s so hard to find among all the fluff out there. Along with Tony Oz’ Stock Trading Wizard, Murphy’s TA and Nison’s Candlestick books, Barry Rudd’s two Stock Patterns for Day Trading books are essential reading, and we recommend them highly at […] for all our traders.
Hayden Johns (verified owner) –
This book is great for anyone who wants to seriously trade stocks for a living, and it covers many crucial topics for persons just starting to make money day trading. Once you are in the trade, Rudd does not just leave you to fend for yourself. This book is about as close as you can get to understand how to make day trading successful. I found this to be an honest and detailed look into the mind and procedures of a trader. All in all, I have to give a strong recommendation to this book. It is well worth the money.
Jacqueline Boone (verified owner) –
Great and simple reading. Many books use the same topics but what is real nice about this book is that it has copies of charts that was actually used for explanations from hedge fund/retail traders friends of his. This is a great book for any serious person wanting to be a successful trader.
Winnie Rose (verified owner) –
Although the book does contains some useful information, it could have easily been sold as a daytraders handbook of some kind for much less. 1/2 of the book is illustrations (overkill in my opinion). Later parts of the book simply repeat information presented in earlier parts of the book.