The title of this book, Timing Solutions for Swing Traders: Successful Trading Using Technical Analysis and Financial Astrology , defines its mission. It is all about detecting trend and exploring the best timing to trade.
The first eight chapters are authored by Robert and cover comprehensive aspects of technical analysis, including a summary on the Theory of Elliott Wave Principle and the Queuing Theory of Moving Average Crossovers. The last chapter was contributed by Peter. It introduces the application of financial astrology to picking stocks and cycles, to finding the best period to trade, and to ascertaining the best period of your personal Part of Fortune.
In the book, we have demonstrated a simple concept of a trading method. The stocks are selected at random and are not selected to fit the system. The system is not a mechanical or fully automated trading system, and parameters of the system and indicators are not optimized. The basic formulas used in the system are provided for reference. The formulas are simple and easy for traders to use. It should be easy also to adjust them for incorporation (with their personal system design) into their personal trading method.
The program has a built-in color trend indicator to alert traders to the state of the stocks in the short time frame, and to validate the short-term trend by the medium-term indicators of the system. In essence, we want to trade when the short-term trend is moving in tandem with the mediumterm trend, and trade signals are executed only in the direction of the longer trend frame.
The application requires discretionary traders’ decisions to anticipate market outlook for the intermediate trend. It uses candlestick patterns, Elliott Wave Principle, volume, and the interplay of three longer-term moving averages to decide whether relevant price rallies or corrections are expected to be short-lived or the start of a longer trend. It is also recommended to include a protective stop-loss system in every trading system.
There are no standard parameters or definitive methods for applying stop-loss. Each trader has to define his own acceptable risk to set the appropriate stop-loss. For reference, the formula of a simple indicator for stop-loss has been included together with formulas of the various indicators mentioned in the book.
To a large extent, the success of trading depends on your frame of mind, money management ability, and trading methodology. Having a healthy frame of mind is a prerequisite for trading stocks. The mind greatly infl uences how you trade and how you manage your financial risk. Trading is all about making mental decisions. A frame of mind that is negative, tired, or anxious is not the right condition for trading anything. On the other hand, a healthy and cheerful attitude and learning to take a break from trading are indispensable factors in the unceasing quest to achieve the best trading results.
- Be Prepared
- Let’s Get Started
- Essential Patterns
- Elliott Waves
- Key Indicators
- Applied Systems
- Formulating Your Trading Plan
- Financial Astrology