Packed with over thirty-five charts, Swing Into A Simple System For Trading Pullbacks to the 50-Day Moving Average, lays out an easy to follow yet effective strategy for successful swing trading. Detailing the technical indicators and money management strategies that have worked best for him, T. Livingston breaks down what every savvy trader needs to profit in today’s stock market. Topics discussed include how to analyze the general market, which stocks to trade, when to buy, position sizing, profit targets, and selling rules. Swing Into It provides a variety of different examples so that the reader will be prepared for various market scenarios. Detailed sample trades are included so that the reader can see how Livingston thinks throughout each phase of his trades. If you’re looking to get started in swing trading or seeking to refine your trading system, Swing Into It belongs in your library.
Being beginner to swing trading; I really found this book to be very crisp & upto the point. In past I tried reading few trading related books but always struggled with it. However, this book is an exception. Livingston has wonderfully explained a strong & effective swing strategy with proper buy, stop loss & sell point criteria's.
Entry Check Points:
1. Check for Market 10DMA > 40DMA 2. For stock check below a. CMP & 50DMA> 200DMA b. 10DMA>40DMA c. Prefer stochastics RSI near 0.20 d. Beta>1 e. High Volume Stocks
Stop Loss:
Sell once stock goes below 50DMA. No questions asked.
Selling Rules
a. Sell your stock if SL is hit b. For 1st 3 weeks sell stocks only if SL is hit c. After 3 weeks sell stocks if they are closing below 50DMA d. Book profits when you have 3-4r return (r stands for risk reward ratio) e. If stock explodes quickly with 2 weeks, hold till closes below 50 DMA
As you see Livingston has not given any fancy jagrons or hot tips, very simple & straight forward strategy with a decent risk reward ratio. He is kind enough to share his excel template which he has mentioned in book. Not sure how relevant is it to experienced traders but its a must read for beginners.
I wasn't sure about this book when I saw it was only 60+ pages but once I started reading it I appreciated that it was straight to the point, provided a well structured system and didn't add in a lot of extra fluff to waste my time. I am new to swing trading and I felt this book provided a complete, easy to follow system with clear rules to follow and sufficient examples. I appreciated his writing style, it is easy to read and he provided a summary of the rules which made highlighting on the kindle really easy to refer back to as I am looking for trades.
but didn't told the entry and stoploss points exactly. 🤷
Stage determination: (10 week SMA - blue line, 40 week SMA - red line)
Stage 1 -> blue Line is rising and red Line is flattening out. blue line is just below the red Line.
Stage 2 -> blue Line and red Line is also rising; blue line is above the red Line. (best time to buy stocks)
Stage 3 -> blue Line is heading down and the red Line is flattening. (author didn't say this but blue line could be just above red line)
Stage 4 -> The blue and red Lines are both down trending. The blue Line is below the red Line. (Never buy stocks at this stage)
Rules:
* Sectors - energy, technology, biotech, retail, services and leisure, and finance (author's biggest winners and he like to avoid REITs, utilities, and consumer staples)
If you are having trouble choosing a stock, or are a little nervous, you could simply trade Exchange Traded Funds (ETFs) (tradeoff is that you could make more money if you picked the right stock instead of the ETF)
* Innovative, well-known company (avoid older, more established companies)
* Beta (stock's volatility) > 1 (beta over 2 must be handled with added care like wider stop loss) (ETFs usually have a lower beta than the individual stocks in financial sector)
* 50-day average daily trading volume - 1.5 million or higher
* Market Cap > 7 billion
* Price > $5
* Look at the weekly chart and make sure the stock is in Stage 2 and the general market (Nasdaq or S&P 500) is also in Stage 2.
* Stochastics RSI is either below .20 or was recently below .20 (usually stocks that retake) and heading higher. ( It's ok if Stochastics is above .20, but we don't want to buy stocks when Stochastics RSI is above .80 for weeks and weeks.)
* Current stock price above the 200-day SMA
* The 50-day SMA is upward trending and above the 200-day SMA
* In daily chart, the stock price is retaking (stocks that go back above the 50-day SMA after dipping below it) or bouncing off (stock doesn't touch the moving average on the day we buy it, but in the general vicinity) the 50-day SMA to the upside.
- In leading stocks, the first two touches of the 50-day SMA are more reliable than later touches of the moving average
- If a stock gaps down on huge volume and then rallies without much conviction, it's best to move onto another stock even if it retakes its 50-day.
- However, if you are stopped out on a move that is orderly and on low volume (There were above average down days, but overall there are no massive gap downs or huge volume days), it may be a good idea to keep the stock on your watch list (and enter when stock retakes its 50-day moving average on impressive volume and begins to head higher)
* Stock should be up for the day. (Never buy a down day i.e., red candle)
* At times,use an additional indicator to further confirm the assessment of a stock's pullback. For a leading stocks that is near its 50-day moving average. If its RSI reading is about 50, add to watchlist (only use this rule when dealing with true market leaders). For most stocks, wait for RSI to dip to 30 before considering a buy.
* Buy in the last 1 hour (For US, between 3pm and 4pm and the closer to 4 pm the better).
* Amount to risk on each trade - only 1% of our total money on a trade.
* SL - below 50-day SMA but Percent risk - 2.5 to 7.5% (most trades favors 3-5%) (above 7% and upto 10% if extremely volatile stock (higher beta); Smaller stocks and stocks from volatile sectors such as Biotechs or Chinese companies may require stops upwards of 12-15%)
* Exit - sell 50% of your shares prior to earnings announcements (due to possible gap up or down)
- During the first 3 weeks you are in a trade, only sell your stock if your initial stop loss is hit. - After three weeks, sell stocks that are closing below their 50-day SMA - In more difficult markets or slow moving stock or ETF, always sell at 3R; In very bullish markets or when U know I are in a very powerful stock, Usually go for 4R (R - Percent risk) (Also never sell stocks just because the Stochastic RSI is above .80.) - If a stock explodes upward very quickly and you are at 3R within 2 weeks, hold the stock until it closes below the 50-day SMA.
Enter buy point, total account value, and sell stop point into the Excel to determine how many shares to buy. (Never buy more shares than the Excel says)
The title of the book is exactly what it delivers. Do not read for more or less. The book loses one star only on that fact. Having started to trade I have already identified several simple systems of swing trading. A little more exploration of other strategies or considerations that do not surround a 50 day moving average and volume would be helpful. My recommendation to the author would be to create a second volume that explores the top three simple strategies. This might increase length but would be a good ROI for a reader. Other than that opinion it is a good book and a strategy that worked for me.
Swing Into It is the collection of few techniques which can help you to catch the price-swings of a stock in bullish market and make good money. In this book, author has shared his methodology of trading the stocks using moving averages, Stochastic RSI and Volume indicator. Author has shared many trade examples using these techniques which helps the reader to understand how these strategies should be applied. Click below link to know more:
This book takes you on a journey of possibilities and encourages traders to get involved in technical analysis it has plenty of charts to illustrate the author's winning trading strategy, which was useful to help visualise the key concepts being addressed. This book is nicely written, from beginning to end I was engrossed and couldn't put it down for a break!
This has everything you need to get a clear understanding of what you’re looking for. He breaks down the reasoning behind his decisions on entries and exits. Also gives you a clear plan for you to make your own. I love the way he summarizes what he just went over, that was very helpful. I will definitely be reading all his other books.
Very informative. In an easy style for learning. Author not only tells what but also explains the why. Great examples. Not too wordy or off subject. Looking forward to reading his other books.
Really given many useful tools on swing trading.Thoroughly enjoyed reading every page of the book.Everything was explained with the help of charts.Thanks for such wonderful insights.
Outstanding strategy for swing trading, and expertly crafted for the fullest understanding of it. The author has written a concise, straightfoward description of this strategy and provides detailed tools to execute it. The best book I've read on this topic.
I’m a passive investor trying to learn how to be more active. I found the examples and charts extremely useful. I also liked the end of chapter summaries.
Great read. Clear and concise explanations to his preferred technical indicators. Loved the different angles he covered. Another great book from this author.