Elite Swing Trader

Elite Swing Trader
Minimum Effort, Maximum Effect Trading!
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Introduction Hello and thank you for purchasing the Elite Swing Trader.
You have made a very wise business decision to join a selected club of elite traders making money in swing trading. This book will teach you anything you need to know to become a profitable and powerful swing trader. If you have any questions do not hesitate to contact us at [email protected]
Please follow this system as closely as possible. This is a tested system that is proven to be profitable, and deviation from it that is not tested can cause losses.
Why Day Trading Is not for beginners Day trading is one of the most sought-after fields of trading. The idea of making money quickly in a matter of few minutes appeals to many people. Unfortunately in this case, the cheese is nothing but a trap for the mouse.
Day trading has a good potential and the skilled trader can make a lot of money very quickly. HOWEVER, day trading requires skills and abilities that most traders lack and requires years to develop. First of all, it requires a strong 'feel' for the market. You need to be highly accurate in your entries as the little doubt
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and late response can be disastrous in high leverage. The high leverage also causes high risk in many trades.
Day trading is also a stressful endeavor that leads to even more losing trades. The mindset of the trader is not of a experienced, considerate trader – but of a mad gunslinger that attempts to catch every opportunity possible. Apart from being unhealthy due to high stress, it also causes malfunctions and is hard to execute correctly.
Another issue that prevents the profitability of trading in day trading and lower timeframe is the amount of noise in these timeframes. In these timeframes about 80% of movements are just noise that has no technical meaning . Basing trading decisions on these data is useless and leads to great losses.
What is the alternative The alternative we will present in this book to daytrading is swing trading. Swing trading is trading on higher timeframes, preferably 4-hour and daily charts. In this charts all the disadvantages of daytrading simply disappear!
In swing trading you don't need to pin-point the the exact moment for profitable
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trade. You have a lot of time to analyze, make a solid and sound decision and enjoy the profits rolling in your account. Swing trading is also much more profitable – every trade in swing trading can get you hundreds or even thousands of pips – magnitudes unheard-of in daytrading not to mention scalping. Another prominent issue is the issue of freedom. Daytrading is a very demanding job – you need to spend a lot of time per day analyzing and trading. In swing trading you only need to spend considerably less time and still make the same or higher profits.
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How we Analyze the markets The analysis technique you will learn at the Elite Swing Trader is based on technical analysis and chart patterns. We will find spots in which we can follow the 'smart money' and anticipate the movements by the 'dumb money' or the mass public trading the markets.
The smart money is a general name for the institutions and banks trading the markets. These institutions are generally very resourceful and have big research divisions analyzing the markets using technical and fundamental analysis. They are more knowledgeable and experienced than regular traders and following their actions will lead us to be much more profitable.
The 'dumb' money is a general term for the general public trading the markets. They operate on feelings and emotions and their trading decisions are considerably less calculated and more impulse-based. Therefore they are more likely to lose money. They are also easier to predict and anticipate – and this is exactly what we will do in this system.
'Dumb' Money Phenomenons A prominent psychological phenomenon of the 'dumb money' is the
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phenomenon of the round levels. Round levels have great psychological impact on the 'dumb money' and they tend to use them when trading.
Round levels are levels of the market that are round, for example: 1.1500, 2.2500, 3.5000, etc. The rounder the level, the more powerful it is. This is because the rounder the level (3.3000 is more round than 3.3500), it can be seen in more timeframes and therefore more people give it attention in their trading.
Round levels are usually used as stop loss, take profit points and entry points. Many people also use the round levels as entry points ('Enter long after EUR\USD breaks 1.4000'; 'Exit the trade when price reaches 3.3400'). As a result price tends to act differently when approaching or touching a round level. This behavior of price can be predicted and used for making profits.
It is usually harder for price to break and go through round levels and the rounder the level, the harder it is to break the level. Once it does break the level it is usually followed by a breakout – a high-momentum movement and possible trend in the direction of the breakout. We will not trade breakouts but generally they can provide good spots for profits for the experienced trader.
EliteSwingTrader.com © 2009-2010 All Rights Reserved

EliteSwingTrader.com © 2009-2010 All Rights Reserved

EliteSwingTrader.com © 2009-2010 All Rights Reserved

How to Trade the Elite Swing Trader System The first step to trading it is to find a round level that price is close to. We will only consider levels with two 'zeroes' at the end to be round (1.3550 is NOT round). This would be our entry trigger:
EliteSwingTrader.com © 2009-2010 All Rights Reserved

EliteSwingTrader.com © 2009-2010 All Rights Reserved