Folks, I’m convinced that the reason most people lose in the stock market is because they use a trend following strategy.
Don’t get me wrong. There is a time for everything. Trend trading strategies work when the ADX line is low and starting to rise higher on the S&P 500. Buy high and sell higher is a viable strategy. The problem, however, is in not transitioning into a swing trading strategy when the ADX line is high and starting to come down.
We cycle continuously back and forth between a trending market (range expansion), and a trading market (range contraction). Knowing this is going to greatly help you improve your trading.
I’ve lost so much money at trend following strategies that I’m pretty much done using them. For me, the real money is in swing trading and only buying stocks that are oversold.
The trick to being successful at swing trading is finding stocks that have a history of bouncing off of previous support and that have a Beta of 1.5 or greater, with a market cap of 2 billion or less. In this lesson I’m going to talk more about this strategy and my teacher JB who taught this strategy to me. JB ranked #3 out of more than 10,000 traders using this strategy. This is the best swing trading strategy I have ever seen. Enjoy!
Recommended Reading
- Stock Trading For Beginners
- Swing Trading With Watch Lists
- Stock Technical Analysis – Ascending Triangle
- Stock Trading Training and $10,000 In 10 Days
- Stock Trading Seminar: Basing Patterns
- Stock Trading Courses From Top Trader On Wall Street
- How To Start Day Trading and Turning $4,850 Into $25,000 In 12 Minutes!
- Jason Bond Picks Review - Learn To Stock Trade!