Swing Trader Heaven

Posted on August 31, 2007
Filed Under Trading Education, Trading Systems |

The last few weeks have seen an interesting ride in the markets and a lot of swing trading experts are predicting a long, strong, downturn. We should remember some of the basics of market development and particularly Jesse Livermore’s remark; “There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again and again and again.”

There are usually presumed to be three stages to the development of any long run, whether bull or bear. In the beginning there is a good deal of disbelief that the preceding market moves are over even though the evidence is available from price movement. Then, as traders begin to see real indications confirming the change of trend then the realisation penetrates and investors begin to return to the markets. This is, of course, long after the swing trading operators have marked out their positions.

Eventually, in the final step of development, everybody is completely convinced that the market can only ever go up (or down) - and that’s when the big profits are made. By those traders who have seen it coming and bought or sold before everyone else piled in. Or shortly afterwards by those with the swing trading skill to predict when the market is going to turn. Developing the swing trader’s skill, to know when the market is about to turn, is the most profitable application of a traders time.

Tags: Trading Education, Trading Systems

Swing Trader Heaven

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