Trading

Investing

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Week 1


Recently, I've heard a lot about Swing Trader by Investor Business Daily. Since I couldn't find any reviews and i'm interested in making some extra money, I thought it would be great to do a week by week progress review of the product. Personally, I am a long term investor and I ditched the trading complex years ago; however, I was interested and wanted to see how far I got.

Swing Trader Price: $69 a month


I will be using a trading account starting with $5,000 dollars.

Starting Out: Initially, Swing Trader recommends two trade setups for the week,  SHAK and BABA. While i'm not too familiar with either of the two companies fundamentals, I figured I would jump in, as Swing Trader has done most of the initial research!

Step Two, Picking Your Trade: Considering my limited options, Swing Trader highlights your Trade setup, which looks at basic technical analysis to make their decision. Increased trade volume to push momentum and support/resistance lines seem to highlight William J Oneill's "CANSLIM" approach. Basically, we are trading stocks that are growing or "breaking out" in a momentum catch where we will take 5-10 percent profit. If you want to learn the ins and outs of the actual strategy, buy the book "How to Make Money in Stocks."

Downside: The stop loss is your safety net and will serve you right. All great traders need proper risk management. You are set up with a potential 2 percent loss at most.
Market Trend: It's great to trade with the market . I opted to only trade when the market was in an uptrend. On the far right IBD gives you a macro shot of the market, which will be handy as we want to always go with the trend , because it is your "friend."

Option one:



Option two:

The additional chart to make your set up easy.



Verdict: TBD

Ultimately, I am going to be purchasing SHAK Monday at open with a limit order at $61.00 -- I will put the proper stop loss in place with Think or Swim and let's see how this plays out!

Historical Swing Trader performance: 





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