How I Swing Trade
Lesson 1: How to spot good stock setups
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By the end of this read you’ll be thinking, “It can’t really be that easy!” but believe it or not it is.
Trading isn’t that complicated: Buy low, sell high, protect your capital.
And remember, a stock’s price can only move in 3 directions:
- UP also know as an uptrend, price increases (see Kirk above)
- DOWN also know as a downtrend, price decreases (see Bones above)
- SIDEWAYS also known as consolidation, prices stays the same, i.e. within a price range (see Spock above)
Okay that much is obvious, but how do you know which stocks to invest in? Well that’s the easiest part. Stock are all around you. Let’s take this scenario:
You’re driving in your F-150, sipping your Frappuccino, on your way to Target to get some new Tupperware with your Spotify “Daily Drive” playlist cranking out your Sony stereo while your girlfriend is on her iPhone swiping through Instagram spotting a post by her favorite YouTube celeb doing a makeup tutorial with their new MAC eyeshadow which she then orders off Amazon.
Did you see all the stocks there? Let’s look at it again…
You’re driving in your F-150 ($F), sipping your Frappuccino ($SBUX), on your way to Target ($TGT) to get some new Tupperware ($TUP) with your Spotify ($SPOT) “Daily Drive” playlist cranking out your Sony ($SNE) stereo while your girlfriend is on her iPhone ($AAPL) swiping through Instagram ($FB) spotting a post by her favorite YouTube ($GOOG) celeb doing a makeup tutorial with their new MAC ($EL) eyeshadow which she then orders off Amazon ($AMZN).
The easiest way to find stocks is to look at the products you and everyone around you use everyday. You just have to look for them.
Now that we know what stocks to watch, I’ll go over how I read the charts to find the best time to buy them. I’m gonna go over all of this kinda backwards, but bear with me, by the end you’ll see why…
