Landry, Dave - Short Term Trading - Getting started in momentum-based swing trading.pdf

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Getting Started In Momentum-Based Swing Trading
By Dave Landry


The following was transcribed and
edited from TraderTalk, a free, live,
interactive workshop conducted for
TradingMarkets members by Dave
Landry on Jan. 16, 2002.


I would like start with a brief
definition and then I'll be happy to
answer any questions. Swing trading is
simply short-term trading, where
positions are held for two to seven
days -- longer when the market
cooperates, shorter when it doesn't.
"Momentum" is the key word. It is not
about fading the market -- the trend is
your friend.

Why swing trade?

As Mark Boucher said, "70% of a market's moves occurs in 20% of the time." The idea is to be in
the market for that 20%, and out the rest of time. Momentum-based swing trading is not about
picking tops/bottoms! Trends last longer than most are willing to believe.

Who should swing trade?

I think everyone should. Daytraders can gain an edge by placing a bigger-picture pattern ( say,
one good for two to seven days) behind them, so they can improve their odds.
Risk can be defined, and you know fairly soon whether you are right or not. Longer-term traders
can "trade around" positions, ., say you are long 1,000 shares, you might add to your position