Tony Pow

Swing Trading Tony Pow

Most of my profits in investing are made using the strategy of Swing Trading using fundamentals. Defined by me, Swing Trading is holding the bought stocks for about six months. This book includes several strategies and market timing. At the end of the holding period, evaluate the stocks again to determine whether you want to sell it or keep it longer. Last year, most of the stocks are kept for about a year, so they are qualified for the better tax treatment as long-term capital gains in my taxable account. These stocks should be fundamentally sound (i.e. value stocks). Hence they need at least six months for the market to realize their values. Select the holding period that fits your objective. After six months, the fundamentals of the company, the sector that the company belongs to and/or the market may change. Hence, we need to evaluate and decide the 'buy/hold' decision. Sometimes, you may want to raise cash to buy another stock that has more appreciation potential than a stock you own. Churning the portfolio improves the quality of your portfolio. When the market is going to plunge, do not buy stocks. I have a simple technique to identify market plunges. It depends on stock data, so it will not identify the peaks and the bottoms precisely, but it will spare you for further losses and will instruct you when to reenter the market. It worked for the last two market crashes. It will detect the next crash, and hopefully it will give us enough time to react as the last two. After we have decided that the market is not risky, screen stocks for further evaluation. I use fundamental metrics to screen stocks. Then look for intangibles and do a thorough qualitative analysis on each screened stock. There is no magic formula, but due diligence will pay off in the long run. This book does not promise overnight wealth as promised by many others. This book is intended for a retail investor and I am one myself. It is not written by a journalist who may never make a buck in the market. I have conducted exhaustive simulations to back-test these strategies over the past 12 years. I am not a writer but a retail investor similar to most of my readers. I've been making a comfortable living via my investment ideas that I'm sharing in this book. Last Update: 01/2021. Size: 55 pages (6*9)