[Bluewolf]

Hello,
I'm new to making my own trading decisions and wish to learn about swing trading. I've studied allot of the indicators and am suffering from information overload. I am looking for some mentoring as to the best indicators for swing trades lasting from 3-14 days. I don't know whether to stick with oscillators and such or use more of the indicators that day traders seem to use such as price, volume and TICKS. Also how far back in the stocks history do I review for short time swing trades?
I have no time goal for learning a system only that I want to become comfortable with whatever system I learn. I have pretty much put the indicator study on hold until I can get some advice from some real swing traders who successfully trade for a living. I need help learning and developing my own system. Currently I am studying more of the psychology of trading to understand my own best approach for me to begin trading.
I learn best from examples and books but any advice is welcomed.
Thanks in advance.

[smuhr]

Forget about indicators and learn first price action/reaction.
This is the most important !

Do not forget to define a clear Trading Plan for 2010.

You should have a look to those threads :

http://www.traderslaboratory.com/for...table-622.html

http://www.traderslaboratory.com/for...plan-7312.html

Happy new trade ,
Steven

[Bluewolf]

Thanks Steven,

So here's what I got out of the statement and threads you referred me to.

1. Have a system in place and do not let emotion define your trades. Stick with the plan. Keep a journal to review trades to see what worked well and what didn't.

2. Understand yourself so as to feel comfortable with your plan and trades.

I do a lot of process development in my day job for manufacturing and work-flow so following a system is something I would not have a problem with as I am **** about having a process in place and following it. I had not thought about keeping a journal when it comes to my trades but is an excellent way to track and refine any system in place. I should have thought about the journal as it's another tool I use in my day job to streamline and simplify process's.

You stated "Forget about indicators and learn first price action/reaction" I take it you are referring to support and resistance? Beside S&R are you also looking for specific patterns?

Sorry to ramble and ask so many questions but I have another two.

1. Any recommended reading on price action/reaction to help me develop a good system?
2. I am also overwhelmed with all the charting software out there. Whats your preference?

I am only paper trading while I develop my system. That's part of my psychology until I can prove to myself with confidence that I can trade.

Thanks again for the excellent advice.

[DugDug]

Hi BlueWolf - congratulations it looks like you are doing all the necessary things to start successfully trading.
In terms of a couple of your questions.
1. Any recommended reading on price action/reaction to help me develop a good system?

Start sticking to this forums threads - there is plenty of information here to start with. (read everything with a grain of salt as there is plenty of crap but if you take notes and actually treat it like a study you should be fine).

2. I am also overwhelmed with all the charting software out there. Whats your preference?
Again there is plenty of info on this forum, but in summary - you will find that every system is different and suits different people. There is no substitute for trailing a few different systems with free trials and working out what suits you and what does not. systems include - esignal, Ninja trader, Multicharts, Sierra chart.

Just before you continue though too far can I suggest that everytime you come across a new idea/system/thread re read and look at your trading plan.....part of it should deal with your personality and what you are like and that an extremely important part of successful trading is matching a system to the personality. Dont make the mistake of trying to copy someone elses if it does not suit you. Its a waste of precious time.
good luck.

[smuhr]

Hi BlueWolf,

You should take a look to the e-learning Workshop from Robert Miner : here

In his WS you will start to learn some techniques to analyse price, how to use indicator, how define a trading plan, how to enter and exit a trade, etc....

I have personally watched the WS and it was really helpful for starting !

If you want to learn more about price action/reaction you should use Technical Analysis.

The following books are good :

Technical Analysis of Stock Trends

Encyclopedia of Chart Patterns

Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications

Regarding a good software : Ninja Trader is good. It's free until you go live ! You have simulator, you can replay market data and have free quotes from Yahoo.

Good luck

[Bluewolf]

Thanks DugDug,
I already knew I would probably have to sift through a lot of BS to find some gems of knowledge.
I definitely agree with understanding my own psychology to trading and that's what I am currently concentrating on instead of just learning a system. I think this has been a big problem in my past as I was not always comfortable with some of the trading decisions I made.
Good trading to you and thanks again.