Book Review: How You Can Get Rich from Swing Trading

Even though I am neither a speculator nor a short-term trader, but I find this book is very useful in the sense of its ideas on identifying market sentiment to determine the right time to enter and exit.

The author advocates active trading by using technical indicators like short-term moving average, support & resistance, volume reading and trend analysis. As of me, I am totally against short-term trading. But for those indicators used in this book, they can be adjusted to medium or longer time frame to suit our prospective in terms on deciding the right time to invest.

From my experience of share investment, I believe, for most of those long term investors, you might have already found your way to seek for quality companies. However, you might also realize that, even though you have calculated your target price, the share price was never reaching your entry and exit price. It is simply because people in the market are trading irrationally. The share price does not necessary move according to its fundamental quality. Further, the market is also affected by other external factors such as investors’ psychological thinking which we have totally no control about. Therefore, in this game, majority will win. In other words, when the market mass is thinking negatively, the share price will go down regardless of the value of underlying company. Therefore, the methods introduced in this book allow us to have clearer picture on market sentiment and to have reasonable act accordingly.