Swing Trading Master Class

With Trader Tim Racette of EminiMind.com

What You’ll Learn…

 An objective Swing Trading Strategy for Stocks, Options or Futures

 The basics
 The strategy
 Guidelines
 Position sizing
 Scans and Watch list setup
 Examples
 Tips & Tricks from 15 years experience
 Q+A throughout
The Basics
Overview

 Identify Trending Stocks

 Daily Charts
 Candlestick Formations
 Looking for Clean Patterns
Methodology
Overview

 Indicators
 Price & Volume
 Buy Relative Strength
 Sell Relative Weakness
Relative
Overview
Strength
Relative
Overview
Weakness
Entry & Setups
Entries

Breakout Entry Pullback Entry

 Entry & Setups
Entries

 Breakout Entry
 Longs
 Buy over consolidation level
 Buy stop few cents above highs

 Shorts
 Short below consolidation level
 Sell stop few cents below lows

 Pullback Entry
 Buy over high of low bar
 Short below low of high bar
Stop Placement
Initial Stop

 Initial Stop
 10-20 cents
 Above swing high
 Below swing low
Calculating # of Shares
Position Sizing

 Risk $ Amount / (Entry – Stop)

 Example: $100,000 Account

 Risk 1% of account per trade
 $1000 risk per trade
 Entry: $50.00
 Stop: $45.00
 50.00 – 45.00 = $5.00
 $1000/$5.00
 = 200 Shares
Targets
Trail Stops

 Arbitrary vs. Trail Stop

 Trail Stop
 Consolidation levels
 Under previous daily bar
 Allow swing level to form
 Trail Stop
 Longs
 Below prior day’s low
 Below prior swing low
 Below major support level

 Shorts
 Above prior day’s high
 Above prior swing high
 Above major resistance level
Calculating # of Shares
R Multiple / Expectancy

 R Multiple = Reward / Risk

 Example:
 $1000 risk on trade
 Profit $3000
 R Multiple of 3R ($3000/$1000)

 Expectancy = Average Trade

 Avg. $ Winner
 Avg. $ Loser
 Win %
 Losing %
 (Avg. $ W x W %) – (Avg. $ L x L %)
Filtering Trades
Stock Screening

 Near Highs/Lows
 Longs
 Strong volume on rally
 Weak volume on decline
 Shorts
 Strong volume on selloff
 Weak volume on bounce
 Consolidation/Triangles
 Clear of Support/Resistance
Scans and Watch List Setup
Stock Scanning
Other
Gaps
Things to Note

 Earnings – Don’t Trade Them

 Gaps
 Stay calm
 Wait 15-mins before doing anything
 Place stop above/below 15-min candle
Other Things to Note
Options

 Require more precision

 Enter “At the Money” (close to strike price / current stock price)
 Assume full cost of option = total risk
 Exit position on close of strong day
Other Things to Note
Futures

 Micro ES or NQ
 Enter at 50% with stop outside 61.8
Good Books

 How I Made $2M in the Stock Market by Nicolas Darvas

 Market Wizards by Jack D. Schwager
Examples
 Thank You!

Sincerely,
Tim Racette
Tim@EminiMind.com