Best Books on Swing Trading: A Full Guide for Newbies
Swing trading means following a long-term market trend. Trend followers buy and hold the asset for as long as the prevailing trend persists, which could be anywhere from one day to weeks or even months.
Predicting a reversal and riding the incoming trend requires a ton of research. Therefore, it is not recommended for novice cryptocurrency traders. So, for those budding traders who are interested in betting on trends, the best course of action is to invest in publications, follow blogs, or subscribe to a swing trading course.
Doing your own research also includes learning the fundamentals of trading, including specific strategies that professional traders employ. Therefore, if you’re searching for the best swing trading books, you should look for those that teach the fundamentals that even the greats still constantly refer back to from time to time.
It's important to remember that not all traders can entirely benefit from swing trading books. Of course, sticking to a specific winning strategy is still the best when trading crypto. Nonetheless, they serve as an incredible resource for expanding a trader’s knowledge and improving their crypto trading capabilities. Some of the situations and ideas these publications bring up and the ways of thinking they show you could have never come to mind on your own.
So, here are the top five best swing trade strategy publications you can read to master the craft of riding the trend.
How to Swing Trade by Brian Pezim and Andrew Aziz
This article will walk you through pretty much all the important stuff about betting on trends, including the rules of thumb and principles. As the full title suggests, the books' detailed and all-encompassing content is a great place to start for new trend riders who want to learn how to bet on the current trend. Some traders even think it's one of the best resources for new traders because it explains everything in detail, gives a lot of examples that range in how hard they are, and shows how the principles work in a wide range of real-world situations.
Pezim teaches the fundamentals of candlestick charting and gives a thorough grounding in technical analysis. He begins with a discussion of many key principles central to predicting trends and profiting from them, such as the best practices that every trend follower should include in their approaches, before moving on to a number of different swing trading tips and techniques.
With this concise but informative tutorial, first-time traders may learn the fundamentals of the market in a short amount of time. Considering this, even veteran investors will find value in the book's guidance. He does a great job of explaining some of his investing systems and the basic ideas that make them work. He also gives great advice on how to reduce risk and protect assets.
Trend Following by Michael Covel
It could be the best book on swing trading. Many different approaches to short-term investing find inspiration and guidance in this highly analytical guidebook. Swing trading, as he describes it, involves holding assets for many days or weeks. He uses the difference in attitude between a swing trader and a day trader to show how being a trend follower has its own quirks. For this reason, it is preferable to have the mental toughness to keep an item for many days, weeks, or even months rather than attempt to buy and sell on the same day.
Covel talks about how to figure out what the most important parts of a candlestick pattern are. This is a great publication on charts for anyone who wants to learn how to read swing trading patterns as signals to buy and sell. It's a terrific way for beginners to learn how to swing trade and put those lessons into practice.
When they should be investing in the market, many inexperienced traders instead cash out their gains too soon. They didn't stop their losses and took a chunk out of their gains too soon. If you're in that frame of mind, we highly recommend reading Trend Following. It instructs novice traders to let their gains compound and to establish a safe loss limit. If a transaction is profitable, you should keep it going. Set a stop-loss order to minimize further losses if your deal goes into the red. It’s good to have fewer losses yet greater victories.
The Psychology of Trading by Brett Steenbarger
Brett Steenbarger is not only an accomplished author, but he also maintains an excellent trading blog. Even seasoned traders may pick up useful information from publications like The Trading Psychology and Trading Psychology 2.0, in which he updated the original. If you've been investing in crypto for a long time, you should read this publication. Even if you're just getting started with cryptocurrency trading, these books aren't out of place on your reading list.
In The Psychology of Trading, the authors break down the rationale behind the most common blunders made by inexperienced traders. To succeed in crypto investing, you should not constantly run into problems and make blunders. But the truth is that most people make the same mistakes, and Brett Steenbarger has put them all together in a comprehensive publication. Readers of The Psychology of Trading will be reminded of previous blunders and be prepared for future challenges. Later on in the guidebook, he moves on to discussing ways to fix those issues.
So many wonderful "aha!" situations may be extracted from this book's teachings. It's as if the publication was created with each reader’s circumstances in mind. However, the fact is that most individuals make the same errors, and Brett Steenbarger has compiled them into a complete crypto investing guide. Most of the issues that plague swing traders are the result of flawed thinking and investing practices, both of which may be remedied by following his advice.
Technical Analysis of the Financial Markets by John Murphy
If you're a novice trader, it’s one of the best books to boost your learning process. It provides probably some of the best principles and key strategies that every crypto investor should know about. After establishing the must-haves, he then continues to build from there. It’s like a school with different levels, and you can see how you progress as you go along.
A lot of people refer to this publication as the bible of investing in financial markets. It’s a fantastic publication that talks a lot about price patterns, exponential moving averages, Bollinger bands, price actions, the importance of volume, identifying reversals, etc. It also includes examples and statistics based on contemporary markets. This publication, which has been updated and enlarged to meet the requirements of the modern financial world, is required reading for anybody who is interested in monitoring and understanding the behavior of the market.
A study book can be purchased separately. For those who want to get the most out of Technical Analysis of the Financial Markets, its study book is highly recommended. It consists of questions about every single chapter, making sure that you're actually digesting what you read.
Japanese Candlestick Charting Techniques by Steve Nison
If you're new to trading, candlestick charts show you the high of the day, the low of the day, how far the asset went, where it opened and where it closed. It's amazing the amount of information you can garner from a candlestick chart. The greatest traders look at the charts and know exactly how to find stocks to swing trade, including the asset in the crypto market.
Given the technical nature of riding market trends, this is one of the most reliable books on swing trading. If you want a straightforward, easy-to-understand, quick-read guide for short-term investing, this is the one for you. It consists of bite-size chapters about candlestick charting techniques.
Expert traders will learn how candle charting may be used with other technical analysis methods to boost their effectiveness. On the other hand, it’s also a great book that teaches swing trading for beginners, as they will see how useful patterns can be. This publication shows the author's extensive knowledge and expertise in the field of technical analysis, which is growing quickly. Everything is written in a clear and easy-to-understand way. Candlestick charting methods are explained in detail, and hundreds of examples show how they can be used in many different markets.
Boost Your Crypto Trading Journey
In conclusion, mastering the art of betting on trends is not a simple task. Many crypto traders have already lost millions by committing even the most common mistakes when following trends and betting on them.
On the other hand, betting on trends works well for many people because it is easy to fit into the schedules of busy part-time traders. If you want to learn more about putting your crypto on “swings”, we recommend starting with one of the publications we listed above.
Follow Trader Make Money blogs to learn more about crypto trading strategies. You can also create a free account to start using an automated trading journal. By writing down why you made each trade, a trading diary will help you keep your trading mindset in check. You can maximize the techniques you learned from the above books even more by using a wide range of analytics widgets.