Swing Trading for Dummies Summary (C3): Administrative Tasks

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Before you can start swing trading, there are a few administrative tasks you must attend to.

In this chapter, we will go over them.

A trading broker is a professional or firm that facilitates the buying and selling of financial securities, such as stocks and bonds, between buyers and sellers.

There are many choices for brokers out there, all with different pros and cons. Some are better suited to position traders, some are better suited to day traders, and some will have features most suited for you as a swing trader.

As a swing trader, you want an electronic broker. That is, the ability to place trades over the internet. The vast majority of trading platforms do this.

Look for a broker offering the following:

• Available for you to use in your country/region
• Relatively low fees per trade
• A charting system
• Ease of use (placing orders, depositing and withdrawing money, etc.)
• Good customer service
• Educational materials (optional)
• Deals with the securities and markets you want to trade in (stocks, currencies, crypto, international securities, etc.)
• Portfolio analysis and reports

Here are some brokers to consider:

• www.tdameritrade.com
• www.etrade.com
• www.etoro.com
• www.scottrade.com
• www.tradestation.com
• www.interactivebrokers.com
• www.thinkorswim.com

Note from Sam: I tried a few. In the end I chose www.interactivebrokers.com for their low fees, versatility, and robust charting using their Trader Workstation (TWS) platform. The downside is that the platform is not as intuitive as some of the others (though not difficult to learn) and they have limited crypto options.

Watch out for brokers that charge exorbitant fees or try to do the work for you. In general, never blindly follow tips from anyone. Not from your broker, not from social media, not from message boards, not from paid newsletters - no one!

It’s fine to get ideas from these sources, but always do your own evaluation based on your trading plan.

It is unlikely your broker will include everything you need to swing trade efficiently. Fortunately, there are many free online tools you can use.

If you need charting, you can try out www.tradingview.com. Many brokers integrate tradingview into their own charting services.

You will also need a good screener so you can narrow down possible trades. Some brokers include this. A good free option is www.Finviz.com.

For fundamental analysis, Yahoo! Finance and Google Finance are both great free options.

A trading journal is like a feedback loop that you can use to improve your swing trading skills.

In it, you record all your trades. Then, you can review it periodically, analyze what is working and what isn’t, and adjust your trading plan accordingly.

Exactly what you record is up to you. Here are some things to consider including:

• Ticker code
• Source of the trade (screen, influencer, etc.)
• Entry trigger
• Pre-entry chart (take a screenshot)
• Exit trigger
• Post-exit chart
• Profit/Loss
• Any extra notes

Don’t record too much. You want to make it easy to do so you will not skip it.

Always include screenshots of the entry and exit charts. They convey a lot of information that you can analyze later on.

Trading can be a highly emotional activity. A common mistake traders make is getting too attached to certain trades.

The golden rule is this:

Plan your trade, and trade your plan!

Another aspect you need for trading success is to have a winning mindset.

You will absolutely have losing trades, but don’t dwell on them. Learn from your failures, but focus on your successes.

Anyone with a sound trading plan, the discipline to stick to it, and the courage to not give up can be a successful swing trader.

Including you!

Read the next chapter here.

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