Learning how to trade requires a hands-on approach but a little bit of reading here and there could provide immense value. This article features the best books for swing traders to visit to refine their skills further.
What Is Swing Trading?
The beauty of forex has always been the variety of opportunities individuals can capitalize on. There’s absolutely no need to be rigid in this type of market.
Most traders lean towards day trading where trades are opened and closed on the same day. Position traders are extremely patient and sit on their hands for months without sweating a hair.
A middle ground in these two trading styles is swing trading who looks off profit large SWING in prices.
Swing traders analyze large time frame trends, usually the 4hr up to the weekly chart. Then, a top-down analysis is done to adequately identify the trend and ride the move the whole way.
While swing trading daily changes in price are labelled as noise, they aren’t SO important in the grand scheme.
Make no mistake, regardless of the larger time frames the market should not be traded differently. Price action and market behaviours remain the same in every time frame. See best books on price action here
There isn’t a lot of attraction to swinging as scalping since trades can be held for days and go up to weeks/ months. Nevertheless, this tradeoff is worth it as the risk-to-reward ratio increases significantly and it is not time demanding.
What Should a Swing Trader Consider?
The hardest part of swing trading is being patient enough to wait for the right setups. It takes longer for candles to form in these time frames.
So, a lot of times you’d have to sit on your hands but since the gains, while swinging is significantly higher it evens out.
This is one of the best swing trading books in existence, it’s no surprise it comes out on top in every list.
One of the best books for swing traders, ‘How to Swing Trade” was published by two authors; Andrew Aziz and Brian Pezim.
With respect to everything relating to swing trading, no stones were left unturned. Detailed swing trading strategies were highlighted while keeping risk management in mind- very significant.
Most importantly, it is beginner-friendly but even veteran swing traders could learn a thing or two about this approach of swing trading discussed in the book.
Written by the same authors of currency trading for dummies; named Brian Dolan and Kathleen Brooks. The latter works as a research director at forex.com which is a renowned website by all forex traders.
Currency trading for dummies is undoubtedly one of the best forex books out there. It is a relatively book recommended to beginners who join the forex community.
Swing trading for dummies didn’t disappoint as well with the same simplistic breakdowns that we’ve come to expect from them.
#3. The Master Swing Trader Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities by Alan Farley
This is also one of the very best books for swing traders that can be found on the market. What I like about this swing trading book is how many charts are used to explain details.
Approximately, a picture appears in 1 in 2 pages which is really impressive. Visuals always make content free-flowing and more understandable, the more the merrier.
The major standout here is how teaches how to incorporate market sentiment into your trading.
As I mentioned earlier, swing trading requires attention even more so with the integration of alerts at key price points.
Most people have other jobs alongside forex trading, so, this is a good read to see how to navigate both.
That aside, he gives real insights into swing trading and explains how to properly leverage to keep risk to a minimum. Also, he shared how to manoeuvre through both trending and ranging markets with solid trading psychology.
This is the shortest book on this list spanning just 66 pages making it very concise. With swing trading, the risk is low compared to day trading but returns can be sky-high.
His trading techniques are designed to be as optimal in order to generate adequate returns in no time.
Regardless of your trading style, a psychology book is always a must-read. This timeless classic is one of the most popular trading psychology books. It was published by a man named Mark Douglas. In this book, he didn’t speak on technical analysis or trading strategies.
The focus is on trading psychology and he did an astonishing job relaying his message in this book. He highlighted that every trader studied multiple trading patterns and behaviours yet some didn’t even execute a trade and named this a “psychological gap”.
Prior to this book, Mark Douglas wrote another masterpiece named ‘Disciplined Trader’ which also embodies his focus on trading psychology.
One thing is like about this book is how he started off openly speaking about his challenges at the start of his trading career.
The most recommended book for swing traders is; how to swing trade was published by Andrew Aziz and Brian Pezim.
This book is very comprehensive and detailed making it suitable for novices. In Addition, trading strategies, and risk management is discussed in length.
Generally, to be successful with trading is really hard and it’s quite evident. I think it all boils down to laying solid foundations with either fundamental or technical analysis.
Further, do not overleverage, use a stop loss always too as capital preservation is the primary goal. Most importantly, patience is necessary do not trade, consistency is rewarded in this industry.
The edge swing trading has over day trading is the targeted number of pips. It is way higher while the stop losses tend to be relatively small making the risk to reward phenomenal.
Summary; The Best Books For Swing Traders
Swing trading isn’t going to be suitable for every type of individual but if you are a fan of this laid-back approach, go for it.
You’d find yourself checking charts less and anxiety slowly fades away although it takes some getting used to.
Overall, this countdown was created to suit both beginners and established trades. Whatever the pick, the value will surely be gotten from any of those books.