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25 of 32 people found the following review helpful:
5.0 out of 5 stars
Home Run Swing, March 14, 2003
I came to this book with positive expectations, and I wasn't disappointed. Jon Markman is a market researcher and a professional trader, so he has the all-too-rare advantage among writers of trading texts of actually knowing his subject matter. Equally important, however, he is an accomplished financial journalist whose contributions have regularly graced the MSN Money/CNBC site. Having worked with Jon on a number of columns for the site, I can vouch for the seriousness and integrity of his commitment to financial journalism. Before reading Swing Trading, I knew that it would be refreshingly free of hype, self-promotion, and the kinds of misleading presentations so common in the trading world.The format of the book calls to mind Jack Schwager's classic Market Wizards books, as each chapter is devoted to an exemplary practitioner of swing trading. There the analogy ends, however. While the chapters do include interesting personal details about the traders, they are not transcripts of interviews. Rather, they are attempts to capture the swing trading styles of each of the subjects, describe the styles in down-to-earth terms, and illustrate them with copious examples. The result is a fascinating potpourri of approaches to trading the markets over periods ranging from days to months. The potpourri includes charting methods from Terry Bedford, trend-following techniques from Bert Dohmen, momentum-based strategies from George Fontanills, Markman's own work with the StockScouter ranking system and HiMARQ seasonality patterns, Richard Rhodes' macroeconomic approach, and the sentiment-based work of Phil Erlanger. Each chapter attempts to show readers how they can duplicate the traders' work for themselves using readily available web-based charting and screening tools. The chapters also summarize trading rules from the pros that capture useful advice for both rookie and seasoned traders. It is this practical aspect of the book that makes it stand out from its peers. The chapter on Bedford, for example, not only delineates chart patterns, but details methods for determining profit targets and setting stops to reduce losses. In the Fontanills chapter, Markman details how to zero in on high momentum stocks using MSN Money charts and Excel spreadsheets. His own chapter contains very useful hints on combining parameters in the StockScouter system, such as sector strength and market cap, to identify strong and weak stocks over short swing periods. Any of these ideas is more than you'd get from the average high-priced trading seminar. If I have one reservation about Swing Trading is that we don't hear more from Markman-the-journalist at the end of the book. A final chapter, integrating the material and drawing common themes from the book's subjects, would have be informative and useful for readers who want to adapt the material to their own trading styles. My sense is that the common threads are present: each of the traders profiled has immersed themselves in market patterns, researched these thoroughly, and found ways of framing trades as hypotheses based upon these patterns. By firmly grounding each trade in a well-defined pattern, the traders readily recognize when positions are not yielding expected results and exit without undue damage to their equity. Reading this book for the methods of entry but also the risk management and exits will yield insights even for more active, intraday traders. Swing Trading is a worthy complement to Markman's equally useful book Online Investing.
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