scans, or use the ones I describe in "SwingLab" to find
your own
= Real-Time Swing Alerts
9.1.1 Features
" Real-Time Quotes and ChartsFocus on specific market time Access historical data with
   
Receive detailed real-time Click on a specific bor and Use the Toolbox to drawquotes throughout the trading see the price data displayed trendlines or point to aday, at the bottom of your screen. specific trading bor. SwingTracker
allows you to watch the market unfold in real time with customized Real-Time
Quotes and Charts updated by the minute.
* Real-Time WatchlistMaintain o list of fovorites and Use the Quote button to
watch them update instantly on —_receive detailed stock
your monitor. information including bid andask prices.
tebe:saene"EsasBelghte eth tite hee athe
3s32sTIT I1I 1a
wee esspnecte
aft£
 
Maintain o customized list of Open the List window to
your most used folders in the access real-time lists of
easy-to-find Favorite industries, most active stocks
window. and top gainers and losers.Track dozens of stocks and indices simultaneously with a dynamic SwingTrackerReal-Time Watch List. This set of personalized "favorites" is easy to organize. Simplychoose a symbol and you'll receive up-to-the-minute information on that stock as ithappens. Choose from more than 50 lists, including Most Actives, Top
Gainers/Losers, Indices, and Industry Groupings.
» Stock ScanChoose from hundreds of criteriathen scan to determine the stocksthat are best for you,
 
=4)9)B)Js sd 2JIss3a5 2) ;
               
uxese
- "7 4 n 2TB foe proms wen toca a
JE et ce nage wen smc ns wa Regt, remention
wae |Tt Ptr ee Uprens 6& Petey Upbend 62 7ew |_ sewn!Create your own scan Sort your scan results by Save your favorite scans asformulas with the easy-to-use price, volume, market cap and templates to use anytime.
Query Builder interface. more.
Find new investing opportunities with SwingTracker's sophisticated Stock Scan. Thispowerful and easy-to-use software allows you to search using more than 100criteria, including price, volume, and fundamental information. Stock Scan alsoutilizes our proprietary candlestick recognition engine to determine specific patterns.
And every search can be saved or modified with just one click.
 
Can you make money swing trading?
 
YES, we enjoy a high percentage of winning trades because »= Pthe charts pattern used have been back-tested. The risk °parameters are highly defined; The swing trader is a rdisciplined user of trading STOPS. This is only TRUE when tyou apply a solid trading plan, like our MASTER PLAN. f
o
lio TrackerCreate multiple real-time Set high and low price alertsportfolios and calculate total for every stock in yourprofit and loss by day or overall, —_ portfolio,
 
Receive audio ond visualconfirmations when analert is reached.
Manage and protect your existing profits with SwingTracker's Portfolio Tracker. Thetool allows you to monitor up to six different portfolios in real time. You can also sethigh and low alerts, purchase price, and the amount of your holdings to continuallymonitor your bottom line.
* Technical Indicators 
Accurate technical analysis is essential to today's trading. SwingTracker TechnicalIndicators allow you to view up to four indicators simultaneously, including ourproprietary indicator, IQC Zone, Relative Strength Ranking, and Money Flow.
Do you monitor all list stocks every day? How do you pick one to play?NO ! I execute our swings scans every single day and select approx. 25 stocks i like!!
THEN? I divide my portfolio into 15 equal pieces & the first 15 (of the 25 stop orders)that pass the swing test are traded, i.e. I only risk 6.66% on each trade.
Technical analysis is widely considered essential in limiting risk and maximizing profitas part of any trading and investment strategy. SwingTracker has dozens of technical
indicators available for real-time and long-term analysis.Available Technical Indicators
With price volatility at an all-time high, it is becoming increasingly important for theinvestor to recognize patterns in the movements of the stocks they own or areinterested in purchasing. The interpretation of market activity using technical
analysis provides clues to the investor as to the future behavior of the price.Generally speaking, the technical investor will use a combination of price, volumeand time-sensitive technical indicators to maximize their profits. Here is a completelist of technical indicators utilized by SwingTracker, IQC Corporation's award-winning
technical analysis charting software.Overlays* Bollinger Bands=» Linear Regression» Moving Average= On Balance Volume (OBV)«Parabolic SAR» IQC Zone=» Up/Down/In/OutIndicators=» Average True Range* Breadth Advance/Decline"Commodity Channel Index (CCI)« Directional Moving Index (DMI)«»  Equivolume« Force Index" Moving Average Convergence/Divergence (MACD)* McClellan Oscillator» Momentum» Money Flow«Relative Strength Ranking (RSR)«Relative Strength Index (RSI)* Relative Strength Index Classic (RSI Classic)
=  Stochastics« Ultimate Oscillator
Volatility» Volume and Volume Average« William %ROther Interesting Features«Provides real-time access to financial information anywhere in the world.=" Works side-by-side with your Internet browser.
" Offers a variety of tools that give you the ability to draw trend lines,
retracements, and much more.«Displays information on related stocks quickly and easily."Takes advantage of offline capabilities for daily, weekly, and monthly charts.
=» Saves time, money, and space with server-maintained databases.10 FREE SwingLab
SwingLab works alongside with SwingTracker, my real-time charting software. Oneof the best features of SwingTracker is the "Scan" feature, which lets you build your
own stock screens to find the specific stocks you'd like to swing trade.
I willAa showyousome of
the
formulas I use, and how I use them. There is also a step-by-step description of how
 
to set the screens up.
On www.mrswing.com, you will find regular update in the SwingLab section of thesite. Let's get started.
10.1 Starting with SwingLab
Swing traders seek pivot points in stocks - gaps, breakouts and reversals - with a 1to 5-day time horizon. Here are some of the scans that I use... if you find one thatyou like, send it to swinglab@mrswing.com with your name, and we may add it to
our growing library on our website.
10.1.1 Starting to swing...
All the scans presented here are End-of-Day. These scans are best executed &analyzed before the opening of the market! So you have all the time in the world tobe prepared to swing these stocks like a PRO.
Let’s start with our first scan: this is the first scan we execute every single tradingday.Swingsthe stock must be experiencing a minor decline/pullback
within the context of a uptrendor
We use this scan to search for stock that
FO RCESWING has been in an uptrend but experiencing
a minor decline/ pullback.
LONG With this scan we try to detect stocks forpotential long swing trades.
                                             
we stay away from stocks that trade less than500,000 shares of the 20-day Volume(eee MAV20 >=500000 AND Average to ensure liquidity (sometimes weuse 250,000 instead, depending on market
  
conditions)
to be sure we do not trade cheap stocksCLOSE>12 AND (sometimes we use 7$ instead, depending on
market conditions)
CLOSE > SMAC10 and CLOSE >
to be sure the stock is still in an uptrend
SMAC20 AND
HIGH < HIGH1 and HIGH1 < the stock must be experiencing a 3 daydecline/ pullback within the context of a
HIGH2 AND
uptrend
FORCE3<=0 AND FORCE13>=0 the short term battle is now won by theAND bears, but still the bulls are in control of the
longer-term battle
     
ADX20>30
to be sure the stock is still trending
2)a Se
Only trade what you like !MAV20 >=500000 AND
CLOSE>12 AND
SMAC20 AND
AND
AND
    
ADX20>30
                                               
CLOSE < SMAC10 and CLOSE <
LOW > LOW1 and LOW1 > LOW2
FORCE3<=0 AND FORCE13>=0
we stay away from stocks that trade less than500,000 shares of the 20-day VolumeAverage to ensure liquidity (sometimes weuse 250,000 instead, depending on market
conditions)to be sure we do not trade cheap stocks
(sometimes we use 7$ instead, depending on
market conditions)
to be sure the stock is still in an downtrend
the stock must be experiencing a 3 dayRALLY within the context of a DOWNtrend
the short term battle is now won by thebulls, but still the bears are in control of thelonger-term battle
to be sure the stock is still trending10.1.2 Cut and Paste
Here is how to cut and paste SwingLab scans into SwingTracker. To build your own,just type a formula into Step 4.
1. Open SwingTracker (runs on Windows & Mac OS)
2. Click on the SCAN button
ndicators Favorites ‘View Utilities Time MrSwing Help
rom ofS| six | ute | wot | me wre
3. Then Click on the Query button & Add Criteria
 
 
 
File Input
  
 
Query CriteriaEdit Criteria |———
Save As Template | Help | freset | Run Scan | Show Resutts |
     
 
 
 
 
 
  
4. Paste (CTRL-V) the code into query & press OKtite Builder
Variable Description Operators
Price CriteriaMoving Average
Volume1@C Zone
eo Money Flaw Money FlowBe RSR Relative Strength Ranking
@ es BB Bollinger Band | ie 2| 3) |@ cca Comodity Channel Index 5| 7 8| 3| a
ER) DMI Directional Moving Index
Ioo Martine Grime Caminwmnman Mis
it~, juavan »==500000 AND CLOSE*12 AND YOLUME=2*MAV20OK | Clear | Help | Close |
5. Run & Save the Template
 
Numbers
 
ES
Please Input the Template Name HH
Template Name: [action]ox | Cancel |
6. Once Saved, will it always be part of your swinging templates!
 
  
= ACTION
= lQC Zone turns green with big volume
= 50 day moving average crosses above 200 day moving average= One year new high stocks
= Fast growing tech Stocks
= Small-cap high tech stocks with high momentum
I} Leading stocks
=) Potential Uptrend #1
 
 
 
7. Press Search and analyze/enjoy the results!
8. Only trade what you like!!!11 Case Studies
 
Trade: DFXIDate: 04/26/2002
Reasons for trade/setup: CLOSE > SMAC50 and CLOSE > SMAC20 (to be sure the stock is still in an uptrend) and HIGH< HIGH1 and HIGH1 < HIGH2 AND (the stock must be experiencing a 3 day decline/pullback within the context of auptrend) and FORCE3<=0 AND FORCE13>=0 (the short term battle is now won by the bears, but still the bulls are incontrol of the longer-term battle)
Swing Entry price: $42.48 (High of yesterday $42.42 + $0.06)Stop Loss price: $41.35 (order $0.06 below the low of the previous day $41.41 - $0.06)
Target: $45.45 (entry price +7%)Exit: $45.45 (05/02/2002) & $43.44 (05/02/2002)Reason for exit: $45.45 at a 7% gain on the long swing trade & $43.44 trailing stop low of yesterday $43.50 - $0.06
Profit/loss: $1.965 = ($2.97 + $0.96)/2 or gain of 4.63% 
Trade: PFGDate: 04/12/2002
Reasons for trade/setup: CLOSE > SMAC50 and CLOSE > SMACZ20 (to be sure the stock is still in an uptrend) and HIGH< HIGH1 and HIGH1 < HIGH2 AND (the stock must be experiencing a 3 day decline/pullback within the context of auptrend) and FORCE3<=0 AND FORCE13>=0 (the short term battle is now won by the bears, but still the bulls are incontrol of the longer-term battle)
Swing Entry price: $27.26 (High of yesterday $27.20 + $0.06)Stop Loss price: $26.35 (order $0.06 below the low of the previous day $26.41 - $0.06)
Target: $29.17 (entry price +7%)Exit: $27.94 (04/18/2002)Reason for exit: $27.94 trailing stop low of yesterday $28.00 - $0.06 & Target of 7% never met
Profit/loss: $0.68 or gain of 2.49% 
Trade: PTEN
 
Date: 03/26/2002
 
Reasons for trade/setup: CLOSE > SMAC50 and CLOSE > SMACZ20 (to be sure the stock is still in an uptrend) and HIGH< HIGH1 and HIGH1 < HIGH2 AND (the stock must be experiencing a 3 day decline/pullback within the context of auptrend) and FORCE3<=0 AND FORCE13>=0 (the short term battle is now won by the bears, but still the bulls are in
control of the longer-term battle)
Swing Entry price: $26.84 (High of yesterday $26.78 + $0.06)Stop Loss price: $25.94 (order $0.06 below the low of the previous day $26.00 - $0.06)
Target: $28.72 (entry price +7%)Exit: $28.72 (03/28/2002) & $29.99 (04/03/2002) at openReason for exit: $28.72 at a 7% gain on the long swing trade & $29.99 trailing stop low of yesterday $30.31 - $0.06
Profit/loss: $2.515 = ($1.88 + $3.15)/2 or gain of 9.37%3 = alc
File Chert Indicetors Favorites View Ltilities Time MrSwing Help
=| Zoomin | Zoom out | > | Tracker | Scan | eucte | Market | SWINGTRACKER (el
GP - GEORGIA-PACIFIC CORP (Daily 05/10/2002)4008060
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File Chart Indicstors Favorites View ities Time MrSwing Help
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KTC - KT CORPORATION (Daily 05/10/2002)
 
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File Chart Indicators Favorites ‘viewr Liilities Time MrSwing Help
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JWN - NORDSTROM INC (Daily 05/10/2002)
 
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File Chart Indicstors Favorites View ies Time MrSwing Help
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MYGN - MYRIAD GENETICS (Daily 05/10/2002)
 
 
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Mar Apr May04712002 O=31.36 H=31.70 L=20.61 C=20.77 — MAI=20.47 MAZ=31.98 MA3=36.63 +DI15 -Dk21 ADKFl4=4,484 Fi2=-334,310 xPEE aloFile Chart indicators Faovorles View Utities Time MrSwing Help
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File Chart Indicators Favorftes View Utilities Time MrSwing Help
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WYE - WYETH (Daily 05/10/2002)
 
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Mar Apr May
 12 Appendix A-Short Selling
Traditionally the premise of investing is that you buy an asset and hold it until it risesenough to make a sizable profit, it doesn't get much easier than that. What aboutthe times you come across a stock that you wouldn't invest a cent in, you know thatthing is doomed, a sure loser. If you knew that the stock was going to declinewouldn't be nice to be able to profit from its decline.
Well you can profit from the decline of a stock and although it sounds easy, there aresubstantial risks and pitfalls that you need to watch out for. The mechanics of a shortsale are somewhat complicated and the investor's risks are high so it is importantthat you understand the transaction before getting into it. Let’s dive in!
12.1.1 What does it mean to sell short?
If you sell a stock you don't own, you are selling short. (Yes, it's legal.) You are nowshort the stock.
A short seller sells a stock that he believes will fall in value. A short seller does notown the stock before he sells it. Instead, he borrows it from someone who alreadyowns it. Later, the short seller buys back the stock he shorted and returns the stockto close out the loan. If the stock has fallen in price since he sold short, he can buythe stock back for less than he received for selling it. The difference is his profit.
Short selling allows investors to profit from falling stock prices. "Buy low, sell high" isthe goal of both short selling and purchasing shares ("going long"). A short salereverses the order of a typical stock purchase: the stock is sold first and boughtlater.
For example, in September 1987, Bob thinks IBM is overvalued. She sells short 100shares of IBM at $175 per share. The stock market crashes in October and IBM'sshares fall to $125 per share. Bob buys back 100 shares of IBM and closes out theshort sale. Bob gains the difference between the sales proceeds and the purchasecosts and pockets $5,000 from the short sale, excluding transaction costs.
12.1.2 Where Does The Broker Get The Stock?
The short answer is from other customers. Oddly enough, he doesn't have to askpermission!Short selling is a marginable (???) transaction. In plain English, that means you mustopen a margin account to sell short. This is the same account you would use if you
want to use your stocks as collateral to borrow money from your broker.
When you open a margin account, you must sign a hypothecation / rehypothecationagreement. This hypothecation agreement says you will pledge your stocks ascollateral against your loan. The re-hypothecation agreement allows your broker to
loan your stocks to a bank, or to other customers!
12.1.3 How Do I Sell Short?
Unlike a stock purchase transaction, which involves two parties (the buyer and theseller), short selling involves three parties: the original owner, the short seller, andthe new buyer. The short seller borrows shares from the original owner, andimmediately sells them on the open market to any willing buyer. To finalize (“closeout") the short sale transaction, the short seller must then go out into the stockmarket and buy the same amount of shares as he sold so that the broker can return
them to the original owner.
To sell short you first must set up a margin account with your broker. A marginaccount allows you borrow from your brokerage company using the value of yourportfolio as collateral. The general rule is that the value of your portfolio must equalat least 50% of the size of the short sale transaction. In other words, If you have$1,000 worth of stock in your margin account, you can borrow $2,000 of stock to sellshort.
To sell a stock short, you must borrow stock. To initiate a short sale, you simply callup your broker and ask to sell short a specific number of shares of your selectedstock. Your broker then checks with the Margin Department to see whether theshares are available or can be borrowed from another brokerage, usually while youwait on the phone for a minute. If they are available, the brokerage borrows theshares, sells them in the open market, and puts the proceeds into your marginaccount. To close out your short sale, you tell your broker that you want to buy thesame number of shares that you shorted. The broker will purchase the shares foryou using the money in your margin account, return the shares and close out theshort sale transaction.
While your short sale is outstanding, your account will be charged interest against
the value of the short position. If the stock you shorted goes up in price, or the valueof the stock you are using as collateral goes down in price, so that your collateral isless than the "maintenance" requirement (usually 30% of the value of the shortposition) you will be required to add money to your margin account or buy back thestock that you sold short. You must also pay any dividends issued by the company
whose stock you sold short.
12.1.4 Up Tick Rule
To sell your stock short, you must adhere to the up-tick rule. The transaction beforeyour short sale must have been executed at a higher price than the transaction
before it. In other words, the transaction before your short sale must be an up-tick.
In practice, you cannot short a stock that is already falling in price. Otherwise, short
selling would amplify the decline.
12.1.5 Why Sell Short?
The two primary reasons for selling short are opportunism and portfolio protection.Occasionally investors see a stock that they believe has been hyped to a ridiculouslyhigh level. They believe that the stock price will fall when reality replaces the hype. Ashort sale provides the opportunity to profit from the overpriced stock. Short salesare also used to protect an investor's portfolio against a market downturn. Byshorting stocks that the investor believes will fall sharply when the market as awhole falls, investors can help insulate the value of their portfolios against sudden
market drops.
Zitel provides an example of opportunistic short selling. In 1996, Zitel was caught upin a wave of investor enthusiasm because it has a stake in a company that fixes thecomputer glitch that causes computers to interpret dates in the next century (2000s)as dates in this century (1900s). This problem, known as the "Year 2000" problem,suddenly became a hot topic of conversation and made it to the covers of Time andNewsweek. In September 1996, Zitel was selling for $7 per share. By December, theshares topped $70. At this point, many investors thought the stock was overpricedand saw an opportunity to make money by selling it short. If an investor had soldshort in December 1996, he could have bought the stock back for $15 per share inApril 1997. Selling short would have allowed the investor to take very profitableadvantage of the opportunity presented by the overpriced Zitel stock.Short selling is also used to protect portfolios against erosion due to a broad marketdecline. Short sellers make money when stock prices fall. An investor can diversify along portfolio by adding some short positions. The portfolio will then have positionsthat make money both when prices rise and when they fall. This reduces thevolatility in the portfolio's returns and helps protect the value of the portfolio whenprices are falling.
By shorting carefully selected stocks that are priced near their peak but that will fallsharply if the market falls, an investor can use the profits from the short sales to
help offset losses in his long position to protect the value of his portfolio.
For example, Bob has most of his wealth tied up in stocks which she has boughtbecause she expects them to appreciate in price. But she is concerned that the stockmarket is vulnerable to a sharp drop and wants to protect his savings while stayinginvested in the market. She knows that market drops are often caused by a changeof investor sentiment from optimism to pessimism. She identifies businesses that arenot worth much today, but whose stock price is high because people hold high hopesfor their future prospects. These stocks should be especially susceptible to a negativeshift in sentiment since optimism is what principally drives their stock price. She thensells these stocks short. If investors become more pessimistic and the market fallsthese stocks should fall more than most. Larry can use the profits from these shortsales to offset losses in the rest of his portfolio. This will help to protect the value ofhis portfolio.13 Appendix B- Ressources
Read On, Discover, Learn, and Prosper
For your Progress, I'm enclosing a list of recommended reading. This is trimmeddown so it will conveniently start your thinking, facusing, and pursuing the questionsand anwsers you need to maximize your performance and opportunities in trading
and in your career for the rest of your life. Enjoy and prosper!
I highly recommend the following Books on (swing) trading written by expert traders
or excellent pedagogues. I hope you will enjoy them as much as I do.
TOO!
MASTER
DAY TRADER
 
A no-nonsense, straight-shooting guide from friend/founder of Pristine.com,designed for active, self-directed traders. Provides potent trading strategies,technical skills, intuitive insights on discipline, psychology and winning methods forcapturing more winning trades, more often.
great book, one of my favorites... bravo Oliver great job...
MONE