There are so many trading systems out there today, each one claiming to have the secret that will bring windfall returns. Some may fare well in rising markets, but all too often leave the trader struggling to keep their headand capitalup when the market starts to fall. Doesn't sound too reliable, does it?

The Underground Trader Swing Trading system is unlike any other. Having been meticulously forged by hand from hours of active market participation and analysis from over a decade, it is an all-encompassing system that performs strong when the market is rising and perhaps even stronger when it is falling. It functions well in every market condition, ensuring that traders can rely on it no matter how the market moves.

This revised book from renowned trader and president of UndergroundTrader.com, Jea Yu, provides all of the information necessary to successfully begin swing trading today. You will learn:

How to break down and grind away any stock piece by piece, allowing you to quantify and analyze it on the flyTo build a solid foundation using the highest probability setupthe perfect stormA step-by-step process of how to plan and execute a trade to ensure the highest available return, andWhen to buy long or sell short and exactly the criteria to identify and look for before making these moves.

Also included in this e-book are real-life examples and charts as well as an in-depth look at how the Underground Trader system really works, what its chat rooms and alerts look like, and how you can use the platform to exponentially increase your swing trading knowledge andin turn your profits.

Knowing the information provided in this e-book will help you to boost your returns and minimize losses with just a few simple strategies that will leave you wishing you'd been an Underground Trader years ago.

Jea Yu (Maryland) is a co-founder of UndergroundTrader.com, an interactive trader chatroom and training site that has served over 8,000 traders, fund managers and investors worldwide since 1998. His brainchild was voted Forbes Best of the Web for four consecutive years under the active trader category. Mr. Yu has published two best sellersUndergroundtrader.com Guide to Electronic Trading (McGraw-Hill 2001) and Secrets of the Undergroundtrader (McGraw-Hill 2003). He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls. Jay's energetic presentation style, along with his obvious mastery of the materials being covered makes him an audience favorite. He has been quoted in USA Today, WallStreet Journal, and the Financial Times. Mr. Yu is an active contributing writer for http://www.TradingMarkets.com.

Leseprobe

Preface xi

SECTION ONE: The Underground Trader Trading System Exclusive Quick Start Guide 1

Converging Time Frames 3

Screen Setup 4

The Basic Chart: Stochastics Moving Average Chart 4

Wider Time Frame/Swing Trade Charts 15

Intraday Trading Charts 15

Mini-Pup and Pup Patterns 16

The Mini-Pup 16

The Pup Pattern 18

Perfect Storms 19

Analysis Checklist 20

Core Analysis: The Nitty-Gritty 20

Context 22

Convergence 22

The Trade Process 23

Filtering Is the Key to Consistency 24

Building a Solid Foundation, aka Storm Chasing for Perfect Storms 25

Pup Quiz 27

Buying Long Checklist 29

Selling Short Checklist 29

Perfect Storm Short Trade 30

Swing Trades in Action 31

SPY Short via Put Options 31

VHC Long on Daily Mini-Pup 32

The Undergroundtrader.com Trading Pit 33

Trading Alerts 34

Conclusion 35

SECTION TWO: Swing Trading and The Underground Trader System 37

Getting Started 38

Time Frames 39

Chart Basics: The Stochastics Moving Average Chart 39

Pattern Basics: Underground Trader Patterns 42

Bumpers 42

Pup Pattern 42

Inverse Pup Breakdown 45

Mini-Pup Pattern 46

Mini Inverse Pup 47

Perfect Storm 49

Analysis Checklist 49

Core Analysis 49

Context 52

Convergence 52

The Trade Process 53

Filtering Is the Key to Consistency 54

Building a Solid Foundation: Perfect Storm Chasing 55

Trade Planning and Execution 57

Buying Long 57

Perfect Storm Long 58

Selling Short 59

Perfect Storm Short 60

Swing Trades in Action 61

SPY Short via Put Options 61

VHC Long on Daily Mini-Pup 61

UndergroundTrader.com Trading Pit Chat Room Trade Alerts 64

UndergroundSwingTrades.com 68

Chart Time Frames (Excerpt from Trading Full Circle) 70

Intraday Time Frames 70

Wider Time Frames 72

Daily Chart 72

Weekly and Monthly Charts 72

Chart Patterns 73

Pups 73

Inverse Pups 76

Mini-Pups 76

Foreshadowing with Wider Time Frame Pups and Mini-Pups 79

Perfect Storms: The Most Powerful Pattern 80

Failed Perfect Storms: Market Litmus Test and Opportunity 81

DVD Courses from Jea 81