Swing Trading with Market Cycle Analysis

One of the most important strategies a Swing Trader can use is to create additional sources of profits because the markets are not always favorable for trading and not always trending.

k5649357Using the Market Cycle Analysis and framework, create a list (inventory) of stocks, ETFs, FOREX pairs and even Futures contracts.

Start with a very manageable list of at most 5 Stocks, 5 ETFs and 5 FOREX pairs (total 15).

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Easy to make profits once you know…what phase the Stock is in!

Examples include Tesla, BABA, AAPL…(i.e., all in Phase 2 – Uptrends)

Note: All the the following data is for illustration purposes only.

SymbolTypePhase
BBYStock3
AAPLStock2
TSLAStock1
GOOGStock2
AMZNStock3
VZStock4
FBStock4
DEStock2
MSFTStock3
CStock1
SymbolTypePhase
EURUSDFOREX3
GBPUSDFOREX2
USDJPYFOREX1
USDCADFOREX2
USDCHFFOREX3
AUDUSDFOREX4
GOLDFOREX4
NZDUSDFOREX2
EURGBPFOREX3
GBPJPYFOREX1
BTCUSDFOREX
SymbolTypePhase
UNGETFs2
ITBETFs2
PSCEETFs1
XOPETFs4
UGAETFs3
USOETFs4
XLBETFs4
VTWOETFs2
IWOETFs3
FCGETFs1

Style-5k5649357This step is extremely important and should be done with diligence and detail.


Conduct a macro and micro analysis
of each security and identify which phase of the Market Cycle each one is in.

Group all the similar phase securities together. Conduct a macro and micro analysis of the Broad Markets.

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Style-5k5649357Now, simply using the Market Cycle framework, start Swing Trading with the trending phases 2 and 4 to start generating recurring income…immediately.

Eventually all of your stocks, ETFs and FOREX pairs will cycle through the Phase 1’s and move into the Phase 2’s for you to start trading them LONG. Similar, all the securities on your list will move from a Phase 3 into a Phase 4 for you to start SHORTING them.

Once you get familiar with the steps…it will take you just a few minutes a week to find the right trades…and just keep following them through all the phases…1-2-3-4.

Style-5Sphere with the word strategy on white background.Use these sub-list of securities to start trading available Options for incremental income.

Buy Calls for the sub-list of securities in Phase 2. I strongly recommend buying in-the-money strike price contracts for faster profits!

Buy Puts for the sub-list of securities in Phase 4. I strongly recommend buying in-the-money strike price contracts for faster profits!

Primarily use a macro set of time frames (i.e., Weekly and Daily) to execute trades and manage them. Intra-day trading requires more tools and capital to consistently generate income.

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As each security goes through each phase of the Market Cycle, follow accordingly with these steps:

Now as time go by and you begin to get familiar with the Market Cycle Analysis, buying securities in Phase 2’s, shorting securities in Phase 4’s, and patiently waiting in Phase 1’s and Phase 3’s for each security…you can repeat this PROCESS over and over for recurring income.

Notice that when security XXX is in a phase 1’s or 3’s, you simply move over to the other securities that are in phase 2’s and 4’s.

Secretly in the markets, this is a simple version of how “money flows sector to sector”, and all you need.

Not that fancy, complicated stuff…smile!

Learn more…

 

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