The following is an excerpt from Oliver Velez's Swing Trading Home Study Course 

So, there are only three trends. The uptrend, downtrend, and sideways trend. These three trends make up every single movement in the market. There are only three. If I can teach you how to play with a great degree of accuracy each one of these three trends, I can teach you how to cover yourself in every possible market environment in existence.

If you find a stock that is making a series of higher highs and higher lows, that means you are in an uptrend. This is the bullish part of the stocks cycle where greed will continue to rally the stock. This is stage two, and your action as a swing trader is to buy the very next decline. I want you to understand this because it is critical. If you find a stock that strictly meets the criteria of the definition of an uptrend, higher highs, and higher lows, your job as a swing trader is to buy every single decline; not some of them, not a few of them, but every single one. The only question you have to answer is when. Not if. When. We will discuss when and how to buy them shortly.

If you find a stock that is making a series of lower highs and lower lows, you are obviously in a downtrend. This is the most bearish time of the stocks cycle known as stage four. It is led by the emotion of fear, and fear will dominate the action until the downtrend ends. If you are in a downtrend, your action is to short every single rally and consolidation breakdown. I am telling you that I don't care what some high paid Wall Street analyst with frayed shirtsleeves say. The rallies that occur in this stock are nothing to get excited about. As a matter of fact, every single rally is a sellable rally until the down-trending pattern ends.

How to play the trend

Click the above image to view video

What is it about option trading that makes it so fascinating? Besides the obvious desire to "make money" and "beat the market" (part of everyone's goal), trading provides a unique opportunity in today's business world: the ability to set up 40 small businesses (the number of option markets), each with limited risk and unlimited profit potential! You can set up these businesses with very little overhead (phone bill, chart service). You can be wrong many times and still come out ahead (by using the old maxim of "...cutting losses and letting profits run.") And, you don't need to know anything about what you're trading! In fact, unless you are an expert with up-to-the-minute information, it is better if you don't. (You won't have any preconceptions to make you change your plan).

Money management principles

Oliver L. Velez has been featured as a trading expert on CNBC, CBS, Bloomberg, and FOX News and in publications including the New York Times, Wall Street Journal, Barron's, Forbes, and Stocks & Commodities, to name just a few. Dow Jones called him "the messiah of trading." As a Wall Street "insider," Mr. Velez has personally mentored some of the nation's biggest and most successful traders.

Oliver Velez - former Wall Street insider,
best selling author, and internationally
recognized trader - announces...

SWING TRADING

The Golden Secret of Price, Time and Market Symmetry

You can know when and where price will turn in every market. Short-term moves and turning points can be pinpointed - absolutely!

Discover the price and time forces which propel and even drive the market each trading day. These forces are nothing less than amazing. There are rhythmical, natural patterns that occur an astounding 80% - 90% of the time in virtually every stock and currency markets' movements.

(In other words, 80%-90% of the time we know where the market is likely to top and bottom. Precisely. Trading with up to 90% plus win rates - as you'll see inside - is no accident.) 

This secret - the secret to becoming a millionaire - lies within a powerful and shocking new book and DVD.

Learn more about Swing Trading  

PLEASE READ. Past results are not necessarily indicative of future results. There is a substantial risk of loss trading commodities with or without this or any other advertised product, service or system. Also hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.