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

The Entry

First let's talk more about the entry. We know the entry will be made above the prior bar's high once our setup is in place. This is the standard entry. There is a circumstance that can occur where we can use an alternate entry, if you have the capability of being with a market in the morning. If you are trading remotely, this may not be a choice. This circumstance occurs when the last bar down is a very wide bar. The problem is that entry over this bar will cause the stop loss to be very far away. It may be far enough away that you no longer desire to take the trade. If this is the case, we can substitute a 30 minute high entry on the current day rather than waiting to trade over the prior day's high. This means that you let the stock trade for 30 minutes, mark off a high of the day at that time, and buy the stock when it trades over that 30 minute high. You will be getting in before the prior days high in this case, so the failure rate will be higher when you opt for this technique. The advantage is that your stop will be much smaller and in some cases, it may be the only option other than passing the trade.

Four parts of every trade

"Don't underestimate the power of the market... because if you do... it can hurt you." This week Norman Hallett reminds us that if you underestimate the power of a market, you'll wind up limiting your winners and leaving too much money on the table.

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Kathy Lien is the Chief Currency Strategist at Forex Capital Markets LLC (FXCM). She is responsible for providing research and analysis for DailyFX, including technical and fundamental research reports, market commentaries and trading strategies. Prior to joining FXCM, Kathy was an associate at JPMorgan Chase, where she worked in cross-markets and foreign exchange trading. She has vast experience within the interbank market using both technical and fundamental analysis to trade FX spot and options. She also has experience trading a number of products outside of FX, including interest rate derivatives, bonds, equities and futures. Kathy has written for MarketWatch from Dow Jones, Active Trader, Futures and SFO magazines. She has taught currency trading seminars across the country, has appeared on CNBC and is frequently quoted on Bloomberg and Reuters.

Day Trading the Currency Market

Technical and Fundamental Strategies to Profit from Market Swings

This book is broken down into chapters ranging from a beginner's guide to terminology and the history of FX markets through to trading strategies, all of which briskly moves forward into more advanced and comprehensively fleshed out sub-sections. Filled with in-depth yet accessible information, thanks wholly to the author's no-nonsense writing style, Day Trading the Currency Market can show you how to enter this highly competitive arena with confidence and exit with profits.

Included with this book are two bonus items:

1. The Beginner's Guide to Success in Today's FX Currency Markets
2. Secret Forex Trading Techniques

Click here to learn more

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.