Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading Mistakes

The most common mistakes that occur while using swing futures market timing are usually the result of human error. Examples of human error include: miscounting periods, incorrectly identifying starting or ending periods of Reaction swing strategies, misinterpreting a series of price bars as a Reaction swing strategy, or trying to identify Reaction swing strategies within trading ranges.

Misinterpreting a series of price bars as a Reaction swing strategy may happen when you forget that the Reaction swing strategies in a declining futures market are supposed to slant up, or that the Reaction swing strategies in an advancing futures market are supposed to slant down. In other words, the group of price periods you identify as a Reaction swing strategy may be slanting the wrong way.

Learning to correctly identify Reaction swing strategies is vital when projecting future swing trade dates in futures market timing. If you do not completely understand this process, go back and review this chapter and work through the examples before moving on to the next step. Without a complete understanding of the Reaction swing strategy, the following information will not make sense. The next few examples will better demonstrate the identification process as it is applied in real futures market timing conditions.

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**THE RISK OF LOSS IN TRADING CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, 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.