Swing trading in 2016 provided traders with a wild, volatile and profitable trading environment. However, it was not as easy as buying any stock that was moving and counting your profits. Trading successfully in 2016 was all about knowing where and when to be in the trade. As I look back at all of my articles and videos over the course of the year, it is clear that there were 6 key events that impacted our trading. These events were:
- Early 2016 Double Bottom
- The year started with a nasty selloff that turned into a classic “W” bottom pattern. We correctly gamed the pattern which led to a nice start to the year.
- Commodities Breakout
- Lead by commodities the market broke the “W” pattern making close to a 10% move going into May. This lead to explosive trade results since I had analyzed the correct places to be using sector analysis and lead to biggest gains of the year.
- Summer Consolidation
- As of May the market was in need of a break as it consolidated from May-late June. Trading was flat.
- Brexit
- The British surprised the world by voting to exit the European Union. The initial fear and panic caused a short-lived market meltdown that reversed quickly and became the second most profitable period of trading.
- Election
- A surprise result led to sector rotation and new sectors becoming hot. The “Trump effect” led to big moves in financials, steel, shipping, and military defense. While there were some big moves, the non-stop moves many extended stocks made created problems for traders not already in the trades.
- OPEC Supply Cut
- Oil made a huge November runoff historically oversold levels when OPEC agreed to cut supply. This led to two of my biggest trades of the year after a post-election drawdown.
Over the course of a few days (or in one day if you are uber-motivated), digest all 29 of these articles and think about how important it is for a trader to identify and adapt to ever-changing market conditions. Then go back and compare the analysis and what you have learned to how you actually trades in 2016.
Without further ado, here is a short video and my best posts of 2016.
29 Essential 2016 Swing Trading Posts
- 11 Swing Trading Strategies Learned in 2016 – Every year presents us with new lessons that allow us to grow as traders. Here are 11 lessons I will take with going into 2017.
- How to Swing Trade Continuation Patterns (Live Trade) – Big profits can be made after the big momentum burst through the continuation pattern setup.
- How to Get Rid of FOMO (Flip a Negative into a Positive) – FOMO is the trading version of “keeping up with the Joneses.” Here I show you how to flip a negative emotion into a positive by thinking about the future instead of the past.
- Swing Trading Strategies: Stop Micromanaging Your Swing Trades – Micro-managing is the biggest trading mistake amateur traders make. This article presents the problem and the solution to micromanaging trades.
- Part-Time Trading Made Easy – This is the most important post I have ever written because it lays out exactly how I went from part-time trading around a demoing job to full-time trading.
- The Trump Effect: How I Used a Stock Market Catalyst to Trade Biotech – While this post was specific to the Trump election and its impact on trading, along with the $2300 biotech trade, think about how this type of analysis applies to any event that creates a market catalyst.
- Special Evening Report: Key Election Day Developments You Must Know – On the day of the election, we talked about how the election impacted our trading and a key trait that all good traders must possess: the ability to adapt.
- How to Make $1500 Shorting the $NFLX Earnings Breakout – This lesson is gold because it teaches you how to short earnings breakouts using our winning Netflix short trade.
- Case Study: How to Swing Trade Range Bound Markets Using Relative Strength – Range bound markets are the toughest markets to trade. Here we address the issue and show you how to win where most traders lose.
- Is Paul Really Looking to Swing Trade Apple – We don’t care about the event, only how price reacts to the event. After the earnings report, we analyze how to use an adaptive approach to applying setups.
- How to Unlock the Power of Relative Strength and Trend Pullbacks: Winning $BRZU Swing Trade – Did we have a crystal ball in picking Brazil? No, we used relative strength and applied it to a strong setup.
- How to Trade the Trend Pullback Using Relative Strength: $AMBA – The 5 keys to the trend pullback setup as explained using the winning $AMBA trade.
- Swing Trading Secrets: How to Swign Trade Earnings Gap Down Reversals with $NFLX – One of the most neglected profitable setups is the gap down reversals. Learn from this Netflix trade.
- Live Swing Trade: How to Manage the $BRZU Positon – In this video, you get into my head and see exactly what I was thinking as we analyze the exit strategy of the Brazil trade.
- How to Swing Trade Earrings Breakouts in 3 Easy Steps: $EXAS – Trading does not have to be complicated. Always work at simplifying complicated ideas. This earnings breakout setup is as simple as one, two three.
- The Anatomy of a Winning Biotech Trade: $LABU – Who needs setups if you understand what is going on in the market? You will learn a setup, but more importantly you will understand the importance of the market and trend.
- 4 ETF Swing Trading Ideas: Trading the BRIC – Brazil, China, Russia, and India made nice runs after the big British Brexit vote, and here’s how we were on top of this trade early.
- 3 Explosive Stocks to Trade Post-Brexit – How we use the “if-then” approach after a market catalyst.
- Swing Trading Tips: Today’s 3 Trades Reviewed and the State of the Market in 2016 – In this trade review, pay close attention to the thought process behind each trade related not only to the setup, but also risk and trade management.
- Anatomy of a Winning Swing Trade: Parabolic Short and $JNUG – The JNUG parabolic short trade was a great example of trading against the trend without fear, by knowing exactly what to look for before entering with a precise entry signal instead of guessing.
- Swing Entry Strategy for $WLH – This trade combined the use of the 9ema, volatility, sector trends and volume analysis.
- Swing Trading 101: Understanding the Commodities and FANG Bounces – How to identify if a bounce is strong or a “dead cat.”
- Checklist: 13 Ways to Take Control of Your Swing Trading in 2016 – While we can not control a stock’s movement, most of what we do is within our control.
- January Webinar: https://vimeo.com/152938272. : The first webinar of the year predicted our big run to start the year
- February Q&A: https://bullsonwallstreet.com/swingtradingwebinarqa. Follow up to the January webinar answered tons of great questions and discussed how we adapted to 2016 trading.
- February Webinar: https://bullsonwallstreet.com/pages/swing-trading-webinar-feb2016.html. Kunal joined me as we talked about trading the big market double bottom formation.
- March Webinar: https://bullsonwallstreet.com/webinar/paul-singhs-top-five-stock-picks/. Breaking down stats and actionable setups.
- May Webinar: https://bullsonwallstreet.com/webinar/day-swing-trading-energy-sector/ . Kunal was back as we discussed swing and intraday strategies for trading the energy sector.
- June Webinar: https://bullsonwallstreet.com/webinar/state-swing-trading-2016/#replay. Reviewing stats and getting ready for summer trading.
Now that you have put in hours studying all of these educational articles and webinars, let me know what you have learnt by sending me a message on Twitter!
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