Free Trading Resources

Swing Trader? Check Out This Pro’s Rules

Do you like to swing trade?  Then you are going to want to read this list of killer trading rules put down by pro trader Alan Farley, author of The Master Swing Trader.

I started my trading journey about 10 years ago — and one of the very first books I bought on the topic of swing trading was The Master Swing Trader by pro trader Alan Farley.

And let me tell you — this book is huge!

Coming in at over 400 pages it reads more like an encyclopedia than a book — and if you want to learn about swing trading you won’t need to read much more.

But if you don’t feel like spending the next few weeks pouring through this Goliath, Mr. Farley himself has put up a list of his all time top swing trading rules.

Seeing as this guy wrote the book on swing trading you might want to pay attention.

So what is swing trading?

From Wkipedea — Swing trading is a speculative activity in financial markets where a tradable asset is held for between one and several days in an effort to profit from price changes or ‘swings’.

While lately I’m branching out into more and more day trading, swing trading used to be only way I traded — and I’ve used the method to capture some nice gains.  Like this trade in Nordstrom $JWN before it crashed.

Or this recent 2 day trade in $VRAY.

Swing trades usually last no more than 5 days for me, but you can take them all the way out to 10 or 20 days.

Bringing it back to Alan Farley’s 30 Rules For The Master Swing Trader, here are some of my favorites.

Like this gem…

Rule 1: If you have to look, it isn’t there.

Forget your college degree and trust your instincts. The best trades jump out of nowhere and create a sense of urgency. Take a deep breath, and then act quickly before the opportunity disappears.

Or this killer…

Rule 4: Profit and discomfort stand side by side.

Find the setup that scares you the most because that’s the one you need to trade. Don’t expect it to feel good until you take your profit. If it did, everyone else would be trading it. Ancient wisdom from the East: What at first brings pleasure in the end gives only pain, but what at first causes pain ends up in great pleasure.


Rule 15: Big losses rarely come without warning.

You have no one to blame but yourself. The chart told you to leave, the news told you to leave and your mother told you to leave. Learn to visualize trouble and head for safety with only a few bars of information.

And Finally…

Rule 30: Don’t think it’s entertainment.

Successful trading will be boring most of the time, just like the real job you have right now.

These are all huge rules I try to follow on a daily basis.

For the entire list, click here.

Want to learn more about Alan Farley?  Check out his profile on Investopedia.  Or follow him on Twitter.  you can even catch a cool interview with Alan over at ChatWithTraders.Com.


  1. Meredith January 27, 2017
  2. David John Hall March 22, 2017

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