Swing Trading and Value Investing Learning Plan

Phase 1: Foundation (Weeks 1-4)

Core Investment Principles

• Week 1: Market basics and terminology
  • Asset classes, investment vehicles, derivatives and strategies
  • Stock market fundamentals
  • Key financial terms (P/E ratio, market cap, dividend yield, etc.)
  • Different investment styles overview
  • Risk vs. return concepts
• Week 2: Financial statement analysis
  • Income statement basics
  • Balance sheet fundamentals
  • Cash flow statement importance
  • Key financial ratios and metrics

Recommended Resources

• Books: “The Intelligent Investor” by Benjamin Graham (Chapters 1-3)
• Online: Investopedia’s basic investing course
• Practice: Open a paper trading account (TD Ameritrade’s thinkorswim or similar)

Phase 2: Value Investing Deep Dive (Weeks 5-10)

Core Value Investing Concepts

• Week 5: Warren Buffett’s philosophy
  • Business moats and competitive advantages
  • Quality companies vs. cheap stocks
  • Long-term thinking approach
• Week 6: Fundamental analysis techniques
  • Intrinsic value calculation methods
  • Discounted cash flow (DCF) modeling
  • Price-to-book and price-to-earnings analysis
• Week 7: Company research methodology
  • Annual reports (10-K) and quarterly reports (10-Q)
  • Industry analysis and comparison
  • Management quality assessment
• Week 8: Value screening and selection
  • Stock screeners and filters
  • Red flags to avoid
  • Portfolio construction for value investing
• Week 9: Case studies and practice
  • Analyze 3-5 potential value investments
  • Build simple valuation models
  • Document investment thesis for each
• Week 10: Value investing review and testing
  • Review all concepts learned
  • Take practice quizzes
  • Refine investment criteria

Recommended Resources

• Books:
  • “Security Analysis” by Graham & Dodd
  • “The Little Book of Value Investing” by Christopher Browne
• Tools: Morningstar, Yahoo Finance, SEC EDGAR database
• Practice: Research and analyze 10 companies using value metrics

Phase 3: Swing Trading Fundamentals (Weeks 11-16)

Technical Analysis Foundation

• Week 11: Chart patterns and trends
  • Support and resistance levels
  • Trendlines and channels
  • Common chart patterns (head & shoulders, triangles, flags)
• Week 12: Technical indicators
  • Moving averages (SMA, EMA)
  • RSI, MACD, Stochastic oscillators
  • Volume analysis and interpretation
• Week 13: Swing trading strategies
  • Breakout trading
  • Pullback and retracement strategies
  • Momentum and mean reversion approaches
• Week 14: Risk management for swing trading
  • Position sizing calculations
  • Stop-loss and take-profit strategies
  • Risk-reward ratios (minimum 1:2 or 1:3)
• Week 15: Market timing and entry/exit
  • Market cycle awareness
  • Sector rotation concepts
  • Economic indicators impact on swing trades
• Week 16: Swing trading psychology
  • Emotional discipline
  • Trading journal importance
  • Common psychological pitfalls

Recommended Resources

• Books:
  • “Technical Analysis of the Financial Markets” by John Murphy
  • “Swing Trading for Dummies” by Omar Bassal
• Software: TradingView, TC2000, or similar charting platforms
• Practice: Execute 20+ paper swing trades over 4 weeks

Phase 4: Integration and Advanced Concepts (Weeks 17-20)

Combining Both Approaches

• Week 17: Hybrid strategies
  • Using technical analysis to time value investments
  • Finding undervalued stocks with strong technical setups
  • Portfolio allocation between swing and value positions
• Week 18: Market environment adaptation
  • Bull market vs. bear market strategies
  • Economic cycle considerations
  • Sector-specific approaches
• Week 19: Advanced risk management
  • Portfolio diversification principles
  • Correlation analysis
  • Options strategies for hedging (basic covered calls/puts)
• Week 20: Performance tracking and improvement
  • Setting up tracking systems
  • Regular portfolio review processes
  • Continuous learning plan

Phase 5: Real-World Application (Weeks 21-24)

Live Trading Preparation

• Week 21: Final strategy refinement
  • Document complete trading/investing rules
  • Set up real brokerage account
  • Plan initial capital allocation
• Week 22: Start small-scale live trading
  • Begin with small position sizes
  • Focus on process over profits
  • Maintain detailed trading journal
• Week 23: Performance analysis
  • Review first month of live results
  • Identify areas for improvement
  • Adjust strategies based on real experience
• Week 24: Long-term plan development
  • Set 1-year and 5-year goals
  • Create ongoing education schedule
  • Establish regular review periods

Daily/Weekly Activities Throughout

Daily (30-45 minutes)

• Market news and economic calendar review
• Monitor existing positions
• Update trading/investment journal
• Chart review for swing trading opportunities

Weekly (2-3 hours)

• Deep research on 1-2 potential investments
• Portfolio performance review
• Educational reading (books/articles)
• Practice technical or fundamental analysis

Monthly

• Complete portfolio review and rebalancing
• Strategy performance assessment
• Adjust rules based on experience
• Set goals for following month

Key Tools and Resources

Essential Software/Platforms

• Brokerage: Fidelity, Charles Schwab, or Interactive Brokers
• Analysis: Morningstar Premium, FactSet (if available)
• Charting: TradingView Pro or TC2000
• Screening: Finviz, StockRover, or similar

Recommended Books (Priority Order)

1. “The Intelligent Investor” - Benjamin Graham
2. “A Random Walk Down Wall Street” - Burton Malkiel
3. “Technical Analysis of the Financial Markets” - John Murphy
4. “The Little Book That Still Beats the Market” - Joel Greenblatt
5. “Reminiscences of a Stock Operator” - Edwin Lefèvre

Key Metrics to Master

Value Investing

• Price-to-Earnings (P/E) ratio
• Price-to-Book (P/B) ratio
• Debt-to-Equity ratio
• Return on Equity (ROE)
• Free Cash Flow yield
• Dividend yield and payout ratio

Swing Trading

• Relative Strength Index (RSI)
• Moving Average Convergence Divergence (MACD)
• Bollinger Bands
• Volume indicators
• Risk-reward ratios
• Win rate and average win/loss

Success Milestones

Month 1

• Understand basic financial statements
• Complete 10 company fundamental analyses
• Set up paper trading account

Month 2

• Complete first DCF valuation model
• Identify 5 potential value investments
• Learn basic chart reading

Month 3

• Execute 10+ successful paper swing trades
• Develop personal screening criteria
• Create investment thesis template

Month 6

• Begin live trading with small amounts
• Achieve consistent paper trading results
• Complete advanced risk management training

Common Pitfalls to Avoid

1. Overcomplicating strategies - Keep it simple initially
2. Ignoring risk management - Never risk more than 2% per trade
3. Emotional trading - Stick to your rules regardless of emotions
4. Insufficient research - Never invest without proper analysis
5. Overtrading - Quality over quantity in both approaches
6. Following tips blindly - Always do your own research
7. Unrealistic expectations - Both approaches require patience and discipline

Remember: The goal is to develop two complementary skill sets that can work together in different market environments. Value investing provides the foundation for long-term wealth building, while swing trading can generate additional income and improve market timing skills.