Swing Trading and Value Investing Adjusted Learning Plan

Restructured 5-Hour Weekly Learning Plan: Intelligent Trading & Value Investing

This is a modified version of the previous learning plan with smaller study blocks. It has a focus on self-testing to ensure good assimilation of the material. I firmly believe that tests and projects are integral components of learning.

This is not financial advice, just my attempt to become more financially literate.

---

Phase 1: Core Foundation (Weeks 1-6)

Week 1 ✅ COMPLETED: Market Fundamentals

• Market structure, asset classes, basic terminology
• Risk vs. return concepts
• Assessment: Quiz completed - identified review areas

Week 2:✅ Financial Statement Essentials (5 hours)

Learning Objectives: Read and interpret the three core financial statements

Daily Schedule (45 min/day, Mon-Fri):

• Monday (45 min): Income Statement basics - revenue, expenses, profit margins
• Tuesday (45 min): Balance Sheet fundamentals - assets, liabilities, equity
• Wednesday (45 min): Cash Flow Statement - operating, investing, financing activities
• Thursday (45 min): How statements connect and tell a company’s story
• Friday (45 min): Practice reading real 10-K excerpts

Resources:

• Khan Academy: Corporate Finance sections
• SEC.gov sample 10-K filings
• Morningstar’s “How to Read Financial Statements”

Week 2 Quiz (30 min): ✅

• Identify key items on each statement
• Calculate basic metrics from provided data
• Spot red flags in financial statements
• Pass Criteria: 75% to advance
• Passed with 18/20 (90%) → Pass 🎉

---

Week 3: Key Financial Ratios & Analysis (5 hours)

Learning Objectives: Calculate and interpret essential ratios for company evaluation

Daily Schedule:

• Monday (60 min): Profitability ratios (ROE, ROA, profit margins, ROIC)
  • Return on equity (ROE): It’s the net income of the company divided by the total market shares. It indicates how effective the company is at turning investor’s contribution into profit.
  • Return on assets (ROA): It’s the next income divided by the total value of assets. How efficient are we in converting assets into profit.
  • Return on Invested Capital (ROIC): Net Operating profit after Taxes (NOPAT) to Total Capital Invested. How does the company uses its debt and equity to generate returns.
• Tuesday (60 min): Valuation ratios (P/E, P/B, PEG, Price-to-Sales)
• Wednesday (60 min): Leverage ratios (Debt-to-Equity, Interest Coverage)
• Thursday (60 min): Efficiency ratios (Asset Turnover, Inventory Turnover)
• Friday (60 min): Practice: Analyze 2 companies using all ratios

Resources:

• Investopedia’s Financial Ratios guide
• Morningstar’s ratio calculator
• Yahoo Finance for practice data

Week 3 Quiz (30 min):

• Calculate 15+ ratios from raw financial data
• Compare two companies in same industry
• Identify which ratios matter most for different industries
• Pass Criteria: 80% to advance

---

Week 4: Company Research & Analysis Framework (5 hours)

Learning Objectives: Develop systematic approach to evaluating investment opportunities

Daily Schedule:

• Monday (60 min): Industry analysis fundamentals and competitive positioning
• Tuesday (60 min): Management quality assessment and corporate governance
• Wednesday (60 min): Business moats and competitive advantages
• Thursday (60 min): Reading annual reports efficiently (10-K speed reading)
• Friday (60 min): Complete analysis of one chosen company

Resources:

• Morningstar’s industry reports
• SEC EDGAR database
• Warren Buffett’s shareholder letters (selected excerpts)

Week 4 Assessment (45 min):

• Write 1-page investment thesis for chosen company
• Present bull and bear case scenarios
• Include industry context and competitive analysis
• Pass Criteria: Structured analysis with clear reasoning

---

Week 5: Intrinsic Value & Basic Valuation (5 hours)

Learning Objectives: Learn fundamental valuation methods to determine fair value

Daily Schedule:

• Monday (60 min): Time value of money and discount rates
• Tuesday (60 min): Dividend Discount Model (DDM) basics
• Wednesday (60 min): Simple DCF model concepts and assumptions
• Thursday (60 min): Comparable company analysis (trading multiples)
• Friday (60 min): Build basic valuation model in spreadsheet

Resources:

• Khan Academy: Present Value and NPV
• Simple DCF templates online
• Damodaran’s valuation materials (introductory sections)

Week 5 Quiz (45 min):

• Calculate intrinsic value using 2 different methods
• Identify key assumptions and sensitivity factors
• Determine if stock is over/under/fairly valued
• Pass Criteria: Logical valuation approach with reasonable assumptions

---

Week 6: Value Investing Integration & Portfolio Basics (5 hours)

Learning Objectives: Combine all fundamental analysis skills into investment process

Daily Schedule:

• Monday (60 min): Benjamin Graham’s value principles and safety margin
• Tuesday (60 min): Quality vs. cheap stocks - when to buy what
• Wednesday (60 min): Portfolio construction and position sizing
• Thursday (60 min): When to buy, hold, and sell decisions
• Friday (60 min): Create watchlist of 10 potential value investments

Resources:

• “The Intelligent Investor” key chapters
• Morningstar’s Portfolio Manager tools
• Stock screeners (Finviz, Yahoo Finance)

Phase 1 Final Assessment (60 min):

• Comprehensive company analysis and valuation
• Portfolio allocation recommendation
• Risk assessment and mitigation strategies
• Pass Criteria: Professional-quality analysis demonstrating integrated knowledge

---

Phase 2: Technical Analysis & Swing Trading (Weeks 7-12)

Week 7: Chart Reading & Pattern Recognition (5 hours)

Learning Objectives: Master basic technical analysis for timing and trend identification

Daily Schedule:

• Monday (60 min): Candlestick patterns and what they reveal
• Tuesday (60 min): Support and resistance levels identification
• Wednesday (60 min): Trendlines, channels, and trend analysis
• Thursday (60 min): Volume analysis and price-volume relationships
• Friday (60 min): Practice chart reading on 20+ real examples

Resources:

• TradingView’s educational content
• StockCharts.com School of Investing
• “Japanese Candlestick Charting Techniques” excerpts

Week 7 Quiz (30 min):

• Identify 10 chart patterns from examples
• Draw proper support/resistance levels
• Determine trend direction and strength
• Pass Criteria: 80% pattern recognition accuracy

---

Week 8: Technical Indicators & Market Timing (5 hours)

Learning Objectives: Use quantitative indicators to confirm trading signals

Daily Schedule:

• Monday (60 min): Moving averages (SMA, EMA) and crossover signals
• Tuesday (60 min): RSI and overbought/oversold conditions
• Wednesday (60 min): MACD for trend changes and momentum
• Thursday (60 min): Bollinger Bands and volatility analysis
• Friday (60 min): Combine indicators for trading system

Resources:

• TradingView indicator tutorials
• StockCharts technical indicator reference
• Paper trading platform setup

Week 8 Quiz (30 min):

• Interpret indicator signals correctly
• Identify confluence of multiple indicators
• Spot false signals and common mistakes
• Pass Criteria: 75% signal interpretation accuracy

---

Week 9: Swing Trading Strategies & Entry/Exit Rules (5 hours)

Learning Objectives: Develop systematic approach to swing trading with clear rules

Daily Schedule:

• Monday (60 min): Breakout trading strategy and volume confirmation
• Tuesday (60 min): Pullback/retracement strategies in trending markets
• Wednesday (60 min): Momentum trading and riding strong moves
• Thursday (60 min): Mean reversion strategies for range-bound markets
• Friday (60 min): Create personal trading rules and checklists

Resources:

• “Technical Analysis of the Financial Markets” key chapters
• Trading strategy backtesting tools
• Paper trading execution

Week 9 Assessment (45 min):

• Design complete trading strategy with entry/exit rules
• Backtest on historical examples
• Define risk parameters and position sizing
• Pass Criteria: Well-defined, testable strategy with clear rules

---

Week 10: Risk Management & Position Sizing (5 hours)

Learning Objectives: Protect capital through proper risk management techniques

Daily Schedule:

• Monday (60 min): Position sizing formulas (1-2% rule, Kelly Criterion basics)
• Tuesday (60 min): Stop-loss strategies and placement techniques
• Wednesday (60 min): Risk-reward ratios and profit targets
• Thursday (60 min): Portfolio heat and correlation management
• Friday (60 min): Create personal risk management plan

Resources:

• “Trade Your Way to Financial Freedom” risk sections
• Position sizing calculators
• Risk management spreadsheet templates

Week 10 Quiz (30 min):

• Calculate proper position sizes for different scenarios
• Set appropriate stop-losses for various strategies
• Determine risk-reward ratios for potential trades
• Pass Criteria: 85% accuracy on risk calculations

---

Week 11: Market Psychology & Behavioral Finance (5 hours)

Learning Objectives: Understand psychological factors affecting trading decisions

Daily Schedule:

• Monday (60 min): Common cognitive biases in trading (confirmation bias, anchoring)
• Tuesday (60 min): Emotional discipline and managing fear/greed
• Wednesday (60 min): Market sentiment indicators and crowd psychology
• Thursday (60 min): Trading journal setup and self-assessment techniques
• Friday (60 min): Review psychological mistakes in practice trades

Resources:

• “Thinking, Fast and Slow” trading applications
• Behavioral finance research summaries
• Trading psychology assessments

Week 11 Assessment (30 min):

• Identify personal psychological weaknesses
• Create plan to address emotional trading issues
• Design accountability system for discipline
• Pass Criteria: Honest self-assessment with actionable improvement plan

---

Week 12: Paper Trading Integration & Strategy Testing (5 hours)

Learning Objectives: Apply all learned concepts in simulated trading environment

Daily Schedule:

• Monday (60 min): Execute 5 paper swing trades using learned strategies
• Tuesday (60 min): Execute 3 paper value investments with fundamental analysis
• Wednesday (60 min): Track and analyze all positions with detailed notes
• Thursday (60 min): Weekly portfolio review and strategy adjustment
• Friday (60 min): Month-end performance analysis and lessons learned

Resources:

• Paper trading platform (TD Ameritrade thinkorswim, TradingView)
• Portfolio tracking spreadsheets
• Performance analysis tools

Phase 2 Final Assessment (60 min):

• Present complete trading and investing results
• Analyze what worked and what didn’t
• Adjust strategies based on real experience
• Pass Criteria: Thoughtful analysis showing integration of all concepts

---

Phase 3: Real-World Application & Advanced Concepts (Weeks 13-18)

Week 13: Market Environment Analysis (5 hours)

Daily Schedule:

• Monday (60 min): Economic indicators and their market impact
• Tuesday (60 min): Sector rotation and cycle analysis
• Wednesday (60 min): Fed policy impact on different asset classes
• Thursday (60 min): Bull vs. bear market strategy adjustments
• Friday (60 min): Create market environment dashboard

Week 13 Quiz (30 min): Predict market sector performance based on economic scenarios

---

Week 14: Advanced Screening & Opportunity Identification (5 hours)

Daily Schedule:

• Monday (60 min): Stock screening for value opportunities
• Tuesday (60 min): Technical screening for swing trade setups
• Wednesday (60 min): Combining fundamental and technical screens
• Thursday (60 min): Alternative data sources and edge identification
• Friday (60 min): Build personal screening system

Week 14 Assessment (45 min): Create automated screening system for both strategies

---

Week 15: Portfolio Integration & Asset Allocation (5 hours)

Daily Schedule:

• Monday (60 min): Optimal allocation between swing trading and value investing
• Tuesday (60 min): Correlation analysis and diversification optimization
• Wednesday (60 min): Rebalancing strategies and tax considerations
• Thursday (60 min): Performance measurement and benchmarking
• Friday (60 min): Design complete portfolio strategy

Week 15 Quiz (30 min): Optimize portfolio allocation for different risk profiles

---

Week 16: Options Basics for Enhanced Strategies (5 hours)

Daily Schedule:

• Monday (60 min): Options fundamentals - calls, puts, basic terminology
• Tuesday (60 min): Covered calls for income on value holdings
• Wednesday (60 min): Protective puts for downside protection
• Thursday (60 min): Cash-secured puts for entry strategies
• Friday (60 min): When and how to use options in your strategies

Week 16 Assessment (30 min): Design options enhancement for existing positions

---

Week 17: Advanced Risk Management & Hedging (5 hours)

Daily Schedule:

• Monday (60 min): Portfolio hedging strategies
• Tuesday (60 min): Stress testing and scenario analysis
• Wednesday (60 min): Black swan preparation and tail risk
• Thursday (60 min): Dynamic risk adjustment techniques
• Friday (60 min): Create comprehensive risk management system

Week 17 Quiz (30 min): Design hedging strategies for various market scenarios

---

Week 18: Live Trading Preparation & Final Integration (5 hours)

Daily Schedule:

• Monday (60 min): Brokerage selection and account setup
• Tuesday (60 min): Tax implications and record-keeping systems
• Wednesday (60 min): Final strategy documentation and checklists
• Thursday (60 min): Start small-scale live trading with minimal capital
• Friday (60 min): First week live trading review and adjustments

Final Comprehensive Assessment (90 min):

• Complete investment analysis combining all learned skills
• Live trading plan with specific rules and risk parameters
• 6-month goals and continued learning plan
• Pass Criteria: Professional-quality analysis ready for real implementation

---

Weekly Time Allocation (5 Hours)

Optimal Schedule Options

Option A - Daily Consistency:

• Monday-Friday: 60 minutes each day
• Weekend: Quiz/assessment time

Option B - Block Learning:

• Saturday: 3 hours intensive study
• Wednesday: 2 hours review and practice
• Sunday: 30 minutes quiz

Option C - Flexible:

• Adjust daily time based on your schedule
• Maintain 5-hour weekly total
• Complete quiz by week end

Assessment Standards

Quiz Scoring

• 90-100%: Exceptional - Ready for advanced concepts
• 80-89%: Proficient - Proceed with confidence
• 70-79%: Adequate - Review weak areas before advancing
• Below 70%: Repeat week with additional focus

Practical Assessments

• Quality of analysis and reasoning
• Application of multiple concepts together
• Recognition of limitations and risks
• Clear documentation of decision process

Success Milestones

Month 1 (Weeks 1-4)

• Read financial statements confidently
• Calculate and interpret key ratios
• Complete first company analysis
• Identify potential value investments

Month 2 (Weeks 5-8)

• Build basic valuation models
• Read charts and identify patterns
• Use technical indicators effectively
• Begin paper trading

Month 3 (Weeks 9-12)

• Execute systematic trading strategies
• Manage risk appropriately
• Maintain trading discipline
• Integrate both approaches

Month 4+ (Weeks 13-18)

• Analyze market environments
• Build comprehensive screening systems
• Use options for enhancement
• Transition to live trading

Tools You’ll Master

Analysis Tools

• Financial statement analysis
• Ratio calculations and interpretation
• Basic valuation models (DCF, comparables)
• Chart pattern recognition
• Technical indicator analysis

Platforms & Resources

• SEC EDGAR for company research
• Yahoo Finance/Morningstar for data
• TradingView for charting
• Paper trading platforms
• Screening tools (Finviz, etc.)

Risk Management

• Position sizing calculations
• Stop-loss placement strategies
• Portfolio heat monitoring
• Correlation analysis
• Stress testing methods

Continuous Learning Plan

After completing the 18-week program:

Monthly Reviews

• Performance analysis and strategy adjustment
• Market environment assessment
• New opportunity identification
• Risk parameter updates

Quarterly Deep Dives

• Complete portfolio rebalancing
• Strategy effectiveness analysis
• Advanced technique learning
• Goal setting and adjustment

Annual Planning

• Full year performance review
• Major strategy modifications
• Tax planning and optimization
• Next year goals and learning objectives

---

Remember: The goal is not to become an expert in 18 weeks, but to build a solid foundation for intelligent, informed investing and trading that will serve you for decades.