Brian's Swing Trading Strategy: Rules, Strategies, and Routine

[00:03] Prime Bizim managed to achieve significant profits and become one of the most successful traders thanks to his swing trading strategy. Today, I'm bringing you Brian's exact recipe in this video. I'll explain Brian's complete plan in detail, including his principles, method, rules, and the approach he

[00:20] outlined in his book, "How to Swing Trade," so you can apply it and learn from his successful strategy. By the end of the video, you'll have a powerful set of tools and information that will

[00:32] greatly help you on your trading journey. It could truly be the turning point in your market career. First, swing trading, in short, is a trading style that relies on holding positions for several

[00:46] days or weeks to profit from medium-term price movements, whether upward or medium-term price movements, whether upward or downward. Brian emphasizes in his book that swing trading is a structured process built on a clear plan with strict rules and repeatable steps. He

[01:04] wrote this book for all traders, regardless of their level, which is why he dedicated a large portion to trading fundamentals such as charting tools, platforms, and technical analysis indicators.

[01:17] platforms, and technical analysis indicators. Chart patterns and many other things are why Chart patterns and many other things are why this book is considered an intensive and comprehensive course for anyone who this book is considered an intensive and comprehensive course for anyone who wants to learn trading from scratch. The

[01:29] first stock he owned was a single share in Bell Canada, a gift from his father. Over time, with accumulated experience and lessons, he turned to swing trading, especially after difficult experiences and painful mistakes, most notably

[01:43] during the dot-com bubble. During that period, he made a lot of profit and then lost a lot, and he describes this experience as the period, he made a lot of profit and then lost a lot, and he describes this experience as the lesson that taught him humility.

[01:55] Swing trading, as described by Bhobrin, is very suitable for people who can't stay in very suitable for people who can't stay in front of a screen all day. The idea is that you hold trades from one day to several weeks, and therefore it is an ideal option for those who prefer a slower and more systematic approach

[02:12] than day trading, but at the same time want more control and flexibility than want more control and flexibility than long-term investing. To trade swing correctly, there are essential things you need: suitable tools, a

[02:27] suitable tools, a strong account, high discipline, and a deep understanding of strong account, high discipline, and a deep understanding of technical and fundamental analysis.

[02:39] And here comes the most important lesson in the book, which Bhobrin He always emphasizes that preserving capital is the golden rule. Prime explains that if you lose your capital, you're simply Prime explains that if you lose your capital, you're simply out of the game. That's why you must adhere to a

[02:52] out of the game. That's why you must adhere to a fundamental rule: never risk more than 2% of your account in a single trade. This rule alone can protect you, especially during market volatility.

[03:04] can protect you, especially during market volatility. Accept losses as a natural part of the game and don't adjust your trading plan unless the fundamentals of the market, sector, or stock change. Prime stresses that emotional detachment is key because the market doesn't

[03:21] care about your feelings. If a trade fails, record it in your journal and follow up. journal and follow up. Don't take it personally; that's why journaling is a Don't take it personally; that's why journaling is a fundamental part of his method. For every trade,

[03:34] fundamental part of his method. For every trade, document everything: entry time, stop- loss, exit time, and even the reason for entering the trade. This method helps you discover what the trade. This method helps you discover what works for you and what doesn't. Finally,

[03:49] take care of your mental and physical health because your psychological state can significantly affect your trading decisions. psychological state can significantly affect your trading decisions.

[04:02] Brian's most important swing trading rules include the first rule: hold. Regarding stocks during earnings announcements, Brian likens this step to playing roulette. The stock might soar or suddenly crash after the stock might soar or suddenly crash after the earnings announcement, and no technical analysis can

[04:16] earnings announcement, and no technical analysis can accurately predict the outcome. For him, the risk isn't accurately predict the outcome. For him, the risk isn't worth it, and he always exits the stock before the earnings announcement. The worth it, and he always exits the stock before the earnings announcement. The

[04:28] OTC stocks outside the exchange. These are cheap, low-liquidity stocks that are often the scene of cheap, low-liquidity stocks that are often the scene of pump and dump schemes. While you pump and dump schemes. While you might feel you can profit quickly

[04:43] due to their high volatility, Brian warns against them because the risk is very high and not worth the effort. The third rule is not to open too many trades at the same

[04:56] third rule is not to open too many trades at the same time. Brian advises focusing on a limited number of high-effort trades and monitoring them calmly and attentively instead of scattering yourself across dozens of calmly and attentively instead of scattering yourself across dozens of open positions. Before I

[05:10] begin with the fourth rule, please like the video if you enjoyed the content. Now, the fourth rule: know your exit point before entering each trade. It must have a

[05:23] entering each trade. It must have a specific stop-loss and a clear profit target from the start. Prime considers this rule what distinguishes a professional trader from a gambler. Brian offers three swing trading strategies that he uses consistently. The

[05:39] first strategy is scanning for daily setups, which is the foundation of his trading approach. Prime scans stocks daily based on technical setups to discover breakouts, ABCD patterns, and

[05:56] ABCD patterns, and price bounces from support zones. He uses price patterns, Japanese candlesticks, and basic technical indicators such as moving averages to identify swing trading opportunities. He such as moving averages to identify swing trading opportunities. He

[06:12] to identify stocks with greater potential for strong movement. His favorite free tools strong movement. His favorite free tools are FinVits and Chartmill with a

[06:24] high-volume filter. He prefers stocks priced above $2 for buy trades and looks for stocks priced above the 20- day or 50-day moving average, and the opposite for sell trades.

[06:40] This table illustrates the criteria he uses in his scans on FinVits. in his scans on FinVits. Brian trades with Trend continuity and also reversal patterns. Since we covered the channel's strategies

[06:55] for trend continuity, we will focus here on Brian's method for identifying price reversals for Brian's method for identifying price reversals for bullish reversals. Brian filters stocks bullish reversals. Brian filters stocks that trade above the 20-day moving average

[07:10] that trade above the 20-day moving average but are still below the 50- and 200-day moving averages. After finding the nominated stocks through the scanning tools, he manually reviews the charts to through the scanning tools, he manually reviews the charts to

[07:26] ensure there is a consolidational movement close to support levels and a rise in trading volume at breakouts, in addition to Japanese candlestick patterns, whether bullish or bearish. Also, the setup must give a suitable reward-to- risk ratio, with a minimum of two to one.

[07:45] He usually finds these settings on Sunday evening and prepares his watchlist for the beginning of the week. This watchlist for the beginning of the week. This advance preparation helps him to act with confidence and speed when advance preparation helps him to act with confidence and speed when the market opens. The

[07:59] second strategy that Brian uses is price gap trading. This type Brian uses is price gap trading. This type of trading focuses on exploiting reactions to the previous night's news. Price gaps occur when stocks open significantly higher or

[08:13] occur when stocks open significantly higher or lower, usually due to earnings announcements, lower, usually due to earnings announcements, analyst recommendations, or important fundamental news. Brian deals with this strategy when a stock rises due to positive news

[08:28] when a stock rises due to positive news and maintains its gains until the afternoon, and maintains its gains until the afternoon, especially in the last 30 minutes of the trading session. This is a especially in the last 30 minutes of the trading session. This is a strong Saudi signal, and in this case, he might enter

[08:40] the deal before the market closes because he expects the upward trend to continue in the following session. His decision to enter depends on three main factors. main factors. The news needs to be important and really new. The

[08:55] real-time chart must show strength in the stock with a clear increase in trading volume. The closing price clear increase in trading volume. The closing price must be close to the highest level during the day. must be close to the highest level during the day. These deals are often short-term, and you might only hold

[09:10] These deals are often short-term, and you might only hold them for a day or two. But the most important point here is that you don't enter a deal randomly just because the stock opened with a price gap. Brian waits stock opened with a price gap. Brian waits and makes sure first if buyers will actually maintain

[09:25] and makes sure first if buyers will actually maintain control after the opening before taking any action. The third strategy Brian follows is the frenzy of active sectors, or "hotsk mania." This

[09:37] strategy is the most explosive of his strategies, but at the same time, it's the least frequent. Sometimes there's a frenzy in the financial markets around certain sectors, like what happened in the blockchain sector in

[09:50] certain sectors, like what happened in the blockchain sector in 2017 or the cryptocurrency sector in 2018. During these periods, even small and marginal companies can witness crazy price jumps.

[10:02] Brian mentions a famous example of Long Island Esty, which simply changed its name to Long Blockchain Corp., and Esty, which simply changed its name to Long Blockchain Corp., and its stock jumped 200% in one day. This had its stock jumped 200% in one day. This had nothing to do with fundamental analysis; it was all

[10:17] nothing to do with fundamental analysis; it was all momentum and a speculative wave, nothing more and nothing less. Another example they shared is about the company Neo Age Beverages Corporation, which announced the launch of a CBD-based beverage, saw Corporation, which announced the launch of a CBD-based beverage, saw its stock jump

[10:32] its stock jump 62.5% in just one session. The interesting thing here is that Brian did n't buy at the peak; on the contrary, he waited until a flag pattern formed over two

[10:44] pattern formed over two full sessions before calmly entering the trade. The important lesson here is to observe calmly and let others chase the news. Watch the chart and only enter when you news. Watch the chart and only enter when you see the market starting to build, not before. Brian

[10:59] see the market starting to build, not before. Brian handles this type of trading with extreme caution. He follows social media and news summaries to monitor the sector as it heats up, and then identifies monitor the sector as it heats up, and then identifies the stocks within that sector that are gaining momentum. Usually, the

[11:15] leading stock is the most liquid and technically strongest, and he waits for a breakout from a technically strongest, and he waits for a breakout from a flag pattern or a consolidation pattern before entering the trade. flag pattern or a consolidation pattern before entering the trade. The key to these trades is speed: quick profits, quick

[11:30] exits. There's no room for long-term positions. When the euphoria and momentum begin to weaken, he exits When the euphoria and momentum begin to weaken, he exits immediately without hesitation.

[11:45] After finding the right opportunity, the most important step comes next: precise execution. Brian believes most important step comes next: precise execution. Brian believes that the success of a trade isn't solely measured by the size of the profit, but also by that the success of a trade isn't solely measured by the size of the profit, but also by how it's managed from the outset. Even with

[11:57] excellent preparation, poor execution can cause you to miss the opportunity to enter a trade. Brian prefers to enter on confirmed breakouts, meaning when a stock surpasses a

[12:10] significant resistance level, provided the trading volume is significant resistance level, provided the trading volume is high and increasing. He waits to see the price movement confirm the move before entering, even if it means missing out if the price jumps too quickly above the

[12:24] if the price jumps too quickly above the planned entry point. If the stock drops close to a support level but still maintains its technical structure, he might enter a maintains its technical structure, he might enter a trade with a stop-loss order at the narrowest point. This is where

[12:38] Brian always uses limit orders instead of market orders to ensure he enters or exits at his desired price and avoids slippage, which is the difference between the expected price and the actual execution.

[12:55] which is the difference between the expected price and the actual execution. Before any entry, the stop-loss and profit target must be predetermined. Brian always works with Brian always works with clear targets and a fixed stop-loss.

[13:09] For example, if he buys a stock at $20, he might set a stop- loss order. At $19 with a target of $23, the risk- loss order. At $19 with a target of $23, the risk- reward ratio is 3/10, meaning he

[13:21] could potentially earn three times what he might lose. If the trade goes well and the price starts to rise, he sometimes uses a strategy called scale-out, selling half the position at the

[13:33] first target and keeping the other half with a trailing stop- loss (trilineal stop) to protect profits. At the end of this video, I'll also include a video about stop-losses. Brian uses OCO (One

[13:46] Cancels Other) orders, which is a smart tactic. If the stock reaches the target, the stop-loss order is smart tactic. If the stock reaches the target, the stop-loss order is automatically canceled, and vice versa. This significantly reduces the automatically canceled, and vice versa. This significantly reduces the influence of emotions on his trading decisions.

[14:01] His simple rule is: if the stock reaches the stop- loss, he closes the trade immediately, records it in his ledger, and loss, he closes the trade immediately, records it in his ledger, and continues without regret. If it reaches the target, he does the same. If the stock stays above the target, the trailing stop-loss ensures he retains as much

[14:18] ensures he retains as much profit as possible. The key point is that execution profit as possible. The key point is that execution and discipline are more important than any preparation or prediction

[14:31] in the later chapters. Brian emphasizes the importance of a trading routine. For him, it's not trading routine. For him, it's not just speculation; it's organized business practice. Every day involves just speculation; it's organized business practice. Every day involves researching and scanning stocks, recording trades, reviewing results, and

[14:44] always advising setting weekly targets, preparing a always advising setting weekly targets, preparing a watchlist at the end of each week, and documenting trades watchlist at the end of each week, and documenting trades daily. Brian's core routines include reviewing the

[14:56] market on Sunday mornings, checking the market 30 minutes before the opening bell, setting alerts and orders, and reviewing the day's performance and journaling.

[15:10] Without a clear routine, a trader can easily get carried away, but with a consistent routine, you stay focused, adapt faster, and but with a consistent routine, you stay focused, adapt faster, and improve continuously. improve continuously. In summary, Brian's plan consists of: First, following strict rules and

[15:23] avoiding speculative trades like dividend stocks and pinstocks. Second, three Second, three clear strategies: scanning for technical setups, trading price gaps, and trading the frenzy of active sectors. Third, entering precisely but with

[15:40] active sectors. Third, entering precisely but with confirmed setups, strong trading volume, and a defined stop-loss. confirmed setups, strong trading volume, and a defined stop-loss. Fourth, exiting with discipline, fixed profit targets, and a trailing stop- Fourth, exiting with discipline, fixed profit targets, and a trailing stop- loss, leaving no room for

[15:52] emotion. Fifth, continuous review and journaling because improvement always comes from evaluation and insight. The basic principle is that swing trading isn't just about being right in every trade, but

[16:05] swing trading isn't just about being right in every trade, but about managing risk intelligently, seizing opportunities, and growing your capital over time. Thank you for following me this far. This is Amer Qassem. Please subscribe to the channel if you haven't already, and if you liked the content, please give it a like. I hope you're

[16:21] the content, please give it a like. I hope you're well in the next video. Peace.