FUN - FUNTASTIC LTD > +1 to 144 MOV AVS 22(0) 15 band

D @ D 010601-180703

160 140

120

100 90 80 70 B

60

50 A

40 38 JUN JUL AUGSEP OCTNOVDEC JANFEBMARAPR MAYJUN JUL AUGSEP OCTNOVDEC JANFEBMARAPRMAYJUN JUL 01 02 03

Question What is the difference between swing trading and trend trading? Answer These terms are used in Dr Alexander Elders book Come into my Trading Room. See pages 187 through 192. Swing trades are what Dr Elders short term trading method is about. As I understand it, Dr Elder tries to buy uptrends near the 22 day EMA and take profits near the channel line. On the chart of Funtastic such a trade would be to buy at A and sell at B. This would be repeated each time the price falls back to the rising moving averages. Some years ago, Dr Elder was in Australia and said to me that he had swing traded Wheat all year. He remarked though, that he world have done better if he had trend traded it. What I take him to mean is very close to what I try to do in my own investing. That is to buy near the start of a medium term trend and stay long until that trend ends. So, on the Funtastic chart, instead of selling at B, I would sit through the next and subsequent corrections and still be long at the end of the chart.

Copyright Colin Nicholson. Do not reproduce without permission.

There is much more to both my methods and Dr Elders than this simple explanation of the difference between the two terms. Please read Dr Elders book and study my videotape for the complete pictures.

Copyright Colin Nicholson. Do not reproduce without permission.