1. Swing TradingChinese Stocks

2. Many investors have poured moneyinto China. It has a cheap labor force,although wages are going up. And ithas a huge internal market. 3. But, China also has lots of problemslike the political unrest and pro-democracydemonstrations in HongKong 4. Before We ContinueClick the links below to get yourFREE training materials.Free Weekly Investing WebinarsDont miss these free training events!http://www.profitableinvestingtips.com/free-webinarForex Conspiracy ReportRead every word of this report!http://www.forexconspiracyreport.comGet 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.http://www.candlestickforums.com 5. Our opinion is that swing tradingChinese stocks can be more profitablethan investing in them. 6. We wrote recently about the AlibabaIPO and Trading the Fall of Alibaba.Alibaba is trading heavily at the openand close and the price has fallen twodollars a share from where the stockopened it IPO. 7. Our take is that there is not muchhappening to this stock but that it willmove when quarterly financials comein. 8. Anticipating how well the company isdoing will give traders an advantage forswing trading Chinese stocks likeAlibaba. In the meantime technicalanalysis can be applied to any highvolume Chinese stock in search ofshort term profits. 9. Our belief is that the Chinese economyis in trouble as is the ruling hierarchy.Given the non-transparent nature of theChinese economy and Chinese politics,technical analysis may not always be auseful approach 10. But anticipating how things will evolveon the mainland may be easier. Thusswing trading Chinese stocks may be amore effective way to make a profit. 11. What to Trade? 12. We suggested a year ago that it mightbe time to short the Chinese stockmarket. Consider ADRs of Chinesecompanies. 13. China has become an industrialpowerhouse and borrowed along theway. It has attracted huge amounts offoreign investment. The thinking is thatno one wanted to be left out of a hugeeconomic advance in an economy thatroutinely grew at 10% per year. 14. Precise timing may depend on carefulanalysis of stocks that trade as ADRs inthe USA, buying options on Chinese stocksthat trade in the USA and research tounderstand which stocks could be hurt by aburst real estate bubble, a contraction ofmanufacturing or wide spread civil unrest. 15. Although it can be hard to judge what ishappening in China day by day one cansee that change is in the air. There isdictatorial hierarchy that wants to keeppower. 16. They are juggling all sorts of issues inorder to keep a lid on social unrest.But, the Chinese have had a taste offreedom and it may be hard to keepthat under wraps forever. 17. Anticipating which stocks will be helpedand which will be hurt by comingevents will lead to profits when swingtrading Chinese stocks. 18. Chinese Stocks to Short 19. Let us start with Alibaba. This was thebiggest IPO ever. However, stockholders are buying part of a company inthe Cayman Islands. 20. And what they are buying is only a partof a network of companies and they aregetting to say in management! Ourbelief is that when the first badfinancials come in that Alibaba will falllike a rock. 21. As a general comparison Chinesestocks listed on US exchanges typicallylose about a percent a year whereasUS companies average a sevenpercent per year gain. 22. . In the twenty years ending in 2013 theChinese economy grew seven fold andstocks on the average provided aneight percent ROI! 23. The level 1 ADR stocks have highreporting requirements and are thussafer to trade. 24. Anything else should probably beavoided. As always only trade what youunderstand and check out any and alltips.