Tag Archives: swing

25 Swing Trading Tips

Maintain at least a 3-1 win-loss ratio. If your trade target is to earn 9%, don’t use a stop loss wider than 3%.

Don’t day trade. The shorter the time frame, the more market noise confuses you about general trend direction. If you are swing trading, give your trade room to work.

Buy high and sell higher. Leading stocks make new price highs. Buying laggards increases the chances your trade will fail.

Turn off CNBC. A million and one factors impact a stock’s price. Watching the news will just throw you off track. Price is all that matters.

Keep it simple. If your trade signal is unclear, it probably isn’t there.

Never buy more than 3-4% above a sound base.

Place your stops below a base of support.

Pay attention to leadership stocks. If market leading stocks are performing poorly, it is time to get defensive.

5-6 distribution days over a short period of time can kill an uptrend. A distribution day occurs when the markets are down on significantly higher volume than the previous day’s volume.

Never short an uptrend. Wait until the market rolls over and short the first bounce.

Don’t chase breakouts. If a stock makes a new high, buy the first pullback.

Buy where it causes you pain. Rising stocks retest support. Buying the retest can be scary, but offers a low-risk opportunity.

If you think your set up is a sure fire winner, it probably isn’t. If it’s too obvious, everyone else probably sees the same thing and smart traders tend to fade the crowd.

Pay attention to the closing hour. Smart money gets busy during the close. Strong closes confirm trend strength. Weak closes should cause you to think about getting defensive.

Sell into strength. Trailing stops just cause you to sell low before prices rebound. Sell when the crowds are greedy, not fearful.

The 50-day average is defended by smart money. In up trends, prices tend to bounce from the 50-day, in downtrends sellers wait there.

Don’t buy the open. Too many games get played at the open. Strong opens tend to get sold into.

Watch the volume. If prices break out on average or low volume, participation in the breakout is thin and likely to fail.

Avoid cheap stocks. Stocks below $ 15 are usually laggards and are prone to manipulation. Institutions follow leading stocks and price action is more predictable.

Check short interest. If it is too high, somebody probably knows something.

Buy stocks with consistently improving earnings.

The market is never too high. Don’t pay attention to permabears who always predict a market crash. Bull markets can go much higher than short traders ever imagine they can.

Don’t buy falling stocks. Buying pullbacks in an uptrend is one thing, buying stocks that have broken down is trader suicide.

Trends are resilient. A small bit of technical damage brings out the sellers, but it is rare for the market to turn south without weeks and weeks of distribution.

Have a system for taking profit. If you don’t lock it in, it tends to disappear quickly.

SRS Swing Trading Service

You may have noticed that with other trading stock newsletters you are provided only the name of the stock and perhaps a suggested entry price. We understand how frustrating and useless this can be so we have attempted to make this process as simple and straight forward as possible.

With each selection you are provided a chart with a clearly defined entrance price, a clearly defined profit-taking price, and a clearly defined exit price where you are to stop out if something goes wrong.

Newsletter Service subscribers receive:

Daily market analysis

Stock trading recommendations

Detailed entry, target, and stop loss prices

Detailed stock trade description (technical and fundamental)

Detailed guidance for open positions

 

SRS is a one-stop solution provider that helps traders and investors maximize their returns from the markets with the help of a daily stock trading and swing trading tips.

 

What Is Swing Trading?

Swing Trading

Markets go up and markets go down. That is their nature. Swing trading seeks

to take advantage of trading opportunities that present themselves when

markets have succumbed to human weakness and have ventured to far from true

value. Greed is the catalyst to bull markets where the ownership of assets is

prioritized over all else; even common sense. At times such as these, growth

expectations into the future will be unrealistic, and so capitalization will

result in capital investment values that are far higher than they reasonably

should be; their expected returns into the future are incorrect. Similarly,

fear is the catalyst to bear markets when traders are so pessimistic about

investment that they seek to extract their capital and divest themselves of

assets. Often this is in response to a threat to the investments future

prosperity. At these times the fear of capital loss and the panic to recoup

whatever is possible leads to major downward plunges; assets often collapse

in price quicker than they appreciate. Particularly when asset prices have

experienced serious depression, markets can remain in a stupor while

investment confidence seeks to regain its base. Swing traders preempt a

markets imminent reversion from excesses such as these to fair value.

Of course to come to a reasonable decision that price is illusory and value

is to be had, the swing trader relies on a quiver of tools to confirm and

reconfirm his jaunts toward profit. Primarily the swing trader, while amiable

to entering the market on both sides, is not looking to predict the tops and

bottoms of the markets but moreover to successfully predict the substantial

movement within a trends origin and termination. Swing trading is therefore

relatively short term in purview, but will primarily look for indicators to

dictate the duration of the trade.

Often indicators such as the Moving Average are employed to assist swing

traders. They are extended into complex analysis through the EMA and MACD

index but continue to hold the same universal theory: consecutive opening and

closing prices that are perpetuating in one direction consist of a trend.

Ranges however are a far smaller level of abstraction and so do not have the

fullness of time in their favor. This being the case, a large trading range

with a closing price at the same level of that days opening indicates

substantial indecision in the market; neither buyers nor sellers have been

able to influence price. Particularly after an extended period of trending

this is indicative clarity to the view that the trend has met its end.

Significant leaps in trading volumes will only further this cause.

Basic economics dictates the premise of supply and demand and their

ramifications on price. This theory holds that when demand exceeds supply

price will appreciate, and when supply overshadows demand asset prices will

fall. Indeed this holds true when markets rise and fall as it reflects the

urgency of one side of the market to trade as opposed to the other. Yet every

trade has a counter party; a buyer and a seller. On the face of it, this

clearly indicates that demand and supply are equal, yet that price is rarely

static reports to a further dynamic lending itself to momentum, inertia and

urgency.

Markets are able to fluctuate somewhat freely on light trading volume as

prices are pushed around by one or two big orders on a quiet trading day. Yet

when trading volumes show a significant increase from the norm, this

indicates substantial market interest. Here, buyers and sellers of varying

points of view are increasingly interested in divesting each other of their

respective positions.

While 80% of all trading activity has been found to be stop loss oriented,

this alarming fact points to the variety of motivations that market

participants adopt to investment decisions. Some are long term some short

term; some are taking profits, some losses. Amid the confusion, one thing can

be certain. When trading volume experiences a sharp increase a dramatic

market shift is imminent as the price has motivated substantial participants

to become involved in decision making. At the end of a prevailing trend,

volume will increase markedly, and so the market confirms this by

participation. Rarely would this occur mid-trend as by definition a trend

needs urgency of either supply or demand to outweigh one the in order to

maintain its course.

Proponents of other indications such as technical analysis support and

resistance, momentums MACD index, and mathematics Fibonacci numbers will

all seek confirmation with an increase in trading volume prior to extending a

signal. Primarily as the market needs to be supporting or rejecting a certain

price, the absence of volume can hardly suggest that is the case. Indeed

dwindling volumes are more an indication that the trend has met a natural end

and that a retracement is imminent. A retraction in trading volume indicates

that momentum is slowing and will find much profit taking entering the market,

which will itself perpetuate movement back to true value.

In this sense, volume is rarely an indicator applied in isolation and is

keenly attuned to other indicators and in particular, momentum. Still volume

must be adjudged with relative comparison as some markets have typical

volumes that would astound others. Volume ought never to be ignored as it

indicates the bastion of trading activity participation.

Swing trading seeks to take advantage of trading

opportunities that present themselves when

markets have succumbed to human weakness and have

ventured to far from true value. Swing trading veteran

Swing Trading Strategies

There is a large learning curve when you begin stock trading. Whether you are trying to learn how to day trade for a living or swing trade for a living. There are a lot of ups and downs and ebb and flow within the stock market on a daily, weekly and intraday time frame. You must get a feel for the market and the flows of whatever time frame you decide to trade. In this article we will focus on swing trading and swing trading strategies.

Swing trading is buying a trending stock and holding on to the stock until the trend changes. When the trend is changing, the swing trader sells the stock. This usually occurs during a short time period. Depending on the trader and the trend, the play may last anywhere from a week until a month. Knowing certain stocks and their trends helps the swing trader as does knowing how to chart stocks and find support and resistance.

Swing traders buy stocks in heavily traded companies with a long history, this allows them to enter and exit a stock a soon as they make the decision. Entries and exits on less heavily traded stocks can become difficult especially if the stock turns on you and you need to exit quickly. Traders will also use the historical data to chart their entry and exit points in an attempt to make their trades more successful on a consistent basis. As a stock begins to trend upward the swing trader will make their purchase and sell when the stock begins to head back down.

When you begin trading stick to you plan. If you start making money you will become more confident. This confidence can lead you to change your plan which in turn can be detrimental to your bank account. Before adjusting your plan and the amount you invest gain some experience. Put raising your investment after you reach a specific monetary goal, into your plan. You will have success and failure as a trader remain steady, gain experience and slowly raise your goals.

There are many reasons to take up swing trading and using day trading strategies. There is a low risk involved, its not as faced paced and time consuming as day trading, and the trades are short term. Swing trading is often traded by those with and aversion to storing money in the stock market and worrying about a collapse and loss of profit. Once you are comfortable trading stocks you can begin swing trading other indexes and commodities.

Day trading for a living can be very difficult unless you follow good
day trading strategies such as
arbitrage trading, swing trading or scalping.

Swing Trading Plus CFD Trading

If you are looking for day trading options, then the Contracts for Difference also known as CFD trading would be perfect. That is because this product is designed to net short-term quick profits for traders looking to trade in stocks, commodities or perhaps Forex.

There are actually diverse opinions though. Some choose to trade CFDs for a longer period like a week rather than to utilise the terminal and watch ticks all day. Others believe that by monitoring the display and executing quick trades, you improve your chances of producing very good profits regularly.

The choice depends on the time you intend to devote to such trading. Each need you to look at your positions regularly, though it must be said that stock investing involves and demands a lot more of your attention.

The bonus with stock investing of CFDs is the versatility provided to take larger positions, the reduced commissions you need to pay for as well as the transparency in the pricing mechanism. But you need to be able to take advantage of the opening and closing sessions of the market because the price volatility is the maximum at these times.

Swing trading on the other hand can be defined as an option between day trading and short term trading. It is when traders hang on to the CFDs for about 2 to 3 weeks and try to take advantage of the price fluctuations happening in that period.

You can succeed at swing trading if you can get the right CFDs. These are generally typically the large cap stocks which are very actively traded and you may get price movements happening such that you are able to consider positions accordingly. This would allow you to make the most of price movements on either side because you will be keeping positions for many days.

Swing trading appears to favor carrying any 1 position at any given time – you may be either long in a bull market or short in a bear market and since you have the advantage of time in your corner, you can ride the directional wave of the market for the period before changing positions.

The swing trader therefore benefits when there is a certain pattern followed by the market instead of very quick fluctuations in price. That is good for the afternoon trader that is nimble together with his trade and able to seize immediate opportunities regardless of spending money on brokerage firms on each trade that he or she executes.

If you want to learn more about Guide to Trading CFDs or perhaps CFDs Explained visit an authority site at independentinvestor.co.uk.

CFD Trading With Swing Trading

If you are searching for day trading opportunities, then the contracts for difference also known as CFD trading would be ideal. That is because this system is designed to net short-term quick profits for traders looking to trade in stocks, commodities or also Forex.

You will find varied views though. Some choose to trade CFDs for a longer period like a week rather than to use the terminal and watch ticks all day. Others believe that by watching the screen and executing quick trades, you increase your chances of producing very good profits regularly.

The choice is dependent upon the time you would like to devote to such trading. Both need you to check your positions regularly, though it must be said that daytrading involves and demands a lot more of the attention.

The advantage with stock investing of CFDs is the flexibility provided to take larger positions, the reduced commissions you need to pay for and the actual transparency in the pricing mechanism. But you need to be in a position to take advantage of the opening and closing times of the market since the price volatility is the maximum at those times.

Swing trading on the other hand can be defined as an option between day trading as well as short term trading. It is when traders hold on to the CFDs for about 2 to 3 weeks and continue to reap some benefits of the price fluctuations occurring in that period.

You can do well at swing trading if you can grab the right CFDs. These are generally often the large cap stocks which are very actively traded and you may get price movements taking place such that you are able to consider positions accordingly.

This would let you make the most of price movements on either side since you would be holding positions for many days. Swing trading appears to favor carrying any one position at a time – you can be either long in a bull market or short in a bear market and because you have the good thing about time working for you, you can ride the directional wave of the market for that point before changing positions.

The swing trader thus benefits when there is an absolute pattern accompanied by the market instead of very quick fluctuations in price. That is good for the day trader that is nimble together with his trade and in a position to seize instant opportunities regardless of having to pay brokerage firms on every trade that he or she executes.

If you want to learn more about CFD Pairs Trading or perhaps CFD Trading visit an authority site at independentinvestor.co.uk .