Swing Trading Strategies for the Day Trader

There is a big learning curve when you start stock trading. If you are trying to learn how to make a living day trading or swing trading. There are many ups and downs, ebbs and flows in the stock market throughout the day, week and intraday. You have to feel the market and the flows at any time you choose to trade. In this article, we will focus on swing trading and swing trading strategies.

Swing trading is buying trending stocks and holding the stock until the trend reverses. When the trend changes, the swing trader sells the stock. This usually happens within a short period of time. Depending on the trader and the trend, the game can last from a week to a month. Knowing specific stocks and their trends helps a swing trader, as does knowing how to chart stocks and find support and resistance.

Swing traders buy stocks of companies with a long history that are actively trading, allowing them to get in and out of stocks as soon as they make up their minds. Getting in and out of less actively traded stocks can become difficult, especially if you don’t like the stock and need to get out quickly. Traders will also use historical data to build their entry and exit points in an attempt to make their trades more successful on an ongoing basis. When the stock starts to rise, a swing trader will buy and sell when the stock starts to move back down.

When you start trading, stick to your plan. When you start making money, you will become more confident. This confidence can cause you to change your plan, which in turn can hurt your bank account. Before you adjust your plan and the amount you invest, get some experience. Include in your plan an increase in investment after reaching a certain money goal. You will have success and failure as a trader to stay consistent, gain experience and slowly raise your goals.

There are many reasons to swing trade and use day trading strategies. The risk is low, it is not as fast and time consuming as day trading and the trades are short term. Swing trading is often traded by those who do not like to keep money in the stock market and are afraid of a collapse and loss of profit. Once you learn how to trade stocks, you can start trading other indices and commodities.

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