A
swing trade is a short-term investment strategy where traders try to profit from the price fluctuations or "swings" in a stock, commodity, or other financial instrument. It involves buying when the price is expected to go up and selling when it is expected to go down, typically holding the position for a few days to several weeks.
Full definition
Going into this week, we have one new technical ETF
swing trade setup on our watch list, which is another international ETF was a bullish chart pattern.
If you are not yet a subscriber to my nightly
swing trading newsletter, sign up now to start your 30 - day trial subscription today.
For us,
swing trading in the short to intermediate - term timeframe provides the best fit between potential reward vs. risk.
If you put in the time to learn, racking up your understanding in
swing trading systems and options trading systems you can become a real profitable trader.
While learning to master our winning system for
swing trading stocks and ETFs in the early years, we tested a plethora of technical indicators.
To qualify as a
potential swing trade with full position size, individual stocks should trade with a minimum average daily volume of at least 1 million shares.
Our technical ETF and stock scans have produced several high quality stock and
ETF swing trade setups over the past several days.
If this ETF meets our strict technical criteria for
swing trade buy entry, regular newsletter subscribers will be notified in advance with exact trade details for the setup.
When
swing trading with the trend of the major indices, we firmly believe it is absolutely necessary to focus on reacting to market action, rather than attempting to predict it.
This is why one of the first steps of our rule - based
technical swing trading system is to clearly identify the dominant direction of the main stock market indexes.
As always, subscribing members of our
nightly swing trading newsletter will receive our exact trigger, stop, and target prices if / when any of these stocks trigger for buy entry.
On average, we hold momentum -
based swing trades for 1 to 3 weeks, while expecting to score quick 20 to 25 % price gains during that time period.
The 12.5 % gain was the result of an intermediate -
term swing trade we rode for 3 weeks.
Fast - moving stocks require low - risk entry points, which allow us to minimize risk and maximize the reward to risk ratio for each
new swing trade entry.
The use of the technical analysis is advantageous
when swing trading to monitor quick market changes as and when they happen.
You can also profit from
swing trading by selling high and buying low — or taking advantage of a negative price movement.
If this occurs, it would subsequently provide us with a very low -
risk swing trade buy entry.
With sustained effort, you can learn enough to decide
if swing trading is for you.
You can profit
from swing trading by going long if you have a set of trading rules focused on short term price increases.
But to quickly learn the key details of how our disciplined, rule - based trading methodology works, check out our complete online
swing trading course today.
Day trading involves making dozens of trades in a single day, while
swing trading involves holding positions over a period of days or weeks.
I find that for
swing trades like this one, often the best stop is simply a «time» stop.
An example of a strategy that can be very profitable is
swing trading using super short stock based binary options.
In order to be successful
at swing trading, the traders use a mix of both technical and fundamental analysis.
Based on our winning ETF and stock
swing trading methodology, today's video provides you with a few of our best potential ETFs and stocks to buy in the coming days.
Essentially then, it is when the markets aren't heading anywhere that you have the
ideal swing trading environment.
As with
bullish swing trades, if the reward - to - risk ratio is acceptable, you could enter your trade using a sell - stop limit order.
These four stocks are bouncing off support / resistance, or ready to break though,
providing swing trading opportunities.
Many traders subscribe to our
winning swing trading newsletter to receive the detailed entry and exit points of our best stock and ETF picks.
That is a considerable advantage for spot over the futures when traders
hold swing trades open beyond pit - session hours for the futures.
Although we run a very
disciplined swing trading system, our market timing model allows us to be flexible and roll with the market when necessary.
Our nightly ETF screening did not turn up many
actionable swing trade setups at the moment, which is to be expected after such a big gap up in the market.
No matter how confident you are in a
single swing trade, do not devote too much of your trading capital to it.