What is Swing trading ?

[atish143all]

What is swing trading ? how we can do it ?

 

[SavantGarde]

Swing Trading - Principal Difference Between Day Trading & Swing Trading Is That Swing Traders Will Normally Have A Slightly Longer Time Frame Than Day Traders For Holding A Position In A Stock Or Its Futures. Swing Traders Also Attempt To Predict Short Term Fluctuation In Stocks Price. However, Swing Traders Are Willing To Hold Stocks For More Than A Day, If Necessary, To Give The Stock Price Time To Move Or Capture Additional Momentum In The Stock's Price. Swing Traders Generally Hold On To Their Stock Or Futures Positions Anywhere From A Few Hours To Several Days.

Swing Trading Has The Capability Of Providing Higher Returns Than Day Trading, Unlike Day Traders Who Square Off Their Positions On The Same Day Before The Market Closes.

Swing Traders Assume Overnight Risk, There Are Some Significant Risks In Carrying Positions Overnight. For Example News Events & Earnings Warning Which May Get Announced After The Market Closing, Can Result In Large & Probably Adverse Price Change The Next Day, Similarly Good News Can Give Significant Rise The Next Day.

Advantages: Slower Cycle Of Trades, Translating Into Lower Impact Costs & Less Chance Of Error & Ability To Catch More Significant Multi Day Upmove. Technical Analysis Is Primarily Used To Identify Such Opportunities.

Disadvantages: With Higher Profit Comes Higher Risk Per Trade Over A Longer Time Frame, One Will Need To Expect Average Risk Per Trade To be Higher To Account For Retracements, Which Are Common In Both Equity & Derivatives Trading & Some Other Points Mentioned Above.

There Is Wealth Of Knowledge Here In Forum For Those Willing To Dig Through...

Happy & Safer Trading

SG

 

[oilman5]

Swing trading : few people know it. Mostly believe it as short time frame trade ,validity to 2-7days. some also think as small momentum play. None of them are true SWING.
understand a natural swing phenomena.Consider a pendulum......mid position, its move left to right. Similarly , price bounce at support , price reversal at resistance are basic characteristic of SWING.Its not easy, normally some higher time frame bias ,also seen there ,also check previous validity. weekly Pivot is some imp for swing play , also MOB-make or break pt.A natural predictabilty of about 75% + , is requirement for successful swing play. Money management is simple.loss book 100% ,profit 50% +at 3-5% price target & other 50% by 8-10% target followed.Normally its followed by discreationary trader with strong knowledge on some known stock. Requestee volume behavior and general market understanding also reqd. Preferably day/hr chart are followed.
Pullback, momentum play ,cup-handle pattern,reversal from bollinger band......r some SWING technique.
Its not suitable for NOVICES(below 2yr experienced player) Price mastery is must.common bearish engulf at top OR bullish engulf at bottom is a swing pt to start swing trading. Good swing traders return vary 80-120% per annum.normally played in future, practiced in cashmarket.Remember it has no intraday thrill.Oversold/overbought study must.
Hope it helps. A God named LINDA
(truth from a swingtrader)

 

[oilman5]

Further addition in swing : Its a counter trend trade, some anticipatory concept reqd.
Gann first played with mysticism. Wyckoff played it regularly.Infact Linda popularised it by crushing the turtle , in short term reverse play. + pt is...........its available in normal market condition. Higher timeframe helps, also intraday skill for quick entry is reqd.So practically u r analyzing like EOD position player, but for the natural condition of reversal, then as if with price bias proven in intraday taking postion...........Taking profit on target,
Have u seen great accuracy of SG in forex dummy a/c ,........thats why u can play it.
One thing......previous knowledge of Intraday as well AS positional play experience is must,.........for shifting towards SWING.
simplest pattern like 1-2-3, j-ross hook are starting pt.
Dave Landry, John Crane,Pruden Hank.......elaborated it by their trading.
Reading price chart bar by bar........by BROOKS , actually my learning pt in swing.
In 'my last thread ', .........vvonteru's analysis on market.......clearly shown definite play plan of successful indian swing player.
...............................................
I have a plan in near future , to teach this type of trading for professional trader, those who prefers to switch from either day/position to this style.
..............................................
Oilman

 

[tnsn2345]

Dear Oilman,

W.r.t. to an advt banner of Corporate Bridge on this forum, good to see you being a trainer with them for a 10 days TA course.

Given your experience and maturity I am sure that upcoming traders and participants would get valuable inputs from you. This is a right stage to get into the next orbit to impart what has been seen, learnt, experienced by mind and soul over all these years.

Best wishes.

Regards,

 

[atish143all]

Thanks sir ,
Sir i had been studying market since long time. i had read various books , watch lots of videos . also burnt my hand in trading for learning . i found one good book of marc rivalland , named swing trading mainly based on gann chart philosophy. i am doing trading based on it. but now my main question turns on that how to find stocks that are trending. also i am finding other methods of swing trading. can you teach us on line step by step
1 how to find or screen stocks
2 how to entry
3 when to exit
hope you will share some of your swing trading methods between learners like us.

 

[timepass]

hope you will share some of your swing trading methods between learners like us.

Tatathsu, mitr.. Click here. :clap:

 

[Smart_trade]

Swing trading is a style in which one trades intermediate trend in the market . This trend normally lasts from 3 days to 3 weeks....it is a style in between short term trading like day trading and long term trading like position trading.

Swing trading requires keeping overnight positions and these are subject to gap ups/downs, adverse movements in world markets, bad news affecting the world markets etc. Bur the rewards are also good if one remains in the trend till the trend shows reversal and then reverse and take a ride in the opposite direction.

Swing trading has techniques like breakouts, tests, failures, consolidations, distributions which help in aligning a trader to the current ongoing intermediate trend which he/she is trading.

Smart_trade

 

[DanPickUp]

Hi

Some thing to expand your mind, as most already is told about swing trading:

Here a direct idea to swing trade with an other derivative, as you now heard the voice of our moderators which are more or less pure top future, share and forex traders:

http://www.tradingmarkets.com/.site...les/How-to-Swing-Trade-with-Options-82591.cfm

But also options can be used to swing trade and there are a bunch of choices and strategies to do so. The above idea is just one of them.

Good luck and all the best in your trading

DanPickUp

 

[oilman5]

thank you for sending from alma mater