fbpx

5 Pro Tips to Swing Trade the Current Market

5 Pro Tips to Swing Trade the Current Market

One great thing about swing trades is that they normally only last 1-3 days.  This in itself helps limit the amount of risk you are exposed to with any given trade.

Let’s take a look at a few conditional tips that will help improve YOUR odds for Swing Trading success.

  1. Before you swing trade, you really need to have an overall idea of how the market is behaving. Are you seeing fear or greed coming into the indexes? Broad market analysis is not an exact science. We just want a feel for trend and whether fear or greed is prevailing.
  2. Volatility is a Red Flag. Generally volatility is a sign of fear and bearish sentiment. You should take caution if you are entering a long position where there are signs of increased volatility.  To help protect yourself you can reduce share size or tighten up your protective stops.
  3. Trade stocks that have a short-term move against them. When you are looking at the overall trend you want to find small pullback or lower high that provides you with good short-term upside potential.
  4. USE Chart Pattern Confirmation. Even if you are not a pattern master, using some of the most basic chart patterns can help confirm your potential position. Stocks that have recently reacted to support or trend-lines generally have good potential.  Using the Fibonacci tool in your trading platform may also provide some very opportunistic entry levels.
  5. Don’t trade near earnings. Nothing can ruin a great trade like earnings. Always be mindful of when earnings are going to be released on your potential trade.  You will often see unpredictable behavior in stocks as they approach earnings.

I’ve traded for long time with a discretionary approach and this is time-consuming and did not remove the stress of trading. With Ultimate Swing Trading Package 2 you have a mechanical strategy that is robust removing the stress of trading and is fast and easy to apply.

Matteo

Not every swing trade is going to be “perfect”, but using the above steps will swing that trade into your favor!

>