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Swing Trading Stock Picks |
Swing Trading
Why does swing trading work? Simply because fast moving stocks tend to pause
for a few days before resuming their trend. Just look at any candlestick chart!
Stocks keep on cycling every 3, 5 to 7 days. In other words for, every three-day
gain there will probably be a down day. For every five-day gain there may be three
down days. A seven-day rally may produce up to five down days. And the great thing
about swingtrading is that there is never a shortage of new opportunities. We just
need to wait patiently for the right stock to cycle.
Swing Trading Stock Picks identifies profitable trading opportunities
in these stocks after their brief period of consolidation or correction for
a quick 5-25% move in 1-5 trading days.
Visit
FREE Swing Trading Stock Picks
Visit Stock Picks: Trading Signals of the Day - Bullish Reversal Triggers
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How
to enter a Swing Trade
Do not enter your orders immediately at the open. Wait for a few minutes
for the market to settle down before entering your orders.
Entry techniques:
| Technique
1: Long Swing Entry |
Technique
1: Short Swing Entry |
Buy
the stock from the moment it trades above its BUY ABOVE
trigger price. As soon as you buy, make sure to place a stop-loss
order. |
Sell
the stock short
the moment it trades below its SELL BELOW trigger price. Once
you sell short, make sure to place your stop loss order. |
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| Technique
2: Long GAP Entry |
Technique
2: Short GAP Entry |
Used on stocks that gap up or down at the open by 0.5$ or more.
If the stock gaps UP above the trigger price, wait for 30 minutes.
Wait for 5 minutes on a DOWN gap.
Put a buy-stop order above the high of the day. Place a
stop-loss order below the entry day's low.
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Used on stocks that gap up or down at the open by 0.5$ or more.
If the stock gaps DOWN below the trigger price, wait for 30 minutes.
Wait for 5 minutes on an UP gap.
Put a sell-stop order under the low of the day. Place a
stop-loss order above the entry day's high.
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How
to exit a Swing Trade
Exit
techniques and riding the trend:
- Stop-Loss
Order - place your stop the moment you enter a trade. Exit your
trade the if the stop-loss gets triggered. After each day,
simply move your stop-order to under the low of that day for longswings,
and above the high of that day for shortswings. However.. never set
the stop loss at a lower/higher price than the day before.
- The
50 percent rule - when you have a 7% gain on your
swing trade, book profits on 50% of your position.
- Riding
the wave - ride the rest of your trade using a trailing stop.
After each day, move your stop-order to the low of that day for
longswings and the high of that day for shortswings.
- Gaps
- be prepared to sell your positions if the stock gaps UP for
longswings and to cover your short positions if the stock gaps DOWN
for shortswing.
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