What is Swing Trading?
Swing Trading is to ride the momentum in the direction of the trend.Swing traders hold stocks for days or weeks playing the general upward or downward trends.It is also called momentum trading. You can roll over your money after making short term gains. In a short span of time, you can build up money.
How does Swing Trading work?
The basic strategy of Swing Trading is to select a strongly trending stock after its period of consolidation or correction. These stocks rebound back after correction. One can sell the stock after 3-10 days depending on the percentage profit bench marked between 3 to 5%. The money can be roll over again in new stocks and trends. One can build a pool of stocks , study their patterns and ranges.
What are the benefits of Swing Trading?
Swing Trading works best for part-time traders as it does not require that full time focus and attention like in day trading. Swing trader focus on the momentum and trends of stocks. There are chances of bigger gains as they are bought after consolidation or correction. You also do not require a high speed connection to do swing trading. You can call your trader to just sell of stocks and even if you do not have high speed connection , you can sell at a desired rate as you are not trading on day's momentum.You can place an order at the start of the day and it it can be executed in the day when desired price is reached.
Swing Trading method is a good way for the individual investor to get better investment results through short-term trading in the stock market.
How to Swing Trade?
The basic step is to identify if it is an up trend or a down trend. Suppose, you are looking for down trending stocks . Once an uptrend has been identified in these stocks, a swing trader looks for buying opportunities in that stock. This can be identified when the stock experiences a minor pullback or correction within that uptrend. You will then sell at the desired price.Suppose, you are looking for up trending stocks . Once an downtrend has been identified a swing trader looks for selling opportunities in that stock. This can be identified when the stock experiences a minor rally within that downtrend. The trader then sells on the uptrend and sells in the downtrend.
Swing Trading is to ride the momentum in the direction of the trend.Swing traders hold stocks for days or weeks playing the general upward or downward trends.It is also called momentum trading. You can roll over your money after making short term gains. In a short span of time, you can build up money.
How does Swing Trading work?
The basic strategy of Swing Trading is to select a strongly trending stock after its period of consolidation or correction. These stocks rebound back after correction. One can sell the stock after 3-10 days depending on the percentage profit bench marked between 3 to 5%. The money can be roll over again in new stocks and trends. One can build a pool of stocks , study their patterns and ranges.
What are the benefits of Swing Trading?
Swing Trading works best for part-time traders as it does not require that full time focus and attention like in day trading. Swing trader focus on the momentum and trends of stocks. There are chances of bigger gains as they are bought after consolidation or correction. You also do not require a high speed connection to do swing trading. You can call your trader to just sell of stocks and even if you do not have high speed connection , you can sell at a desired rate as you are not trading on day's momentum.You can place an order at the start of the day and it it can be executed in the day when desired price is reached.
Swing Trading method is a good way for the individual investor to get better investment results through short-term trading in the stock market.
How to Swing Trade?
The basic step is to identify if it is an up trend or a down trend. Suppose, you are looking for down trending stocks . Once an uptrend has been identified in these stocks, a swing trader looks for buying opportunities in that stock. This can be identified when the stock experiences a minor pullback or correction within that uptrend. You will then sell at the desired price.Suppose, you are looking for up trending stocks . Once an downtrend has been identified a swing trader looks for selling opportunities in that stock. This can be identified when the stock experiences a minor rally within that downtrend. The trader then sells on the uptrend and sells in the downtrend.
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