Every one talk about Swing trading.
with explosive growth of the internet and mobile trading a new breed of Programming speculators has evolved. Armed with High Tech tools , this traders access Dalal-street from there mobile or VPS.
They believe use of skill rather then luck. they are smart speculator.
Swing Trading is one of most talked trading system now days used by Algorithm ( Tech algorithm )
Swing Trading is best way to profit from market in both direction ( upwards and downwards ). but as said nothing as easy as they look like. mastering is any trading system takes times and effort same with Swing trading. during my journey in Day trading i found few principles helps from beginner to expert in Swing trading
- if you have a look , isn’t there : forget your collage degree and bookish knowledge, follow your instincts.
- Trends depends on their own time frame : watch particular chart carefully. analysis time moments of particular instrument, make sure your trade fits the clock and time cycle. your success depends on trading time cycle.
- Price has memory and repeat history : always respect history , closely watch what happened the last time when particular stock hit certain level? chances are there it repeat again history. you can predict future if you watch closely.
- Profit and discomfort stand side by side : Find the level which scares you the most. respect your limit , watch lose possibility before predict profit. Capital Protection 1st
- Stand apart from the crowd at all times : sorry here i m differ from others who believe follow the trend , trend your best friends yes trend is your best friend but only consider this when its applicable to entry level , exit always 1st , be the first out from the profit door before crowd take yours
- Trends often test last support / resistance : before taking off.
- Buy at support and Sell at Resistance : yes right its common rule every one say but why no one. Trend has only two choice – Respect Support /Resistance or continue Forwards. if you closely watch Support/Resistance get it right and start counting money.
- Short rallies not selloffs : always understand difference between both. and best way to analysis is watch volumes, volumes speak more clear then any indicator.
- Avoid the open : let settle dust before enter in market
- Watch for the bull’s eye : look for a single point in price and time that points repeatedly to a trade entry. The market is trying to tell you something
- Don’t Confuse execution with opportunity: fastest finger 1st don’t make successful careers. understanding price behavior and market mechanics does.
- Control risk before seeking rewards : if you not manage your risk then you are not good trader.attention to profit is a sign of immaturity , attention to loss is sign of experience. The market don’t have any intention to give money to those who dont to earn it.
- Big losses rarely come without notice : you have no one to blame but yourself. chart always told you to leave before big move against you.learn to visualized trouble before come.
- Bulls live above the 200 – Day moving avg , bears live below : 200-day moving average divides the investing world in two.
- Enter in mild times , exit in wild times : the big move hides beyond the extremes of price congestion. Don’t count on the agitated crowd for your trading singles. It’s usually way too late by the time they act.
above rules / watch list help you to find proper trend will continue to talk more about on this subject which time frame we can use , swing trading formula on different trading platform etc etc