WHAT ARE SWINGS IN SWING TRADING?
All those who have devoted themselves in trading in the stock market, probably know that how the daily and hourly charts of the certain stock moves around. It is a clear observation for all the experienced ones. They know that the price value never moves directly upwards or downwards, in fact it vacillates in a wave like structure.
These vacillations in the price value, no matter going towards upward direction or downward direction, are known as Swings in trading. These swings are inclined to repeat themselves with particular level of similarity.
In actual, these patterns remain constant but they may change if certain fundamental or rule has high effect on the stock market. It may lead to stock price to go out of the range as determined by the market change.
WHAT IS SWING TRADING ALL ABOUT?
When the swing patterns change due to certain fundamental impacts, then it may lead to a loss, but you should not take it to heart so seriously because swing trading is not ALWAYS ALL about profits, there are chances of loss. The actual thing is to work and trade with a consistent level. In other words, you should aim at taking a lot of winnings in the trading line with a few losses at bay.
TO MAKE MONEY WITH SWING TRADING STRATEGIES!
The real thing about the stock market is that it works in a wavy pattern all the time. The price swings in the same way most of the times. You can have the advantage of the constant swings in the price list of the stocks. This will help you to enter your price value when the stock market is going on a long term basis. It will also allow you to exit at once when the market reaches the highest point of the Swing.
Identify the patterns:
You can identify the patterns through various indicators like setting your charts with the use of candlesticks, and also can add the Bollinger Bands along with the Stochastic Oscillator. They will help you to have a proper track and time when the price may come to the bottom level. For this you have to follow each stock for many days so that you will capture the correct formation of the candlestick.
The problem associated with it:
The only problem with this is that stock market contains thousands of companies which trade publicly which makes it impossible for the humans to follow each of them without some form of help.
What you can do to solve this problem is that make use of a swing trading software that is a trading tool to identify the opportunities for Swing trading which are in high recommendation list. This way you will go for the best trades in the world.
Benefits of the solution:
*This will also benefit you to have rest and the swing trading software will examine the stock market 5 days per week.
*You will get so many exciting ideas for short swing trading every day.
*Plenty of opportunities for making good amount money all the time and to get profits in every 3-6 days…
For more information, visit our site. We are working on providing some of the best solutions for your Forex issues. Our have several pages and ebooks containing information about trading that can be downloaded from here.Article Source: http://EzineArticles.com/?expert=Malika_Sharma.
Swing Trading – How To Make Money Swing Trading,
What is Swing Trading?
Everyone is familiar with waves. A wave alternates from positive to negative, then to positive and negative, and so on. Waves are found in nature – you see waves when you throw a rock into a lake. Sound is transmitted in waves. And when stock prices change, they follow a wave-like pattern. The wave is rarely as orderly a sine wave, but they are waves nevertheless, and we use these waves in Swing Trading.
What Can You Expect from Swing Trading?
First – only a portion of your trades will be executed. The Master Plan is designed to only trade stocks that initially move in the anticipated direction. If the price moves in the opposite direction (continues pulling back or pulling up), the trade is not placed.
Second – you will be holding positions for a limited amount of time. While swing trading is not day trading, you are only holding positions until targets are met.
Third – some of your trades will result in losses, however losses are minimized by the Master Plan which raises the stops as the stock price rises; this is known as trailing stops. Being disciplined, and following the Master Plan will insure that profits exceed losses which means you will make money.
How Do You Identify Stocks that are Appropriate for Swing Trading?
All of the methods that are used to identify stocks that are appropriate for swing trading are based on technical analysis. Technical analysis is a way of using historical price/volume patterns to predict future behavior. It is not necessary to have a detailed understanding of technical analysis in order to swing trade. There are tools available that can assist investors at every level – from novice to expert. While there are many sources of information and tools that help identify swing trading opportunities, this article series will focus on those provided at my site. Once you understand the principles, you can explore other sources of information.
What Tools are Available?
The tools fall into several categories.
• Subscriptions services that provide daily swing trading recommendations – my site offers a service called MasterSwings. Larry Swing uses technical analysis and pattern recognition software (SwingTracker) to identify candidates for swing trading. Every evening, subscribers receive e- mails that identify several different types of patterns that are conducive to swing trading. Aside from showing you the pattern, the email indicates the current price, the entry price, the target (limit) price for taking profit, and the stop loss price for limiting downside risk. This service can be used by investors at all knowledge levels.
An example of a MasterSwings email alert for Lockheed Martin (LMT) is shown on the next page. A candlestick chart shows the recent price action for LMT, and a table indicates the closing price and all three action prices – the price to buy (using a buy stop order), the target price which is 7% above the purchase price (using a buy limit order), and the protective stop price which is approximately 4% below the purchase price (using a sell stop order). The 20- and 50-day moving averages (MA) are also shown so that you can more easily visualize the direction of the trend.
The rational behind these prices will be discussed in another article.
Mike Meyers is a long time private investor, with extensive experience in the stock market, stock quotes and different stock trading tools – among them the desktop stock ticker.Article Source: http://EzineArticles.com/?expert=Mike_Meyers.