Learning how to swing trade stocks can be challenging without the knowledge necessary to succeed. The majority of traders fail and lose all their money in the first year!
They fail for these reasons:
•They do not have knowledge.
•They do not have a plan.
•They do not have discipline.
But this will not happen to you if you go through these articles and follow it religiously. You need to have a plan and then develop the discipline to follow it. In the end, you will win where others have failed.
What is Swing Trading?
Swing trading is a style of trading stocks that attempts to capture short term moves in the stock market. A swing trader typically holds a stock from 2 days to many days. This is a perfect time frame for those that have a job and cannot "day trade". This time frame is also unique in that you can potentially capture explosive moves in a stock in a very short period of time.
As a swing trader...
You do not care about the fundamentals of a company.
You do not care what kind of products they sell.
You do not even care what the name of the company is.
You make trading decisions based on the laws of supply and demand - nothing else.
Here are the two things that you are interested in...
1.Is there money flowing into this stock or is there money flowing out of this stock?
2.How can I get into this stock with the least possible risk to my trading capital?
That’s it! You have be able to answer those two questions in order to be a profitable swing trader. Ok, let's get started:
Our flow of study will be as follows:
1) Swing Trading Basics
covers trends, price, volume and strenght.
2) Swing Trading Strategy
covers charts and technical analysis
trading pullbacks
money management.
