top of page

E-book is coming along!

Here is a a taste of the six steps to swing trading.

How to Learn Swing Trading in 6 Steps

The first thing you need to know is that swing trading is a trading style and not a strategy in itself. To learn to swing trade, you could do it by following these steps:

1. Select the appropriate Time Frame

The timeframe or temporality in which we operate defines this style, and within that, there are many strategies that we can use in swing trading. It is a trading style that operates in short to medium-term periods, a few days or weeks.

2. The Key, Support and Resistance

Support and resistance are the key concepts behind swing trading. These concepts offer you two options within the swing trading operation:

● Trade with the trend

● Trade against the trend

3. Time Dedicated to Swing Trading

While other operations, such as Day Trading or Scalping, require great concentration and constant attention to the market, Swing Trading allows the operator a little freedom. This more controlled operation allows you to make Trading compatible with any other professional activity.

4. Learn to Enter and Exit the Market

When and how to enter the market is the basis of a trading strategy, regardless of the trading style you have.

A swing trading strategy is based on defining when there is an opportunity in the market. In this sense, some of the most preferred strategies by traders have to do with the "critical" market areas:

● Support and resistance

● Trend lines and channels

● Fibonacci levels and retracements

Once this is defined, you must combine them with trigger patterns and market volume. Some use indicators such as MACD, RSI, Bollinger Bands, etc.

5. Risk Management

When you swing trade, risk management is one of the key concepts that every trader must apply if they want to survive in the market. It is an easy concept for most traders to learn, although it is not always easy to apply.

First, you must decide the percentage of risk you want to assume in each operation. Usually, it should be between 1-3%. This means that if you have an account of $10,000 and you define the risk per trade at 1%, your stop loss will assume a maximum loss per trade of $100.

At Stock Trading Insights, we have risk calculators that automatically calculate your risk management. You just have to define the percentage of the risk per operation, and the indicator calculates the lot based on the distance where you place your stop loss.

6. Use of Stop Loss

A properly placed stop-loss generally reacts faster than a trader manually. This makes stop losses an excellent tool for risk management.

It is necessary to choose the appropriate Stop Loss level based on the price volatility and not to move it under any circumstances. The stop loss must always be placed where you think that the price should not arrive to validate the movement that you are observing.

This is the standard method of limiting losses and maximizing your profits.

5 views0 comments

Recent Posts

See All

Trade Ideas

To provide you with some trade ideas for today, I'll look into the following areas: 1. **Top Unusual Darkflow Stocks**: Identifying stocks with unusual trading activity can be a good indicator of pote

Market Performance 6/24/2024

Today's market performance showed mixed results across major indices: - **S&P 500:** Closed at 5,447.87, down by 16.75 points or approximately -0.31%. - **Dow 30:** Ended the day at 39,411.21, up by 2


Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page