How to plan swing trade ideas/signals
What is trading?
To me, trading is a game of statistical probability. It’s very easy to get lost without a proper trading plan. Trading is when you buy or sell a stock attempting to time the market and make some profit along the way. It’s not all about the money. Some stock traders are day traders
What are day traders?
They buy and sell several times throughout the day.
What is a swing trader?
A swing trader buys and sells but holds onto the trade for a couple of days.
The range can depend on each individual trader. But, for me, it would be
between 3 to 5 days
Which one is better? Day trade or swing trade?
Day trading attracts traders looking for rapid compounding of returns. Assume a trader risks 0.5% (half) of their capital on each trade. If they lose, they’ll lose 0.5%, but if they win, they’ll make 1% (2:1 reward-to-risk ratio).
Also, assume they win half of their trades. If the trader makes six trades per day—on average—they will be adding about 1.5% to their account balance each day, less trading fees, and even making 1% a day would grow the trader’s account by more than 200% over the year, uncompounded.
Swing trading accumulates gains and losses more slowly than day trading, but you can still have certain swing trades that quickly result in big gains or losses. Assume a swing trader uses the same risk management rule and risks 50% of their capital on each trade to try to make 1% to 2% on their winning trades.
Assume they earn 1.5% on average for winning trades, losing 0.5% on losing trades. They make six trades per month and win half of those trades. In a typical month, the swing trader could make 3% on their account balance, reflecting the fewer fees. Over the year, that comes out to about 36%, which sounds good but offers less potential than a day trader’s possible earnings.
What’s the difference?
-Day Trading -Swing Trading
– 3-7 Daily Hours – 1-5 Weekly Hours
-Rapid Returns -Better Percentage Return
Really both are just fine. Neither strategy is better than the other, and traders should choose the best approach for their style of trading and follow their trading plan.
Improve Your Investment Portfolio Capital Growth
If you simply cant sit in front of your computer, mobile phone or just dont have time to watch the market all day. Check This out
– 3-8 stock trades every Sunday Per Week for a month for a total of 4
Emails or SMS…….whichever you prefer.
–Entry Price for the stock (which is where its the best price to buy a stock… BY THAT we look into a key point where a stock will change direction by doing what is called an ‘MTFA‘)
–Stop Loss for the stock… (Which is when to exit a stock IF it drops below a certain price. This will help you PROTECT YOUR investment portfolio)
–The Target Area for the stock (which will be when to exit the trade when the Target Price has been reached.)
– Cancel Anytime NO Long Term Contract
Price – $25 a month
Anticipate Entry and Exit. What's this?
– As a technical trader we use price, volume, support and resistance, and pattern as well as doing our ‘MTFA”
What are the support and resistance?
-Support level is a level where the price tends to find support when the stock is falling.
Here is an example: 107.52 is the support area
–Resistance levels are the opposite of support. They tend to find resistance as the price rises
Example: 119.73 is the Resistance area
Patterns for day and Swing Trade
– 5 Min curl
– Buy and Sell set Up
– Breakout and Breakdowns
– Turnaround Plays
Each pattern has a list of requirement.
Here is one for example
Example: 5 Min Curl
-Retraces more then 35 to 45% at market open
-Pulls back 45% to 50% of the retracement
What's a Candle Stick? "Japanese Candlestick"
Japanese Candlestick tells us a lot of information. They’re the main key in understanding day/swing trading.
When a trader takes a trade…..
that forms a Tick!…….
That tick forms a bar!
That bar forms the charts
And guess what? We trade those Charts!