17 Jul Swing Trading 101 Keys to Success in all Market Environments
Stock Swing Trading 101- Being successful in all market conditions
Join our Premium Swing Trade service at SRPMEMBERS.COM since 2009 hitting 70% of swing trades for profits in all cycles. I’ll do all the above heavy lifting, you just join and follow along.
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I use the same approach in my stock swing trading service regardless of market direction. Here are a few things I do on a consistent basis to get that 70% success rate in all market environments since 2009
Find the top performing stocks across the top relative performing sectors, look for the best patterns and fundamentals combined, and hit the timing right.
Much of my work is human behavioral pattern based, some call it Elliott Wave Theory. However, I do that with a twist… I add in a few other ingredients to create the proper soup recipe for TIMING and PATTERN ANALYSIS both… that’s the hard part.
Also, when to sell and take profits, how to set a stop properly and at what price point, and NOT using intra-day stops… just a few ingredients for success!
- Create a swing trade watch list every weekend for the near term week ahead and check it during the week using stockcharts.com or a similar service so you can quickly scan the patterns during the week for your list of stocks. Update this list every weekend as market patterns and sectors obviously change.
- Review fundamentals and try to focus on the strongest fundamental names within a sector
- Review the behavioral chart pattern. Look for reversal pullbacks to enter with lower risk on corrections, base patterns that are close to breaking out, and keep the number of indicators to 1 or 2, I do not use charts filled with indicators at all
- Use the best swing ideas based on #2 and #3 above, fundamental strength with bullish chart pattern or set up.
- Do not watch CNBC or read too many market opinions, it only clouds the brain and distracts from finding opportunities. If you get too negative in your head about the markets at this time, you will miss opportunities to swing trade profitably
- Do not ignore market conditions entirely, if the downtrend is taking hold keep higher cash balances and less positions as a general rule of thumb
- Scale into positions within a defined range adding on dips, never buy all at one time with one trade
- Scale out of positions, always take profits on all swing trade positions when you are up 8%, the golden rule!
- Do not use intra-day hard stops, often you will get washed out of perfectly good trades prior to a reversal. I use stops near the close of the trading day instead as much of the intra-day moves can be pure whipsaws that take you out of a profitable play.
- Stops are set near close of day based on a few daily moving averages or fibonacci relationships to highs and lows
- Never trade just to trade, cash is a position. Sitting on your hands and staying flat is a valid strategy sometimes.
- Be patient and skeptical always, wait for the trade to come to you do not chase it or force it.