Swing trading requires a different strategy than day, trend or range trading. You’re not looking for the absolute high or low of a particular security, but trend identification. Once you identify the trend, you trade looking for gains either on the upside or the downside. It’s a type of trading in which patience really is a virtue.

Available Tools to Evaluate Swing Trade Strategies?

Technical analysis is the key to successful swing trading. Swing traders use candlestick chart indicators to determine when trends will change, specifically the indecision candles – those with short bodies and long tails. Oscillators help swing traders, oscillator know when a security is nearing its support or resistance level, so they can decide their exit and entry points.

How Can I Take Advantage of This Strategy?

Stocks best suited for swing trading are not generally the same securities held by day traders. Concentrate on large cap, actively traded stocks. You can swing trade with stocks of some of the best known companies on the planet. The potential gains aren’t as great as with day trading, but neither are potential losses. Look for gains of about 10 percent, and cut losses at 2 to 3 percent.

Is Swing Trading a Short-term or Long-term Strategy?

Swing trading doesn’t involve day trading, as positions are held more than 24 hours. However, this strategy falls in between day trading and trend trading. By definition, a day trader makes all trades within a 24 hour period, with the majority of trades made in hours and minutes. Trend traders focus on the long-term, and may hold a security for several weeks and even months. Swing traders usually hold stocks for a couple of days or a couple of weeks, averaging between five and 10 days, so it is best described as a mid-term strategy. On the plus side, institutional investors don’t tend to swing trade, so there is less competition in price movements with the large investors.

Is Swing Trading for Everyone? When Should I Use It?

Swing trading is one of the easier types of trades to master, making it ideal for novice traders. That doesn’t mean it’s the right type of trading situation for all market conditions. When the market is not headed in any particular direction, it is the time to swing trade. This type of trading isn’t designed for strong bull or bear markets, when prices fluctuate greatly. Swing trading requires discipline, since percentage gains aren’t as large and any oversized loss quickly negates your profits. It’s not a way to make a killing in the market, but it can prove particularly profitable over time.

The SureTrader Advantage

SureTrader offers clients not only a state-of-the-art trading platform, but top technical analysis. Beginning traders can practice on our free $100K demo to develop strategies along with discipline. It’s just another aspect of the SureTrader advantage.

Disclaimer: All information provided “as is” for informational purposes only, not intended as a recommendation to buy or sell. Swiss America Securities, Ltd. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
BIOC Graph 2-9-2017

Day Trading Strategies – Swing Trading

Swing trading requires a different strategy than day, trend or range trading. You’re not looking for the absolute high or low of a particular security, but trend identification. Once you identify the trend, you trade looking for gains either on the upside or the downside. It’s a type of trading in which patience really is a virtue.

Available Tools to Evaluate Swing Trade Strategies?

Technical analysis is the key to successful swing trading. Swing traders use candlestick chart indicators to determine when trends will change, specifically the indecision candles – those with short bodies and long tails. Oscillators help swing traders, oscillator know when a security is nearing its support or resistance level, so they can decide their exit and entry points.

How Can I Take Advantage of This Strategy?

Stocks best suited for swing trading are not generally the same securities held by day traders. Concentrate on large cap, actively traded stocks. You can swing trade with stocks of some of the best known companies on the planet. The potential gains aren’t as great as with day trading, but neither are potential losses. Look for gains of about 10 percent, and cut losses at 2 to 3 percent.

Is Swing Trading a Short-term or Long-term Strategy?

Swing trading doesn’t involve day trading, as positions are held more than 24 hours. However, this strategy falls in between day trading and trend trading. By definition, a day trader makes all trades within a 24 hour period, with the majority of trades made in hours and minutes. Trend traders focus on the long-term, and may hold a security for several weeks and even months. Swing traders usually hold stocks for a couple of days or a couple of weeks, averaging between five and 10 days, so it is best described as a mid-term strategy. On the plus side, institutional investors don’t tend to swing trade, so there is less competition in price movements with the large investors.

Is Swing Trading for Everyone? When Should I Use It?

Swing trading is one of the easier types of trades to master, making it ideal for novice traders. That doesn’t mean it’s the right type of trading situation for all market conditions. When the market is not headed in any particular direction, it is the time to swing trade. This type of trading isn’t designed for strong bull or bear markets, when prices fluctuate greatly. Swing trading requires discipline, since percentage gains aren’t as large and any oversized loss quickly negates your profits. It’s not a way to make a killing in the market, but it can prove particularly profitable over time.

The SureTrader Advantage

SureTrader offers clients not only a state-of-the-art trading platform, but top technical analysis. Beginning traders can practice on our free $100K demo to develop strategies along with discipline. It’s just another aspect of the SureTrader advantage.

Disclaimer: All information provided “as is” for informational purposes only, not intended as a recommendation to buy or sell. Swiss America Securities, Ltd. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.