Swing Trading Basics
Leaning the basics to swing trading is an important step in making money.
I'd like to give you the most important piece of advice about any type of trading; Money Management! I know you've probably heard it before but it is one of the only things that separated a profitable trader from the rest of the crowd.
Protecting your capitol is the only way you can stay in the game, and if your not in the game you can't make money! You also need to be accustom to the fundamental forces that influence price movements.
Price ceiling and floors are vital knowledge to have.
These will better help you pinpoint when the price is likely to reverse.
A price ceiling is a line a resistance that price has recently topped off.
Price floor is the recent level where the stock has reached lows.
The stock will have a tendency to bounce off these levels creating trade opportunities.
Another force the price will follow is moving averages, specifically the 50 and 200 simple moving averages.
Large institutions will use these indicators to make trade decisions.
This means that price will usually bounce off these levels.
Again this provides a good trading opportunity especially if the stick direction is the same as the moving average.
You should also be familiar with candlestick reversal patterns.
These indicate possible reversals in trends and can verify a possible reversal.
When you start off you should have a couple simple trade setups and trade off them until you because familiar with stock movements.
Here are 3 simple swing trading setups to get you started: Always be aware of your emotions and never make a trade out of fear or greed.
This is harder than it seems.
Most amateur traders will pull out of a trade based on what is happening.
But I assure you this is always bad.
To make money consistently you must build a strategy and stick with it.
If this means setting stops and targets and leaving the room, so be it! This may be harder to practice than it sounds but unless you get control of your emotions you will never be a successful trader.
I hope these swing trading basics helped you get a foothold in swing trading.
Good Luck
I'd like to give you the most important piece of advice about any type of trading; Money Management! I know you've probably heard it before but it is one of the only things that separated a profitable trader from the rest of the crowd.
Protecting your capitol is the only way you can stay in the game, and if your not in the game you can't make money! You also need to be accustom to the fundamental forces that influence price movements.
Price ceiling and floors are vital knowledge to have.
These will better help you pinpoint when the price is likely to reverse.
A price ceiling is a line a resistance that price has recently topped off.
Price floor is the recent level where the stock has reached lows.
The stock will have a tendency to bounce off these levels creating trade opportunities.
Another force the price will follow is moving averages, specifically the 50 and 200 simple moving averages.
Large institutions will use these indicators to make trade decisions.
This means that price will usually bounce off these levels.
Again this provides a good trading opportunity especially if the stick direction is the same as the moving average.
You should also be familiar with candlestick reversal patterns.
These indicate possible reversals in trends and can verify a possible reversal.
When you start off you should have a couple simple trade setups and trade off them until you because familiar with stock movements.
Here are 3 simple swing trading setups to get you started: Always be aware of your emotions and never make a trade out of fear or greed.
This is harder than it seems.
Most amateur traders will pull out of a trade based on what is happening.
But I assure you this is always bad.
To make money consistently you must build a strategy and stick with it.
If this means setting stops and targets and leaving the room, so be it! This may be harder to practice than it sounds but unless you get control of your emotions you will never be a successful trader.
I hope these swing trading basics helped you get a foothold in swing trading.
Good Luck
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