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Posted on July 3, 2009 by Drew Anderson | Posted under Currency Trading
Swing Trader - How to Make Money Swing Trading Stocks
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These fluctuations in the price, whether it is going up or down are called swings, and they have an inclination to repeat themselves with a fixed level of similarity. Indeed, these patterns are somewhat constant, however, fundamentals with a high result on the market can affect and change these patterns taking the cost of the stock out of the range signaled by the pattern. However, what will happen in a case like that, is that you'll perhaps take a hit, but it will not matter ( and it shouldn't ), because trading the stock or currency market isn't about trading without ever losing, but trading with a high level of consistency, which simply means taking lots of winning trades against a few losers. Therefore, since the market moves the same way most of the time, this suggests that most of the time you can use the consistent swings in the cost of stocks, that may enable to enter when the price is hitting a support ( if you're going long ) and exit once it reaches the swing. These patterns can be identified through the use of many indicators. I especially like to set the charts with candlesticks, and the add the Bollinger Bands plus the Stochastic Oscillator, which will let me when the price could be bottoming. Or use a trading system like Ultimate Swing Trader. However, as much as the use of these indicators are usually an effective way of determining when a stock is bottoming, and thus when it would be a good time to buy, the difficulty is that doing that all by yourself involves following each stock for many days to catch the right candlestick formation. The problem is the market has many thousand companies that trade publicly, making of humanly impossible to follow every one of them, so unless you have some sort of assistance. Therefore, what I have done to unravel this problem is that I have gotten a trading tool ( a software ) designed exactly to identify these swing trading opportunities (e.g. Ultimate Swing Trader), and based on the suggestions I am getting from the software, I pick what I consider to the best trades for the day. This way I get to research ( really not me, the software) the entire market five days every week, and I am getting many good trading ideas almost everyday, which gives me lots of occasions to keep my money moving and growing continuously thru small gains each 3-6 days (which is mostly the amount of days you will hold a position ) . This software is usually awfully correct, which means it typically signals trades that end up with a gain ( it basically tells you when to buy and sell ), so even if you are not yet familiar with indicators, you may use it safely to swing trade the stock market. Just ensure you do your mathematics when determining the dimensions of each trade to avoid your brokers' commission eating up your profits. For related trading articles and resource, check out this link below: 5EMAs Forex System - A Good Currency Exchange Strategy? . About The Author: I've been trading forex for the last 2 years and boy has it been a journey! I've bought so many courses/strategies and coaching services. I'm finally at a level were I can confidently trade any market and realized full control of my financial destiny. Hope you find this and future articles informative while also achieving similar success as I have. |
Tags: ULTIMATE SWING TRADER, ULTIMATE SWING TRADER REVIEW, ULTIMATE SWING TRADER REVIEWS
