The Benefits Of Using A Swing Trading Strategy
When most people are faced with the Stock Market they believe it to be a place of considerable risk, you can minize this risk by using a swing trading strategy. In fact, it is. That is to say if you do not know what you are doing. The stock market actually counts on inexperienced investors giving their money away. Like the old adage: When Main Street is buying, Wall Street is selling.
Winning With Swing Trading
Winning at trading the stock market comes down to one thing: TIMING! Knowing when to buy and when to sell. This course focuses in one particular form of trading, Short Term. Instead of buying and holding a stock for a year or two, enter into a stock while its on a particular advance and move on. Focusing on what is important. What is going to move that particular up or down in the coming weeks, once you identify this pattern you can capitalize on profits by taking advatage of it. Where were the previous bottoms and tops? Is there an effective pattern in place that will recipricate a similar pattern of price movement? These are the kinds of questions that you will have to ask yourself prior to place a successful swing trading entry position.
What Is Swing Trading?
Despite what most people think, it is impossible to calculate a top or a bottom on any stock. However, when a stock begins an advance it is very easy to recognize that advance and capitalize on the move. Our strategy is to enter the position, once the stock has started its upward move, let it reach it’s point of resistance, and exit with the profit generated.
Short term trading is normally holding a stock for a one to six week period. Looking for an average gain of about ten percent on monies invested. Allowing a brokerage account to achieve a triple digit gain over the course of the year.
Take A look at the swing trading strategy being used below in this image.