Swing trading is a style of investing in which you try to exploit the natural oscillations of stocks. Often stocks travel within a specific range of prices over a period of time, allowing you to profit from these periodical ups and downs. Swing trades are usually held for a few days to a few weeks so it's much easier than day trading but doesn't require you to forget about the money you invested for years live positional investments.
Swing trading can be a profitable business but it can also be a tricky one, so make sure that you follow the tips I provide in this article:
1. Don't be a day trader in disguise - A lot of people simply call themselves swing traders but practice day trading. If you're monitoring the markets constantly or going in and out of trades all the time, you're setting yourself up for a fall.
2. Set your exit levels properly and stick to them - Swing trading requires discipline. When you enter a trade, set your stop loss and take profit levels. These aren't up to any modification due to hunches unless the market data changes sufficiently to justify it. You need to work with your initial settings to avoid turning this into a job.
3. Follow a strategy - The best swing trading tip I can give you is to not follow tips but a sound strategy. You need to have a system down so you can trade efficiently as well as profitably. There are a number of strategies. Find one or more which work (even if you need to take a course to learn them) and simply apply them again and again.
4. Be emotionless - This is the culmination of the previous 3 tips. To be a successful swing trader you must act without emotions. Emotional mistakes are the worst things a trader can suffer. You must follow your logical strategy and eradicate worries and feelings as they will lead to mistakes.
5. A mentor - Finding a mentor which can teach you the ins and outs of swing trading techniques is a marvelous thing to have. A good mentor can save you a lot of time, money, and frustration. He or she can also cut down your learning curve massively so you're making more money faster.
To read about the how to make a lot of money by swing trading for just 20 minutes a day, click here: Quantum Swing Trading Review.
Jonathan Gibson makes his money from home and has an extensive experience in market trading. To get a free report on how to make more money on the stock market, click here: Swing Trading Mentor.
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