The advantages of Swing Trading
Swing trading involves buying or selling a security in order to capture gains within 2 to 15 days on average. It is not a long-term investment strategy and is typically triggered by technical analysis. Identifying stocks and ETF’s with short-term momentum is crucial along with having a solid money management strategy.
Trading under different market conditions
It is very important that traders adapt quickly to changing market conditions. Markets can change on a dime, often times violently, so traders need to be prepared to adapt to changing market environments. Individual traders often get too comfortable with one type of market behavior and it is usually a bull market.
Importance of the 50 day moving average
The 50 day moving average line is calculated by taking the rolling average of the price data for the last 50 days. It’s looked upon as a “running average” and meant to smooth out price fluctuation. Once you insert the 50 day moving average line and overlay it on a chart, it becomes much easier to see the true direction of a stock or ETF. With all the zigzag on a chart, it’s difficult at times to get a true sense of direction.
How to profit with trailing stop orders
Have you ever had a huge profit in a stock position only to see it disappear? This happens all the time to traders, professionals and amateurs alike. Depending on how volatile the stock or ETF is, profits can vanish in a flash. That is why it is important to set a profit target or have a profit target in mind and be disciplined about taking it. One type of sell order that helps is called the trailing stop.
The importance of stop loss orders
Placing a stop loss order immediately after you have placed a trade is very important to help minimize loss. It’s one of the best money management techniques to control risk. Most traders avoid stop loss orders and usually experience massive drawdowns as a result.
How to fight off emotional trading
Most traders have difficulty fighting off the 3 deadly emotions of trading. These emotions are Greed, Fear, and Hope. It’s very important to control your feelings and follow a disciplined objective plan. Greed One of the reasons traders do not succeed is due to the gambling mentality they have. They want to make a large [...]
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