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[S1013]Stock Market Swing Trading

by Robs, Rob

1. If the trade moves in your favor, carry it overnight--the odds favor follow-through. Expect to exit the next day around the objective point. An overnight gap presents an excellent opportunity to take profits. Concentrating on only one entry or one exit per day relieves the pressure.
2. If your entry is correct, the market should move favorably almost immediately. It may come back to test and/or exceed your entry point a little, but that's OK.
3. Do not carry a losing position overnight. Exit and play for better position the next day.
4. A strong close indicates a strong opening the following day.
5. If the market doesn't perform as expected, exit on the first reaction.
6. If the market offers you a windfall of big profits, take them to the bank on the close.
7. If you are long and the market closes flat, indicating a lower opening the following day, scratch or exit the trade. Play for better position the next day.
8. It is always OK to scratch a trade!
9. Use tight stops when swing trading (wider stops when trading trend).
10. The goal always is to minimize risk and create "Freebies."
11. When in doubt--get out! You have lost your road map and your game plan!
12. When the trade isn't working, exit on the first reaction.

Article was written by Mouser57 member of stockhideout.com

There are a number of stock market trading styles that different kind of traders use. There is no best kind of style, but each is suited to a trader's needs and situation. The following are a few of the styles that are common in the market. There are generally four primary stock market trading styles. These are swing trading, trend trading, momentum trading and scalping.

Choosing which style you wish to use depends on your situation. An investor's time frame is the main aspect to look at when deciding which style is best for them. The correct pairing of trading style and pairing will ensure you are profitable in your efforts in the stock market. This ranges from the aggressive day traders to the conservative long-term-investors.

Scalping

Scalping are trades that are done (bought and sold) during a very short period of time. This can mean that a buy and sell in just a matter of minutes. Each trade makes very small margins but a trader generally would make many transactions in a day. Scalpers, usually aim for high volume stocks which are liquid. They try to buy on daily lows and sell immediately when the stock goes up. It is also a good method for investors who do not have a lot of capital and reuse their capital n every trade.

Momentum Trading

Momentum trading is when a trader sees a stock price picking up and joins it. The investor will take a short or long position in the stock anticipating that the momentum of the stock will continue. This is generally how bubbles grow, due to many traders jumping onto an accelerating stock. Investing period for momentum trading is around a day.

Swing Trading

The general time frame for swing trading is one to four days. This is most common among mom and dad investors. Stocks are often chosen on the basis of technical analysis. Swing traders generally have the advantage of not having too much competition form major traders. Technical analysis I used to looked for indicators of short term price movements. Swing traders rarely do any fundamental analysis as they are looking for short term fluctuations. The majority of their decisions are based on price trends and patterns.

Trend Trading

The time frame for trend traders is around a month. This looks at a securities' long-term momentum direction. As investors are holding the stock for longer there is a greater deal of risk involved. It is wise for trend traders to do fundamental and technical analysis on the stock. The main indicators that trend traders look for are higher highs. This indicates that a stock is trending upward.

It is very important for a trader to choose the correct style of trading depending on their time frame. Each requires a totally different kind of analysis and each style of trader will have a different set of securities in their portfolio. There are risks associated with all styles with Trend Trading being the riskiest and Scalping being the safest.

Article Source : Where To Invest Stocks

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Both Robs & Arkaitz Arteaga are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Robs has sinced written about articles on various topics from Finances, Forex Trading Forex and Penny Stocks. Mouser57 member of stockhideout.com , and stock message board. Robs's top article generates over 18100 views. to your Favourites.

Arkaitz Arteaga has sinced written about articles on various topics from Stock Market Crash, Finances and Stock. Arkaitz Arteaga - I have a degree in Computer Systems Engineering. I've been working in the world of forex trading and stock market investing. I also have be. Arkaitz Arteaga's top article generates over 49500 views. to your Favourites.