Wednesday, June 20, 2012

Swing Trading

  • The basic strategy of Swing Trading is to jump into a strongly trending stock after its period of consolidation or correction is complete.
  • Strongly trending stocks often make a quick move after completing its correction which one can profit from.
  • One then sells the stock after 2 to 7 days for a 5-25% move. This process can be repeated over and over again. One can also play the short side by shorting stocks that fall through support levels.
  • In brief a Swing Trader's goal is to make money by capturing the quick moves that stocks make in their life span, and at the same time controlling their risk by proper money management techniques. 

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