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Swing Trading

"Swing Trading" is a style of trading that is very short term in duration and captures the "explosive" move by a stock.

This type of trading is the best suited for the individual investor who wishes to either day trade or trade within a very short time frame of one to five days, (or whenever the trend ends and/or the trade gets stopped out), and uses technical analysis to predict the movements of large institutional and fund activities before they act to push a stock to another level.

When institutions buy or sell, they usually run up a stock several points to complete their position since they trade in large lots. This is essentially what the swing trader looks for. Obviously, one cannot buy 10 million shares in one trade and also "mask" a purchase so that other funds do not know that a particular stock is being accumulated. Institutions buy by lots of 10,000 shares thoughout the trading day and usually over several days. Swing trading exploits these type of trades to make short-term gains on the backs of a large accumulation. Seen below is a perfect example of how a swing trade works.

 

 

So how do we pick these explosive stock selections? Here at daytrader1.com, these are the kinds of trade setups we present and teach to our daily subscribers. And not to run ahead of our presentation, we will now show you how our simple swing trading framework "maps" out the entry point as well as the sell price since "a picture is worth a thousand words."

 

 

The next swing trade illustrates how if the proper parameters are established before the trade, staying with the trend is easy with full confidence. Shown below is how the first chart on ADBE leaves the trader wondering where to buy and if the stock is too high.

 

 

But the second graph pinpoints the swing trade for the new up-leg as it pegs the buy price with exact precision for a confident entry and lets the trader "ride" out the trend by having a pre-established stop point as seen with its red line or "midpoints" that are supporting the prices.

 

 

Our particular way of marrying technical analysis with swing trading keeps trading simple but effective with optimal risk and reward results. This type of technical analysis is taught on our website and by following how we set up and exit trades, you too can learn the unique and potentially profitable ways of swing trading.
 
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Disclaimers 

We have to use actual market quotations to illustrate exactly what we are doing and why we are doing it. Otherwise, the diaries and its entries of daytrader1.com will be misleading and not educational. The spirit of this website is to teach the market daytrader how to trade successfully by using real-time quotes and any attempt to duplicate these trades is not a guarantee to make money. These trades are our teaching "tools" and at the end, are only examples. Copying these trades are in fact beyond our control and we are not responsible for any trading losses borne out from this type of action.

We do not give investment advice on this website but only attempt to show you some of what we trade and how we trade it. Treat this website as reading a professional trader's trading journals or "diaries". Past performance is not indicative of future profits nor are our opinions guaranteed to be successful. We do not make markets in the stocks that we illustrate and we may buy and sell any stock at any prices regardless of our commentaries. And due to unforeseen web or network related technical problems, we can be down for an indefinite amount of time without any prior notice.

We reserve the right to cancel any subscription and/or withhold our email service towards people reselling our information, copying parts of our site and claiming that our original work is theirs, or just any other kinds of abusive action taken against this website. There will be no refunds for this type of behaviour.

The use of our username and password will be deemed as an acceptance and understanding of the purpose of this website as outlined in the above disclaimers. Again, this website is not a guarantee to make money but a teaching diary of how we setup and exit trades. By entering our subscriber page with the use of our username and password, the subscriber will then waive all rights to sue daytrader1.com and any other companies associated or related on this website. Daytrader1.com will not be held liable for any loss of money from trading as we do not give any advice or recommendations as to what to trade but only try to teach and illustrate how we trade our own funds in real-time trading. Again, we do advise against copying our daily trade examples as it is not a guarantee to make money.

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