Stock and Forex Swing Trading
(end-of-day trading)

Introduction to Stock Swing Trading

Swing trading is a commonly used term to describe a method of trading with trades lasting from a few days to a few weeks using daily charts. It gets its name from entering trades that attempt to capture swing moves typical of a bull market from a swing low (when the market corrects down after a sustained rally and then begins to go up once again) to a new swing high which would mark the end of the new rally.

Conversely, in a bear market, where the market makes a swing high (when the market rallies up after a sustained move down and then begins to go down once again) to a new swing low which would mark the end of the new leg down. With the right information, your profit chances are better than forex trading where consistent success eludes over 90% of traders.

Stock, futures and 'swing' trading forex are also popular pursuits suitable for retirees or those living or traveling abroad. Online trading sessions need not require long periods at the computer, but timing will be affected by the difference between EST (when the NYSE and other markets are open) and the trader's current location.

Many of the principles and strategies for stock trading are similar to those of forex and programs can be used for both types of trading. Some people may be better suited to stock trading than forex.

Swing trading is actually one of the best trading styles for the beginning trader to get his or her feet wet, but it also offers significant profit potential for intermediate and advanced traders. Swing traders receive sufficient feedback on their trades after a couple of days to keep them motivated, but their long and short positions of several days are of ideal duration not to lead to distraction.

By contrast, trend trading offers greater profit potential if a trader is able to catch a major market trend of weeks or months, but few are the traders with sufficient discipline to hold a position for that period of time without getting distracted. On the other hand, trading dozens of stocks or options per day (day trading) may just prove too great a white-knuckle ride for some, making swing trading the perfect medium between the extremes.

For forex swing trading, you need to have a basic grasp of forex trading. Take a short forex quiz here and see if you know enough. It's just nine questions.

A trader must act swiftly in order to find situations in which a stock has potential to move significantly within a short time frame. Swing trading is mainly used by home-based day traders. Large institutions trade in sizes too big to move in and out of stocks quickly. An individual trader is in a better position to exploit short-term stock movements without the competition of major traders. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks but rather in their price trends and patterns.

Swing Trading Stocks Guide

There is an easy way to learn stock swing trading for a very modest outlay. Kevin Brown is an independent trader and author of The Definitive Guide to Swing Trading Stocks. In his swing trading course (you can download free chapters too), he has compiled 15 years of his personal trading experience and reveals his most effective swing trading methods.

The approach Kevin takes is to first dismiss what some product sellers call "secrets" and discloses what the activity of trading is all about. He doesn't make vague or exaggerated promises, but explains methods that work for him as well as other traders; more importantly, WHY they work.

This is a useful course that will begin your stock swing trading education. It also comes with free tools and 8 stock trading books as bonuses, making it excellent value for under $100. Visit Kevin's site to learn more, and don't forget to download the free chapters of The Definitive Guide to Swing Trading Stocks.

Home