How To Get Started Swing Trading
Swing trading is the largest growing type of investment strategy in the world. Investors, sick of holding for years and making little to no return are now looking for a hands on approach. To begin swing trading, simply have any size of investment account setup with an online broker. They key is, you want to set your buys and sells yourself, managing your account. Search various stock charts, looking for a chart that is ready to rip higher or collapse lower in the next few days or weeks. A swing trader looks to make a smaller percentage on an investment, such at 10%, but do it multiple times a week or month. The gains can be upwards of 100% a year if done correctly.
If you do not know how to find charts, join an swing trading service like the Research Center at InTheMoneyStocks.com. They will give you swing trades, market analysis and educate you in the ways of finding appropriate swing trades.
When you find the master play that looks ready to move, set a limit order to buy or short at the appropriate level of entry. Before entering the position, select an exit price for profit and an exit price as a stop loss. Each swing trade should be selected with more reward than risk. After you buy or short your swing trade, monitor it once a day to see how it is acting. After it hits your exit price and profit is made, begin looking for your next swing trade. This can be done hundreds of times a year with far less risk and more profit than investing long term.
Example: As Apple Inc. (Nasdaq:AAPL) sold sharply, it came into solid double bottom support at $326.50. A swing trader recognizes the support level and buys. After one week, Apple Inc. had bounced into a resistance point which tells the swing trader to exit at $354.00. The swing trader quickly takes 8.50% in one week and moves on to the next swing trade. Notice how Apple falls lower after the resistance, proving the swing trader maximized profit.
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