If you need to ask what swing trading is then chances are you need a little more experience under your belt before giving it a try.
Swing trading can be thought of as a hybrid between day trading and holding long term. Swing traders typically hold for a few days up to a few weeks in relation to the volatility of the stock. George Soros is widely known for his use of swing trading strategies but don't expect the same results right out of the chute.
Swing trading depends on the filter criteria used for the swing charts such as time or percentage of high/low. For those of you who like charts, swing trading is going to be right up your alley! The type of swing trading strategy selected will vary depending upon the stock, market volatility and to some degree...individual preference.
Your swing trading strategy can be as simple as the classic Merrill method based upon a percentage of the price movement or other criteria like the Four week rule (buy when the price reaches a four week high and sell when the price hits a four week low).
If you are interested in technical trading analysis then begin swing trading by learning to read and understand two or three of the better known systems. A few you might find interesting include:
- Zig-Zag
- Point & Figure
- Kagi
- Renko
- Filter Waves
If you are brand new to swing trading then test your strategy right here at wallstreetsurvivor.com. Wall Street Survivor allows users to manage their own $100,000 fantasy stock portfolio while competing risk-free against friends, peers, colleagues or other players for the chance to win lucrative cash prizes.
Learn How to Swing Trade