Why Swing Trading:
Swing trading gives the setups room and time to work with set risk. How many times do you look back at a setup you have traded and say…….”if I had only held it longer?” Most good setups need time to continue to play out.
Maybe you work full-time outside of trading and would like to trade part-time, you can’t be in front of the computer all day, swing trading give you the ability to do that.
Swing trading is generally a slower pace of trading, making it great for new traders to learn without the pressure of needing to make the trade work the same day.
Things to Consider:
- You need a Trade Plan:
-How will you find your setups?
-How will you determine entries?
-How will you set your risk levels?
-How will you manage the trade?
-What are your options for exiting the trade?
-What timeframes will you use in your trading?
- What tools are in your toolbox?
-charts?
-trendlines?
-support/resistance?
-moving averages?
-other technical indicators such as stochastic, MACD, RSI?
-how do the indicators you choose to use work, and in what environment
does each work best in?
- Pros/Cons of Swing Trading:
-Typically a slower, more relaxed style of trading…several days to several weeks
-good for growing small accounts
-good for part-time traders who can’t be in front of the computer all day
-risk holding overnight with unexpected news
-easy to micro-manage if you are staring at your positions all the time
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