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Swing Trading Strategy Guide for Beginners

Swing trading chart checking

Many of us want to own our own business or be our own boss one day. You may have even dreamed of being as successful as Warren Buffett. Swing trading is a trading strategy that has been used for years successfully, and if you learn the tricks of the trade, you, too, can have a piece of the pie. Now before you pay a so-called financial guru $2,000 a year for a list of which stocks to swing trade, learn the basics.

Keep reading to learn what swing trading is, the pros and cons of this method, tips for success and more. By the end of this article, you will have a good idea of whether swing trades are right for you and what you should look for when you start.

What Is Swing Trading?

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Swing trading is sometimes used as a method of day trading, but financial instruments may be held for five days or more to capitalize on larger price shifts than you could get with day trading. However, stocks are not held for more than three to four weeks. The idea is to minimize the risk of a market shift by getting in and out quickly.

Tips for Success


There are many strategies and types of analysis you can use when swing trading or engaging in any other trading or investments methods. Here are the five most important tips you need to succeed.

Follow the News

Find the Right Broker and Exchange

Keep a Journal

Never Stop Learning

Have a Year's Salary in the Bank

Benefits of Swing Trading

There are many benefits to swing trading. These include application, resources, tools and mindset. This trading method is ideal for many instruments and markets, especially altcoins. Maybe you think ethereum, litecoin or bitcoin are going to continue rising steadily for the next few days,, or maybe you are interested in taking advantage of the hype of an up-and-coming altcoin but don't want to risk holding it over the long-term. This works for currencies and other financial instruments very well, too.

  There are many benefits to swing trading. These include application,            resources, tools and mindset.

There is a wealth of information online to help you earn your piece of the pie. These include websites, tutorial classes, PDFs, apps, e-books and video training courses. You can find information specific to forex strategies or for trading in general. Learn how to spot patterns and which patterns to look for, and join a chat group for live help and advice.

From MetaTrader to Robinhood, there are many platforms you can use to swing trade using techniques, such as the candlestick method. You may also use EAs (expert advisor software) or automated bots to help you make more trades than you could manually. This is particularly useful when you are at work during market hours.

Characteristics of a Swing Trader

Risks of Swing Trading

Psychology of Swing Trading

Having a mental plan in place is the only way to become successful in swing trading. Here are three tips to get you in the right state of mind so you can achieve success.

Make and Stick to a Plan

Mitigate Risk to Fight Fear

This Is a Marathon

Conclusion

Swing trading is how many people make a living, but it is not without its risks. The best way to learn if it is for you is to start researching strategies, pick the best broker and exchange, create a plan, stick to it and note how each trade makes you feel. Never take losses personally. Never obsess over a trade. Learn your risk appetite, learn from your mistakes and never deviate from your plan. It is okay to change strategies, but as soon as you let your emotions drive your trading, you have lost. There is a very large pie for you to take a piece of. All you need is a steely resolve, an appetite for risk and a little start-up capital. Happy trading.

Featured Image: Image by Csaba Nagy from Pixabay

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