Swing Trading
Not long ago, there were far fewer swing traders than there
are today. The market was making great moves day after day, and an
intraday approach (day trading) offered plenty of potential to capture profits.
There was lots of volatility, which provided lots of emotion and opportunities
for traders to profit from with even the shortest of timeframes.
Times have changed! And when market conditions change,
it's wise to change trading methods too.
These days with the narrower trading ranges, the market
spends more time in areas of restricted movement. This means fewer
opportunities on purely an intraday timeframe, which is why a
swing trading
strategy is the
method of choice here at TheStockBandit.com.
About Swing Trading
Swing trading provides the ability to structure
every trade with a risk/reward profile that encompasses an expected profit which
is multiple times what is initially risked. Stated otherwise, swing
trading allows us to set up every single trade to where we will make more when
we're right than we'll lose if we're wrong. Good trading is all about
damage control and maximizing gains, wouldn't you agree?
Swing trading involves holding positions for larger moves on
a multi-day timeframe of up to a few weeks until a profit objective is reached.
Because the swing trader is holding stocks overnight, the average position size
is reduced to offset the added event risk. As a result, the swing trader
can essentially have the same dollar risk per swing trade that he uses for day
trades, which adds versatility to the trading strategy.
Swing trading is best when there is no scheduled news for a
stock such as earnings announcements or conference calls. Here at
TheStockBandit.com, we believe that holding short-term trades into such
scheduled events is a poor decision and more like gambling than trading! We
avoid such plays and explain this further in our
Trading Rules.
Swing Trading Advantages
There are a number of advantages which come with our swing
trading approach. When the market has momentum and volume is strong, the
rewards can certainly come quickly. Stocks with momentum will often create
a
runaway gap, literally skipping prices in the direction of the trend.
This works to the advantage of the swing trader as he is able to participate in
these gaps while trades reach their profit zones even faster.
Another advantage of swing trading is that less time is
required to manage positions after they are entered. Little maintenance is
needed to manage existing trades, as a protective stop loss order can be placed
easily and trailed higher as the position produces more gains. This leaves
the part-time trader with the freedom to walk away from the screens, and the
full-time trader is able to spend time seeking out more new opportunities.
Swing trading can also be less stressful for the trader due
to the fact that not every tick needs watching. A set-it-and-forget-it
approach like what we offer at TheStockBandit.com helps to smooth out the
emotional roller coaster that active trading can sometimes be! After all,
the idea is to profit over time, not fret over every minor move your stock
makes.
Swing Trading With TheStockBandit.com
Whether you're a part-time trader looking for a simplified
trading approach, a new trader looking to learn, or a full-time veteran looking
to save some time in locating great setups, try swing trading with
TheStockBandit.com! Our nightly
stock pick service includes a
swing
trading newsletter packed with plays for the following trading session.
Let our expertise help you reach your trading goals faster and easier, and sign
up for your free trial today!
We're Number 1 for a Reason!
Take your 2-week FREE Trial and trade with us!
The Stock Bandit, Inc. - 17460 IH-35 N. #160, PMB 240 - Schertz, TX 78154
Copyright 2004 -2008 The Stock Bandit, Inc. All Rights Reserved
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