What is swing trading?
Swing trading is the number 1 method that has brought me profits. And so today, I will tell you about this wonderful trading method. This applies to stocks, commodity as well as forex markets.
First of all, I’ll tell you what the term ‘swing trading’ means.
Swing trading is a trading method wherein the stock/forex trader holds the assets for more than a day in order to make profit from the price changes. The price of a stock, as you know, always keeps on changing – sometimes it goes up and at other times it comes down. This upward and downward movement of the price of a stock is called price changes. A ‘swing‘ therefore is nothing but the complete movement of the price (or change of price) of a stock from one point to another (or from one price to another.) This movement can be either an upward movement (when the price of a stock rises) or a downward movement (when the price of a stock falls.) Based on this swing, the trader determines whether to buy or sell a particular stock.
The chart given below will help you to understand this concept better.
In swing trading, the trader patiently waits for the right opportunity to enter/exit the stock market. Hence, this is also called ‘opportunistic trading.’ A swing trader analyses swing charts and identifies the best time to buy a stock. Then he waits patiently for the next best opportunity to sell the same. This waiting period may vary anywhere from two days to two weeks.
As the trader does not do the trading frequently, but rather kept to the minimum, this method is also called “minimalist trading.” In other words, in swing trading, the trader makes money by ‘sitting’ and not trading.
Now let’s come back to how you can profit from this stock trading strategy.
How to do swing trading?
Do you know how I use this method? I anticipate the next movement of price or ‘swing’ of a particular stock in the market and make my decision to buy or sell accordingly. And my anticipation in more than 90% cases comes true!
Because I anticipate the movement by analyzing these things:
- Price trends
- Present levels
- Stock charts
- Chart patterns
Reading and interpreting these things help me to rightly anticipate the next movement or ‘swing’ of the price of a particular stock.
This is a skill that can be learnt. Hence, I teach them to passionate traders across the world through my master mentoring program.
Why I recommend swing trading?
I recommend swing trading because,
- You need to spend only less time
- You need to pay only less brokerage fees
- You get more solid money
- You are not stressed up
- You get more clarity in your decisions
- You get a better overview about the market
Now I will show you some interesting charts.
The 2 charts below shows the ‘swing’or movement of price. Look at the price of the stock in the first chart.
Idea – 2016 – Monthly Chart (Old)
Based on my interpretation and anticipation, I had provided weekly updates to my clients of the right time to act. Those who took my advice gained a return of 76% on this swing. See the chart below:
Idea – 2016 – Monthly Chart (New)
Now do you realize what swing trading can do to your money?
Wait…. don’t go…. I will show you one more example.
Look at the price of this stock.
Crude Oil – 2017 – Monthy Chart (Old)
Now look at what happened to the price after 3 weeks.
The price moved from 55 levels to 61 in a complete swing movement. It has extended that move even to 66. My clients, who are experts in pyramiding techniques, easily compounded their equity.
Crude Oil – 2018 – Monthy Chart (New)
……….. And if that’s not enough, then here is yet another one!
Asian Paints – 2017 – Daily Chart (Old)
This was the initial position.
Asian Paints – 2018 – Daily Chart (New)
And this is what happened after a week. The price moved and gained a return of 6% in just 1 week!
This is the reason why I recommend swing trading to you all. This is the best method of stock trading whereby you can multiply your money.
I will summarize the advantages here for you:
- Swing trading needs only 1-2 hours for analyzing and trading. So, there is no need to sit for longer hours in front of the computer.
- Swing trading involves very few transactions. So, you incur less cost with respect to brokerage, taxes, etc.
- Swing trading can be done without resigning your job. So, you can use swing trading as a secondary source of income.
And the most encouraging thing is that this method can be learnt fast! I have handpicked the best practices from my 10 years of experience in this field and converted them into a result-oriented trading course. It will give you better results than any other method available. It will help you multiply your income faster. Try it out yourself!