And how can I find some swing trading sites?
I’m still new to swing trading, and am a bit inane when it comes to how and where to start my research. I’ve stumbled upon a few online resources, including the New England website, but I have not found something that answers all my questions. Luckily, I found some great questions from fellow traders who are interested in the subject.
Let’s start with some basic questions to find some answers:
What makes a good swing trader?
Why do people take time off?
What type of trading strategy does a great trader use?
What about in-house trading?
Who will be my potential trading partners?
How long will I need to be a great trader (i.e. 3-8 years) to get a good trade going?
What are my limits?
What are my trading assets?
In the last few months, I’ve started reading up and learning about the swing trading industry for both the theoretical and practical reasons. My first article, “How to Start Your Trade Without Having a Clue,” was the result of many of these questions, the answers to which are listed below.
How to Start Your Trade Without Having a Clue
What’s a swing trade?
The term swing trade is used to describe a trade that involves only a small amount of a company’s stock. Most swing traders try to have one or two orders to set themselves up for success. This is a good start, but it doesn’t always end up being the case.
The idea is that you trade a small amount of stock of an underperforming company on a few trades before the company’s stock shoots up and you can start making money on the stock you had planned to sell at the start. This type of trade gives you a short-term gain for a very small cost. To avoid selling into a bubble before you’ve seen your returns, stick with a stock that has recently done well.
Why would I want to start a swing trade?
If you can trade 3-5 orders a day, you can still make a decent amount of money with minimal effort. The first question with swings is where to start, and the answer can be found at the end of this article. The second question is what types of securities and companies to trade. If you have a good time at a stock, you might decide to trade it for the rest of the year