First, you learn the fundamentals and concepts of the game. Then you must execute your own swing.
The fundamentals of swing trading are really simple.
When you are on the trade floor, you must evaluate all factors that might affect your position:
• The trading volume (your total bid and asked order book);
• The spread (the difference between the prices you are seeking and the price you are selling for;)
• The current market value of the trade;
• The relative strength of the stocks you are trying to buy or sell (measure in terms of price to book or volume to spread).
• The volume trend (the movement of the price between the highest bid and lowest asked);
• The trade execution rate (the percentage of time an order is being executed after it has been placed).
As for the above factors, you should also consider your own trading style (how aggressive or cautious you are).
This is one of my favorite charts — it reminds me of how much we know:
In the past, I’ve been trading on a wide spread while the market went to bull — but it happened and I learned something.
The point here is to become a good trader without getting into any crazy or “crazy speculations”.
Now I’m using it with less than 5-10 days left. It works for me and I believe it’s the right way to grow.
In addition, when you are not on the trade floor like me, then you should make sure that your trading strategy does not have gaps in it.
If you have been trading a long time, then your trading may even have gaps that you could be doing better in (a lack of risk, for example).
It’s important to make sure that trading is always your top priority and your trade strategy should reflect this in all its aspects. Otherwise you just become another trader who is afraid of making mistakes.
What about trading outside of the office?
Before you begin your trading journey, you should make sure that you are financially capable, having the money to invest.
You have to have some sort of a plan.
Otherwise you might just end up being another investor who just loses some money in the market (without even knowing why).
I have a simple way to get this covered: just quit your job.
A few things to keep in mind:
• There are many
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