The best indicator for swing trading is your profit target (the best example would be the highest possible rate of change).
It’s important to recognize that, though it’s one of the most important criteria, there are also plenty of other factors to consider, including the type of asset you’re trading and the risk of your market. As I mentioned in my original article, swing trading works best in light of a market that’s moving in the same direction as you are. With this in mind, many traders use a two-step strategy. This strategy allows them to trade a number of different securities on the same day so that they trade the highest return while avoiding the downside risk of losing a large position (in which they would likely sell their position back) at the worst time.
If you’re trading on the “same day” (at the exact time you would prefer your trading to take, such as at about 4 p.m. ET), then you can choose your target based on the day of trading. If you trade on the same day as the market, then you have a choice: to “buy” your position prior to the market going down by moving your position ahead of it by a small percentage like you would during an equity-biased sell; or you can trade in a “sell” fashion by moving your position ahead of it in relation to what you’d receive from the opposite direction of the market.
While the above is an example of just one such strategy, it illustrates what’s possible when you take the time to think clearly.
What are some strategies for getting started?
I’d highly recommend making a list of a couple of strategy that you’d like to try but don’t have time to do each day. For instance, if you have an interest in shorting oil, and you don’t have any free time (I know I am), this is actually a great way to spend your time so that you can practice some of the strategies. If you want to short something else, then either look up information on the specific trade or just ask around for an expert who can teach you how to trade it for you.
This will help you learn the trade, and you can move to the next step at our next session, where I’ll talk about the best hedge funds to buy and sell.
What should I study?
Most beginners start with the simple book and look forward to being an expert. However, it’s important to understand that the best investment