SWING TRADING

yonts

Hello everyone,

I have a few questions about swing trading:

1. What is considered a good return (monthly) on the trading capital in swing trading?

2. What is the sum of an effective swing trading account?

3. What is a typical swing trading routine? making scans and entering trades daily or once a week?

4. What to do after a reversal in an up-trending market when the market enters a correction (pullback)? Do you wait for that second reversal to go long again or enter a short trade in a stock that is in a downtrend (despite the market being in an uptrend)?

Thank you very much,

John

markd

There is no one answer to any of your questions, because every trader would answer them differently. There is no one size fits all solution - you really do have to find your own way.

You can begin with a lot of money or a little. You make many trades or a just a few. You can trade long, short or both. You do need a method that you trust, and that takes some work to develop and test.

I would strongly suggest a book by Van Tharp called "Trading your way to Financial Freedom". He does a good job explaining the game.

Van Tharp has passed, but apparently there is now a Van Tharp Institute on-line, which might be helpful. Here is a link:

https://www.vantharp.com/trading/tharp-think-trading-concepts/

p.s. some of the on-line courses are pretty expensive. I'd start with just the book.

Here's a Youtube sample -

https://www.youtube.com/watch?v=HGtpQfZ7sfc

Sofearnot

John, It is rarely adviseable to go against the trend. Wait for Minor pullbacks, on smaller volume ti get in.

Sofearnot

I have a hunch that the majority of people in here are Primarily investors, not Swing traders, you might consider asking on Quora. but, Always take internet advice for what it is A wise man once said ‘experience is the best teacher’

Strongly recommend starting a Paper trade account, at one of the major brokers, so you can get a feel for real money without Risking a penny.