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day and swing traders on listed stocks

2006-08-16 06:09:32 · 5 answers · asked by joshua c 1 in Business & Finance Investing

5 answers

What is Swing Trading?
Swing Trading takes advantage of brief price swings in strongly trending stocks to ride the momentum in the direction of the trend.
Swing trading combines the best of two worlds -- the slower pace of investing and the increased potential gains of day trading.
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Swing traders hold stocks for days or weeks playing the general upward or downward trends.
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Swing Trading is not high-speed day trading. Some people call it momentum investing, because you only hold positions that are making major moves.
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By rolling your money over rapidly through short term gains you can quickly build up your equity.


How does Swing Trading work?

* The basic strategy of Swing Trading is to jump into a strongly trending stock after its period of consolidation or correction is complete.

* Strongly trending stocks often make a quick move after completing its correction which one can profit from.

* One then sells the stock after 2 to 7 days for a 5-25% move. This process can be repeated over and over again. One can also play the short side by shorting stocks that fall through support levels.

* In brief a Swing Trader's goal is to make money by capturing the quick moves that stocks make in their life span, and at the same time controlling their risk by proper money management techniques.

What are the advantages of Swing Trading?

* Swing Trading combines the best of two worlds -- the slower pace of investing and the increased potential gains of day trading.

* Swing Trading works well for part-time traders — especially those doing it while at work. While day traders typically have to stay glued to their computers for hours at a time, feverishly watching minute-to-minute changes in quotes, swing trading doesn't require that type of focus and dedication.

* While Day Traders gamble on stocks popping or falling by fractions of points, Swing Traders try to ride "swings" in the market. Swing Traders buy fewer stocks and aim for bigger gains, they pay lower brokerage and, theoretically, have a better chance of earning larger gains.

* With day trading, the only person getting rich is the broker. "Swing traders go for the meat of the move while a day trader just gets scraps." Furthermore, to swing trade, you don't need sophisticated computer hook-ups or lightning quick execution services and you don't have to play extremely volatile stocks.

We believe that the Swing Trading method is a better way for the individual investor to attain superior investment results through short-term trading in the stock market. This trading strategy has been carefully designed for the needs of the individual investor who does not have the resources that institutions and professional money managers may have.

With the TradersEdgeIndia.com daily Swing Trading Picks Newsletter signals there is no database to download and maintain; there are no charts or indicators to analyze; no expensive software to buy, install and program. Our daily guide conveniently provides accurate entry and exit signals delivered to you daily over the Internet. Nothing could be simpler!
How to Swing Trade?

To fully understand what swing trading really is, you first need to understand what up/down trends are.

Up Trend: Simply put an uptrend is a series of higher highs and higher lows. In other words, an uptrend is a series of successive rallies that extend though previous high points, interrupted by declines which terminate above the low point of the preceding sell-off. Often the high of the last "swing" in the trend will serve as support for the next low. These areas are circled.

Down Trend: Simply put a downtrend is a series of lower highs and lower lows. In other words, a downtrend is a series of successive declines that extend though previous low points, interrupted by increases which terminate below the high point of the preceding rally. Often the low of the last "swing" in the stock's trend will serve as resistance for the next high. These are circled.

Identifying Trends

Long Swing Trades: Once an uptrend has been identified a swing trader looks for buying opportunities in that stock. This can be identified when the stock experiences a minor pullback or correction within that uptrend. The swing trader then activates a trailing buy-stop technique. If prices break out above the trailing stop loss, you will be stopped out and long in the trade. If prices decline, your buy-stop will not be touched.

Short Swing Trades: Once an downtrend has been identified a swing trader looks for selling opportunities in that stock. This can be identified when the stock experiences a minor rally within that downtrend. The swing trader then activates a trailing sell-stop technique. If prices break down and fall below the trailing stop loss, you will be stopped out on the short side. If prices rally, your sell-stop will not be touched.

2006-08-19 18:21:07 · answer #1 · answered by PK LAMBA 6 · 0 0

Hey there,
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org

I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.

As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Best

2014-09-22 06:48:43 · answer #2 · answered by Anonymous · 0 0

read more tips and articles on investing and stocks on this site

2006-08-16 06:43:18 · answer #3 · answered by Anonymous · 0 0

if you are in india try "icicidirect.com"

2006-08-16 06:50:52 · answer #4 · answered by Anonymous · 0 0

can you check this
http://optiontradingindia.blogspot.com

2006-08-16 20:50:09 · answer #5 · answered by Radhika 1 · 0 0

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