How to SwingTrade - An Educational Thread
- Thread starter tradermike
- Start date
yeah, I live in US east coast, so wonna concentrate on the YEN, which IB doesn't have. been looking at two ECN style spot forex brokers, matchbookfx (spread 2 wide, always 5 points), and hotspotfx (3 pips on the YEN, but their software still under development).
May start with Euro with IB (somehow always more liquid than the swissy) and get my feet wet with currencies.
May start with Euro with IB (somehow always more liquid than the swissy) and get my feet wet with currencies.
tradermike, you buy on a breakout after consolidation. Have you ever used or considered using Point and Figure charts for buy (and sell) signals?
I can say from personal experience that PnF charts are reliable provided you use adequate stops and logical money management techniques.
Matthew
I can say from personal experience that PnF charts are reliable provided you use adequate stops and logical money management techniques.
Matthew
D
dkamp
jmcgraw said:
"As far as overnight risk... It is a problem. But there is also intraday news that breaks. ANY trader is at risk for a huge loss. Thats just the way the game is."
Tonight's after-market headlines on Excite home page:
- Iraq fires missile at US spy plane
- OPEC agrees to cut oil production
- Compaq posts 279 million loss
- BroadVision to cut 200-300 jobs
I get the point about there being multiple valid approaches to trading, but I think that the intraday traders have a big advantage when it comes to minimizing the effects of bad news, and taking advantage of good news.
"As far as overnight risk... It is a problem. But there is also intraday news that breaks. ANY trader is at risk for a huge loss. Thats just the way the game is."
Tonight's after-market headlines on Excite home page:
- Iraq fires missile at US spy plane
- OPEC agrees to cut oil production
- Compaq posts 279 million loss
- BroadVision to cut 200-300 jobs
I get the point about there being multiple valid approaches to trading, but I think that the intraday traders have a big advantage when it comes to minimizing the effects of bad news, and taking advantage of good news.
The advantage only exists in your minds eye. If you know how to manage your account, you can sleep like a baby... Even if your long when World War III starts.
Sure if you start swing trading with the same size that you day trade, your gonna get obliviated. Its ALL about properly sizing your positions, and choosing the right stocks to trade.
If anyones interested in reading about my swing trading strategy, I outlined it in detail on Rtharp's message board.
Check it out at:
http://communities.msn.com/Rtharpsl...LastModified=4675331474682194149&all_topics=1
Check it out at:
http://communities.msn.com/Rtharpsl...LastModified=4675331474682194149&all_topics=1
~"It's the difference between a sprint and a jog," said Richard V. Rueb, executive director of Day Traders USA, an organization for day traders. "I can only day trade for a couple of hours each day, but I can swing trade all day."~
LOL, that's why he runs DAYtraders USA
"With day trading, the only person getting rich is the broker," said Pejman Hamidi, CEO of Egoose.com, which gives tips for swing traders. "Swing traders go for the meat of the move while a day trader just gets scraps."
LOL, that's why he runs a subscription based real-time chatroom.
Anything for a buck. Today I'm a daytrader, tomorrow I'm a swing trader, and the day after that I am an investor
I'm fed up with this crap. Ask Pejman about the "Crushed Portfolio" advisory. Down 35% in a month.
andrasnm says it best, "Don't confuse brains with the Bull
Market !!"
BTW, as I suspected originally Mike's presence here was to hype his site. He sounds just like Velez in his post and poof he disapears
"My basic strategy is to jump into a stock when it moves out of consolidation periods and breaks through resistance levels. It then often makes a quick move which I can profit off of. I then sell once the move is over and leave the stock behind as it begins a new phase of consolidation or sideways movement."
WOW! This is something I never heard of. Really, can this strategy actually work? LOL Thanks Mike for the enlitement.
Regards,
William
LOL, that's why he runs DAYtraders USA
"With day trading, the only person getting rich is the broker," said Pejman Hamidi, CEO of Egoose.com, which gives tips for swing traders. "Swing traders go for the meat of the move while a day trader just gets scraps."
LOL, that's why he runs a subscription based real-time chatroom.
Anything for a buck. Today I'm a daytrader, tomorrow I'm a swing trader, and the day after that I am an investor
I'm fed up with this crap. Ask Pejman about the "Crushed Portfolio" advisory. Down 35% in a month.
andrasnm says it best, "Don't confuse brains with the Bull
Market !!"
BTW, as I suspected originally Mike's presence here was to hype his site. He sounds just like Velez in his post and poof he disapears
"My basic strategy is to jump into a stock when it moves out of consolidation periods and breaks through resistance levels. It then often makes a quick move which I can profit off of. I then sell once the move is over and leave the stock behind as it begins a new phase of consolidation or sideways movement."
WOW! This is something I never heard of. Really, can this strategy actually work? LOL
Thanks Mike for the enlitement.Regards,
William
The debate should NOT be about swingtrading versus daytrading. It should be about an individual's personality. If the individual is of the more patient ilk, he should swingtrade. If he wishes to know the outcome of his decision quickly, he should daytrade. Both can be equally profitable.
As for people wishing to swingtrade simply as result of the $25k rule kicking in shortly, this rationale by itself is not good enough. If an individual has less than $25k but is the sort of person who requires immediate gratification, he will most certainly not be suited to swingtrading.
Such an individual should grit his teeth until December, and start daytrading futures on stocks. Of course, I am assuming that there is no Stalinist $25k regulation on the soon to be introduced futures on stocks.
As for people wishing to swingtrade simply as result of the $25k rule kicking in shortly, this rationale by itself is not good enough. If an individual has less than $25k but is the sort of person who requires immediate gratification, he will most certainly not be suited to swingtrading.
Such an individual should grit his teeth until December, and start daytrading futures on stocks. Of course, I am assuming that there is no Stalinist $25k regulation on the soon to be introduced futures on stocks.
JMcGraw,
I read your post on rtharp and I do have some questions. I would be interested in getting more detail on your methods.
How do you determine when a reversal is imminent?
How far back do you go in reviewing a stock's history in trend movement to determine the risk/reward points? in other words - in your example of ABC at 50 with 48 risk and 56 reward - what conditions existed that allowed you to determine those exact price points?
What time frame do you utilize on your charts? Do you use candlesticks or bars?
Thanks for your time.
I read your post on rtharp and I do have some questions. I would be interested in getting more detail on your methods.
How do you determine when a reversal is imminent?
How far back do you go in reviewing a stock's history in trend movement to determine the risk/reward points? in other words - in your example of ABC at 50 with 48 risk and 56 reward - what conditions existed that allowed you to determine those exact price points?
What time frame do you utilize on your charts? Do you use candlesticks or bars?
Thanks for your time.