Swing Trading is the Holy Grail

Quote from frostengine:

"... I have programaticaly identified 100's of patterns which have "statistical significance". Meaning they can tilt the odds slightly in my favor.
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Trade those patterns with discipline... and you should prevail, Grasshopper.
 
Quote from Maverick74:

It seems like you put some thought into this which is good. Hey, not everybody does. But just like selling premium gives a nice consistent edge, it's the outliers you have no control over. If I had a dime for every stock near a 52 week low that suddenly gapped down huge one day for no reason I would be retired. And no stop can save you from the gap. And I assure you, the trading gods will make certain that you suffer no such fate while your size is small. They will patiently wait for you to get some confidence and on your biggest position months from now, they will unleash their wrath. We've all been there.

In light of this prophesy on my part, I suggest maybe turning your attention to the world of ETFs. There are over a thousand of them now and while they can still gap down a few % over night, they won't gap down 25% or 50%.
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Great point Maverick.

When I first started swing trading, I was focused on stocks, but then I moved to ETFs. True, the volatility is more tamed than with stocks, but you can match the potential profit target per trade by position sizing. I increased by position size per trade based on the volatility on the ETF.

Also, I got better results applying technical analysis to ETFs than to stocks because they are less subject to news headlines and fundamentals shocks.
Plus it allowed me to be exposed to different asset classes, that way if one asset class is trending better I focused my attention in that area.
I picked around 20, and that's all I look at all day.

Good luck to you bud. Great tread. keep it coming.
 
I do like the idea of ETF trading from a stability standpoint. I need to do some testing of my method against various ETFs to see how it performs.
 
My strategy did not perform very well this week, but at least it is outperforming the S&P

Thus far I have used 128 patterns which focused on oversold conditions. Going forward, I have now added another 33 patterns and broken it out into two methods. An <a href="http://www.mystockanalysis.com/stocks-to-buy/strategy-oversold-pattern/">Oversold Strategy</a> which I have used so far in this journal, and a new <a href="http://www.mystockanalysis.com/stocks-to-buy/trend-strategy/">Trend Following Strategy</a> using the 33 new patterns.

I will now be posting trades using both of these methods. The oversold strategy typically has a higher % return, but the trend following strategy has a higher win%.
 
Tomorrow will be a very BUSY day. I have 9 stocks in total that I am watching for potential entries:
RTN,SLE,EQR,DHR,DIS,GWW,HRS,VLO, and JNS

I likely take 2 or 3 of these signals tomorrow depending on how the market behaves.
 
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