Trading Strategies for Swing Trading and Daytrading

Interesting thread candle that as of late you've been making the transition to swingtrading. I say that because I have slowly been doing likewise. Still make intraday plays when there's a good setup waiting to be had, but I like the potential points of slightly longer timeframes. However, still have to force myself to hold overnight as I haven't gotten real comfortable with that yet.

gemini,

You can see all of Tony's scans, with examples and explanations, starting at:
http://www.stockjunkie.com/tonyoz/usual.htm
At the bottom of each page is a link to the next scan.
 
Candle,
As usual, thanks for starting a great thread...you always seem to be able to take things to the level we should be on:)
The past year has certainly been a tough market for me...I still have my nose above water (barely) and I am adapting like you are. I think in the years ahead that the most successful traders while be those who can either swing trade or intraday trade or use a combination of both at any given time...this is what I am currently working on and it kind of sounds like you are to. This strategy seems to give me a lot more flexibility and has helped me post some good gains lately. I guess the big question here is breaking things down as to why this all inclusive strategy seems to work. overall with swing trading your looking for that setup...such as skyscraper...moreover, as you play this setup you are watching it intraday, with the mentality of a daytrade always in the back of your mind if necessary...if not you can let er go and reap the profits the next day or so. It seems to lend itself to a broader range or type of market environments that require greater agility, flexibility or more lattitude. So like you I think...my strategy has basically evolved to ......Swing Trade....initial setup...daytrade it if I have to for a small profit or minimize loss...let it run if all conditions are met and look good...reexamine closely the conditions that are in play the next or following day...react accordingly. :)
 
Originally posted by candletrader

As a full-timer, I can get in on swingtrades and control them with greater precision than people who swing trade coming back home from their work. I often have a couple of points advantage on them as a result of intraday entries, and I have much better risk control, since I got in earlier and can get out IMMEDIATELY the moment things go wrong.
More...

I couldn't agree more!

In the future (a few months out), I will have something put together on a CD Rom that will include lots of setups,entries, stops and exits using the intraday charts. Moreover, actual trade management for the different strategies. Trade management today made the difference to my bottom line. But, I don't think a newbie would have been able to do what I did today. So this is something I hope to achieve with the CD Rom.

I have received numerous questions that should help me create what I hope will be an answer to many of your questions.

In the meantime, don't overlook the other scans. Especially, Power Scan and New Kid. Usual Suspects and Knock down will alert you to good potential setups before they take place, so it might be a good idea to follow some of the alerts during lunch time.

Anyhow, I don't want to confuse anyone, and it takes a while to not only learn the different setups, but also learning how to follow them in real-time, and just as importantly, knowing which trades to take and knowing how and where to enter and exit.

Happy Halloween

It's trick-or-treat time :)

Trade Smart!
 
Hello All

Candletrader - awesome thread as this Is what I have always wanted to know and ask. The style you are describing is the style that I HAVE to do because I cant daytrade but now I see that It may not be such a bad thing. Would anyone like to share their "nuances" in theese kinds of plays and/or experience you've had?

Magna- just like you put it I messed Up some nice Sky/Bottom plays 'cos I got out at the end of the day. YES, It did make me some profits but it meant not sticking to my plan and its really REALLY tough for me to take it overnight. It's where most risk is, isnt it?!

Anyway great work guys, and please do share yur experiences so we less experienced have something to learn on.

Good luck everyone and thank you!
Alex

P.S. praetorian, you fight the trend and average down- two things I learned in the beginning of my trading journey NEVER TO DO (now tell me you use market orders on top of things ;)) Does it mean that "The golden rules of trading" dont work anymore and that it all really IS relative?
 
@TonyOz
What trades did you take today - I'm especially interested in the Bottomfisher/Skyscraper-Setups, as you might know ;-) ?
Have a nive evening,
Harry
 
Hi Guys. I am a full time day trader and am averse to position trades. However, I am resigned to the fact that if I want to take my trading to the next level I would need to learn to extend my time frame to 2-3 days out since a lot of good moves present themselves in that time frame. In addition staring at the screen 6.5 hours is getting old. However, I am a little worried about systemic market risk (i.e Sept 11 or bad news that sends the entire market up or down hard) I have thought of several strategies to minimize this-

1. Use of options in lieu of stock. If I am right, I make $ due to leverage, if I am wrong I won't lose much due to positive gamma on the option.

2. Find 5 long candidates and attempt to pair them off with an equal amount of short candidates to neutralize overall position
( getting too cute?)

3. hedge any long positions against a ratio of a certain stock that closely correlates the SP like GE, SPY,etc.


Any insight would be appreciated

Thanks
 
GAT,

Yes, a market neutralised position would probably be a safe option. Your option 2 is the one that I have myself considered.

Upside to a market neutral swing portfolio:
Market risk is mitigated (to an extent), sheltering the swing portfolio from major adverse shocks

Downside to a market neutral swing portfolio:
Returns will be lower, since some positions will inherently be taken against the prevailing market mood.

I suggest that the upside of market neutrality outweighs the downside for the simple reason that, in the event of a major overnight market shock, you will at least maintain your capital intact at the expense of lower absolute returns. I would view the returns forgone as akin to an insurance premium.

Candle
 
Hi everyone.

Hope you had a nice Haloween :) Now some work. I have been trying to grasp Tonys setups and have looked at numerous charts and have found that they come in a variety of shapes. However, my main problem is that there is noone who could tell me oK, this one could be taken , this one under no circumstances etc.

So, I made 3 distinctive types that id like to hear some comments on , which one would be OK, which one wouldnt... of course, ANY ONE might work, it also might rain now but if there are some general principles Id like to learn them.

Thank you all,
Alex
 

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