I have had success with strategies that placed the initial stop-loss just below the lowest low of the previous two bars (the signal bar plus the one before it). The chart that was shown earlier is pasted below with arrows to show what this would look like. Might be worth testing...
Who Thinks Swing Trading is Dangerous?
- Thread starter schizo
- Start date
I have had success with strategies that placed the initial stop-loss just below the lowest low of the previous two bars (the signal bar plus the one before it). The chart that was shown earlier is pasted below with arrows to show what this would look like. Might be worth testing...
Hello vincentnyc,
Friday I ended about $250, after recovering from drawdown 2 times.
I'm happy I was able to recover
Of all the posters here, I feel you know me and my style of trading the best. Honestly, I'm conflicted about switching over to swing trading. Certainly the current environment is the worst time to make that transition. Anyway, thanks for the reply.
All i know is, if someone presents you a chart without showing your the timeframe, where would you put your stops/targets? I don't think swing trading is any more "dangerous" than scalping or daytrading. It's all relative.
I'm primarily a volatility breakout guy, so I only care about the "quick" moments of temporary directional move.
Personally, I think the best swing trades start off as day trades where you're well in the money by the close and can tighten up your stop for a multi-day hold, but that's my arm-chair opinion as I'm not really a swing trader.
I can understand the conflict. I've dabbled a bit with swing trades myself, but mostly stick to day trading for now in this climate. I want to eventually implement more swing trades, but for now day trading is more profitable as I can extract more points with more precision and leverage.
If you're tired of sitting in front of a computer all day, why not limit yourself to trading only a few hours per day? And on the days that are likely to move?
Personally, due to my own schedule and preferences, I call it a day after 15-60 minutes if I'm well in the money. Usually, I only trade the full session if I'm in a drawdown and/or if the market's stuck in a range and I'm waiting for a move going into the Close. Lately I've been trading a bit too much, so going to reduce my hours a bit the coming week.
For example, I always take holidays off. So, no trading tomorrow for sure.
Also, I have to say that I really appreciate being flat by the Close as a day trader. I've swing traded in the past and some times quite successfully (mostly in stocks), but even if I was in a profitable position I would ALWAYS think about it and worry where the market was going. Doesn't matter if it was low leverage or high leverage.
So, to me, swing trading isn't necessarily less stressful.
So, to me, swing trading isn't necessarily less stressful.
I think one way to mitigate the risk is using the 4 hour chart rather than the daily. Also, unlike day trading, where reversals are easier to detect using S/R, I believe it's easier to trade the pivot zones for swing trading.
So for the upcoming trade, I will look to enter long at the midpoint of the bottom range (dashed line) and ride it up to the upper range. Stop is placed a few points outside the lower range.
So for the upcoming trade, I will look to enter long at the midpoint of the bottom range (dashed line) and ride it up to the upper range. Stop is placed a few points outside the lower range.
I by NO MEANS intend to tell you how to trade, nor purport that my trades are better etc.
However, I would not take a range trade on that chart because:
1) it is too old
2) In the big picture, if we capitulate now, all those stops in place are going to go off. So they are a serious stop run target. Don't be part of that crowd.
Better would be to go below the range on a breakdown that hesitates, the old falling knife.
1) it will go down and you will get stopped but total stop would be significantly less.
2) it will bounce and you can exit at BE ++++ and or go short
3) it runs towards the range high (70%) and you exit for a successful Swing trade for a Range,
In any case, it is just another trade with a reasonable R:R. And you get the benefit of entire days data before you have to act.
Yeah, I'm fully aware of that, and I plan to reverse to short should we capitulate. But I'm gonna take a small position for now and see where it goes. BTW what qualifies this as "too old"?
Hello Laissez Faire,
I agree with your post personally.
I only trade for 1 hour per day. Longer if I am in drawdown and need to get back to breakeven.
I do not like swing trading cause I have to live with the trade for hours and hours or days and days.
I do not want my mental and energy attached to the markets for long periods of time. I am not a machine or algo. I want to make alot of money and go about the day.