We have received so many emails, asking what is swing trading? How to do swing trading in stock market? &all. So I decided to write article on swing trading so let's start...
Swing trading is really very vast topic in stock market, I will try my best to give more n more knowledge in this article and share another article on swing trading soon.
We will use daily time frame for swing trading and for crosscheck we will also use monthly time frame just for confirmation. If stock is bullis stock will make higher highs and higher lows. Same as if it is bearish than stock will make lower lows and lower highs. And this waves called swings in trend trading. In swing trading we will catch this waves/ swings and trade.
Swing trading works on structure support and resistance. Let's learn this with an example.
Let's assume ABC company's share is trading at 100 and when it goes up and touches 110 and start showing correction till 107 and get bounce back un moving upside till 113 and when this stock will again shows correction this stock more likely to get support on 110 because 110 is now support for this stock. And 107 is 2nd support. If you want to trade at this time you can trade with strict stoploss of 107.
Before you take check that stock on daily time frame and also on monthly time frame if this both is bullish than this is strong buying opportunity.
If you follow this strategy your win ratio will definitely increase. Whenever you do the swing trade. First analys that stock on monthly time frame& daily time frame because when you work on multi time frame your chances of winning is increased.
* Advantages of swing trading.
-swing trading is very technical in nature
- you can generate regular monthly income
- it will save your time
You only need to do technical analys and when you done. You just need to get an entry with strict stoploss and target.
- risk control
When you do swing trading always follow risk reward ratio very strictly. It will reduce your risk of losing your capital. Trade only when risk reward ratio is favorable.
Swing trading is really very vast topic in stock market, I will try my best to give more n more knowledge in this article and share another article on swing trading soon.
We will use daily time frame for swing trading and for crosscheck we will also use monthly time frame just for confirmation. If stock is bullis stock will make higher highs and higher lows. Same as if it is bearish than stock will make lower lows and lower highs. And this waves called swings in trend trading. In swing trading we will catch this waves/ swings and trade.
Swing trading works on structure support and resistance. Let's learn this with an example.
Let's assume ABC company's share is trading at 100 and when it goes up and touches 110 and start showing correction till 107 and get bounce back un moving upside till 113 and when this stock will again shows correction this stock more likely to get support on 110 because 110 is now support for this stock. And 107 is 2nd support. If you want to trade at this time you can trade with strict stoploss of 107.
Before you take check that stock on daily time frame and also on monthly time frame if this both is bullish than this is strong buying opportunity.
If you follow this strategy your win ratio will definitely increase. Whenever you do the swing trade. First analys that stock on monthly time frame& daily time frame because when you work on multi time frame your chances of winning is increased.
* Advantages of swing trading.
-swing trading is very technical in nature
- you can generate regular monthly income
- it will save your time
You only need to do technical analys and when you done. You just need to get an entry with strict stoploss and target.
- risk control
When you do swing trading always follow risk reward ratio very strictly. It will reduce your risk of losing your capital. Trade only when risk reward ratio is favorable.
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