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Swing Trade Strategies That Actually Work

Swing Trade Strategies That Actually Work

As a novice trader, it is understandable that you have too many strategies to experiment with. You can choose to go the price action way or stick to swing trading. Or, you can even choose a completely different course of action. However, if you have chosen the swing trading way, then you are on the right page. Read on to know more!

What Exactly are Swing Trading Strategies?

Swing trading strategies refer to the kind of trading methodology where the trader tries to win with one move or one swing. It is a mode of trading meant to ensure that the trader faces the least losses as they can exit the trades before facing a total wipe-out from market reversal.

If you are someone with a full-time job who is trying stock trading online on the sides, then swing trading will fit you perfectly. Of course, you won’t be riding trends in this case. But you will like this online trading methodology if you want to lower the risk.

Swing Trading Strategies On Online Trading Platforms

Start Channel Trading –

In this case, you start by locating stocks that are showing strong trends while trading within channels. You will have to strictly stick to the trend if you take up this strategy. Thus, go for sell positions as the prices show a downtrend. Wait until the price increases and starts showing an uptrend before you move to buy positions.

Hold Your Trade! Swing Trading Strategies That Actually Work - My Trading Skills

Catching the Wave –

Think of yourself as a surfer catching the perfect wave in one go. In this strategy, traders enter right when the pullback ends, and the trend keeps continuing. Of course, this is not a suitable strategy for just about any trend. Traders only consider going ahead with this when the pullback is deep enough due to a heavier upside.

Resistance and Support –

When you are in the financial market with swing trading methodology, understanding resistance and support are important. “Support” is a price level that is below the present market price, and the buying remains so strong here that it overcomes the selling pressure. Thus, the price starts going up rather than going down. Resistance is the exact opposite situation to support. Therefore, it is profitable for a trader to take up a buy position on support and a sell position on resistance.

Going Against the Move –

This strategy is all about going against the crowd. So, you really need to take some risks in going ahead with the trade here. In this scenario, you take out the profits before the price dips to an extreme low after the resistance pattern.

Any financial trading consultancy will show a lot more ways to practice the swing trade. The four strategies mentioned here are the basics to get you started. So, download an Android trading app and learn more about the strategies to start your journey on the right note.