The market as well as most of the stocks are in band style movement. If the stock price rises for a few days, it will take the initiative to callback, and after a few days of correction, it will continue to rise. It’s the same when it’s down.
Swing trading requires us to buy at the inflection point of every intermediate upward trend, and sell when there is a certain upward trend in a short time. When buying and selling, pay attention to two points: when buying, as long as the mid-level upward trend inflection point appears, don’t care about the performance of the stock on that day; when selling, as long as the short-term downward turning point appears, both profits and losses should stop winning or losing out in the first time.
In order to make swing trading safer, four basic principles must be strictly observed in stock selection
- When buying, it is better to intervene in the first time when the main trend is good, and the turning point of the intermediate upward trend just appears, and sell at the first time when the main trend on the track is blocked and falling down; Individual stocks focus on long-term stocks in the low horizontal market, the first time intervention in large volume upward start is relatively safe. (eg. $SPY)
2. The overall market is the finishing point of a stock. When buying and selling, you must pay attention to the face of the market. When the main trend and secondary trend of the market are downward, it is better to stop Swing trading. There is indeed a medium and long-term upward trend, and the position of stocks that can be bought upward should also be lighter. Buy when the whole market is in a big fall, you must stop this operation; however, after a few days of the market crash, you can see the opportunity to quickly come to the band type operation, and you will surely make more money. (eg. $FB)
3. Only buy and hold stocks that have just started at the bottom, or just out of the bottom area, and the stocks whose stock prices have doubled in a short period of time will not participate in them; the market makers who focus on individual stocks will make a substantial increase only after fully absorbing and washing up the stocks, and absolutely do not participate in all kinds of uncertain just started adjustments. (eg. $GILD)
4、 We should study the theory of technical analysis and constantly improve our level of analysis, research and judgment and actual combat ability. Only when we are confident can we have a good attitude; Only when the mood is stable, can we see from the graph the language that ordinary technical analysts are difficult to reconcile. Never believe in hearsay and stock commentators. Only by constantly improving our trading system and improving our trading level can we find the golden key to open the treasure house of wealth and earn the money that belongs to us.
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