Stock Swing Trading for Beginners
Few days ago I wrote an article about witnessing traders transitioning from paper trading to real time swing trading with real money. Now the title to this post is Stock Swing Trading for Beginners, but these guys were not beginners, they already made the transition to real time trading, you may be saying to yourself. The truth is until a trader is constantly or consistently profitable, they are considered a beginner.
I decided to put together a few more basic tips for both swing traders and day traders alike.
First, find one strategy and stick with it till you become profitable over a substantial amount of time. What many traders do is trade several swing trading strategies at the same time. This is like someone who just started driving a car for the first time to switch cars. I don’t know about most people, but it takes me time to get comfortable driving a different car and I have been driving for over quarter of a century.
Most stock swing trading for beginners books suggest trading multiple techniques and methods simultaneously, I discourage this and advice following one simple method till you completely feel emotionally comfortable entering as well as exiting trades using one simple swing trading strategy.
A good strategy would be the Tail Gap Method or the 4X4 Retracement Strategy. You can find both of these methods described in greater detail on our websites trading blogs. We also have videos detailing the rules of both strategies on the blog as well. I highly recommend you check them out for more information about these simple strategies that apply to stock swing trading for beginners.
The second most important thing to keep in mind when you begin trading is to liquidate positions if they stop moving. Volatility is the bread and butter to swing traders and day traders alike.
You need volatility for swing trading strategies to work the right way, make sure you measure the volatility levels before entering positions.
Moreover, if volatility stalls while you are in a position, you may consider liquidating your trade in full or partially, as lack of motion is the death of a short term trade.
Many stock swing trading for beginners books recommend entering the market when volatility is low and exiting when volatility is increased substantially. This all depends on the strategy you choose to trade; if you are trading volatility breakouts, this advice would be very hard to follow since most volatility breakouts occur high levels of volatility.
If you are trading retracement swing trading strategies such as 4 day pullbacks, then entering with low levels of volatility and exiting when volatility is high would be would be a natural occurrence.
These are just a few more tips that you may want to apply to your trading tool belt. While these nuggets of advice may sound basic and simple, you would be amazed how often they are ignored or forgotten.
For more on this topic, please go to: Swing Trading Mentor – More Important Than You Think and Learn Swing Trading Strategies – Important Tips For Short Term Traders
Wishing you the best,
All the best,
by Roger Scott