Image = Illustration of becoming a swing trader.
become a swing trader does not need to be too complex any more if one
grasp what it takes to swing trade like a pro.
Indeed, there are several steps that help achieve that goal.
Step One To Become A Swing Trader
One must never trade anything else apart from the price-action. Moreover,
one will draw channels, trend lines and key support and resistance levels on all time frames one is using. More than fifty percent of the time is dedicated to the chart analysis instead of the technical indicators. One will always remember that though technical indicators are very useful, they only give warnings (indirect trading signals). The price is the ultimate
To fool a swing trader, all one has to do is to make him or her trade something else or a distorted price-action.
Step Two To Become A Swing Trader
Always try to enter a swing trade on Tuesdays after New York opens instead of Mondays. One wants to allow the market to show its hands on Monday so one may have a bit of idea where it is headed. Note that, generally the Monday's price action only reflects market orders instead of real trading activities.
Step Three To Become A Swing Trader
A swing trader should never use the technical analysis alone. The best approach is to combine both technical and fundamental analysis. The minimum fundamental analysis is to compare the current liabilities with the total current asset.
A company with a growing current asset (enough cash and other liquid assets)
are more bullish than those that fail this Google finance acid test.
In another word, if one has a bullish high probability technical trading set-up, but the stock has failed the acid test, one can transfer that stock to a bearish watch-list.
Stocks that pass the Google's finance acid test are more likely that rise if a high
probability trade set-up is in place.
Remember, there are more to an in depth fundamental analysis than the Google finance acid test.
The fundamentals can change the dynamic of a robust technical analysis.
Step Four To Become A Swing Trader
Avoid the seven biggest trading mistakes, and start achieving consistent winning trades.
Though many are able to swing trade, they continue to fail as they have not yet overcome the seven top trading mistakes or endeavour to stay away from them.
Indeed, a swing trader will quickly boost trading results or enhance decisions just by reducing those mistakes. On the other hand an experienced swing trader can spend several years without reaching the break even point if he or she is disregarding the biggest trading mistakes.
Step Five To Become A Swing trader
To become a competent swing trader, it is compulsory to understand and apply
the trading triangle. The ability to combine the four components of the trading triangle will quickly propel one's
swing trading to the professionals' standards.
At this level, one is able to make consistent accurate trading decisions by analysing altogether the following:
1/ the market,
2/ the sector,
3/ the financial security that one is about to buy or sell, and
4/ the heart of the trading triangle
(market leaders and indicators, economic news and fundamentals).
Swing traders who master the trading triangle can swing or position trade in any market environment. In fact it is fair to say that they are competent swing traders. They have stopped wrestling with the financial markets, and begun to flow with them. Contrary to the one-sided swing traders who can only buy stocks, they are equipped to sell and buy without fear.
Step Six To Become A Swing Trader
One is always ready to buy or sell at any time. One understand when a bearish signal turns bullish and vice versa.
One also grasp the importance of having two watch lists: one bullish and the other bearish. One becomes not only agile but also flexible. Typically, one reverses to a bullish watch list as soon a bearish market becomes bullish. It becomes clear that as a swing trader, one is always trading first the market before anything else.
Step Seven To Become A Swing Trader
Be able to compile a list of high probability trade set-ups that one understands and knows how to trade.
In reality, if one does not have a list of high probability trades, one is like someone who is shooting in a void without a target. All professional swing traders know their set-ups (high probability trading set-ups). Those set-ups
are integral part of their swing trading strategies. By knowing them, one will be able to use a stock screening software to readily fetch them as one begins the initial swing trading preparation.
Step Eight To Become A Swing Trader
A swing trader without a robust money management is gambler or careless trader who may never work for any reputable investment bank or hedge fund.
Moreover, an inadequate money management strategy is better than none. Considering that a swing trade requires a bigger stop loss than day trading, one must endeavour to control the risks, minimise losses and protect trading account. It is logical to affirm that without a well funded trading account one can not adequately swing trade. The worst thing that can happen to a swing trader is to deny him enough swing trading fund to trade in a trending financial market.
Typically, swing traders apply the five percent money management rules. A hundred thousands dollars trading account can not open trades that exceed five thousands dollars. Once one reaches five thousands, one will not place any more trades until there is more money available.
Step Nine To Become A Swing Trader
At this stage, one wants to learn exactly how to manage swing trades like a pro.
There are specific steps that one must take. I have already discussed those steps.
Those are practical swing trading management tactics that a swing trader ought to
master. Remember that one can swing trade like God, but if one does not know how
to manage swing trades, one may not get paid.
Though, most swing traders neglect this step, I encourage traders to do everything to
Step Ten To Become A Swing Trader
One will become a better swing technical trader as soon as one begins to pay a greater
attention to the medium term trend. To understand more this essential topic, be sure to
our unique web page about best times frame of swing trading
Generally, professional swing traders use a specific medium term that relates
to a specific long term trend. For example, the medium term trend of the daily chart
is the hourly chart, but the medium term trend for the monthly chart is the daily chart.
So, a swing trader ought to monitor that medium term trend because that is where
the knot of the trade dwell. Understand that, when the medium term trend
begins to align with the long term trend (and the long term trend is still in place, not about to end),
one has a viable swing trading opportunity. I will not dwell on this for now, but will write another article about the importance of the medium term trend for a swing trader.
Do you have a viable swing trading system or strategy that works for you? Now, having a robust swing trading system or strategy is essential but that is not the most important thing. One must master that swing trading system or strategy because the most important swing trading tool is the
swing trader. That is why I am writing this article about how to become a swing trader today.
The key point here is that a swing trader must have a viable swing trading system or strategy that does not get jammed in the heat of the swing trade during markets opening hours. Know your strategy very well, understand it. Demo trade it until well polished to stand the ups and downs of the messy financial markets. You can purchase the TSTW SYS 008 and if after fourteen days, you
are not satisfied, I will refund you in full without asking any questions. The good news is that after
we are still friends.
I do not wish that beginners swing traders buy the TSTW SYS 008 because swing trading is for
more experienced swing traders who understand a bit how the financial markets work.
There are more work needed after one purchase a swing trading system and it is not for the weak
Step Twelve To Become A Swing Trader
The last step one must take to become a swing trader or to swing trade like a pro is to do everything to understand
other market participants. One is not alone in the financial markets, though one may be alone trading in a small office or room. Indeed, decisions made by other market participants will surely influence your swing trade whether they are crazy or useless market participants. Therefore, a swing trader who understand more others, and most importantly what they are up to, will navigate through this slippery financial market and get paid at the end of the day. Truly, a smart swing
trader must diligently check on the position traders and follow them without stepping on their feet. An intelligent swing
trader must always go into the minds of other swing traders and fundamental traders. Look left, right, up and down and know what is going on before daring to hold a swing trading position for more than three days. A day in the financial market is like a year and many ups and downs can take place within one hour. Take time to understand other market
participants because they are the cause that moves the price.
As you can see there is no short-cut to a successful swing trading in the financial markets. It takes a bit of willingness
and effort to become a more efficient swing trader or to swing trade like a professional. The twelve steps to becoming
a swing trader are simple. However, the challenge is to make that decision to become a better swing trader, and follow
the steps until one matures into a fully fledged swing trader. It is mistake to pretend to swing trade if one is not yet a swing trader. Become a swing trader first, or know how to adopt the mindset of a professional swing trader, then start
swing trading live. Do not waste money swing trading when you are not yet ready. I hope, I have helped you a bit and
show you the way out of the wood today. Focus on becoming first a better swing trader and the rest shall be added onto
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