Image = Illustration of becoming a swing trader.
To
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
technical
indicator.
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
raise the standards of their swing trading management.
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
check
our unique web page about best times frame of swing trading
today.
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.
Step
Eleven To
Become
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.
Warning:
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
or shy.
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.
Conclusion
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
you.
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