How To - Swing Trade!
Swing Trading Method
The market is a risky place...
it's for gamblers...
many lost money in the market...
okay dear cool down, try this method.
This website is developed as a hobby to track stock performance. Stocks listed on this website are filtered through a proprietary method developed by me. Over the years I had been using the stocks listed in the filters and making profits.
The concept of how to trade the stock is kept very simple... I like to use the KISS method (Keep It Simple and Short), you can also read in detail about this method in my book.
Okay... how to make money out of the stocks listed in the Momentum Stocks link...
Important note: Risk with the money you are not dependent on.
Consider this activity as a part-time business, any business has risk involved in it. We need to have discipline to control the risk and take the business to the next level. In this method, you will observe that the risk controls are in place, hence there is a high probability that your business would succeed.
Step One:
Make sure that you have a free account on TradingView.com
Step Two:
i. In the tradingview.com chart, add the Built-in indicator Supertrend
ii. Go to the setting of Supertrend and change the ATR Length to 14 and Factor to 2
just one indicator! Is it enough!!, I am trying to keep my framework simple, if you are comfortable with other indicators, feel free to add them.
Step Three:
i. click on the Momentum Stocks link
ii. you will be presented with a list of stocks
iii. click on each and every stock at the end of the day
iv. if you see Super-trend changing from Red to Green that's the stock to enter
Example:
OR
iv. if you see Super-trend is already Green and the Price breaking out of consolidation and closing above the previous swing high, that's stock to enter
Example:
Money Management
1. Divide your capital into 10 equal parts
2. Max trades you should have is 10
3. If you hit 4 consecutive Stop Loss hits, do not take the next trade for a Week
3. Journal your trades
Sample Journal Record
Date || Stock || Entry Price || Exit Price || P/L Pct ||
Step Four:
Obviously, the next step is to exit the stock in profit or loss, if the Supertrend changes from Green to Red, at the end of the day then Exit. At this point, keep no doubts in mind, just Exit. (period).
if things go well, we can take entry again at a later point in time.
The above method is tested and working good for me. Initially, for the first 20-odd trades, you may wonder if this works or not but as you keep taking trades, you will gain experience in identifying patterns. There is no better teacher than to assess your historical trades and understand what worked and what did not.
It's a continuous process, learn and earn.
If you learned something, please share it.