Swing trading?

Hi,

Is using fundamental analysis analysis suitable for picking shares which I intend to hold for just a few weeks, maximum of six weeks say? I have been reading up the basics online, PE and PEG ratio, gearing ration etc.

Any advice would be greatly appreciated.

Jim Nasium said:

Any advice would be greatly appreciated.

Click to expand...

Hi Jim,
Welcome to T2W. I'd be surprised if you get many (or even any) useful answers to your question, as the information you provide is minimal and the the question itself is too general in nature. If you haven't done so already, I suggest you check out the swing trading forum and see if that tells you whatever it is that you want to know.
http://www.trade2win.com/boards/forumdisplay.php?f=67
If not, come back with more details. Enjoy!
Tim.

Jim Nasium said:

Hi,

Is using fundamental analysis analysis suitable for picking shares which I intend to hold for just a few weeks, maximum of six weeks say? I have been reading up the basics online, PE and PEG ratio, gearing ration etc.

Any advice would be greatly appreciated.

Click to expand...

My answer is Yes.
You can use FA for selecting stocks which are of interest and then use TA for Risk Management and timing to trigger your entries and exits.
Consider also the overall market and the Sector of the stocks in which you are interested. These generally operate with a kind of tidal flow, taking many stocks with them. Money tends to move from one sector to another as it comes into fashion (Sector Rotation).
It is easier to work with stocks going with the flow, rather than against it or with no strong correlation to it.

E.g. At various times you will find some sectors in a Growth mode, for which PEG etc are useful. Likewise you will find retreats to safety e.g, Utilities, where dividends are of interest. These are for Long trades.

On the short side "When the tide goes out in the harbour, the good ships go down along with the bad" is a good general maxim imho.

The period you hold the positions should be dictated by the tidal cycle of the market/sector you are dealing with. You need TA to determine that, and you will find that it is not a fixed period of time.

Glenn

Awesome, thanks guys. Guess I have a lot of reading to do.