What to swing trade

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Old Aug 28, 2010, 10:13am   #1
Joined Jul 2010
What to swing trade

Hey guys,

Been in a full time job and having family commitments, Swing trading over weeks is the most suitable type for my personality. But im not sure what to trade?

Iv read up alot about forex and chart analysis but feel that forex is too volatile to trade weekly. Would this be a correct assumption?

Whats a good alternative?
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Old Aug 28, 2010, 10:36am   #2
 
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Re: What to swing trade

For the same reasons I don't trade forex very much. I use the Nasdaq stocks mainly, which have volatilities to suit all pockets and regular trading hours. Plus, if you only trade the major fx pairs you have a much more limited pool to choose from.

Probably wouldn't suit many traders (why is fx so popular? no answers please - I can't stand the pain) but works for me.
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Old Aug 29, 2010, 9:37pm   #3
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Re: What to swing trade

I don't think it's too volatile over weeks. Just leverage your position appropriately and you should't have a problem. You also don't have to be in every pair there is.
However, I prefer trading stocks, stock indexes and commodoties. It doesn't have as much volatility as forex and runs smoother .. at least for my trading system.
Just on the sidelines .. you may want to make sure to start out with defined trading rules and a system in order to prevent losing right from the beginning .. just in case you don't have yet.
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Old Aug 30, 2010, 7:49pm   #4
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Re: What to swing trade

sheeru started this thread Thanks for the advice guys. I was just a bit stuck with what to do because i spend alot of time trying to learn forex-knowledge which will probably come in handy with any spreadbetting probably. I work from around 7:30-5:30ish so i think that it would be better to look into the Nasdaq stocks and the Dow Jones instead of the FTSE. Would this be a correct assumption?
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Old Aug 30, 2010, 11:38pm   #5
 
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Re: What to swing trade

Quote:
Originally Posted by sheeru View Post
Thanks for the advice guys. I was just a bit stuck with what to do because i spend alot of time trying to learn forex-knowledge which will probably come in handy with any spreadbetting probably. I work from around 7:30-5:30ish so i think that it would be better to look into the Nasdaq stocks and the Dow Jones instead of the FTSE. Would this be a correct assumption?
With your working hours you can devote some quality time to the USA market - closes 9pm. When I used to try to trade & work simultaneously I found i did neither very well. My advice with Nasdaq stocks is to beware of the highly volatile ones - can catch you out at first. Your forex knowledge shouldn't be wasted if you have developed a system that works for you - many systems can be applied to various instruments.
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Old Sep 6, 2010, 5:19pm   #6
 
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Re: What to swing trade

The only thing I trade is forex. You don't have to be limited to just the majors. I have 28 pairs to choose from. (Actually more than that, but that is all I trade.) I zero in on the best ones that look good for that week, and then trade accordingly. What would stop someone from trading the crosses?
As far as the suitability is to "all pockets", this isn't like the old days where you needed huge amounts to being a trading venture. Volatilities has a lot to do with personal risk tolerance.
As far as the originator of this thread is concerned, that's the main thing that needs to be addressed if you are going to swing trade. What is your risk tolerance? Also, make sure you margin in accordance with the type of trading you do. There needs to be a balance between the fear and the greed factors. All vehicles are tradeable if you have the methodology to go with it.
In trading forex, the opportunities are limitless. It is just a matter of choosing the vehicle or vehicles you want to ride in that day, week, or month. That is the biggest dilemma I have with trading is simply choosing what I want to trade. As an example many of the cable crosses are presenting excellent opportunities of what wil be excellent cable strength in the near future.


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Originally Posted by 0007 View Post
For the same reasons I don't trade forex very much. I use the Nasdaq stocks mainly, which have volatilities to suit all pockets and regular trading hours. Plus, if you only trade the major fx pairs you have a much more limited pool to choose from.

Probably wouldn't suit many traders (why is fx so popular? no answers please - I can't stand the pain) but works for me.
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Old Sep 6, 2010, 5:29pm   #7
 
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Re: What to swing trade

Better yet, start off with a demo so you don't lose live money. If someone has to ask what is best in any given situation, then they are not ready to trade live in that given situation.
Find what you want, how you want to trade it, and then make sure your methodology will fit the new paradigm. If everything matches, then you are ready to go live.


Quote:
Originally Posted by slight View Post
I don't think it's too volatile over weeks. Just leverage your position appropriately and you should't have a problem. You also don't have to be in every pair there is.
However, I prefer trading stocks, stock indexes and commodoties. It doesn't have as much volatility as forex and runs smoother .. at least for my trading system.
Just on the sidelines .. you may want to make sure to start out with defined trading rules and a system in order to prevent losing right from the beginning .. just in case you don't have yet.
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Old Sep 6, 2010, 7:15pm   #8
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Re: What to swing trade

sheeru started this thread Thanks for the reply..iv been trading forex recently and iv enjoyed it to be honest-also iv learned alot of forex theory such as fibonacci and sma's etc which are all starting to make sense and thie bigger picture is coming together slowly.
Iv got a demo acc which im gonna use to trade and im gonna try and trade everyday in the evenings for the next few months.

But what i dont understand is how do people enter a trade and then sit on it for a week and expect to generate a profit..surely forex are too volatile to do this-thats why i was asking about indexes and stocks. In order to do this do ppl set larger stop and limits to their order?
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Old Sep 6, 2010, 7:29pm   #9
 
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Re: What to swing trade

This is an issue you have to deal with if you want to be a "swing trader". You will get huge spikes along the way. It's the confidence factor in your methodology that will make or break you as a trader. This process is a part of assimilating your indicators that will as accuarte as possible ascertain the directional path of the pairs you want to trade.
An example is when the USD/CHF was near 1.1700. It was clear to me it was going to have a huge drop. A day after I entered that trade, the news created a 96-point one-minute spike against me. I could have panicked and jumped out, or take confidence in my methodology, stay with it, and then cash in a big trade later.
I issue a Weekly Report, and this is a cut-n-paste from this week's, "GBP/AUD: This pair is in for one volatile, nasty ride. Current level to the 1.6730 area is containment for this DOWN, During this week, this pair could complete a strong move UP, and then being a violent reversal beack in anothe DOWN. 1.7015--1.7605 is the upper range. The next reversal could go lower than current levels." that will bring it all together
The dip, so far, was exactly that, 1.6730. This is what I mean by combining the indicators by forming a winnign methodology. It has to be able to tell you in advance what is about to happen, and you act upon it.
Keep working at it, and then something eventually clicks that will bring it all together. Stay away from paid programs and classes. You will be glad you put in the peronsal effort.


Quote:
Originally Posted by sheeru View Post
Thanks for the reply..iv been trading forex recently and iv enjoyed it to be honest-also iv learned alot of forex theory such as fibonacci and sma's etc which are all starting to make sense and thie bigger picture is coming together slowly.
Iv got a demo acc which im gonna use to trade and im gonna try and trade everyday in the evenings for the next few months.

But what i dont understand is how do people enter a trade and then sit on it for a week and expect to generate a profit..surely forex are too volatile to do this-thats why i was asking about indexes and stocks. In order to do this do ppl set larger stop and limits to their order?
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Old Sep 13, 2010, 1:13am   #10
Joined Jul 2010
Re: What to swing trade

swing trade high ranging markets.. thats the best way.. i trade on the fast ranging pair.. gbp/jpy and eur/jpy and some of the new pair they just added but the price per pip and margins and just trash


yeah what you need is a none lagging indicator( hard to find) , you will also me a good setting. and proper trading know4
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Old Nov 11, 2010, 2:54pm   #11
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Re: What to swing trade

I'm going to talk to you about swing trading stocks, because to me swing trading forex sounds like a death sentance.

Despite what people tell you liquidity doesn't mean much for swing traders, what does however is the ability to spot patterns and get on the right end of them.

PXS: A penny AIM pharma company, this stock has been fluctuating between 2.80p and 3.50p for months. I usually manage to get 2 trades a month out of this, buying low and shorting high. There isn't really any technical analysis for this stock as it would appear other people are all doing the same as me, the great thing about this stock is the orders always get filled, even if you are inside the spread.

Fundemental swings:

OIL Spuds, usually I'll pick a stock that's spudding and then ride it upto the RNS. Examples would be EO. DES, RKH, GKP etc. I've always sold out before the RNS incase it's bad news, greedy people hold and those gamblers eventually get burnt to a crisp.

AIM Day trade:

Gusher: This is mega and ALWAYS works. You could setup an automated trade however I prefer to do it manually, due to the volatility of oil stocks. Basically set your screener to alert you on RNS. If it's a duster, go short, if it's a gusher go long. This was my first ever "system" (if you could call it that) and is still my most profitable trade. I've never tried this with US stocks but I would hazard a guess it's pretty similar.

Technical alalysis swings:

I use TA to swing the FTSE stocks usually boring **** like AV, RBS and LLOY, usually I'll setup my charts with a MACD histogram and follow sector rotation, volume and candlestick. It's ok, nothing great, probably get around 5% a month from it. I imagine thes are the sort of trades that people are taught on training courses etc.

Stuff I'm looking at:

I'm looking to branch out into ETF's and US stuff such as the S&P 500, my US buddies keep talking about options and crap like that, I try and tell them I'm happy with CFD's but they insist I get into it, so we shall see. I'm also doing a little forex so the future for me will be in forex and the US stock market (possibly options), that doesn't mean I'll ever leave the AIM, there is nothing like the rush you get from trading in the jungle (AIM).

Just a little more on the AIM for you:

In the jungle you got stocks ripping out 50% in one day, "fundemental investors" getting crushed everyday like origami, you got pump and dumps, market manipulation, stock manipulation, you name it the AIM has it but the great thing about it is when you get street wise more often than not you've already hit the bid before the order book starts lighting up like a christmas tree. When you can "feel" other peoples emotions just by looking at a chart that's when you know you've cracked it.

With regards to technical analysis one thing that got me placing better trades is this: know your enemies. You've got different enemies on the daily chart compared to the weekly chart. If I'm thinking of going long the first thing I'll do is zoom right out and look for shorting opportunities, 'cos that's what my opponents will be doing. If you're getting mixed feelings and decide that the trade could go either way, don't do the trade.

Last edited by leerees; Nov 11, 2010 at 3:14pm.
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Old Nov 14, 2010, 10:44pm   #12
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Re: What to swing trade

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Originally Posted by leerees View Post
I'm going to talk to you about swing trading stocks, because to me swing trading forex sounds like a death sentance.Despite what people tell you liquidity doesn't mean much for swing traders, what does however is the ability to spot patterns and get on the right end of them.

.
Pourquoi?
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Old Mar 8, 2015, 9:48pm   #13
 
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What are you using to find stock or ETF to rotation strategy portfolio. How are you selecting titles to rotation startegy and ahow are you backtesting portfolio?

Thanks

Palo
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