Beginners GUIDE to SWING Trading

See ftse Swing thread

LondonTraderUK said:
Hi,

Few answers that could help a beginner to start well in Swing Trading.

1) What are the actual name of market(s) one can swing trade on?

2) Whats the 'reasonable' points one should risk, with this method of trading? 25pts? 50pts? 100pts?

3) Whats the maximum period; one can hold a swing trade position for? 3months?

4) On average; how many swing trades can be made within one year? 5? 8? 12?

5) What instrument is best used for this kind of trading? MACD/Stohastic/Fibonacci?

6) If fibonacci is used; what time-scale is best suited to find a good entry? daily? weekly? 2-weekly? monthly?

7) Once in trade, and in good profit, is it advisable to break-even? or reduce your risk to half the amount of your initial risk? e.g 50 risked initially, but reduced to 25?

8) IG Index, good for this kind of trading? if not, who would you reccomand?

9) The aim of swing trading is, to quickly be in profit, meaning picking the highs/lows of a swing, but if thats not the case, should the trade be considered as bad one and closed down in the first few days?

10) Market falls faster; but in the long term it rising, what is considered to be more profitable? buy or sell?

I await for some responses.

Jonny.
Click to expand...

Hi Jonny

see ftse swing thread its pretty good IMO and take it from there

Andy AKA
 
LondonTraderUK said:
Hi,

Few answers that could help a beginner to start well in Swing Trading.

1) What are the actual name of market(s) one can swing trade on?

2) Whats the 'reasonable' points one should risk, with this method of trading? 25pts? 50pts? 100pts?

3) Whats the maximum period; one can hold a swing trade position for? 3months?

4) On average; how many swing trades can be made within one year? 5? 8? 12?

5) What instrument is best used for this kind of trading? MACD/Stohastic/Fibonacci?

6) If fibonacci is used; what time-scale is best suited to find a good entry? daily? weekly? 2-weekly? monthly?

7) Once in trade, and in good profit, is it advisable to break-even? or reduce your risk to half the amount of your initial risk? e.g 50 risked initially, but reduced to 25?

8) IG Index, good for this kind of trading? if not, who would you reccomand?

9) The aim of swing trading is, to quickly be in profit, meaning picking the highs/lows of a swing, but if thats not the case, should the trade be considered as bad one and closed down in the first few days?

10) Market falls faster; but in the long term it rising, what is considered to be more profitable? buy or sell?

I await for some responses.

Jonny.
Click to expand...

In my opinion there is not one question out of all those you ask that can be answered with any degree of certainty or objectivity. Every trader will come up with a different answer because there is no definitive answer.

Perhaps the only question most traders are likely to agree on the answer to is number 9:

I would say if you trade a swing high/low and it is then violated that the trade is exited.
 
The market makes many Highs & .....

trader_dante said:
In my opinion there is not one question out of all those you ask that can be answered with any degree of certainty or objectivity. Every trader will come up with a different answer because there is no definitive answer.

Perhaps the only question most traders are likely to agree on the answer to is number 9:

I would say if you trade a swing high/low and it is then violated that the trade is exited.
Click to expand...

regards 9 IMO only


THE MARKET MAKES MANY HIGHS AND MANY LOWS IN A DAY BUT ONLY ONE TRUE HIGH AND ONE TRUE LOW ;)

Andy AKA
 
LondonTraderUK said:
Hi,

Few answers that could help a beginner to start well in Swing Trading.

1) What are the actual name of market(s) one can swing trade on?

2) Whats the 'reasonable' points one should risk, with this method of trading? 25pts? 50pts? 100pts?

3) Whats the maximum period; one can hold a swing trade position for? 3months?

4) On average; how many swing trades can be made within one year? 5? 8? 12?

5) What instrument is best used for this kind of trading? MACD/Stohastic/Fibonacci?

6) If fibonacci is used; what time-scale is best suited to find a good entry? daily? weekly? 2-weekly? monthly?

7) Once in trade, and in good profit, is it advisable to break-even? or reduce your risk to half the amount of your initial risk? e.g 50 risked initially, but reduced to 25?

8) IG Index, good for this kind of trading? if not, who would you reccomand?

9) The aim of swing trading is, to quickly be in profit, meaning picking the highs/lows of a swing, but if thats not the case, should the trade be considered as bad one and closed down in the first few days?

10) Market falls faster; but in the long term it rising, what is considered to be more profitable? buy or sell?

I await for some responses.

Jonny.
Click to expand...

I suggest you go to www.marcrivalland.com and buy his book on swing trading. It's very easy to understand and he shows you both the positives and the negatives of P&F and swing (Gann) trading.
 
develbis said:
regards 9 IMO only


THE MARKET MAKES MANY HIGHS AND MANY LOWS IN A DAY BUT ONLY ONE TRUE HIGH AND ONE TRUE LOW ;)

Andy AKA
Click to expand...

Where would YOU say that the price pattern that made you enter the trade, in the first place, has been broken? That is where you get out. There is no point in hanging on and giving good money to the market that can be used towards another attempt later on.

Andy, don't be so cryptic. :)

Split
 
trader_dante said:
..............Perhaps the only question most traders are likely to agree on the answer to is number 9:...................................
Click to expand...


Not sure that I agree with number 9, although I'm probably being a bit pedantic.

9) The aim of swing trading is, to quickly be in profit, meaning picking the highs/lows of a swing, but if thats not the case, should the trade be considered as bad one and closed down in the first few days?

I don't think you try to pick highs/lows per se, but you trade from potential highs/lows. ie: you're not trying to trade from low to high, but from low plus a bit (the "bit" resulting from whatever you use to confirm the potential low to a probable low)
to high minus a bit (the "bit" resulting from whatever you use to signify a probable end to the move).

good trading

jon
 
Sit and have a think, its worth it

Splitlink said:
Where would YOU say that the price pattern that made you enter the trade, in the first place, has been broken? That is where you get out. There is no point in hanging on and giving good money to the market that can be used towards another attempt later on.

Andy, don't be so cryptic. :)

Split
Click to expand...


Morning just Split

Price pattern is that like x stitch or something :?: :p

As close to the Entry as posible, and the best entry is the closest to being wrong IMO
closest to wrong = judged by your long term trend time frame

BLOOD ON THE STREETS ~ FEAR & GREED

Low Risk trades my friend LOW RISK

If all the stops are over and under the last swing high or low = I NO YOUR HOLE CARD MATE

Signal given = wait for the pull back and if required miss the party don"t risk losing your bank even 1 in a hundred times by chasing a train thats already left the station

You only need to slip once onto the track and you could get squashed :eek: FLAT

If its a proper bank you only got one. You only have one emotional and mental bank.

Well maybe 2 if your hard as nails like me :LOL: :LOL:

Andy AKA
 
These are my Friday night swings for next 3 days ,, Only SBUX was to day's trade,,, The LOW pos size on SBUX is due to rally on friay from the low of the day ,,, This could have been a potential spike against my other postions so to reduce risk i reduced pos size.

I should have been in short CFC and ABK as well but did not want to expose to to many Financial stocks.
 

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