Swing Trading the US Stocks [Novice]

[mpat89]

Hi all,
I have just started attempting to swing trade US stocks. I have never been able to trade actively with much success but I am now dedicating time towards it. Look forward to receiving feedback from others be it positive or negative.

The main reason I have started this journal on T2W is to face the scrutiny of other traders and learn what I am doing wrong.

I will post my trades and explain my reasons & hopefully we can get somewhere.

 

[mpat89]

The current trend on the S&P500 is up so I will be looking for a larger proportion of longs to shorts however I will take the entry so long as the chart looks good.

My first trade is long MS @ $29.80. The stock has been trending up since December. It is facing strong resistance at $30 and has tested it on 5 different days this year. The more the level is tested, the weaker it becomes. Today's candle shows selling pressure being rejected with support at $29 coming into effect and pushing the close up to $29.81. I view the overall price action between $29-$30 as bullish consolidation. I also note that today's low is a perfect bounce off the high of the candlestick before the gap suggesting that this is strong support.
I am interested to know the feedback of others on this trade.

Secondly I have bought WMT @ $55.94. The stock has previously broken resistance at $56 and is now testing it as support. I like today's bounce off the $55.40 level and feel this level of support may hold, I would have looked for a close below yesterday's low to confirm failure of the $56 level. I also like today's candlestick where we have a hammer formation into support, in an uptrend.


Stops for both trades are placed below the low of today's candle and both trades carry the same $ risk if stopped out. If the stocks go up from here I will trail my stops. Feedback always appreciated.

 

[isatrader]

Hi mpat89, is good to see another stock trader on here. There is a lot of forex traders on here, so I'll follow your journal with interest.

You might be interested in joining a new thread I started last week which is a trading group on T2W, where you make one pick a week and trade it on the thread. The link to it is: http://www.trade2win.com/boards/swing-position-trading/116688-one-trade-week.html#post1404498

Good luck

 

[mpat89]

Thanks isatrader. I have only become interested in US stocks because it is the only type of market that fits my lifestyle at the moment. Since I am only trading daily time frames, I would much rather be trading forex as I find candlestick patterns to be more reliable and you also you are not at risk from the sometimes deadly overnight gaps. I will stay clear of your thread as I don't really take the view that any one stock is likely to be a brilliant trade over a coming week. Instead I like to trade in a way that exposes me to the best opportunities and profit from them where I can.

 

[mpat89]

MS is up about 2% since going long, have reduced my risk on this trade by trailing my stop. If it carries on going up then I will continue to trail my stop though I note the stock is facing some major resistance now. Haven't managed to find many other swing trade entries though I'm sure there are many out there. WMT has not really moved and I am slightly worried it is printing a bear flag formation which will not bode well for my long.

One chart that caught my eye is CSCO. There is a massive gap on this chart in November and price currently sits close to the mid point. Today it has pierced the 200MA and been unable to break it. To me this looks like a topping tail into the 200MA and close below a previous S/R level. I got short CSCO @ $22.05 after hours as I was a bit late to spot this. My stop is above today's high and I am looking to exit near the 20MA. Earnings are after close on Wednesday so whatever happens I will be out of the position by then. It is possible the stock will consolidate from here but yesterday's high of 22.15 is looking like good resistance for now. Chart attached.

 

[mpat89]

apparently 2500 bids and 1000 offers at 22.06. strange that 22.06 isn't simply bid?

 

[mpat89]

Closed CSCO at $21.90, profit was roughly 0.5x risk for that trade. MS closed at $29.85, roughly break even. WMT closed for profit at $56.48, around 1x risk. Journal is up roughly 1.5x risk for one trade.