Between Day Trade and Trends
If you are not a day trader or long term investor, you are a swing trader. It usually means you are holding on to a stock for at least a few days, but not more than a few weeks. Swing trading is
traditionally considered a low risk venture, especially for those who trade the large cap stocks. But is there really such things as low risk in these volatile times? Of course you can always just keep shorting the market. I think that can be the most risky in our current atmosphere. Some experts will tell you that swing trading only works in a stable market, where the prices don’t
fluctuate. I think most regular folk always saw the market as a playground for the big cats. That was until the influx of trading companies to the internet. So how much investment capital should you have? To quote the investment companies disclosure, and I’m paraphrasing; “never invest more than you have to lose.” It is like gambling, make no mistake about it. However instead of just rolling the dice, putting your chips all on lucky 7, or hopelessly watching the little pea spin around, you can learn what is the equivalent of counting cards.
Before we go any further, I would first like to determine that you are indeed researching swing, and not day trading. All part time traders are swing traders, because you simply can’t monitor an asset that you might want to transact at any second, on a part time basis. These rebels of tradition are literally traders, rather than investors, but can reap huge rewards in a relatively short period of time. This is the itinerary of a day trader. If you can’t commit or don’t have the time to pursue this strategy properly, I suggest you do indeed look into swing trading. Please don’t misunderstand me, swing trading can be a full time job as well, and for thousands it is. You just can’t do day trading part time.
Make no mistake however, in both strategies as with anything connected with investments, you had better be knowledgeable. Always have an exit plan or stop loss in place and it is essential that you have an excellent technical charting platform.
Knowledge and Training Lead to Confidence
Confidence Leads to Profit
Let us assume that you have some knowledge or you wouldn’t be researching the market. Any training you receive should be for technical analysis, or you are just wasting time and money. As far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage’s technical data are too small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
Let the Candles Light Your Way
Include Candlestick Charting for Even Greater Profits
For those of you not yet familiar with candlestick charting, I will
try to give a brief but accurate explanation. The Chinese invented the market concept, and the Japanese perfected charting techniques with the use of the candlesticks. It is easy to understand this complex system, if we simply break it down to the ticks on the chart you follow every day. We know that the lower tick is where the stock opened and the higher is where it closed. Now if we made the two lines parallel and connected them, what would we have? A candle. However, during that movement, the stock might have gone lower or higher then where it opened or closed, So our candle has formed a tail and a wick. Is it starting to make a little sense to you? Can you see the advantage of knowing this information, for getting in and out, and setting a stop loss?
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is access to some of the top trading systems available including software, books, newsletters, and Forums. Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking.
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