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Swing trade system

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swing trade system

Remember me Forgot password? Our cornerstone hypothesis a day and swing trading system basically dictates that in order for a stock to attract, maintain, and gain momentum, it has to first align two of the three realms of trading in the same direction. Let's assume that the whole world of trading consist of three realms or trading sectors: The first swing is the one like us who trade lines on charts and execute trades based on our interpretation. The second group trade study an earnings report or dissect an annual report to justify their stock selections. And the third group consists of everyone else who trades stocks which is essentially the general public. They usually work for hedge funds, arbitrage funds, derivative and options funds, leverage buyout groups, etc. Long-Term Capital Management, though now defunct, would be the poster boy here. Blackstone Group and KKR are also prime examples. The second group, swing analysis, consist of pension funds, labour funds, institutional investors, mutual funds, index funds, etc. Warren Buffett would be this group's spokesperson and other examples would be most of the funds from Fidelity, Putnam, Franklin Templeton, etc. And the last realm is the general public that trade stocks but is not in the financial sector or have it as a profession. No money, no candy! The first two groups, technical and fundamental analysis "controls" the money to move stocks, buy out companies, engineer financial products, and especially, move markets. They usually have deep pockets and trade in the millions. The public, does not come close. The public is said to be "mostly wrong" which is true as the normal day goes like this. John or Jane Doe wakes up, turns on CNBC, hears that a Merrill analyst is "maintaining" the buy recommendation on Dotcom's stock after its earnings release, and calls his broker to buy. No technical or fundamental messing around as the broker is happy to get an unsolicited order. But the fundamental people deciphered that most of the profits came from a reduced tax rate so they start selling. The technical group then notices a break of the trend channel or trendline and they add to the selling as well as getting "technically" stopped out. The stock is now down 10 dollars and if all the professionals, the first two realmsare selling, who's buying? Well my dear, it is the public! Since there is a "Chinese Wall" at brokerage houses between the traders and analysts, the former sell while what we hear most of the time from the latter group are oxymoronic statements! Public, he surmises that since it was not a "Sell! And this is the start of a downward spiral. This scenario repeats itself so very often but at the end, we all know where the stock will end up, right? We have all seen the analysts say "buy" all the way down with NorTel, Worldcom, etc. Our day and swing trading system bases itself upon the fact that when the swing and fundamental groups are in sync and system together, take the signals that trade in the same direction. Respect this trend regardless of what the brokerage houses say because what they say is only for the general public. The amount of money the first two realms can throw at a stock will cause the Apples, Googles, RIMs, etc. They will buy at the opening and continue to buy until the closing bell. They will move our positions and it is here where we choose these day and swing trading selections. This buying or selling power by the technical and fundamental groups underscores our trading system philosophy. If the money is not behind the trade, the trade will not go far. You now have a step up by reading this thesis and if you understand and embrace our proposals, leave the public realm and join us here in the technical camp to develop your day and swing trading system! When institutions buy or sell, they usually run up a stock several points to complete their position since they trade in large lots. This is essentially what the swing trader looks for. Obviously, one cannot buy 10 million shares in one trade and also "mask" swing purchase so that other funds do not know that a particular stock is being accumulated. Institutions buy by lots of 10, shares thoughout the trading day and usually over several days. Swing trading exploits these type of trades to make short-term gains on the backs of a large accumulation. Seen below is a perfect example of how a swing trade works. So how trade we pick these explosive stock selections? And not to run ahead of our presentation, we will now show you how our simple swing trading framework "maps" out the entry point as well as the sell price since "a picture is worth a thousand words. The next swing trade illustrates how if the proper parameters are established before the trade, staying with the trend is easy with full confidence. Shown below is how the first chart on ADBE leaves the trader wondering where to buy and if the stock is too high. But the second graph pinpoints the swing system for the new up-leg as it pegs the buy price with exact precision for a confident entry and lets the trader "ride" out the trend by having a pre-established stop point as seen with its red line or "midpoints" that are supporting the prices. Our particular way of marrying technical analysis with swing trading keeps trading simple but effective with optimal risk and reward results. This type of technical analysis is taught on our website and by following how we set up and exit trades, you too can learn the unique and potentially profitable ways of swing trading. We have to use actual market quotations to illustrate exactly what we are doing and why we are doing it. Otherwise, the diaries and its entries of daytrader1. These trades are our teaching "tools" and at the end, are only examples. Copying these trades are in fact beyond our control and we are not responsible for any trading losses borne out from this type of action. We do trade give investment advice on this website but only attempt to show you some of what we trade and how we trade it. Treat this website as reading a professional trader's trading journals or "diaries". Past performance is not indicative of future profits nor are our opinions guaranteed to be successful. We do not make markets in the stocks that we illustrate and we may buy and sell any stock at any prices regardless of our commentaries. And due to unforeseen web or network related technical problems, we can be down for an indefinite amount of time without any prior notice. The use of our username and password will be deemed as an acceptance and understanding of the purpose of this website as outlined in the above disclaimers. Again, this website is not a guarantee to make money but a teaching diary of how we setup and exit trades. Again, we do advise against copying system daily trade examples as it is not a guarantee to make money. This site contains links to other Internet sites. These links are not endorsements system any products or services in such sites, and no information in such site has been endorsed or approved by this site. Day Trading and Swing Trading Systems Our cornerstone hypothesis a day and swing trading system basically dictates that in order for a stock to attract, maintain, and gain momentum, it has to first align two of the three realms of trading in the same direction. swing trade system

4 thoughts on “Swing trade system”

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