Learning about swing trading?

Joined
May 2021
From
Outside the US
I am just learning about swing trading and enjoyed reading your posts. Could you link to any good references that helped you when you were starting out?
 

evo

Site Admin
Joined
Apr 2017
The basics of swing trading is to a)identify the trend, and b)identify key levels of support and resistance. Those things are not difficult, but take some practice, and from there, you make a plan.

The easiest method for me, with the most gains, has been to wait for a market move, identify the first three pivots to create the trading range. And from there, simply trade the range... long support and short resistance. Your last trade will be your losing trade, when the trend breaks. The trades before should all be in profit.

Manage your stop losses and your risk to reward ratio. You can always paper trade until you get good results, before moving onto live spot action.
 
Joined
May 2021
From
Outside the US
When you say 'manage your stop losses', do you mean stop losses you set on an exchange and wait for them to be triggered automatically, or do you mean set a loss level in your head (or on paper) and exit the trade 'manually' as the asset drops to said level? I have had some bad experiences with exchanges and automatic stop losses.
 

evo

Site Admin
Joined
Apr 2017
When you say 'manage your stop losses', do you mean stop losses you set on an exchange and wait for them to be triggered automatically, or do you mean set a loss level in your head (or on paper) and exit the trade 'manually' as the asset drops to said level? I have had some bad experiences with exchanges and automatic stop losses.
Everyone has different risk tolerance. Most people say 1:3 is a good setup... a stop loss of 1% for the possibility of a 3% reward. Standard stop loss can also be previous swing low for a long position or previous swing high for a short position.

If I am in a scalp trade, I usually run with no stop loss, and exit the trade when it hits 1% to 3%, depending how I feel the setup I planned is going. And once I reach my planned goal, I take some profit and set a trailing stop loss, which gets wicked out farther into the trade.

As the trading market matures, and more bots are running the big trading, they can see the stop losses for people and will try to wick everyone out before going onward. Weekends are primarily bots trading FYI
 
Joined
May 2021
From
Outside the US
Great info - Thanks. Is it possible to develop and execute a good strategy without the use of a specialized 'trading platform' or the use of bots? Any recommendations on trading platforms or bots?
 
Joined
Aug 2020
From
Hungary
Great info - Thanks. Is it possible to develop and execute a good strategy without the use of a specialized 'trading platform' or the use of bots? Any recommendations on trading platforms or bots?
In my opinion it is not at all necessary to use bots. I'd even say it's better to start out with manual trading, because it can be hard to find or develop a trustworthy bot.
 

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