When your trading time-frame is anywhere between 1-20 days a lot of the things that we believe are important are not. Trading books suggest that you should only buy a stock near its 52 week high, that it should be above a certain moving average, or that it should have earnings, etc….But very simply, if you take the time to study the biggest winners in the 1-20 day time-frame you might come up with different conclusions. Don’t be afraid.
These are the names on my swing trading list today; $MUSA $DRII $ENSG $EW $PLKI $DTSI $BABA $RH $LOCO $GNRC $MBLY $BERY $CHUY $MEP $COO $UAN $RUBI $CBOE
- Its main goal is to get you in when stocks are moving and keep you out in choppy/sloppy markets, it is imperative that you allowed the market to get you in only when the stocks go through their previous day’s high.
- Your awareness of how the market is behaving is crucial, this will give you an idea of how hard to push the envelope. My best indicator for this is my rolling 5 day watch-list.
- Swing trading is a numbers game, you are going to be wrong half the time, risk management is above all, and many times you will have nothing to do because the market did not get you in. We are not looking for any action, we are looking for the right action.
- Don’t be penny wise, don’t try to anticipate a move just because the chart looks good. You can have a great looking tight set up with a stock coiling for 10 days but who is to say that it won’t coil for another 5 days. If you anticipate the range expansion you might buy something that is not ready to go and it will only frustrate you and lower your odds of a winning trade.
- For me this list is a one way list – long bias. I do not look at this list as a long or short list, long and short are two different games with different dynamics.
- You need to be extremely organized. Most if not all your work will be done pre-market and you will spend the day just executing or you can just automated it with buy orders after 9:45am.
Photo; Marle-Chantale Turgeon