One of the hardest things to master when you are swing trading is when to push the pedal to the metal and when to hit on the breaks. We have two possible market moving events this week, ECB meeting tomorrow, and the NFP number on Friday.
TRUE, YELP, RATE, UIHC, CEVA, GIMO, IMPV, OPK, SSTK, DANG, ECHO, GWR, CNSL, WSTC, PYPL, GNW, are the names on my swing trading watchlist today. Link to CHARTS.
- How much you put at risk per trade depends for the most part what your current outlook is for the market over the next 0-5 days.
- Put these names on your trading platform.
- Set the alerts at yesterday’s high for each name.
- Once the alert goes off take a look at the chart, decide within 3 seconds whether or not you are going to buy it.
- Decide how much you want to risk on the trade and your stop loss.
- Hit the buy button, and leave the rest up to the market, wash, rinse, repeat. Buy’em tight, Sell’em loose.
- All this can be done pre-market.
- Its primary 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 five-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 ten days but who is to say that it won’t coil for another five 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 automate it with buy orders after 9:45 am.