![]() SWING TRADER RESOURCES Swing Trading Software It takes some finesse to be a scalper, but unlike the ticket scalpers you find trying to make a quick buck, stock market scalpers can make a lot of money. Essentially, there is a small difference between the highest price one is willing to pay and the lowest price for which a seller is willing to sell it. This strategy is effective because of what’s called the bid-ask spread. A scalper will make hundreds of trades a day, but only make a small gain each time. Instead, they are in it for the small gain. These traders aren’t selling their stocks last minute outside the arena. Fundamental trading is similar to regular trading, but taking place in an extremely short time frame. While good news might be assumed to be met with a rise in stock price, you never quite know how the market will react to any news – use caution. The analysis comes in when a trader examines the expected effect of changes like stock splits, acquisitions and earnings reports. Fundamentals are the building blocks of a business and their stock price can be related to its activities. The crux of fundamental trading is analysis. ![]() A happy medium is to set a desired profit and stop there, think of the children. Careful though, stay too long and momentum could swing in the opposite direction, but jump too soon and you could miss out on potential profit. ![]() This strategy requires the trader to jump on board soon after the momentum starts and then ride the wave for a while. Here are some of the most popular strategies employed by swing traders Momentum TradingĪ stock is said to have momentum when the stock price starts to move in one direction and is accompanied by a high amount of trading volume. There’s a little bit of luck in there too, sometimes you just have to feel it out. These charts are used to filter out the noise – all the random trading – and identify what is likely to happen based on statistical analysis. In order to predict and analyze these patterns, swing traders use what’s called a swing chart. The only thing a swing trader cares about are trends and patterns. In swing trading, investing essentials like intrinsic value and company assets go out the window. So what is Market Cap? Take the number of total shares and multiply it by the share price. The tech companies that were just listed all have caps of over $200 billion. Referred to as “large cap” stocks, these titans have a market capitalization of at least $10 billion. Some examples are tech giants like Apple, Microsoft, Facebook and Google. These companies are well known around the world. High volume stocks are whales – the biggest companies on Wall Street. ![]() Also, because there are always people buying and selling, they will have no problem filling orders. Swing traders focus on these stocks because their prices fluctuate, even if by a small amount, nearly constantly. When we say volume, we mean the amount of stocks that change hands each day. The best companies to swing trade have extremely high trade volume. This principle of squeezing out the big players allows traders to have an even playing field – whereas they would normally be outclassed by superior capital, manpower and experience. This is because most investment companies do their trading in large quantities that are too big and slow to keep up with swing trading. It works because individual investors are able to better capitalize on the short term movements of securities better than trading institutions can. Simply put, swing trading is a short-term strategy that traders use to capitalize on the price “swings” of stocks, usually over the period of a few days.
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