Swing Trading Strategies
What Swing Trading Strategies you want to use can vary depending what
financial product is being traded,
where as stocks and options can normally only be traded between 9.30 am and 4.00
pm EST, Forex and Futures can be traded virtually 24 hours from early Sunday
evening to Friday afternoon.
The normal criteria that distinguishes
a swing trade is that it is held overnight, if not held overnight most
would say it was a day trade. This is fairly obvious for stocks
and options, but it is not so clear for Forex and Futures because of the trading
hours as already mentioned.
For the Futures markets, the USA
markets that is, even though they do trade 24 hours a day while open most of the
activity is between the same market hours as for stocks.
Forex market the activity is more around the clock, depending on when the main
markets are open, that is the USA market, the European market and the Asian
market, and of course it also depends on where you live in relation to those
Another aspect of swing trading apart from how long to
stay in a trade is at what point to take profits, if you can swing trade
an option and make 20% in 24 hours for many that is a very good trade and would
close the trade at that point.
For others making 50% would be their
target profit which can easily be done when trading options, when doing it
correctly. If you are a swing trader that likes to hold for 2-3 weeks
your option swing trade could produce 100-300% return.
If you are
the trader that likes to hold for a longer time it may be wise to start to take
some profits off the table at various points in the trade, this helps to reduce
your risk in the trade and minimize losses if the trade suddenly goes against
From the above basic discussion it is easy to see that there
are mainly points to consider when talking about swing trade strategies.
If you would like to know how a professional swing trader thinks and
handles these issues please read more about how to swing trade like a
professional using the link below:
>> Swing Trade Like A
And don't forget to sign up for this free 5 day
video trading course which reveals some swing trading secrets
Free Trading Course