What is Swing trading? How to make profit from Swing trading

Swing trading means riding with the trend.  Normally swing trading will be one to two weeks. This is the way of making fast profit in stock market. Identifying stocks ready to jump is the primary step for making profit from Swing trading. 

How to identify stocks for swing trading.

There are a number of factors which will determine the movement of a stock in the short term.  Some stocks will go up due to investment of funds.  In some stocks the movement will be because of some positive news.  In some cases it may be due to dividend or bonus issue etc.  In some cases, stocks will go up due to concentrated trading by some groups. Hence whenever some positive news observes about a stock, study the movement and if any activity observes enter in the stock. Historical charts is the best way to identify stocks for swing trading.  Find out stocks with volume increase with upward movement.  Watch out the announcements in NSE, BSE websites and find out any Board meeting, or any important event for the company.  Watch the sector vise trend of stocks. Normally swing will be in sector vise.  One can observe movements in sectors ie, banking, technology, pharma etc.  Find out the best stocks in each sector and invest.

Go along with the wave

Swing trading is just like waves type.  Enter in the bottom of the wave and exit at the top of the wave. One should exit when a reverse trend observes in an up moving stock. This is the fastest way of making profit in stock market. Here also don’t be greedy.  One should exit from stocks when it shows a reverse trend.  Watch the movements of the stocks bought, regularly.  When one is in profit always keep trailing stop loss in profit.

Getting expert’s opinion   

It is better to obtain an expert’s opinion, if one is unable to identify stocks for swing trading.  If willing one can take subscription from paid agencies or find out the free service providers like http://www.mya2zweb.com.  Depending on the level of investment one can take a decision in this matter. Also watch out financial channels and financial news papers to identify best stocks.

Visit mya2zweb for free swing trading tips.

By Anonymous

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