I recently posted a list of intraday and swing trading tips for beginners that everyone would find helpful. Since then, I’ve received several emails asking me to provide even more information on the topic for traders who are just starting out and are looking to learn how to swing trade stocks.
Most people start without understanding the emotional side of this trading style…
As a result, many people who have a good chance of becoming successful don’t realize their full potential because they didn’t put together a short plan to help them get through the difficult parts.
One thing I will mention — and this goes for both swing and day traders — is that you can’t learn how to swing trade stocks without going through the process with real money.
The key is to start small and work your way up from there.
Learn How to Swing Trade Stocks First
This is the best way to get your feet wet…
If you’re interested in intraday trading instead of swing trading, that’s great. But before you become a great day trader, you have to become a great swing trader.
Day trading is like swing trading on steroids…
So before you learn how to swing trade stocks, you need to make sure you can play the game in slow motion.
Swing trading will teach you how to do just that, which is why it’s often smarter to master this style of trading before even thinking of day or intraday trading.
Learn to Walk Before You Run
Once you begin to understand how markets work and how to read basic indicators such as TICK, TRIN and a handful of others, you’ll begin to gain a different view of the markets and how they behave at different times of day.
The only way to learn this is by watching the market in real time, which brings me to my next point…
Before you start learning how to swing trade stocks or even paper trade, spend a few weeks watching the markets and make notes about the different parts of the day.
Spend a few days watching premarket trading and the opening bell to see how volatility quickly rises… and then begins to fall off.
You should start seeing patterns develop.
Next, look at how the market goes into and out of lunchtime and how volume flows in and out. But more importantly, look at how your indicators react to the increase and decrease in volatility.
And then monitor the market as it heads into the closing bell.
You’ll notice that stocks with earnings or other news announcements always react in quick fashion as the closing bell approaches.
There is no way to learn how to swing trade stocks other than by watching the markets and monitoring your indicators to see how they react… and, more importantly, what happens when your indicators are in conflict with each other.
Things to Keep in Mind
Both swing and intraday trading indicators are the same, so the only thing different is the time frame.
When learning how to swing trade stocks, it will all look like a bunch of numbers flashing on the screen in the beginning. But after a while, you’ll start to get in tune with the market and begin to understand how each part of the day reacts to news and volatility.
Once you understand these basic steps, you’ll be in a better position to begin trading in real time with a much better understanding of market behavior.
That’s it for this swing and intraday trading discussion. For more on this topic check out these other articles: Learn to Swing Trade Options With This Beginner-Friendly Strategy and The Best ETF Swing Trading Indicators for Beginners.
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All the best,
Senior Strategist, WealthPress