Tuesday, April 30, 2019

Swing Trading the Watch List

Swing Trading
When the market is trending strong, will at times swing trade 1/3 of a position from a day trade. A swing trade is holding on to a partial position, 1/3 or less over night and utilizing a trailing stop. The trail stop can be the low of the day or a close under the 15 minute 20ema or 60 minute 20ema which tend to offer the best short term trend line.

Example: you purchase 600 shares of XYZ at 20 with a stop of 19.70. Your exit goal is to sell 2/3 of the position at a 2R gain, 20.60, and trail stop the remaining 1/3 of the position, 200 shares. 

The trade runs to 20.60 and you sell 400 shares. With the other 1/3 position, 200 shares, will use a trailing stop on the 15 minute candle of a close under the 15 minute 20ema. If on the next trading day the stocks trades into the R2 pivot day can sell half, 100 shares, and maintain a trailing stop with the remaining 100 shares.




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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE