#SwingTradingStrategy
Swing trading is a strategy aiming to capture short- to medium-term price moves, typically holding positions for days to weeks. Here’s a brief overview:
1.) Identify Trends: Use technical analysis (e.g., moving averages, trendlines) to spot market trends or reversals. Focus on stocks, forex, or other assets with clear momentum.
2.) Entry Points: Enter trades at key support/resistance levels, breakouts, or pullbacks. Tools like RSI, MACD, or candlestick patterns help confirm entries.
3.) Set Targets & Stops: Define profit targets (e.g., 5-10% gains) and stop-loss levels to manage risk (e.g., 2-3% below entry). Risk-reward ratio should be at least 1:2.
4.) Position Sizing: Risk only 1-2% of your capital per trade to protect against losses.
5.) Monitor & Exit: Track price action and exit based on technical signals (e.g., reversal patterns) or predefined targets. Avoid holding through major news events.
6.) Tools: Use charting platforms (e.g., TradingView) and scanners to find high-probability setups.
Pros: Less time-intensive than day trading, capitalizes on short-term swings. Cons: Overnight risk, requires discipline to avoid emotional trading.