Swing trading can be a great way to profit from market upswings and downswings, but as I’ve always said, it’s not easy. Mastering swing trading techniques takes considerable time and effort. To help get you started, here are 30 rules to think about as you begin and ultimately master the swing trading game.
Rule 1️⃣: If you have to look, it isn’t there.
Forget your college degree and trust your instincts. The best trades jump out of nowhere and create a sense of urgency. Take a deep breath, and then act quickly before the opportunity disappears.
Rule 2️⃣: Trends depend on their time frame.
Make sure your trade fits the clock. Price movement aligns to
specific time cycles. Success depends on trading the right
Rule 3️⃣: Price has memory.
What happened the last time a stock traded at a certain level?
Chances are it will happen again. Watch the tape closely when price returns to a past battleground. The prior action can predict the future.
Rule 4️⃣: Profit and discomfort stand side by side.
Find the setup that scares you the most because that’s the
one you need to trade. Don’t expect it to feel good until you
take your profit. If it did, everyone else would be trading it.
Rule 5️⃣: Stand apart from the crowd at all times.*
Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit door. Your job is to take their money before they take yours. Be ready to pounce on ill-advised decisions, poor judgment and bad timing. Your success depends on the misfortune of others.
Rule 6️⃣: Buy the first pullback from a new high. Sell the first pullback from a new low.*
Trends often test the last support/resistance before taking off. Trade with the crowd that missed the boat the first time around.
