How to find the best swing trading services online
Table of Contents
What are swing trading services
Trading in the financial markets has evolved within a short time. New ideas on how to help traders have a smooth journey are constantly making it to the fire, and one such idea is swing trading services.
Not to let the cat out of the bag, we will give you pointers on what swing trading services and build on it later in this post.
You can think of swing trading services as trading services that render services such as trading strategies, swing trade alerts, signals, and educational or mentorship programs to swing traders.
Having mentioned that, it would be a bumpy ride (especially for newbies) if we continue to discuss how to find the best swing trading services without explaining what a swing trade is. And this brings us to the big question;
What is swing trading?
Whether you are into stocks, Forex, Options, or any other financial markets, if your trading strategy focuses on consistently taking small gains in short-term trends and cutting your losses almost immediately, what you are doing is swing trading.
As a swing trader, your philosophy is that little drops make an ocean. In this instance, little wins accumulated over time equals excellent return. Think compounding profits.
Unlike day trading, where traders enter trades and close positions at the end of every trading session, swing traders tend to hold their positions (or leave them open) and let them run for a few days. Some swing traders even let trades run for a couple of weeks or longer. Because of how much time swing traders hold their positions; you will be right to say swing trading lies between day trading and long-term trading or investing.
The swing trading strategy
Many swing traders strive for bigger wins but really don’t aim for big profits at the end of a trading day. Instead, they have their eyes on small and modest wins compounded over some time —days, weeks, and even months. Also, where day traders are hinged on hitting between 20% to 25% profits, swing traders tend to be more reserved and comfortable with a profit goal of between 5% and 10%. Yes, 10% profit may not sound like an enticing reward. However, compounding 10% profits over weeks and months will turn into something big. And that is the idea behind swing trading.
Swing trading strategies are intended to accumulate small wins over a longer period (compared to day trading) while keeping losses at a minimum. Speaking of losses, if you are going to settle for small wins that will compound to big returns, you must factor in losses and keep them small. To do that, you will have to stick to the trading strategy with a 3:1 profit-loss ratio, which is an excellent portfolio management practice. Keeping losses small is crucial to your success as a swing trader because if you get careless and incur a loss, the chances are that a single outsized loss will wipe the small gains.
Contrary to popular misconceptions about swing trading, swing trading strategies can also deliver big wins on individual trades. Sometimes, trades may exhibit large momentum and strength at the initial stage and yield bigger gains. When swing traders come across such trades with the potential of big wins, they take partial profits (with trailing a stop loss) and let the remainder trade run its full course.
What time frame do swing traders analyze?
As we mentioned earlier, Swing trading allows traders to keep their positions open for more than one trading session. And because swing traders can go for weeks and a couple of months, swing trading can be referred to as a medium-term investment strategy.
Even though swing trade opportunities can occur during regular trade sessions, they are mostly seen in highly volatile market conditions. As a swing trader, your primary goal is to anticipate a trend or move in the market and attempt to catch a huge chunk of it — no matter how small the returns. If you successfully execute this plan, you will be smiling at a swollen account.
While some swing traders opt for volatile financial instruments (say stocks), others settle for their sedate counterparts. Whichever stock or financial asset you opt for (whether volatile or sedate), your concern is to determine (using technical and fundamental analysis) where the price is headed next and rake in a large chunk of profit when the move materializes.
Hopefully, if things go according to your plan, you make the most of the situation and move on to the next opportunity. Because swing traders go after swings, which are usually big movements in the market, there is a greater chance of making reasonably large profits.
For instance, if you are using a 1:3 risk-reward trading strategy, you can best imagine the outcome if you caught a trend and rode it to the end. As such, swing trading presents opportunities for making huge gains while keeping losses small.
About what chart and time frame swing traders use, you can start your scouting for opportunities in the daily charts while also keeping tabs on the one hour and 15 minutes for precise entry and exit levels. You can also place your stop loss and take profits based on activities on the one-hour and 15 minutes time frames.
Are you looking for a swing trading course you can enroll in?
Swing trading is not as easy as people, especially self-acclaimed online trading gurus make it to look. It requires specific skills and a wealth of knowledge about market analysis — Technical and fundamental analysis.
You also need to be able to identify entry and exit points between every cycle of optimism and pessimism by leveraging information deduced from intra-week and intra-month oscillations.
Then there is a need to fully grasp the concept of transactional costs, risk management, and how to execute trades using the right risk-reward ratios (trading strategy). All of these and many more are what you need to become grounded in swing trading.
Check with us for the best swing trading brokers and educational programs
Thankfully, you don’t have to rummage or scout the entire internet to find the best swing trading course. You are welcome to check in with us and read about our swing trading course and how it could help you.
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