Swing Trading

Trading Strategies and Comparisons

Successful Swing Trading or Trend Trading attempts to ride strong trends or swings in stock prices with the goal of profiting from such swings. Such a strategy has merit with high potential small to large cap stocks.

Such trading is especially speculative and risky for trading trends in rocket stocks.

The Swing-Trader attempts to complete trades within a week, and sometimes within the same day


Trading Trends compared to other Trading Methods

• is like day trading, in that it is technical analysis dominated trading using similar smart algorithmic trading programs and direct access trading desks to that of day-trading.

• researches basic fundamental data as an aid to technical analysis.

• is similar to day trading in that it is short term although not nearly as short term as day trading.

• is used successfully by some investors who attempt to buy or short positions of strong trends in prices that are already well established in stocks, options, commodities or indexes.

• makes potentially more profit per trade then day traders, but the day trader actively trades far more often - thousands of times per year.

• is similar to Extraordinary Investing in the sense that times will exist when the successful penny stock trader (Extraordinary Investor) will invest for the short term.


NOTE: Sometimes Extraordinary Investor trades are completed in the same day, even within an hour, and that is okay, but do not exceed 3 day trades in a 5 day rolling period or your account will be restricted from ever making such day trades again until you open a day trading account.


Technical strategies are best used with small to large cap stocks that are either very bullish or very bearish. Such information can be found by studying earnings reports, consumer demand, history of share values, determining the likely long term trend.


Swing Trading is not suited for rocket stock trend trading.

Smart trading software and strategies used by trend traders does little to eliminate the risks of trading rocket trends in penny stocks for the following reasons:

• Penny stocks rocket stock trends are almost impossible to predict with technical data and basic fundamental research.

• Smart technical trading programs are so common, and becoming ever more sophisticated, that technical programs of competing traders are tracking each other, thus cancelling out potential trends. This is true even when trading small to large cap stocks, making such trades ever more unpredictable.

This concludes this subtopic: Swing Trading.

Learning more about the similarities/differences between extraordinary investing and swing trading / day trading is essential to understanding the benefits and limitations of technical analysis.

And that takes us into the next chapter of Your journey. . .

Please Click your mouse over: Stock Trading Strategies