March 07, 2023 2 min read
One of the first things most rookie traders are interested in is swing trading. The best to describe swing trading would be as a short-term trade that doesn’t last for more than a month. These small trades are bought and sold within a short period ranging from a day to a month, depending on your swing trading strategies. The ultimate goal for most swing traders is to find the perfect move that’ll make their trades swing in the desired direction.
Now that we know how frequently beginners rely on swing trading, it’ll be much easier to understand the different swing trading strategies employed by them. While some traders choose to swing trade via conventional trading chart patterns, many others try to save time with quantitative readings and numbers.
The key is to find a swing trading strategy that works for you instead of experimenting with different methods and increasing the risk of losses. If you’re wondering which swing trading strategy suits you the best, here are three of them for you to check out.
A day trading strategy for beginners that can also be implemented as a swing trading strategy is the gap-and-go strategy. The process essentially involves choosing the stocks that are gaping in various directions on significantly high volumes.
It’s an excellent way to check the economic volatility on different days, determining the number of earnings by a specific company per day. If you’re trading in an environment with mergers, administrative changes, and acquisitions, it might be a good idea to go for the gap-and-go strategy.
It’s an effective swing trading strategy because you don’t want to miss out on the stocks before they run out in the markets, even if their prices increase. If you know your stop loss level and can stick to it, this swing trading strategy may work well for you.
Stock splits happen when the stock prices start skyrocketing, and companies increase the number of shares and lower their prices without impacting their overall value. Therefore, making the best use of stock splits is a good swing trading strategy that allows you to invest in shares at low price levels.
There’s nothing better than buying stocks are reduced prices without their company valuation being affected at any moment.
One of the most commonly used swing trading strategies among leading swing traders is the Fibonacci retracementstrategy. This strategy allows traders to determine the perfect level to enter the financial markets without risking losses. The idea levels include 38.2%, 50%, and 61.8%.
For more information on any of these swing trading strategies for beginners, make sure you become a part of our trading community platform at Trading Alphas. Our trading experts will be more than happy to assist you with our day trading and options trading courses for beginners. Contact us today!
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