How to Make Money Swing Trading? Part I

Saturday, January 1, 2011

What is swing trading?
Swing trading is one of the most powerful ways to make money on the stock exchange. There are traders who make millions trading swing every year. Unlike popular buy and hold your trading strategy where investors buy a stock and hold for years, swing traders buy and sell stocks within a very short period of time, usually a few days to several weeks. Make a profit from short-term fluctuations in the price of the shares.

How to trade successfully talantoytai?
The first thing you should learn in swing trading is learning how to read a stock chart. A stock chart is a chart that plots the values of the shares of a corporation. This allows a trader to interpret a graph quickly and to predict future stock prices for this company. Merchants using a method called technical analysis to identify repeating patterns. For example, when a certain pattern occurs in a chart, there's a good chance that the stock will increase. Therefore, you must buy the stock when the pattern occurs the next time. The following is a list of popular patterns and technical uses the trader indicators (technical indicators are a key part of technical analysis).

PopularTechnical indicators
1. price & volume
2. Moving Averages
3. Exponential impact moving Averages
4. Candlestick patterns
5. moving average convergence divergence (MACD)
6. Stochastic
7. relative strength Index (RSI)
8. Average true Range (ATR)
9. Commodity Channel Index (CCI)
10. Bollinger bands
11. Money flow index (MFI)

Popular Stock patterns
1. support & resistance
2. Triangle patterns
3. Divide Up
4. the flag and PENNANT
5. Head and shoulders
6. Stocks deviation

In order to trade successfully, you need to know some or all of the above technical indicators and share patterns. You need to check and see what works best for you and trade using patterns sequentially. This is only the part I of swing trade. In part II, I will speak about psychology on the market that is as important as patterns in stock.


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