[Music] hey traders and investors This is Swing trading 101 this is going to be a series that
we do here on the channel teaching Traders how to start from the basics and become profitable
swing traders in the stock market I myself am a full-time day in swing Trader and at Master
the market we turn beginners into consistently profitable Traders and that is exactly what the
goal of this series is going to be for everybody that's looking to get into swing trading this
is a great place to start and we're going to start from the basics here in this video and
in the future parts of this series we're going to gradually get more and more advanced so that you
can start making educated swing trades on your own make sure to like this video And subscribe to the
channel so you don't miss out on the future parts of this series now with all of that being said
we're going to start off with what the differences are between the types of Trades that we commonly
talk about which are day trade swing trades and then longer term investments a day trade is simply
when a Trader holds a position anywhere from a few minutes to a few hours but they're exiting
that position within the same day that they owe opened it this differs slightly from swing trading
because swing trading is when a Trader is going to hold a position for typically a few days up
to a few weeks and sometimes all the way up to a few months and swing trading is a little bit
different from investing because an investment is typically held for many months or even over a year
all of these have their own pros and cons and all of them are going to be a little bit better for
some people than they are for others but a lot of people I will say are drawn to day trading because
there is a potential to make a substantial amount of money in just a few minutes to a few hours but
of course with that potential for profit there's going to be a great potential risk swing trading
on the other hand is not necessarily as popular but it can be a little bit easier to get into
because there is less volatility and as long as they're doing it properly swing Traders shouldn't
have to deal with the losses as big as the ones that day Traders do okay so when it comes to pros
and cons of Swing trading as opposed to these other types of trading the first big Pro is
that there are large potential returns if you're investing in the General market let's say that you
buy the ETF for the S P 500 which is spy this is going to on average return about 10 per year so if
you invest 10 000 you can expect to on average make about a thousand dollars in profit every
single year from that long-term investment on the other hand if we take one of the Swing trades that
we just alerted in the market Master group over the past month the symbol is tsll it moves hand in
hand with Tesla stock only its leverage so every time Tesla goes up one percent tsll is going to go
up 1.5 percent and about a month ago we alerted this at 5.82 cents for a potential swing trade
and it's currently trading at about 12 dollars per share so it's gone up over 100 in the past
month or so which would be the equivalent of about 10 years of long-term investing in spy
another big Pro to swing trading is that there is going to be slightly less volatility than there
is in day trading and this really just comes down to the type of stocks that swing Traders choose
to trade as opposed to the stocks that day Traders choose to trade this is something that we're going
to get into a little bit more in the future of this series but simply put swing Traders are going
to usually be looking for more consistent trending stocks as opposed to these highly volatile stocks
that are spiking up and down very quickly another huge Pro to swing trading is that it can be mostly
passive this is great because if you are somebody with another job you don't have to dedicate your
entire morning to looking at the stock market reading news doing technical analysis like you
typically have to do with day trading you can look at some different scans and some different
screeners at any time of the day to find stocks that are meeting your specific criteria for your
swing trades you can place those orders to get into those stocks at the prices that you want
to buy them at and from there you can basically just set alerts to have the market notify you
whenever the price of that stock reaches a specific price so that way you can sell out
of profit or if you need to you can cut your loss on the trade another big Pro T swing trading is
that you're able to collect dividend payments on the stocks of course that do offer dividends and
then another big Pro to swing trading is that if there is an options chain for the stock that
you're swing trading you would then be able to create income for yourself by using what are known
as covered calls and really the only con of Swing trading as opposed to day trading and longer term
investing in my opinion at least is that there is the potential for unexpected news with day
trading the nice thing about it is that you're in and out of these stocks within the same day so you
don't have to hold those positions overnight and I would say about 99 of the time when a company
is going to put out some kind of news it's going to be after the market closes or before the Market
opens so if that news happens to be negative and have a negative effect on the stock that can cause
the stock to drop in extended hours trading and that of course would cause you to lose money on
your swing trade which is something that again day Traders don't necessarily have to deal with
now when it comes to swing trading and choosing a brokerage to open an account with for your swing
trading there are tons of different options and most of them are going to be very similar now that
most of these Brokers have become completely commission free for U.S stock trades with
that being said a few of the ones that I like to recommend are going to be TD Ameritrade weibull
and then interactive brokers all three of these are going to have a minimum account balance of
zero dollars so you can get started with as little or as much as you'd like they all are also going
to be completely commission free for U.S stock trades so you don't have to worry much about
fees eating into your potential profits and all of them have mobile app platforms as well as desktop
platforms which means that of course you can trade on the go if you're using your mobile phone
or if you want to use a more advanced trading platform they have that option available as well
so the next big question that a lot of people are going to ask is how much money do you need
to start my advice is going to be to start small a big account just means that you're going to deal
with bigger losses and there's no reason to put twenty thousand fifty thousand a hundred
thousand dollars or more at risk while you're still learning and while you're still building
confidence in your trading strategy if we take a quick look over here at this compound interest
calculator let's just say that we start with an account balance of two thousand dollars and
over the span of 36 months we're able to with our swing trading generate a profit of 10 per
month compounding those profits every single month in three years or in 36 months our account of two
thousand dollars would have already grown to over sixty thousand dollars so if we break this down
month by month obviously we can see going from two thousand to two thousand two hundred and then
from two thousand two hundred to two thousand four hundred twenty those are relatively small profits
but these small profits are going to add up very quickly if you're compounding them and if you're
using these trading strategies that are able to consistently generate a 10 or so profit so again
starting small does not mean that you can't make big profits in the long run with swing trading
I recommend you do just that instead of putting all of your hard-earned money at risk right off
the bat while you're still learning how to trade okay so that's going to do it for the part one of
this series make sure to stay tuned for part two because we're going to start talking about how you
can read price action and read charts in order to properly execute the strategies that we're
going to teach you if you want to learn more about day trading swing trading and long-term investing
in the meantime or if you want to join us in our daily interactive Trading Group all of that can be
found at my website Master the market which will be the first link Down Below in the description
but anyway thank you again for watching I hope you enjoyed and good luck with your training [Music]
thank you [Music]