what is swing trading talking about swing trading the overall idea of swing
trading and how you can make money swing trading in the stock market talking
about it in this video so stay tuned
what's going on guys so there's a lot of different ways to make money in the
stock market you can do long term investing you can do day trading you can
do swing trading you can do options trading there's a lot of different ways
to do it a lot of different ways that people have figured it out different
strategies and the best thing I think really is for people to figure out what
works best for them their type of trading their type of schedule
and kind of just their overall game plan I've seen people that make money in the
weirdest ways in the stock market and it's not to say they're doing it wrong
or anyone's doing it right really at the end of the day it's about making money
so I want to make this video talking about swing trading and kind of what I
look for when I swing trade and also kind of the overall idea of what swing
trading is comparing it to day trading because we normally talk about day
trading but today we're talking about swing trading when I think about swing
trading I think about day trading but on a much larger timeframe so instead of
looking at a one minute chart I'm looking at an hourly chart a daily chart
I'm trying to identify larger trends on a larger timeframe so instead of just
looking to make quick money in and out fast in one day I might hold for two
three days or maybe a week maybe a month it really depends on your overall plan
for the swing trade there's not really an exact formula but the big thing
really is to be able to identify trends and I think when you day trade you do
kind of see these trends you learn about these trends so you can apply those same
types of trends on a much larger timeframe which then makes you a swing
trader so you can really kind of combine the two aspects day trading and swing
trading and be successful at both if you're able to identify the trends
overall but it's much easier to see the trend on the long term on the much
bigger picture than it is to see the trend in the smaller timeframe so if
you're looking at the 1-minute chart the 5-minute chart it's much more volatile
you know a stock might jump up really fast and crash and it might look like
it's crap I might look like a bad thing but if you
look at the overall larger timeframe so you can see that it's trending in that
certain way or you can see the overall trend on that larger timeframe so that's
what we're looking for when we're swing trading is to identify these trends so
kind of breaking down looking at the chart here and give you guys an idea of
what I look for when I'm swing trading and kind of that overall idea and plan
so normally when I'm looking for stocks that I want to swing trade I'm looking
for stocks that have had a pretty bullish chart and have pulled back down
to support previous support that they have tested before that they have held
before and you know the big thing here is to make sure that I'm swinging a
stock that isn't going to crash on me you're not looking for very volatile
stocks I'm looking for just nice steady gainers overall it depends on what stock
you're looking at in terms of volatility and the risk reward but looking here at
HD this is home depot and let's say I wanted to go swing trade on home beep
this is actually looking pretty similar to Walmart chart as well so Home Depot
back in January it was up there the $208 area and since then it's pulled back
down here to the support area at the 175 looking we get some decent support there
kind of double bottom in there and then some more support here 176 years it's
showing that there is support there 50 EMA you got the hundred EMA and then the
200-day moving average down here at the 171 area so if I'm looking to swing
trade this where am I looking to swing trade I'm looking to swing trade with
the least amount of risk and a decent amount of reward and I don't need to
have a homerun I don't need to have you know oh the stocks a couple hundred
dollars in the next couple weeks I just need to get in on a swing trade that I
feel like it has a good support area so if I'm looking to swing trade here on HD
what am I looking at by looking at 175 176 here you buying this type of support
they're hoping that we're gonna break out of this downward descending triangle
here and then hopefully getting that move back up here to the 190 so you can
see this 170 you can see this 190 area here was previous resistance so let's
say this thing pulls back down here to 175 where is my profit goal gonna be
gonna be 190 area if 190 area breaks I would hope to get that 200 all area I
want to be buying where I know there's support and I know that there's other
things going on in that area so let's say I buy there at
175 look what's right below it the 200-day moving average so I know and
worse come to worse if this thing really starts crashing if it has it goes bad it
goes bad on me that 170 area is gonna be support knowing that 200 a moving
averages there so I have you know a little bit of risk and I'm looking at a
possible move to 190 so the risk reward is there on this play so mu the other
day made a big move previously above this $50 area and we
talked about it in one of my videos as how this kind of pulled back down here
is balance of balance of bouncing got down here the 200 day moving average
look at this from $39 made this move up there 261 now but it broke over that all
time high so that break over the all time high should have been a very clear
indicator like hey something's going on here with EMU and I might like to go
long here where would I have entered this trade I probably would have waited
to get that move over the $50 area here on MU seeing you know okay boom this is
going over that all-time high if I was swinging a little bit longer I would
have bought back there at the hundred day or 280 moving I was like how this
balance off a to name moving average very nicely there from 3752 bounce off a
200 a moving average and then made this big move higher and this would have
really been a beautiful swing on this and look at this trend back in 2017 in
August it bounced off to Murray a moving average and look at it boom up there to
$50 so it went to all-time highs after bouncing off that 200-day moving average
so if I'm looking at this I'm thinking wow the last time that it bounced off
the 200-day moving average it went to all-time highs it bounced off 200 a
moving average there in February and look at it up there 262 dollars now it
broke over all-time high and then made an all-time high
again so mu making moves as well we talked about it in one of my previous
swing trading videos what stocks that I was watching I didn't trade him you I
wish I would have I should have pulled the trigger there on mu still waiting
for some other swings to kind of unfold link trading Adobe I'm not sure I would
buy it right here I might look for another pullback with the earnings
coming up if Adobe beats they'll probably have a nice little jump again
but not sure I want to jump in right here right now on Adobe mave on his home
for a couple days maybe I buy here at this area 221 with the hope that we
might get a 230 before earnings do it like that it really just comes
down to figuring out what works best looking for it stocks that are trending
higher looking for stocks that have catalysts coming out we don't want to
just buy a stock that's not moving with the hope that it's gonna move all of a
sudden but it never does most of time when I'm swing trading stocks I'm
looking for stocks that are big companies big companies that are safe
that aren't gonna blow up on me I'm not gonna lose all my money on a swing trade
on a soccer gadot because it's a big company worst kind of worse I'm buying
at a good kind of risk reward area and that's the important thing when your
swing trading you're trying to change up the mindset we're not looking for fast
gains we're looking for consistent long-term gains if I can swing trade
couple different stocks every couple weeks
you know rack up you know 5 3 4 percent on each of those trades over a couple of
weeks and then just keep adding that up on the year it's gonna be a nice little
swing trading portfolio so that's the one big key here so hopefully that helps
you guys learn a little bit more about swing trading and maybe you can apply
some of these ideas to your overall investment strategy like I said before
really when it comes down to it swing trading is about looking at that bigger
picture so look at the big picture try to figure out what's going on with the
stock find a stock that you're interested in research that stock look
at the trends see when the next news is see even the next earnings report is and
look at what's really going on fundamentally with that stock if you're
looking at a stock like Apple figure out okay when's the next big product release
figure out what's the next big product is Apple possibly having trouble because
they're not having any new products or what's really going on so dive in so do
your own research really learn about the company and then you can apply those
fundamental ideas or reasoning to the overall chart and you can see okay wow
the stocks dipping right here it looks like it's on an overall trend I want to
ride this momentum I'm gonna swing trade this and look to take profit in the next
couple weeks as we get closer to that ER or the product release so there it is
swing trading it's another tool that you can use in your trading arsenal so if
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