hey what's going on everyone thanks for checking out this video my name is Travis from Master the
Market and this is going to be a quick video talking about swing trading and we're going
to go over some tips and strategies that you can actually use to swing trade profitably
in the stock market so first and foremost in case you're not familiar with swing trading
what exactly it is is holding a position anywhere usually from a couple of days all the way up to
sometimes a couple of months and generally a swing trader is going to plan on holding a stock for
usually a couple of weeks at a time before exiting out of their position and obviously
that differs from day trading which is when you get in and out of positions within the same day
and the idea of day trading is to look to take advantage of those quick price fluctuations in
the market so because swing trading is a little bit longer term generally speaking you're going
to be using a little bit of a longer term time frame on your chart to do some analysis and while
you're doing any kind of charting so if we have amd over here on this chart when you're swing
trading you're probably going to be looking at something like the hourly chart maybe the four
hour chart or even the daily chart sometimes even the weekly chart if it's going to be a longer term
swing trade whereas again with day trading since it's much shorter term you're probably going to
be looking at a shorter term time frame such as the 1 minute 5 minute or even the 10 or 15 minute
okay and one thing to keep in mind about the differences between day trading and swing trading
is that more often than not you're going to be day trading and swing trading completely
different types of stocks and completely different setups usually the stocks that you day trade are
going to be much more volatile they're going to have a lot more quick price movements in
the market and the idea is to look to again take advantage of those quick price movements
getting in and out of position sometimes within minutes but again because swing trading is a
little bit more longer term something like immp here which is the top percent gainer for the day
although this might make a great day trade because it is a big gainer for the day and it's having
a ton of movement today it's not necessarily going to be the type of stock that you want to
look to swing trade because your swing trades are generally going to be a little bit less volatile
and a little bit more stable and consistent with their price fluctuations
so now you're probably wondering how exactly you actually find the best stocks to swing trade
and that's where using some kind of screener or some kind of scanner is going to come into play
so i'm actually going to go over to the finviz.com screener and this is a completely free screener
it's going to allow you to narrow down the market to stocks meeting your specific criteria
and all you have to do is go to finviz.com and click on screener up here at the top
and then we're going to make sure that we have all selected up here so we can see all the
different criteria that we can use to actually narrow the market down further and further
and right off the bat you can see that in this screener there is 7496 total stocks and every time
that we put in a little piece of criteria it's going to narrow that down to a smaller and smaller
number and the stocks that we're left with in the end are then going to be potential swing trades
that we can keep on watch uh so first and foremost a lot of these are going to be preference but what
i'm going to do is put in some criteria i want to see that they are stocks in the united states
i prefer them to have an average volume of at least 200 000 shares
and all that's doing is making sure that these stocks are liquid enough for us to buy and sell
without having any liquidity problems i'm also going to limit this screen to stocks with a price
of at least 15 per share and again this is just preference if you're somebody that likes to trade
smaller price stocks you can maybe be looking for stocks that are under 10 per share or if you
like higher price stocks you can of course look for stocks maybe over 50 or even over a hundred
dollars per share but the last thing that i want to put in here is actually going to be the sector
and when it comes to the sector this is going to be a little bit different every time that you use
the screener here on finvis and what you're going to want to do since we're looking for stocks that
already have some kind of upward momentum we want to look for stocks that are in a sector that is
performing really well and the way that you can do that is by going to groups up here at the top
and this is going to break down the sector by sector performance over the past one day
the past one week one month three months half year one year and even year to date
and the idea behind this is to get into a stock that is in a really well performing sector
maybe while it's pulling back or it's having a dip in the market so that way you can take
advantage of the overall sector's upward movement without buying in at the exact top of the move
and i'm going to show you over in thinkorswim here in just a moment how you can do some basic
technical analysis to avoid buying all the way at the top and look for those dips and look for
those pullbacks to buy into these stocks but first and foremost what you want to do is pick a sector
that is performing really well over the past week or month or even three month period and in this
case you can see that the energy sector has been performing really well um compared to the other
sectors in the market so if we go back to our screener and up here at the top we go to sector
and select energy just like that with those four pieces of criteria we already narrowed the market
down to just 56 total stocks so from there the way that i like to narrow this down further and
get my very small watch list of potential swing trades is to actually just hover over the price
column over here on the right side i'm gonna go down the list and look for stocks that are in a
really nice uptrend consistently making both higher highs and higher lows on their charts
and what i'm going to do is keep a list of those stocks with a really nice uptrend
uh for example like the one we see here with bkr and once i have that much smaller list then i'm
going to take that over to thinkorswim and do a little bit more advanced technical analysis
and start to actually plan out my entries in my exits for this stock um so you can see that
cog for example obviously is not in a strong uptrend it's making lower lows and lower highs
so that's probably one that even though it meets the other criteria here on this screener
i would avoid this and probably would not look to take position in this stock at the time um on the
other side of the spectrum if we find another good uptrend here for example like the one we
see here with dcp it's pretty consistently trending up higher highs higher lows so what
i would do is you know you can click on this and actually get some more information about the stock
some information about their earnings and their financials you can see some quick information
about the insider ownership and the institutional ownership but more importantly for this type of
swing trading what you see is that again the stock is in an uptrend so if we take this back
over to the thinkorswim platform to do some more technical analysis and we search dcp
at this point you found a stock that's going to be a potential swing trade so the next step is
going to be to actually start planning out that swing trade looking for potential entry points
and exit points and of course having in the back of your mind what your max risk is going to be
so that way you can cut your loss if the trade happens to move against you
now when it comes time to actually enter one of these types of momentum swing trades
we're looking to again take advantage of this sector that is performing really well
but that doesn't necessarily mean that you want to just buy in at any given time
and take advantage of that upward momentum instead what you want to do is look for a pullback
to safely buy into the stock while it's not overbought so i'm going to go ahead and draw a few
lines here on this chart to give myself an idea of where i would actually look to buy into this stock
okay and these are the two things that i see here as potential entry points for this stock dcp
we can see very clearly that it is in an uptrend it's making both higher highs and higher lows
so if you connect those lows with the trend line that trend line is going to be a continued
potential line of support that you can look to use to actually buy into the stock so in the future
if this were to pull back to this trend line down here this again is a potential line of
trend line support and that's going to be an area where you can look to buy the dip in the stock
and by doing so you're going to have a pretty low amount of risk because if the stock happens
to break below that trend line then you know the trend line support is no longer valid and that's
going to be a great sign to actually cut your losses on the trade and just move on to the next
one another way that you can look to do this is by looking at past lines of support and resistance
and if we take a look at this white line here this was an area of resistance in the past
on a few different occasions and one very important thing about resistance is that
a pass line of resistance that has been broken through just like we see here with dcp can then
turn into a level of support so if this dock was going to pull back to this pass line of resistance
it can now act as a level of support and the stock may very well bounce off of this support line
before it continues higher so i would look to take advantage of that support by buying in here maybe
in the low 16s and using that as a potential area to enter into this swing trade position now with
that being said you also want to keep an idea of where you're going to potentially exit out of the
trade and lock in your profits even before you actually buy into the trade so if we go ahead and
zoom out of the chart a little bit i'm just going to go ahead and draw some resistance on this chart
and we can zoom out even a little bit further to see any past levels of support and resistance
but you can see that really for the most part this is the nearest major level of resistance
for this stock up here at about 26 dollars per share so because of that we know that historically
the stock has a difficult time breaking above 26 dollars so that's going to be a really good
starting point for looking at where you would take profits on this trade if the trade moved in your
favor if the stock continued to go up after you bought in at the dip you know that historically
again it's going to have trouble breaking above 26 so it may be a really good idea to take some
of your profits if not all of your profits just below that 26 dollar resistance level area and
at the end of the day this very simple technical analysis just looking at trend lines and levels
of support and resistance after you narrowed the market down and found a list of stocks that have
really good potential to be good swing trades is a great way to start swing trading and taking
advantage of the upward momentum in different sectors in the market so if you are new to swing
trading give this a shot and let me know in the comments how this type of swing trading works
out for you and if you found this video helpful and enjoyed please make sure to give it a like
and subscribe to the channel so you don't miss out on future videos also if you're interested in more
in-depth education about day trading swing trading and even long-term investing 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 trading
you