hey Traders and investors welcome back to part two of our swing trading for beginner series that
we're doing here on the channel if you're brand new to swing trading you might want to start off
with part number one if you haven't already uh so make sure to check that video out it's going to be
linked Down Below in the description however here in part two we're going to start talking about
some swing trading strategies themselves so let's not waste any time let's go ahead and get into the
first strategy now this is a strategy that I've used myself to make many profitable swing trades
and we've used it in the market Master group so I know other Traders have followed along and have
made profits from this strategy as well and the whole idea behind this strategy is if a company
Insider like a CEO for example were to buy or sell shares of their company in order for that
Insider to not get into legal trouble they have to publicly show when they're buying or selling
their stock so what we can do is we can look for these filings that show us where they're buying
and where they're selling and we can simply follow along with the big money so we can find these CEOs
that are loading up on their stock and we can do the same thing because at the end of the day the
CEO knows more about the company than probably anyone else so it's a very bullish sign if the
CEO is loading up on shares of the stock now in order to do this the way that I like to go about
it is to go over to finviz this is a website with a bunch of free tools that we can use as Traders
and then we're just going to go ahead and click on Insider up here after that I like to filter this
down to only the buy transactions and from here we can see the latest insider trading activity
you can see the symbol for the stock the name of the person or the institution that is behind
the transaction the relationship to the company whether they are a CEO a 10 shareholder a director
and so on and so forth you'll see the date of the transaction whether it was a buy or sell
the cost that they bought or sold at the number of shares the value in dollars and the total number
of shares that that person or that institution now holds in the stock okay so for me I really like to
look for the bigger transactions here because um you know obviously if a CEO is buying any amount
of shares that is a bullish sign for the stock but if they're putting millions of dollars into
their stock obviously they have a little bit more conviction than someone that is maybe just putting
a few thousand dollars into their stock so what I'm going to do is just go down and look at the
value section here the value column is going to again tell us how much money this Insider
is pouring into the stock um so right here we can see there was a five million dollar buy
um for the stock utrs at the price of 20 cents so if we were to click on utrs we could see
the price is already up almost 100 percent from that buy area um it was at 20 cents it's already
at about 40 cents so there's a good potential that we already kind of missed the move there
um but I'll just go through this and you know look for these bigger transactions click on the charts
look for a chart setup that looks promising and then from there that stock is going to be
a potential swing trade okay so I found a solid example here that I wanted to just break down a
little bit further this is Nee we can see if we scroll down here we can see the recent Insider
transactions and over the past few weeks here in February we've seen that there have been quite a
few shares bought by directors and by some company insiders all in the 73 to 74 dollar area some of
them being a value of over five hundred thousand dollars so if we pair that information with the
chart here we could see also on the chart there is a little bit of support in this area because we
can see that back in June the price bounced from this seventy dollar area all the way up then to a
high of over ninety dollars per share following that it pulled all the way back down again from
seventy dollars up to almost ninety dollars fold all the way back and we are back into that seventy
dollar range so because this is a little bit of a support area and we can see that insiders are also
buying in this area those two things together make this a great potential swing trade and this would
definitely be one that I would keep on a watch list or maybe start to slowly scale into over the
next couple of weeks now obviously I'm not telling you to buy this stock right now this is just an
example and I just wanted to show you that you want to kind of pair The Insider transactions with
what you see on the chart as well Insider buys at a level of support or Insider buys when a stock
is strongly trending to the upside those are going to make great potential swing trades all right now
the second swing trading strategy that I want to talk about in this part of this series is going
to be based on earnings reports earnings reports are put out four times a year for the quarterly
reports and then once a year for the annual reports and these can have a big effect on the way
a stock moves of course if the earnings come back and they are negative showing that the company's
financials have gotten worse over the past quarter or over the past year that's going to be a bearish
sign for the stock and then vice versa is also going to be true if the earnings come back showing
that the company's fundamentals and financials are growing that is going to be a bullish sign
for the stock so what we can do is we can look at these earnings reports and because they can
ignite momentum in a stock they can be a very good Catalyst for us to follow for our swing Trading
now if we go back over to thinvis.com we're going to be using another one of their free tools this
time we're going to click on screener at the top once the screener pops up we want to make
sure that we have all selected so that way we can see all of the criteria that we can use to filter
down the market and the first thing that I like to look for when I'm looking for this type of swing
trade is that the price of the stock is going to be at least ten dollars per share the next thing
is that there is enough volume for us to easily get in and out of our trades so we want to see
an average volume of at least 200 000 shares we want to look specifically for stocks in the U.S
and of course because we're basing this on earnings there has to have been a
recent earnings report that was released so under earnings date we're going to select previous week
and this is going to narrow the entire Market down to just 281 stocks now to narrow this down even
further because we want to look specifically for stocks that have had a positive reaction
to their recent earnings report what we're going to do then is click on performance
and we want to see that over the past week the stock has gone up at least 10 percent
now we have a total of just 21 stocks and if we just go through the list here you can hover
over the symbol and it's going to give you a preview of the chart we're just going to look
for stocks that are trending higher maybe stocks that are consolidating at a level of
support maybe stocks that are breaking out on the daily chart whatever it may be just like
we talked about with The Insider transactions and using those for our swing trades we still want to
pair as many things together in order to give our swing trade the best chance of success possible
okay so I went through all of these charts and the one that I find the most promising right now out
of these 21 options is actually vktx if we click on vktx just to show you what I'm looking for
here on the daily chart we can see that over the past couple of months there was a strong move to
the upside and over the past month or so we've seen that after that strong bullish move the
stock is actually Consolidated here in the Eight dollar per share to about 9.50 per share range
now because the earnings were put out over the past week the stock was able to actually break
out of that range and is now continuing to the upside to me this is a very bullish chart and this
is what I would want to look for when I'm doing this type of swing trade because we are seeing a
nice slow and steady increase in the price of the stock ever since the earnings were put out and
that makes for such a great swing trade because not only are we taking advantage of the company
growing the fundamentals and the financials getting stronger and stronger over a quarterly
or annual basis but we're also able to take advantage of the momentum in the underlying stock
as well and in doing so we're able to capture ten percent twenty percent thirty percent or more in
a pretty short period of time while only risking a relatively small amount on these trades now the
third and final swing trading strategy that I want to talk about in this part of this swing trading
for beginner series is going to involve mean reversion and the idea behind a mean reversion
trading strategy is that a stock that is severely oversold is eventually going to recover and you're
going to be able to capitalize on that future recovery now there's a very important lesson here
in this section involving this strategy and that is that stocks can remain oversold for extended
periods of time so it is very important to allow them to actually start recovering first before
you start to buy into them and that same concept is very important to remember when it comes to
cutting losses on your trades as well a lot of inexperienced Traders will get into a trade that
trade will initially go against them and they're going to be holding on to a loss eventually that
loss will grow and grow and grow and instead of cutting losses and managing their risk like they
should they start to think that this oversold stock has to recover in the near future because
it's already gone down so much there reality is that a stock can go down further and further and
further even if the stock is oversold so in that case it would be very important to cut
your losses on that trade and we're going to talk a lot about risk management and cutting losses as
well as locking in profits and the next section of this series so make sure to stay tuned for that
now back over once again to the finbiz screener in order to find stocks for this type of mean
reversion strategy what we're going to want to do is again put in an average volume of 200
000 shares that's going to be important for pretty much any type of trading strategy
again I'm going to put in country as only the USA and I want to see for this a stock price
of at least five dollars per share and that's just because these very very low price stocks
under five dollars or under one dollar per share they can easily have a 20 or 30 percent move to
the downside and they're going to be much less likely to bounce back and recover in the future
now in order to then find these oversold stocks there are two ways that you can go about it you
can use the performance by selecting you know the stock going down maybe 30 or 50 over the past
quarter or over the past month or you can use the RSI which is the relative strength index and for
that you would want the RSI to be at 30 or lower so that they would be considered oversold I'm
going to use the performance here and I'm going to look for stocks that over the past month have gone
down at least 30 percent we could see that there are just 11 stocks meeting this criteria so just
going through this we want to make sure that we're looking for stocks that have already started to
recover or that are maybe at a level of support so that way we're not buying into these stocks
that are just going to continue folding and going lower and lower so taking a look at the stocks
that we got in our results cccc is the one that I would probably look at as the best candidate for
a swing trade in order to capitalize on the mean reversion and that's just because looking at the
chart we can see it's trading here just under six dollars per share this area has acted as support
in the past back in December of 2022 and then a little bit lower but still in the same range back
in June of 2022. so if history does repeat itself here in this area access support there would be a
great chance of this stock bouncing back up you know up into the Eight dollar per share area and
simply put that is kind of the basic idea behind swing trading that involves mean reversion in
oversold stocks okay so these three strategies that we talked about in this part of the series
should give you an idea of what you should look for when it comes to entering into different swing
trades as well as how you can find stocks that are going to give those swing trades the best
chance of being profitable now in the next part of the series like I mentioned we're going to be
talking more about how to get out of these stocks whether that be out of profit or whether that be
at a loss make sure you stay tuned for that part of the series because that is a crucial element
to successful trading and with that being said if you enjoyed this video please make sure to
give it a like And subscribe to the channel and if you want to learn more about day trading swing
trading and long-term investing or join us in our interactive daily trading group more information
on that can be found at my website Master the market which will be linked Down Below in the
description anyway thank you again for watching I hope you enjoyed and good luck with your Trading
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