For Swing Trader - from DQ Walker789 without permit

summer123

Simple swing trade rules
There are a few swing trade rules that a successful trader has to follow.
1) Stock has a clear uptrend (long position) or downtrend (short postion), ideally 10 MA>20MA>50MA >200MA
2) Stock pull back to rising moving aveage or previous high on average or below average volumn.
3) When stock turns higher above the previous closing price with above average volumne from the pulling back point.
4) Purchase the stock or option with stop loss at pevious swing low - $0.5.
5) Swing trades usually hlods 3-10 trading days. You need set the target also.
6) One more nice thing is that stcok in synchronies with broader market.

Trade Money Management
Money management is a key element for a trader's long term success. Look into your fund pool of about $300K, I suggest that
1) 20% percent or $50K allocated for swing trade of stock or options. It seems to me tha you trade option also.
2) 80% allocated for core tradeing (hold 3 -12 weeks) , you need develop this skill also. The core trading is for stock with colloar trading in mind, spread trading, leaps, etc.

Swing trade Vs Core Trade
Swing trade is for short term by capturing 3-10 days stock price movement based on daily chart. Core trade is for mid term by capturing 3-12 weeks market movement. I always use 80/20 rules for core/swing trade. I balance my funds at least every quater.
1) Swing trade, I only trade options. I purchase 2-3 months expiration away. I set stop and target once I enter a postion.
2) core trade. I trade ETF, stocks with good fudmentals and a clear trend. I do assest allocation. Here are some examples,
- leaps, EEM, SPY, XRT, EWZ,KOL, XME, XOP
- 2X or 3X ETF, QLD, EDC,
- spread trading; aapl, GS, You can make 100% return within 4-6 weeks even if stocks stay the same.
- I use collar trade to protect my positions when broad market direction is notclear, which means I sell some out of money call and buy some out of money put at the same time. This protection costs me nothing.

A trader's personality
A trader's personality has a final say on whether you'll be successful or not. There is an old Chinese saying that it takes 10 years to grow a tree and 100 years to change a person. It is the most difficult last mile in your trading jouney to align your personality to a successful trader's one. You can learn all the trading skills from other perople and seminars, but the last mile you are on your own.
A successful trader's personality should consist of
1) Have a trading plan
2) Discipline to follow the plan
3) Patience: like a hunter
4) Take the emotions out of the trading by following your trading rules with pre-defined stop loss and profit target
5) Don't trade if there are no clear singals
6) Don't glue yourself to the money and enjoy your life.
7) Believe yourself and have a faith.

A few trading examples
The broad market is the phase of high level consolidation stage with SPX in the range of 1075 and 1100. In the next 2-3 weeks market could stay in this tight range, or break the range with high around 1130 or low around 1045. We need watch a few more days to confirm the assessemnt. Here are a few trading examples,
1) Spread trading: APPL: Buy DEC 190 and sell DEC 200 with cost $6.5 Apple curretly trade $203.94. If apple stays above $200, you make $3.5 profit, about 53.85%. The break even point is apple trading down to $196.5. You have a $8 downside protection.
2) SPY long or short: Depending on market break up 1100 or break down 1075, you can long spy or short spy. We need wait for market confirmation to enter this trade.

Here are a few candidates for swing trade/trend trading:
GD, UTX, EEM, xrt, efa,ewz, xec, pxd, aapl, crm

想发

Thanks

trueself

1# summer123


this guy is very good!