Swing Trading Strategy

Before I explain this trading strategy, I would like to remind you that trading is about probabilities. A professional trader understands that the method she uses is going to produce profits only so many times out of every one hundred.

Unlike position traders, who can be right less than 50 percent of the time and still be a profitable trader, short term traders have a higher cost of doing business. They pay more commissions and make less profit per trade. So while a position trader can be profitable winning only half the time a swing trader needs to be right 7 out of 10 times...or more.

Using a protective stop is vital to the survival of swing traders, whether trading in stocks or commodities. A good rule of thumb is, to use a 1 to 3 risk reward. If you expect to make $800 on the trade...risk no more than $300.

Here is the swing trading strategy that has served many professional traders.

This method works best in a up trend, the stronger the better. Look for a new high within the up trend and look to enter the trade after three down days. Don't under estimate the simplicity of this swing trading strategy

This chart is a good example of this swing trading strategy in action.

If you need help implamenting this or any trading strategy consider my personal coaching, Coaching

There is risk in trading Futures, Options, Stocks and Commodities, no matter which swing trading strategy you use. There are large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in Stocks, Futures, Options and Commodity markets. Don't trade with money that you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell Futures, Options, Stocks or Commodities. risk disclosure