Swing trading seeks to take advantage of a trend or the reversal of a trend in the market. We look to hold our swing trades for 1/2 day to 5 days. Swing trading is different from traditional day trading in that we are willing to hold trades through intro-day price fluctuations. The market always has a dominant trend, however, there are also a number of smaller trends covering various time periods. Swing trading aims at taking advantage of the shorter term trend changes, or swings, that take place in a stock within the dominant trend to profit in the market.
It is said that professional traders need only 1 to 3 setups and tactics to make a very nice living from the market. We will introduce over a dozen such setups and trading tactics that have worked well for us. Much has been said recently about the high failure rate in trading. I would like to briefly touch on this. I will be the first person to admit to you that most people who give very active trading a try are not going to find the success they had hoped for. There are many reasons for this. I feel one of the primary causes of failure amongst traders is a lack of education. Let us look at this in another manner. Lets assume for a minute that you and I want to go into business together, we want to open a restaurant.
If you call the small business administration right now, they will tell you we have about a 90% chance of failure, much the same as in trading. Now lets assume for a minute that neither you or I know how to cook, or how to run a business? What in the world are we doing starting a restaurant in the first place? If however you are one of the best chefs around, and I have very good business skill, our odds are obviously above 10%. My purpose in starting this thread is education, which is the key to assure that your chances of long term success are above 10%