| Posted in THE GATEWAY TO SHORT-TERM TRADING | Posted on
Swing trading requires a serious commitment to skill, knowledge, and emotional control. Treat it as
a business at all times. Prepare a personal trading plan, carefully evaluate risk capital, and set
attainable goals for the future. If personal bias expects this discipline to earn quick wealth, find
another hobby immediately or just take up gambling. The markets have no intention of offering
money to those who do not earn it. And always remember this valuable wisdom: attention to profit
is a sign of trading immaturity, while attention to loss is a sign of trading experience.
Show a willingness to forgo marginal positions and wait for good opportunities to appear. Prepare
to experience long periods of boredom between frantic surges of concentration. Expect to stand
aside, wait, and watch when the markets offer nothing to do. Accept this unwelcome state as all
successful participants do. The need for excitement makes a very dangerous trading partner.
Careful stock selection controls risk better than any stop loss system. Bad timing does more damage
than sustaining large losses. Make wise choices before position entry and face less risk at the exit.
Watch out for secondary gains that have nothing to do with profit. Trade execution will release
adrenaline regardless of whether the position makes or loses money. Always face your true reasons
for swing trading the markets. The primary motivation must be to aggressively take money out of
someone else’s pocket. Rest assured, the skilled competition will do their best to take yours at every
opportunity.
Every setup has a price that violates the pattern. The measurement from this breach to the trade
entry marks the risk for the position. When planning execution, look for levels where price must
move only a short distance to show that the trade was a mistake. Then expand this measurement to
find the reasonable profit target and apply this methodology to every new opportunity. Limit
execution to positions where risk remains below an acceptable level and use profit targets to enter
markets that have the highest reward:risk ratios.
Each swing trader carries a different risk tolerance. Some find comfort flipping NYSE behemoths,
while others play low float screamers. Follow natural tendencies and remember that swing
strategies use discretionary entry. The trader alone must decide when to enter, exit, or stand aside.
Test overall results by looking at profit and loss at the end of each week, month, and year. Good
results make money, while bad results lose it.
a business at all times. Prepare a personal trading plan, carefully evaluate risk capital, and set
attainable goals for the future. If personal bias expects this discipline to earn quick wealth, find
another hobby immediately or just take up gambling. The markets have no intention of offering
money to those who do not earn it. And always remember this valuable wisdom: attention to profit
is a sign of trading immaturity, while attention to loss is a sign of trading experience.
Show a willingness to forgo marginal positions and wait for good opportunities to appear. Prepare
to experience long periods of boredom between frantic surges of concentration. Expect to stand
aside, wait, and watch when the markets offer nothing to do. Accept this unwelcome state as all
successful participants do. The need for excitement makes a very dangerous trading partner.
Careful stock selection controls risk better than any stop loss system. Bad timing does more damage
than sustaining large losses. Make wise choices before position entry and face less risk at the exit.
Watch out for secondary gains that have nothing to do with profit. Trade execution will release
adrenaline regardless of whether the position makes or loses money. Always face your true reasons
for swing trading the markets. The primary motivation must be to aggressively take money out of
someone else’s pocket. Rest assured, the skilled competition will do their best to take yours at every
opportunity.
Every setup has a price that violates the pattern. The measurement from this breach to the trade
entry marks the risk for the position. When planning execution, look for levels where price must
move only a short distance to show that the trade was a mistake. Then expand this measurement to
find the reasonable profit target and apply this methodology to every new opportunity. Limit
execution to positions where risk remains below an acceptable level and use profit targets to enter
markets that have the highest reward:risk ratios.
Each swing trader carries a different risk tolerance. Some find comfort flipping NYSE behemoths,
while others play low float screamers. Follow natural tendencies and remember that swing
strategies use discretionary entry. The trader alone must decide when to enter, exit, or stand aside.
Test overall results by looking at profit and loss at the end of each week, month, and year. Good
results make money, while bad results lose it.
