Here are some responses to the frequently asked questions you all send me:
1) How Do You Find Stocks to Swing Trade?
Answer:
I look for stocks with strong technical setups, such as clear trends, consolidations, and breakout patterns.
Stocks with high liquidity and significant volume are often good candidates.
I also love using my own personal scanner.
2) Why Do You Enjoy Swing Trading More Than Day Trading?
Answer:
I love swing trading because it allows me to accumulate shares ahead of potential catalysts, upcoming events etc...
This approach lets me position myself before the crowd starts to chase.
You guys probably here me say this a lot.
Great example would be
$BSFC which is expecting to be releasing several products as soon as next week.
3) What Are the Best Technical Indicators for Swing Trading?
Answer:
Might shock some with this one, but I simply focus on Volume & Price action.
That's it.
When I'm trading options, I typically rely on the relative strength index (RSI), moving average convergence divergence (MACD), and occasionally Fibonacci retracements.
These help me in spotting trends, potential reversals, etc..
4) How Do I Manage My Risk?
Answer:
Broad question but heres the best I can do.
Example:
Imagine you have a $20,000 account and decide to risk 1.5% per trade. This gives you a risk amount of $300 per trade. You find a stock currently trading at $40 per share and plan to place a stop loss at $37.
Risk Per Share: $40 - $37 = $3
Total Risk Per Trade: $300
Position Size:
300/3=100 shares
You would buy 100 shares of the stock, ensuring that if the trade goes negative, your loss is limited to $300.
5) How should I determine where to place my stop-loss and take profit?
Answer:
Stop losses should be set below key support levels or a predetermined percentage below your entry price.
Take profit levels can be a little tricky but for the most part I base it off of heavy resistance levels, and my own price targets.
6) What Are Common Mistakes You Experienced When You First Started Trading?
Answer:
Overtrading, Ignoring risk management, not having a clear trading plan, letting my emotions take control, I can go on for days.
Heres all you need to know:
If you have the ability to control your mind, you have a bright future ahead of you.
7) What Resources Can Help Improve My Trading?
Answer:
Check the discord under
#educationaltips &
#educationalvideos.
Like & Retweet if you want part two!