How to Become a Successful Swing Stock Trader

Step 1 – First of all, you must have rules to follow (be a Disciplined Trader):

1) Let profit run and cut loss early.

2) Protect your capital. Play safe is the key. Always place a stop, not more than 5%, below (above) the buy (short selling) price right after you enter the position.

3) We should be modest and cautious all the time.

4) Don’t be over optimistic or pessimistic with your holding position. Do be confident and act accordingly (market situation, chart, your rules)

5) Never buy more to average your loss pick stock.

6) Buy near market close to avoid making most of the mistakes if you decide to hold stock overnight.

7) Do not bet on earning. Risk and return are both high. We want return > risk.

8) Always follow market trend:Bull —> Buy at dip, support lineBear —> Short, when bounce to resistance line

9) Try to buy it in the right entry point —> Make most money in the shortest time possible (1 to 3 days). Time is Money!

10) Only bet what you afford to lose. Don’t put all eggs in one basket. We should not use all our buying power to buy one stock. (50% max)

Step 2 – I just use 60 min and daily chart in order for me to make buying decision. Please keep in mind that holding stock over night is more risky. The stock market might change overnight and more things can happen to affect your stock’s performance.

Step 3 – Just make good observation and judgment between 60 min and daily chart (you can see examples from the charts I posted earlier). Buy near market close and sell it in the first 30 min when market open the next day. Sell it with happy profit or cut loss if you make a mistake. Small loss is acceptable, just don’t let it run to be a big loss. Most people are just hoping, waiting… and waiting to see if it would rise back up. The truth is, it will most likely never happen. Most people get bigger loss in this case.

Step 4 – As you can see, this is only one of the way to swing trade in a good and bull market. Happy trading and never stop learning!

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