How to Make Money Swing Trading

Success in swing trading or position trading requires one key factor TIMING. The ideal situation is to take position just as the price start to move and to close the trade before the situation turns sour. I will present a swing trade setup with the potential to get 11% gains or more.

You can be a successful trader - trading stock, currencies or commodities or using MA or any other strategy if you truly understand the principle and you are disciplined and patient enough to let the trade unfold.

 Often time good and very profitable move usually occurs when a stock is coming off a low or bottom, this is not to say you should stand in the way of a crashing train or a falling knife. When swing trading we want the stock to put in a new swing low or high depending on the direction you are trading. Identifying this swing lows or high for profitable trade can be a tricky one, to stack the odds in our favour we can use several signal triggering at the same time. This is where this setup comes into play, we will only enter a trade if it meets the following conditions.

·   The stock is in an uptrend play, and currently trading above its 50DMA

·   Putting  in a decent retracement within the uptrend move

·   Put in a Doji candlestick pattern this is a setup day indicating a possible reversal and in this case a continuation of the uptrend. Also the Doji pattern need to occur around a logical support point either around MA, horizontal support or a trendline

·   Finally we want to see the RSI should at oversold levels.

These four criterion will get us prepared, ready to take the trade but need further confirmation. We want to see a bullish signal the next day after the Doji pattern, something like a gap up or a bullish engulfing candlestick pattern when this occurs we will be looking to take the trade as this is an indication that there is enough momentum to drive the price higher. We take the trade and put our stop below the recent lows (Get tips on correct stop placement).

This is a very easy and simple strategy that can make you money consistently, not all trade will be profitable but trades like this when you have multiple signals are very profitable the only thing left is to know when to exit the trade with your profit.