Swing Trading – Use Momentum Indicators for Huge Profits, Live Examples

by admin on May 29, 2009

If you have been following our articles you will know we love the stochastic indicator it’s simply the best timing indicator you can use and here’s the proof:

We showed you 5 trades and got 4 profits and 1 break even and have 3 open trades all in profit- So why is momentum so important let’s find out.

Trade with The Trend

One of the biggest mistakes you can make in trading is to trade against price momentum.

A Fatal Mistake

Many traders make the fatal mistake of simply buying near support and selling near resistance, even when price momentum is moving strongly to these levels.

However if you trade and “hope” these levels hold then you will be trading against momentum and increase your chances of losing.

Traders do this because they want to sell market tops and buy market bottoms.

This is not a good way to trade!

You are better off waiting for momentum to turn before trading this means that prices have tested the level and then you can get in with the odds on your side.

The Ultimate Timing Indicator For Swing Trades

The best momentum indicator in our view is the stochastic (explained more filly in our other articles) as it measures short term price momentum.

You can see it on many free sites such as futuresource.com.

It’s a visual indicator and you don’t actually need to know the equation behind it to use it – Same as you don’t need to know how an internal combustion engine works to drive a car.

If you look at the Dollar Yen trade we gave a few days ago, you will see both stochastic lines were pointing down as prices zeroed in on support.

To time an entry long and indicate support will hold you look for the following:

A cross of both lines to the upside.

This is referred to as bullish divergence, shows short term price momentum is reversing and the bulls are taking control above support.

The exact opposite applies when you are swing trading into resistance.

Don’t Predict Get Confirmation

By waiting for the crossover, you don’t buy the bottom, but you get in when the odds of an up move are higher and this will mean more profitable trading.

All three trades we picked as live examples are in profit and you can spot similar trade set ups.

Watch stochastic momentum above support or below resistance and watch for bearish or bullish divergence crossovers to time your trades.

If you do, you will get more high odds trades and take the hope out of your trading:

You will trade on the facts and this will increase your odds of success.

Try this method in your swing trading and see how effective it can be.



By: Sacha Tarkovsky

About the Author:

FREE ESSENTIAL TRADER PDF’S AND MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF’s visit our website at http://www.net-planet.org/index.html



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Opportunity Cost in Trading

by admin on May 28, 2009

All traders have gone through a period they wished they never placed the trades. It could be impulsive and emotional factor that drove the trader to commit these trades. These are trades that he wished he can forget forever and hope to never repeat them sagain.

What is opportunity cost in trading?

Opportunity costs happen when we lose unnecessarily while we pass up the higher probability trades with higher reward-to-risk ratio. Everything in life has opportunity costs and in trading, it’s no different. This happens more often to new traders who do not understand this concept, usually causing them to blow out their accounts that shorten their trading career or hobby (however the trader views it).

When traders first start out, they usually begin trading without realizing the consequences of how they select their trades. These unnecessary trades would eventually would affect the future opportunities to profit and better their batting average. These trades tend to be losing trades but without calculating the probability of the success of the trade. When they lose, the equity has less of a chance of getting a better trade in the future. This is opportunity cost. For example, the trade takes a bad trade, loses $300 on the trade. Little by little $300 becomes $500, and then more. Finally when the market condition has turned in favor of the trader’s strategy, he no longer has the capital to take advantage of the opportunity.

The other opportunity cost that many don’t realize is a psychological cost. When a trader takes a bad trade, loses money, regrets for making a bad decision, causing him to be confused and losing his confidence. This loss of self confidence will affect the next trade which could be a high-probability trade. Due to the trader in a state where he’s scared of losing again, he may hesitate on the next trade that could be the next winner. He will realize it only after a long while the cause and effect and the vicious circle this opportunity cost creates.

How does solve this problem? The first thing is to re-evaluate the trading records and sort out the trades that were part of the trading plan and trades that were not (impulsive, on the fly trades). If they are more than a few at least 10% of the total trades made, then a solution must be found to eliminate these impulsive or unplanned trades. Better yet, add the total amounts from these impulsive trades to get a reality check on the costliness of these trades. 10% or more is excessive. Most successive traders would not even permit 1% of the trades based on unplanned setups. Understand that these impulsive trades tend to lead more unplanned trades, such as overtrading. This causes mental exhaustion and leads to losing streaks.

One way to eliminate these trades is to write down and memorize the setups that are part of the plan. Better yet, start with one setup/strategy only and trade it repeatedly until it becomes a routine setup the trader takes day in day out. This way, the trader knows exactly what to do when the setup comes up. Once it’s proven that he can trade it with discipline and timeliness without giving in and take impulsive trade then he can add another setup. This is the start of the road to recovery from losing opportunity costs.

As for the losing trades that are part of the trading plan, almost nothing can be done to them. Accept them and move on. Losses and losing trades are part of trading. No successful trader ever trade without losses, far from the truth. Very few successful traders manage to have a percentage of wins to losses higher than 60-70%. Normally it’s much less, around 50%. So they must accept the fact that at least 30% or more trades will be turn into losses.

If a trader cannot handle losses, he can either quit trading or alternative find a new or different strategy where he can find an extremely high percentage of wins to losses. But keep in mind that this is a Holy Grail, meaning it may not exist. If they do, the trader may have to wait a long time to find such a strategy.

Before taking a trade, make sure to ask if the next trade will hinder and pay for an opportunity in the future. That is, if the trade meets all the right condition and rules of the strategy and not another “intuitive gut feeling” trade that will add another check on the loss column. Giving up this type of trades will open up more opportunities for profitable trades in the future.



By: Larry Swing

About the Author:

Larry Swing
CEO & Head Swing Trader
swing trading with mrswing.com
theboss@mrswing.com
+1 (281) 968-2718
Yahoo & Skype ID: larry_swing



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Healthy Body, Healthy Trading Mind

by admin on May 28, 2009

When traders start out, it’s completely overwhelming the amount of things to learn and suck in. The simple to the most complex: the computer, the trading software, the markets, the strategies, indicators, psychology, capital, time. On top of that, traders have to deal with their family and work. Investing is just not about buy, sell and hold but the burden and challenge of dealing with everything and everyone. All this brings major stress that will affect trading.

Trading is a very stressful work but not balancing them can be counter productive. An athlete cannot train continuously 12 hours a day. He needs time away from training to concentrate his mind on other activities in order to stay relaxed. A new trader is so obsessed with trading that sometimes he can go relentlessly day after day with long hours that eventually he burns himself and not knowing it.

Due to the fact that trading involves money, many traders want to make as much money as much as possible and as quickly as possible. This may involve spending as much time as possible to learn and master the skills. He may spend long days for months if not years, weekends included, disregarding family, work, or social life. This can be hazardous to one’s physical and mental health. When the other parts of life are left uncared for, eventually the trader will begin suffering by making losses. He may not notice it in the beginning but little by little, the stress from outside of trading will start setting in. Before he knows it, his performance suffers, productivity and profitability reduces. Successful trading requires healthy and balanced mind and body. Has anyone ever seen a drunken successful gambler in Las Vegas?

So what how does one gain and manage healthy mind and body? Many successful and experienced traders have come to realize that trading is a marathon and not a sprint. If it is a sprint, then he can try to make as much as possible thinking he’ll move on to something else. Usually this is the option of the new traders thinking in short term as he overtrades with high leverage. This is usually the path to blowing out the account. But experienced traders want to stick around to trade until he retires or until his dying breath. So a marathon requires conservation of energy by keeping a steady pace, one step at a time. Little by little, as he gets more experience, he can step up the pace when he gets accustomed to the stress level.

There are many ways to keep balance in life and trading. Many devote small hours each day to learning the skills without intruding into other areas of life. In addition, he may spend weekends devoting to it when the week days impeded him from dedicating time to it.

In day trading, the trader may meditate, pray, or use other visualization or relaxation techniques to prepare for the full day of relentless stress. This is to erase the mind from other outside factors, pleasant as well as unpleasant. As for physical activity, the trader does exercises such as walking, jogging, weight-lifting, team or individual sports to keep the body fit. Not only will physical exercise maintain healthy body, the mind tends to relax and concentrate on things other than trading. Too much of a good thing can be bad. Most workaholics end up with some kind of stress-related syndrome or illness that leads to early retirement or heart condition as they get older, shortening their life span. Those who pace themselves carry a happier and healthier and more productive life than those who don’t.

In trading, with money at stake, this is especially important. Every ounce of emotional and mental condition must be preserved and cared for. If not, the cost can be dear.



By: Larry Swing

About the Author:

Larry Swing CEO & Head Swing Trader swing trading with mrswing.com theboss@mrswing.com +1 (281) 968-2718 Yahoo & Skype ID: larry_swing



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Swing Trading With Elliot Wave for Bigger Forex Profits

by admin on May 26, 2009

Elliot wave is one of the most popular methods of trading and although originally devised for the stock market swing trading with Elliot wave is very popular with forex traders.

Let’s look at swing trading with Elliot Wave in more detail

Elliott Wave theory is named after Ralph Nelson Elliott, who concluded that the markets moved in a repetitive pattern of waves and was a reflection of human nature.

He attributed this action to the mass psychology of the market which never changes and can therefore be predicted with scientific accuracy.

Elliott Wave patterns follow a specific pattern that the markets move up in a series of 3 waves and then down in a series of 2 waves in a bull market. The 3 wave impulse and 2 wave corrective sequences form the basis of his method of a 5 Wave impulse pattern, with the reverse occurring in a bear market.

In Elliot wave theory there is also a use of the Fibonacci number sequence which is specific retracement levels to help calculate the waves.

So by trading these waves, a forex trader can look at his forex charts and swing trade with Elliot Wave and make consistent profits from his forex technical analysis.

It’s a scientific way of making profits according to Elliot waves and his disciples – so does it work?

The answer is it has to be one the biggest myths of forex trading that Elliot Wave Theory can lead you to currency trading success (lets ignore the fact that there is no hard evidence that Elliot made any money from his own theory) and look at why the theory is flawed.

1. If it’s a scientific theory:

It should be objective!

If human psychology can be predicted with scientific accuracy it should tell you exactly what to do, but of course it doesn’t – it leaves everything to your subjective judgment, so it can’t be a scientific theory – it’s a total contradiction in terms.

You have to look at the waves and decide what happens next – does that sound scientific to you?

2. Human Psychology is not scientific!

Of course it isn’t and neither are currency markets.

If there was a scientific theory that allowed people to predict prices in advance there would be no market- as we would all know the price beforehand.

Forex markets move on differences of opinions and these cannot be measured scientifically – This is common sense.

3. The Fibonacci Number sequence

This number sequence is loved by the far out investment community and was developed in the 12th century by Leonardo Fibonacci. It was NOT developed for the purposes of trading forex markets though – but was developed to solve a problem posed by the copulation of rabbits!

In fact I am sure if Leonardo Fibonacci was around today, he would be bemused by the way his theory is used by the believers of Elliot Wave.

So there you have it:

A scientific theory that is not scientific at all and is totally illogical.

There are many people selling the myth of swing trading with Elliot wave and how you can to but if it was as successful as they claim and they can predict the future, why would they be telling you?

It’s a good read but if you want to trade and use forex technical analysis to generate trading signals pass this one by and keep one fact in mind:

Trading is a game of trading the odds and not prediction.

You can win trading forex markets, however appreciate that you need to trade the odds to win and forget predicting the future.

If you understand this you can get a forex trading system that can make you a lot of money. Leave Forex trading with Elliot wave to the dreamers and deal with the reality which is:

There are no short cuts and prediction doesn’t work – work at trading the odds and you have a far greater chance of achieving currency trading success.



By: Monica Hendrix

About the Author:

NEW! 5 X Critical Trader PDF’s & Much More

Claim your FREE PDF’s and demo account and learn Forex Trading and also get: Breaking financial news, tight pip spreads, guaranteed stops $100.00 minimum investment and 400:1 leverage at http://www.freeforexguidesonline.com



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4 Easiest Ways to Trade Forex With Swing Trading Systems

by admin on May 26, 2009

Swing trading can be exciting and fun, as well as easy for someone who is starting out in the forex market. A lot of information can be found on swing trading, but what actually makes a successful swing trading system?

First, let us define swing trading system. It is making money from the intermediate swings within long term trends, which last somewhere between a few days to a few weeks.

Let us now see how one should buy a trading system from a vendor:

1) It is imperative to understand how the methodology works. When you understand and begin to have confidence in it, you will have the discipline to follow it.

2) Swing trading systems all vary in the risks they take and the drawdowns they may get, so be sure to choose one which is suited to your personality, as well as your tolerance for risks.

3) While it is not always foolproof, track record may give you the needed confidence. Get a track record of the profits made over a two-year period of forex trading.

4) Naturally, the vendor is important. Find out everything you can about his or her trading record and experience. Look for a money back guarantee to ensure that you will get your money back, should the swing trading system you are about to buy not work, or not live up to what the vendor says.

Swing trading system is easy for beginners in forex trading, as it has plenty of action, and yields results fast. In choosing the right swing trading system and following these tips carefully, you are well on your way to success as a forex trader!



By: Timothy Stevens

About the Author:

Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com – He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm



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Stochastic System – a Swing Trading Stochastics System for Big Gains

by admin on May 24, 2009

If you want to get started in forex trading then swing trading systems are a great place to start and a stochastic swing trading system can be learned in a few days and then you’re ready to make big profits.

Before we look at the stochastic indicator, let’s look at why swing trading is an ideal place for novice traders to start their trading careers.

There are two main reasons:

1. You get plenty of trades and don’t the patience of long term trend following

2. You get profits and losses quickly so it requires less discipline than trend following.

So let’s look at how the system will work.

Swing trading simply aims to take advantage of overbought and oversold scenarios, to buy oversold markets and sell overbought markets.

The stochastic is perfect for this.

Let’s quickly get the technical bit out the way and keep in mind, you don’t have to understand the maths to use it, just as you don’t need to know how an internal combustion engine works to drive a car – it’s a visual indicator, you can find on any free chart service and set ups can be spotted by anyone.

This technical indicator is based on the assumption that when a financial instrument is in an uptrend it tends to closer to the high than when it is falling, where the reverse scenario applies i.e. it tends to close near its lows.

How the indicator is plotted

The stochastic is lines the %K, which is a fast line and %D, which is a slow line.

The %K line is more sensitive than %D

The %D line is a moving average of %K.

The %D line gives the actual trading signal

Sounds a bit geeky – but just think of the way a moving average is plotted, then think about the %K as a fast moving average and %D as a slow moving average.

The lines are plotted on the forex chart from 1 to 100. 80% and above is considered overbought and 20% below is oversold.

Here we are going to look at stochastic crossovers with bullish or bearish divergence, from overbought or oversold levels.

A trader would look to buy when the %K line moves above the %D line and sell when the %K line moves below the %D line.

The best crossover is when the following occurs the %K line intersects after the peak of the %D line, (a right-hand crossover). To cut down false signals only take signals that occur in overbought or oversold zones.

Your stochastic system would be as follows.

1. Look at support and resistance levels to key off

2. Check how over bought or oversold the stochastic is i.e. is it at an extreme?

3. Wait and hit the crossover

4. Place stop behind resistance or support

5. Look to take your profit early i.e. before it hits the next support or resistance

Simple but Effective

The above is extremely simple but all the best forex trading systems are.

You may want to consider combining the stochastic with other indicators.

Combining with Other Indicators

The perfect one is the Relative Strength Index (RSI) as they compliment each other and the Bollinger Band to indicate volatility and targets.

Anyone One Can do It

Swing trading with stochastics is easy to do fun and can make huge profits so learn more about this great indicator and build your own stochastic system for currency trading success.



By: Kelly Price

About the Author:

NEW! 2 X FREE ESSENTIAL TRADER PDFS

ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s and more essential Forex Education and an exclusive risk free Forex trading Course visit our website.



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Swing Trading – a Profit Opportunity Shaping Up Right Now

by admin on May 24, 2009

If you are a regular reader of our articles, you will know that we like to demonstrate our theory with some live examples, so you can see the theory in a real market situation.

We did 3 live examples recently. We had a great profits in the yen and pound and a loss in the euro but a good profit overall – Now lets look at another example.

The British Pound V US Dollar

We hit this from the short side and took profit above the middle Bollinger band and prices are now moving up from this level to test resistance.

There is another opportunity on the short side that offers great risk to reward.

Lets look at why.

Pull up a chart of the British Pound.

A good free service to use is futuresource.com.

Prices are moving up to test the recent double top and we think this resistance will hold.

Only a close above January’s high will change our view, we would in this instance have a breakout to the upside that would indicate further strength.

Watch prices into the double top and look for the bears to take control.

Keep your eye on a falling RSI into this level and a cross with bearish divergence on the stochastic.

At present price momentum is up and for shorts to get the nod we must see momentum turn bearish.

At present both stochastic lines are pointing up.

We want to see the lines cross to the downside near the double top with bearish divergence, then the odds favor a price drop.

The stochastic increases your odds of success, as it confirms price momentum is changing and you don’t have to guess ie you act on confirmation.

If you don’t know how to use this great timing indicator, see our other articles.

The target again is just above the center Bollinger band.

Important!

Do not try and predict.

Wait for the indicators to signal the bears are taking control, via the stochastic and RSI and remember the bulls only take charge above January’s highs.

This trade has low risk good reward by selling the top of the range that has held for a long period of time.

This is a simple swing trading method but it works and uses price momentum to increase your chances of success.

Try swing trading with this method and you will soon be spotting some great high return low risk trades, with clearly defined stops and targets.



By: Sacha Tarkovsky

About the Author:

FREE ESSENTIAL TRADER PDF’S AND MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF’s visit our website at http://www.net-planet.org/index.html



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Learn How To Swing Trade And Earn More Profit In Forex Trading

by admin on May 23, 2009

 

 

Trading is a difficult process only when you make it complicated. You can gain much from it and actually enjoy it especially with today’s technology. Online forex trading can now be your option so you can easily swing trade and get profits from it.

You should start learning more about forex swing trading so that you will also have the chance for more profit. Its goal is to know the changes and swings in the prices at short intervals of time. It can last for a few days to weeks. You can use the data from this and still gain more from the odds.

There are more reasons why you will have to engage in swing trading and you can start with its possibility for liquidity. The forex market is large enough that you can make profits and losses at short periods of time. You can also make transactions at the given period so you can liquidate your money any time. With its liquidity, the forex market can be a profitable place for swing trading. Also, the volatility of the market causes the short term trading more beneficial. You can also add the cost of each transaction done in the short term as they can be more profitable.

You may think that the understanding the forex market is a complex process. However, you should simply find the right investment and right timing to get benefits from it. Swing trading can be your option if you aim to get quick cash from the market. This is simpler than other forms of trading so you should start trying it out.



By: Timothy Stevens

About the Author:

Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com – He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm



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Swing Trading Tips. Penny Stocks And Candlestick Charting Are Great Swing Trading Tips

by admin on May 20, 2009

Most investors who use the internet, know about swing trading. If you are not a day trader or long term investor, you are a swing trader. It usually means you are holding on to a stock for at least a few days, but not more than a few weeks. Swing trading is traditionally considered a low risk venture. Especially for those who trade the large cap stocks. But is there really such thing as low risk in these volatile times? Of course you can always just

keep shorting the market. I think that can be the most risky in our current atmosphere. Some experts will tell you that swing trading only works in a stable market, where the prices don’t

fluctuate.  

I would like to pass on some ideas and strategies, that with a slight mind set adjustment and a little training, you can reap big profits. I further contend that this can be accomplished on

a shoestring budget. I think most regular folk always saw the market as a playground for the big cats. That was until the influx  of trading companies to the internet. So how much investment capital should you have? To quote the investment companies disclosure, and I’m paraphrasing; “never invest more than you have to lose. It is like gambling, make no mistake about it. That being said, I think with the following strategies, you can plan on investing a few

hundred to a few thousand. Ideally, two to five thousand is an excellent starting point. If you keep an open mind, you will see for yourself, how the combination of these two systematic plans of action, can lead to enormous profits.

PENNY STOCKS combined with CANDLESTICK CHARTING

Ha! Those experts will tell you you’re crazy to even think about the dreaded Pink Sheets. Because of their lax accounting and reporting guidelines, many feel “penny shares” are vulnerable to manipulation. I’m referring to the famous scam “pump and dump”. Where at times

influential investors can pump up a stock, sell it for huge profits, then delist the stock. I’m here to tell you, that even if you jumped on that band wagon, you would have gotten out with a profit, long before the wheels came off.

A substantial look into this market however, will show that a lot  of  these small companies are honest and have tremendous potential. So lets say you found a way to insure yourself that penny stocks are the way to go. I think you can start to see the potential for large gains. I am going to provide you with a couple of penny sectors to get you started.

The first is an actual example that I made an astounding killing on.The “Nano Technology” sector is a great place to start. There are many Nano companies that already have financial backing and poised for tremendous growth. I’m not going to tell you which stock, because that

would take all the fun out of researching for you. However, I do want you to take a look at the kind of numbers this form of trading is capable off.

I’ll get to “Candlestick Charting” in just a bit. But I did want you to know that to find these little jewels I did use candlesticks. By tracking the technical’s I found a nickel stock that was getting ready to make a move. Don’t get me wrong, I think fundamental’s are very important, if

you are planning on a long term investment for your retirement, for example. For the purpose of swing trading however, knowing how to read the technical’s is all you need. After following the stock for a  couple of days, I got in at 8 cents for 50,000 shares. My investment was $4000. Now the main investors didn’t come in until it topped a quarter.

At that time I had already more then doubled my investment. I stayed in it for a few weeks, setting my stop loss at thirty cents. At it’s peak the stock went to almost sixty cents. I got out with over $24,000 profit. Granted this doesn’t happen everyday, but it does occur more often than you might think. You just have to know where to look.

The other sector I would strongly suggest is “Clean Energy”. With all the attention clean energy is getting, the new commitment by our new administration, I’m sure there are small companies that are diamonds in the rough. As we move on to the next part of the equation, I want you

to keep this in mind. The fastest way to become a millionaire, short off discovering or inventing something, or hitting the lottery, is to make the right penny stock investment.

Now that you understand the fantastic possibilities a penny can bring, let me tell you the secret of unlocking this pink treasure. Let’s start with the investing 101 concept that everyone knows. Buy low and sell high! So simple, yet why do so many fail to do it? Well one reason is most uninformed investors, get in much to late. Even a technical investor who does not use Candlestick Charting is playing a guessing game of sorts.

The Chinese invented the market concept, and the Japanese perfected charting techniques with the use of the candlesticks. It is easy to understand this complex system, if we simply break it down to the ticks on the chart you follow everyday. We know that the lower

tick is where the stock opened and the higher is where it closed. Now if we made the two lines parallel and connected them, what would we have? A candle. However, during that movement, the stock might have gone lower or higher then where it opened or closed, So our candle has formed a tail and a wick. Is it starting to make a little sense to you?

Take these examples: 

1. Lets assume a stock opens two cents higher than it closed yesterday.

It later closes three cents higher than that. Should we get in? Not necessarily. Because as the candlestick showed us, even though it had a five cent swing from the day before, a long wick was created. This meant that it went even higher then it eventually settled on. That tells us

that the pressure to go higher wasn’t strong enough. We will put it on

our watch list, and keep a keen eye on it.

2.A few days pass with similar results. Suddenly there is a break in the resistance. The stock has formed a candlestick with a long tail. What does this convey? We might put a buy signal for a couple of cents higher, because the long tail tells us that the bulls are ready to take over.

3. Ideally you want to wait for clusters to form. Of course the greatest indicator is a long candle. One that opens and closes with hardly any wick or tail.

4.Remember that volume will also help to determine the right stock.

There are many “characters” in the Candlestick System. I attended a $2000 workshop to learn this type of charting. However, you can learn these methods for literally pennies, compared to what I spent. If you have the right trading company that offers Candlestick Charts make sure they also have penny stocks. Many of them don’t cater to “Pink Sheets”. To help you through the initial trauma of getting started,

please refer to: My RecomMANNdations Investors Click Here

You will find a whole new world of investing without having to attend an expensive workshop. All the tools and information you will need to get started in the exciting world of

PENNY STOCKS and CANDLESTICK CHARTING





By: Avery Mann

About the Author:
At 57, I consider myself to be a Jack Of All Trades And Master Of Nothing. I was a struggling actor for 25 years. During that time I learned a little about a lot of things, and would like to pass along some of that knowledge. I live in California with my beautiful wife and a menagerie of pets.Learn more at My RecomMANNdations
Investors
Click Here



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12 Basic Rules of Penny Stock Swing Trading

by admin on May 20, 2009

Many penny stock traders enjoy the idea of swing trading. This allows you to buy and follow the trend without watching through the day. These penny stock plays are normally three to five day plays sometimes longer. I have found through penny stock trading my top 12 rules for swing trading.

1. If the trade moves in your favor, carry it overnight–the odds favor follow-through. Expect to exit the next day around the objective point. An overnight gap presents an excellent opportunity to take profits. Concentrating on only one entry or one exit per day relieves the pressure.

2. If your entry is correct, the market should move favorably almost immediately. It may come back to test and/or exceed your entry point a little, but that’s OK.

3. Do not carry a losing position overnight. Exit and play for better position the next day.

4. A strong close indicates a strong opening the following day.

5. If the market doesn’t perform as expected, exit on the first reaction.

6. If the market offers you a windfall of big profits, take them to the bank on the close.

7. If you are long and the market closes flat, indicating a lower opening the following day, scratch or exit the trade. Play for better position the next day.

8. It is always OK to scratch a trade!

9. Use tight stops when swing trading (wider stops when trading trend).

10. The goal always is to minimize risk and create “Freebies.”

11. When in doubt–get out! You have lost your road map and your game plan!

12. When the trade isn’t working, exit on the first reaction.

Article was written by Mouser57 member of stockhideout.com Hot Penny Stocks



By: rob rens

About the Author:

Mouser57 member of stockhideout.com Penny Stocks, and stock message board



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