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Standard swing trading ideas

Discussion in 'Beginner's Lounge' started by grah33, Dec 8, 2015.

  1. grah33

    grah33

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    (skip to question below if u prefer)
    I've spent lots of time learning and i'm still learning more and more. i like trend following (daily timeframe) and i'm going to continue with that. we had a bear market before so couldn't trade and now i'm into it and waiting for my trades to turn over. and will build them up slowly as i see it really works for me. it's taking a while though . long story short: i don't have a big capital base and i don't work much (for good reasons), and it would be nice to allocate a small portion of my portfolio to swing trading.


    MY QUESTION :
    are there any basic swing trading end of day strategies that should work? maybe i can just find the same setup over and over and use it? mean reversion seems popular and could be the way to go. anyone know of any strategies or methods for me? i'd only trade long when my market filter says the XAO is uptrending, and avoid outside of that.


    as always, i'm grateful for everybody's assistance to me, and sorry for probably sounding annoying at times.
     
  2. Gringotts Bank

    Gringotts Bank

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    Yeh, don't do swing trading right now. The market is not giving up anything for this approach. You still get the odd one, like 1PG today, but it's been hard for over a month. Will work again at some point.

    To get a rough idea of swing trading, you can just plot a few MA's. Buy the dips in strongly uptrending stocks - that sort of thing can work.
     
  3. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    My Swing account is down like 15%, its been poor for these types of systems for sure.
     
  4. peter2

    peter2

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    grah33: A small capital account to start with, is a major handicap. Plus, if you aren't working then any losses can't be replaced quickly. Have you heard the term "scared money"? You can't learn to trade with scared money because you have to place some of this scared money at risk in order to make money.

    You're looking for a method that gets wins quickly and does so right at the start. Unfortunately there isn't any, especially with a small starting account. Every method has its good periods and bad periods in the market.

    Work and earn some more. Motivate yourself to work for the next six months and save hard so that you have a bigger starting capital. Save to trade. Spend this six months paper trading real-time charts. You'll get some experience if you do it properly.

    You've been around Pav's and my thread for quite a while now. Ask yourself what's holding you back? You could have competed in the last two ASX trading games? No money at risk. You could have started your own short term trading thread here at ASF. The results would be immaterial. You would have learned heaps.

    Whatever it is that's holding you back. You got to get past it yourself.
     
  5. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Got to admire Peter2's method, to achieve those results in this type of market is really impressive. Imagine what he can achieve in a trending market.

    Peter, you should be trading OPM...;)
     
  6. kid hustlr

    kid hustlr

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    What type of system?

    (Roughly)

    New highs
    Pivot lows
    RSI

    ?
     
  7. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Pattern trading, i trade some of Nick's power setups as well some of my own ideas from my scans.
     
  8. peter2

    peter2

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    Thanks for the compliment. There were a few steps that had to be taken before I started.

    1. I made a commitment to the ASF community.
    2. I accepted the responsibility for all my trading actions, including the mistakes.
    3. I defined the trading style - momentum (~swing)
    4. I defined the break-out setup (and later the pullback setup that I've not needed).
    5. I created scans/process to find these setups.
    6. I created a trading plan, with position sizing, money management.
    7. I created a set of trade management rules/guidelines for all possible price movements after the entry.
    8. I created a spreadsheet to monitor all the important stats.
    9. I made a commitment to report to the forum on a regular basis (EOW).
    10. I try to be disciplined.

    There's a lot more important stuff than the strategy.
     
  9. grah33

    grah33

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    i'll get back to this thread soon, but the market was holding me back. since may it went down, and I only trade when my hull market filter regards the market as uptrending. that's about 5 months of no trading (it was a bear), except a few little spurts. then i got into it when it started rising and now my first trades are slowly going. takes about 3 months with this system for a trade to roll out some profit. i still reckon it's a great system though. just need a year of it on my total savings.

    i don't work much (got a few health problems). but yeah, i could put out more hours, save to trade as you suggest.
     
  10. ThirtysixD

    ThirtysixD

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    I don't think swing trading is profitable any more (except on a few currency pairs). Most of the systems you see floating around on the net lose money. If you like trend following why not just expand your markets? ETF's give you good access to commodities and foreign markets.
     
  11. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Another ASF long bow....

    Peter2 is swing trading, have you looked at that?
     
  12. ThirtysixD

    ThirtysixD

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    Most of his trades are short term breakouts that follow the prevailing trend

    If you wanna call that swing trading thats fine but I think its a combination of different techniques.
     
  13. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Swing trading speaks more to the duration than the technique. Usually several days to a few weeks.
     
  14. Gringotts Bank

    Gringotts Bank

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    No it doesn't. Swing trading = "buying the dips", like mean reversion (same thing).
     
  15. Gringotts Bank

    Gringotts Bank

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    Sorry Cana, I see there's different definitions. Seems you can jump on the swing mid way through its trajectory, rather than at its turning point.
     
  16. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Yeah, i mean ideally you want the whole thing...I can think of several different techniques off hand, break outs, divergence a-b-c, pullbacks/retests, flags/pennants/complex patterns....on and on
     
  17. grah33

    grah33

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    just wondering, for the people in drawdown right now, maybe that's because the market has been a bear for a few months. would you have been in drawdown if you were trading in better market conditions, like in this image (trade during the yellow boxes only)?


    and when do people exit? there is just no way of knowing if the rally will go a little higher or lower or stay at the same level.
     

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  18. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Well Grah33, thats trading. The individual swing trades are exited as per the trailing or initial stops. You can use an index filter to reduce the risk in non-ideal conditions, and increase to max risk in perfect conditions, but you're never going to hit this perfectly. Its a choppy range bound market....c'est la vie.
     
  19. Gringotts Bank

    Gringotts Bank

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    The broader market direction doesn't have a huge amount to do with it, for me anyway.

    Right now we just happen to have conditions where if a stock gets sold off, it continues to get sold off...hard. That's not good. Won't be like the at forever. Markets change.
     
  20. pixel

    pixel DIY Trader

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