Before you continue with this post check out my blog on "What is Swing Trading".
Want to start swing trading? As a beginner, I am aware, you are probably feeling lost about where to start with it. It’s not the best feeling; I know! I was in your place many, many years ago.
But all is not lost; I will give you a quick guide with the steps needed to start swing trading. Hopefully, this guide will allow you to avoid typical beginner’s mistakes and earn money along the way.
For starters, try to find one or two simple trading strategies (eg: trading the break-out or break-down). You can learn the complex ones as you gain more experience but in trading; I find it’s best to K.I.S.S.
In addition to sticking to one or two strategies; it’s important to take things slowly. That is, crawl before you walk. I know that may be hard to do as you’re probably super excited to get started but if you’re going to do something; it’s best to do it the ‘right way’. Again; “crawl before you walk”.
You may also want to keep it to one or two markets. Again; once you’ve become more experienced you can always begin experimenting with other markets.
In swing trading, you also need to develop a good trading system to ensure consistent success. There are as many systems as there are traders. My suggestion is to play around with a few until you find one that fits your personality and temperament. Here’s a few rules that go into my trading system. Let me know what you think about them.
As a swing trading beginner, I would place an emphasis on trading very boring and stable markets (think: large cap stocks like $GE or $PG). Volatile markets (think penny stocks) can cause a havoc on your account as a beginner. It’s better for us to be safe now, than sorry later. Again, keep it simple and trade predictable markets. It’s ‘easy’ money.
This goes without saying but I will mention it anyway. It’s super important to only trade with money you can afford to lose. I am aware that you’re probably excited and want to throw the kitchen sink at the markets but it’s super important that you trade with a comfortable amount of money.
Don’t be too greedy and learn how to control your emotions when trading. As you advance in your trading career; you will soon learn why this is a must!
More than anything else, you need to “befriend” the stock market’s trend. That’s right, ‘the trend is your friend’. You should ALWAYS trade in the direction of the trend.
Don’t worry, there are a ton of swing trading indicators out there (eg: moving average, etc.) that can help you determine whether the trend is ascending or descending.
How to Start Swing Trading (Summing Up):
That’s it for now! Hope my beginner’s guide on “How to Start Swing Trading” was helpful.
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