Swing and Trend Trading

Swing trading has been a kind of fundamental trading in which positions are held for longer period than a single day . This is because most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even a week to cause sufficient price movement than renders a reasonable profit .
Swing trading is a simplified procedure . In reality , it sits in the middle of the continuum between the day trading to trend trading . A day trader will hold a stock anywhere from a few seconds to a few hours , but never beyond a day . A trend trader examines the long-term fundamental trends of a stock or index and may hold the stock for a few weeks or months . Swing traders hold a particular stock for a period of time , generally a few days or two or three weeks , which is between the extremes . They will trade the stock on the basis of intra-week or intra-month oscillations between optimism and pessimism . Swing trading takes advantage of brief price swings in strongly trending stocks to ride the momentum in the direction of trend .
 Swing trading combines the best of the two worlds – the slower pace of investing and the increased potential gains of day trading .
 Swing traders hold stocks for two days or weeks playing the general upward or downward trends .
 Swing trading is not high speed day trading . Some people call it momentum investing , because you only hold positions that are making major moves .
 You can quickly build up your equity by rolling money rapidly through short term gains .

How does Swing Trading Work ?
 The basic strategy of swing trading is to jump into a strongly trending stock after its gestation period of consolidation .
 Strongly trending stocks often make a quick move after completing correction .
 One could sell the stock between two to seven days for a 5-25 per cent move . This process could be repeated over and over again . One could play the short side by shorting stocks that fall through support levels .
 In brief , a Swing trader’s goal is to make money by capturing quick moves that stock makes in the life span , and controlling risk by proper money management techniques , simultaneously .

Advantages of Swing trading
 Swing trading works well for part time traders – especially those doing it while at work . Swing trading does not require that type of focus and dedication while its traders stay glued to computers monitors , feverishly watching minute-to-minute changes in the quote .
 Swing traders try to ride “ swings “ in the market while the traders gamble on stocks popping or falling by fraction of points . Swing traders buy fewer stocks and aim for better gains . They pay lower brokerage and have a better chance of earning larger gains , theoretically .
 Broker reaps the harvest while day trading . “ Swing traders go for the meat of the move , while a day trader just get scraps .”Furthermore , to swing trade , you need not hook up with sophisticated computers or lighting execution services . You need not have to play about extremely volatile stocks .
We believe that swing trading is a better way for the individual to attain superior investment results through the short-term trading in stock market . This trading strategy has been carefully designed for the needs of the individual investor , who does not have the resources that institutions and professional money managers may have .

How to Swing Trade ?
You need to understand what are the up or down trends to fully understand the significance of the swing trading .
Up Trend : Simply put , an up-trend is a series of higher highs and higher lows . In other words , an up trend is a series of successive rallies that extend through previous high points , interrupted by declines , which terminate above the low point of the preceding sell-off . Often , the high of the last “ swing “ in the trend will serve as the support for the next low . These areas are circled .
Down Trend : Simply put , a down trend is a series of lower highs and lower lows . In other words , a down trend is a series of successive declines that extend through previous low points , interrupted by increases , which terminate below the high point of preceding rally . Often , the low last “ swing “ in the stock’s trend will serve as the resistance for the next high .

Trend Trading
A trend is nothing , but the general direction of price of an asset or market in general . It could apply to equities , bonds , commodities and any other market , characterized by a long-term movement in the price or volume . Trend trading is one of the most effective and easy to use methods for making money in the market . The success of trend trading depends on identifying and catching the trend after it gets out of the trend no sooner it reserves . Trend trading involves taking a position in the markets with that position for weeks to months for larger than the normal gains . Trend traders or investors generally trade long-term or secular trends and are not concerned with the day to day market volatility .

Advantages of Trend Trading
 Trend trading is the fastest and most risk free way to make money in the markets . In trend trading you could identify a change of trend in the market as early as possible , take your position , ride the trend and close your position shortly after trend reverses .
 It is very possible to catch 60 to 80 percent of many intermediate term and long term market movements thereby creating wealth for yourself and your family .
 Trend trading helps in taking larger profits out of the market without watching the market or stocks on a minute-by-minute or even a day-day basis .
 Whether you are a short term day trader or a long term investor , we believe incorporating Trent Trading into your overall trading plan is a must . There are two types of trades : “ Income producing “ trades and “ Wealth building “ trades .
 Swing trading and day trading produce income , while Trend trading picks is designed to amass wealth . add this wealth building component to your trading today .