Updated: Feb 21
One of the most incredible opportunities in life is trading and investing, along with your job or business.
The problem with beginners is, they get scared by the phrase "stock market trading."
Most of them would have seen a friend's profit screenshot or watched a YouTube video with the title - "How I made NN money in 1 hour" and tried their luck immediately in the market.
Needless to say, this creates a negative opinion about stock market trading in their subconscious mind, which mocks them every single time when they think about trading at any point in time.
There is no need to feel sad about your trading results. Besides you don't have to be your intelligent friend who will display only profitable screenshots and hides losing trades or that YouTube guru to get success in this business.
You can be yourself, learn a trading concept in-depth, and maintain laser-focus to execute the trades based on your trading concept.
Swing Trading can be used as a side hustle by anyone to build wealth over a while.
Remember, the way you frame ideas in your head can accelerate your growth (or impede your growth). Hence, keep an open mind, read the article till the end, and then decide yourself.
What is Swing Trading?
Swing trading is a trading technique that seeks to capture a swing when the price goes to a complete sideways zone.
The idea is to get out of the trade before the opposing pressure comes in.
It means you look to book your profits before the market reverses.
Swing Trading Strategy
Identify a range-bound market or script based on individual choice.
If there is a firm price rejection at the support level, then go long on the next candle open (the technique is the same for a short trade if there is a rejection at resistance level).
Trial your stop-loss when the price moves upside and book profits before the Resistance level (for short trades, book profits at support level).
Below is one example.
Now you might ask a question.
“Why should I book profits before Resistance?”
As a swing trader, you are only looking to capture one swing in the market.
To ensure a good success rate, you have to exit your trades at the resistance levels (that’s the idea of “swing” trading).