Full swing trading strategy
Swing trading is a widespread type of exchange trading created in the 1950s and was first described by the famous American trader J. Douglas Taylor in his book The Taylor Trading Technique, where he described what swing trading is, his technique and the principles of this type of trading.
The essence of swing day trading strategies in the Philippines is to trade on price fluctuations within an existing trend. This type of player is popular among beginners because of its simple and clear trading principles.
Swing trading or what are swing trading strategies in the Philippines?
There are two similar types of trading: swing trading and intraday trading. Both swing traders and intraday traders can open trades that only live for a few minutes. Both often trade exactly on the trend. But there are fundamental differences between them.
- The lifetime of the trades. Intraday trading is called intraday because a trade is opened and closed within one day and does not roll over to the next. However, in swing trading, trades can live for days or even weeks. As long as the profitable movement for the trading continues.
- Less control. An intraday trader must constantly monitor the market for new entries and at the same time monitor the open positions to be able to close them in time. This increases the stress level and forces the trader to be permanently near the terminal. Swing trading strategies are more long-term trading strategies, so they do not require such a rigid and regular monitoring of positions. The trading can automate part of the player at all and set up notifications to email and the terminal to come in only when needed. Therefore, a swing player implies a more flexible schedule and less emotional load.
Nothing in this world is perfect, so even swing trading is characterised by both merits and demerits.
The merits of a swing trading strategy:
- It is possible to make profits in any scenario, the general direction of the market.
- Does not cause much emotional stress.
- Costs of effort, energy, and time are minimal.
- High chances of huge profits.
Disadvantages of swing trading strategy:
- Requires a large amount of starting capital.
- Strict rules of risk management. In swing trading, you cannot risk more than 15% of your capital per day. That means you must exit the trade the next day if your losses reach 15% of your deposited funds.
- Experience and ability to analyse financial markets.
It is worth remembering that caution and discipline are the basic qualities of any player. Therefore, to make a profit on a swing trading strategy, proper money management is important. Thus, the ratio of potential losses to profits in each transaction should be no less than 1:3. Following this simple rule will not allow you to lose your deposit. Even if the strategy is not perfect or you are a complete beginner in the market. Also, you must be modest. Sure, you want to make a fat profit right away. Thus, if you earn 5-10% per week, the final profit will be more than the average 20% per month. If not to be greedy at once, but to be patient and use any opportunities to earn on fluctuations, you can achieve good, and most importantly - stable results.
Swing trading is the best strategy in the Philippines. It is not a bad option for beginners. It involves less stress than scalping or intraday player, does not require you to be constantly at the monitor and has transparent trading principles. Try it - and it will work out for you!
Swing trading strategies in the Philippines involve trading with endurance, the goal of which is to hold an open position for a certain period of time: from a few hours to three days. The goal of the player: to get maximum profit from price fluctuations, at the same time making the minimum number of deals.
What does swing trading look like in practice?
Suppose a trader enters a position and holds it for a day or two or three days waiting for the profit to mature before exiting. There is another option: for two or three days when the price is fluctuating he can stay away from the position, and still wait for the moment to successfully close the deal.
The main qualities of a swing trading who wants to learn this style of player:
- self-control, patience, fortitude;
- experience in financial operations;
- knowledge of technical analysis;
- risk management skills;
- analytical skills;
- ability to act flexibly.
A swing trading strategy can be seen as taking trading to the next level of professionalism in stock trading. Choose it if you want to take advantage of the opportunity to make profits when you don't have much time to trade intraday.
Trade planning is 90% of success in implementing swing technique, so the first thing a trading needs to do is create a trading plan. So go for it, have a successful trade!
A swing player needs to distinguish between a price movement that is likely to continue and a possible reversal. The trader first needs to determine the time frame of the trade. Suppose you are planning to trade on the daily charts, intervals of 4 or 6 hours are good for clarifying the entry. Then we should identify the market phase on the days. There are 4 options here:
- Trend up.
- Down trend.
- An upper sideways range or distribution.
- Lower sideways range, aka accumulation or accumulation.
Basic principles for analysing swing trading strategies in equities:
- a trend develops as long as each new high and low is higher than the previous ones;
- if price is calm, i.e., volatility is not increasing, the trend is likely to continue;
- a trend stop is expressed by a correction or a continuation pattern - in both cases, it is calm and flat;
- depletion of the trend is accompanied by an increase in volatility, the range of fluctuations increases.
Technical analysis is the basis for swing day trading strategies in the Philippines. Indicators can be used, but don't forget - these tools are derivative and usually lag behind. After all, a swing trader looks ahead of the market:
- Usually works with pending orders.
- Knows where the stop will be located before placing the order.
Although there are tactics on two- and three-period oscillators in the swing trading books, it is necessary to have an additional condition to enter the trade, i.e. a filter. For example, you can trade ascending triangle patterns when quotes are held above the 50 per cent exponential moving average. But there is no perfect setup. Every trading chooses for their swing player strategy just the ones they are comfortable with, the ones they understand.
Experienced market players know how to use different swing trading strategies at the same time, depending on the market phase of the asset, but you need to grow up to that.
For a beginner, it is best to choose one approach and apply it to different instruments in the same time horizon. The main objective in swing trading is to protect your trading capital. The main work continues until the stop order is moved into the breakeven zone.
Swing trade sequence:
- A risk point is identified to which the market should not return in the trader's opinion and a pending stop order is placed in the direction of the anticipated swing.
- If the move develops as expected, the stop is moved to Breakeven, then to a slight plus, then the position is monitored.
Any trade that does not result in a loss is considered a good trade. If you have control of capital, the rest will follow.
The general statistics of swing techniques is that after a month or two of proper trading, the account generates trades with rare small losses, more frequent small profits and rare large gains. For technical swing strategies, instruments should be highly liquid. Otherwise assets will not work out the intended patterns - either they will rip the stop gap, or simply fall asleep and stop moving, and when the swing trader decides to close the position - there will not be anyone willing to take it. Either way, you need markets with high capitalization, then the deal will go out of hand in a few seconds.
Swing trading strategies are used in sports markets, stock markets, futures markets and forex. Initially, swing trading technique was practiced in the futures market, where the mass of instruments are indices, metals, commodities, grains, energy. If you add stock futures, you get a huge range of unrelated instruments for swing trading. Swing is now more prevalent in forex, there are enough assets with low correlation, there are metals and energy. And on top of that there is a low entry threshold. Swing trading in forex works out great. It's practically the only short-term strategy that you can practice here without worrying about spreads.
How to start using swing trading strategies stocks in the Philippines?
There are more than a dozen different training materials published to date on swing trading strategies in the Philippines . To start trading, you need to register on an online platform. You can do it from the comfort of your home. Everything happens online - you register on the website, fund your account with VISA, MasterCard, etc. and start trading. Depending on the chosen method of funding, the money will take from 5 minutes to 24 hours.
On the trading platform you have an opportunity to try trading swing day trading strategies, without fear for your own savings. You can do so by opening a demo account. A demo account is identical to a real one in terms of functionality, the only difference being that any profits and losses are virtual.
Once you are familiar with how the system works, you can move to a real player account. With a real account you will have round the clock access to all the services offered by the platform, which can be very varied and indeed useful. You will be able to learn about the strategies that you need to use in order to increase your profits and reduce your losses. So good luck!