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Profitable swing trading strategy

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profitable swing trading strategy

SinceMorpheus has been generating consistent profits through a simple and proven swing trading system for stocks and ETFs that works in up, down, and sideways markets across strategy globe. Depending on market conditions and type of swing trade setup detailed belowwe seek swing hold our trades from several days to several months. Breakout 3 typesPullback, Trend Reversal, or Short The Bounce. Many active traders make the trading of assuming a winning strategy for swing trading stocks needs to be complicated. On the contrary, we have found simplest trading strategies are the best because they can be more easily and consistently followed without confusion. Using actual past trades entered in The Wagner Daily letterbelow we explain and illustrate trading technical criteria behind each specific type of trade setup. In healthy, uptrending markets, a vast majority of the stocks and ETFs we buy are momentum-driven breakout trades, each strategy which must first swing a valid basing pattern such as a "cup and handle" or flat base click here to learn how to strategy these chart patterns that precede the best breakouts. Following are the three different types of breakout trade setups we buy:. The stock must have a strategy of strong earnings growth and some type of technically bullish chart pattern. Furthermore, these stocks usually have an IBD relative strength rating of 80 or higher. Since we consider these stocks to be "A-rated," they can usually be held for at least one to two months longer holding periods often lead to larger profits. The January 10 breakout from a bullish "cup and handle" chart pattern is shown on the first chart below:. Overall, the Morpheus Combo strategy is one of our top swing trade setups because the combination of a bullish chart pattern and strong earnings growth frequently leads to powerful, high-momentum breakouts which translate to rather profitable trades profitable our subscribers. Our Relative Strength setup profitable the main trading technique discussed in Deron Wagner's popular book, Trading ETFs: Gaining An Edge With Profitable Analysis. A detailed analysis swing walk-through of that trade can be found in this blog post. Neither earnings growth nor a top relative strength rating is necessary with this profitable of swing trade setup. Such a huge gain on a sudden surge in volume indicates institutional demand. With this setup, the one-day volume spike should be at least 2. These stocks can be held for a few days to a few weeks as long as the price action strategy overly bullish. With trading trading system, we never try to catch bottoms, nor sell at the absolute top. Rather, we simply aim to catch "the meat of the move. As previously mentioned, strategy overwhelming majority of the stocks and ETFs we trade in strong, uptrending profitable are breakouts one of the three types detailed above. Click here to see several examples of actual pullback trades we have taken in the past, including brief videos that clearly explain our pullback trading strategy. The next chart shows the subsequent breakout action after identifying this stock as a Trend Reversal buy setup:. Furthermore, the Trend Reversal setup should NOT be used in a healthy, bullish market because it would merely identify stocks and ETFs that are lagging the broad market relative weakness. Again, this type of trade setup is only used if the main stock market indexes are in the process of reversing a lengthy period of weakness. In flat or downtrending markets only never in an trading or bullish market profitable, we also sell short stocks and ETFs with relative weakness, after they breakdown below support and subsequently bounce into resistance. This is known as Short The Bounce. Details and a clear example of this strategy can be found on this blog post. If you prefer videos to demonstrate concepts, check out the 7-minute video below, which uses annotated charts of actual past swing trades to summarize trading simple trading strategy. The video is best viewed in full-screen HD mode click bottom right of video player window:. As technical momentum traders, we do not believe in the Wall Street mantra of "buy low trading sell high. Trading and ETFs in strong uptrends that have outperformed the market over a 6 to 12 month period have a high trading of continuing their bullish trends for the next few months. As Sir Strategy Newton once proclaimed, "an object in motion stays in motion until a greater force acts against it. Similarly, stocks trading at or near their week highs have the least amount of overhead resistance to work through, and can therefore stay in uptrends longer profitable anyone expects. Ideally, the best swing trading candidates will be trading at week highs and fresh all-time highs, as they have no overhead supply resistance to work through. One common and deadly mistake new swing traders make is "bargain hunting," which is going after stocks and ETFs that have fallen out of favor in the market and are usually trading at or near their week lows. The faulty thought process is to "simply" buy the lows, wait a while, and sell higher. However, this is a flawed plan for swing because market trends frequently last much longer than anyone expects, and it is human nature is to underestimate how long a trend can last. Therefore, it makes no sense to buy a downtrending stock or sell short an uptrending stock. This enables us to achieve strong gains in healthy, uptrending markets, while seeking to avoid losses or profit from short selling and trading inverse ETFs in flat to downtrending markets. In bullish, uptrending markets, our main focus is on trading small to mid-cap growth swing because they have the best capability to outperform the gains of the broad market. However, in flat or downtrending markets, we profitable our trading more to trading ETFs because they can provide us with a low correlation to swing direction of the broad market currency, commodity, fixed income, and international ETFs. We also trade inversely correlated ETFs "short Swing to achieve outperformance in downtrending markets. Knowing the right time to buy stocks and ETFs is only one part of the equation to becoming a successful swing trader. Obviously, knowing when to sell is at least equally as important. Generally, the main goal of our exit strategy is to sell winning trades into strength when they have achieved a reward-risk ratio of at least 2 to 1. That means the trade has gained at least double our initial capital risk. However, when the trade doesn't go as expected, we calmly exit into weakness because not all trade setups work and we always employ firm risk control. With each and every trade setup, having a protective stop is the last line of defense that cannot be argued with! Our exact, preset stop prices are provided with every ETF and stock pick entered in our Wagner Daily swing trading newsletter. Here are the top 5 "golden strategy we teach subscribers when it comes to money and risk management for trading:. Our subscribing members are a diverse group of market participants, including semi-retirees looking to preserve and build their wealth, part-time traders seeking swing supplement the income of their day jobs, and even professional financial advisors looking for solid technical guidance. Because our swing trade service is fully designed as an "end-of-day" trading system, even part-time investors and traders with daytime jobs may completely follow our strategy and swing trade picks by simply setting their buy and sell stop orders with their online brokers before going to work. Because our strategy for trading stocks and ETFs is based on technical analysis and profitable momentum, common techniques known to work all over the world, our stock trading strategy works equally well for any market in the world, providing members who subscribe to our trading system with unlimited opportunities for profiting in various global stock markets. Trading Blog Strategy Newsletter Archives Performance Stock Screener Contact Us. Start my risk-free access now. We never share your personal data with third parties and promise not to spam you. If you are serious about becoming a consistently profitable trader, you need a trading system that works. To learn how to trade stocks based our proven swing trading techniques with an year track record of success, sign up today for your day risk-free access to The Wagner Daily or dramatically shorten your learning curve with the best swing trading video course around. Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. By accessing swing site, user understands and agrees to full terms of this disclaimer. You may view our Privacy Policy here. profitable swing trading strategy

Profitable Swing Trading Strategies for 2017

Profitable Swing Trading Strategies for 2017

2 thoughts on “Profitable swing trading strategy”

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