What is Swing Trading and can I make Money Swing Trading?

What is Swing Trading?


## Swing Trading

We get a lot of questions from people who want to learn what swing trading is, and what it’s all about. Today we’ll do a deep dive into the basics of swing trading. What is Swing Trading? How do you find a good swing trade opportunity? What do you need to get started in Swing Trading?

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### What is Swing Trading?

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Swing trading is a style of stock market investing that attempts to capture small to medium-sized gains over a few days or several weeks. Swing traders primarily focus on technical analysis to identify trading opportunities, but they may employ fundamental analysis and macroeconomic trends as well. 
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#### Technical Analysis:

Technical analysis is using an analysis technique that evaluates investment opportunities based on recent [price patterns](/blog/pattern-finding-in-swing-trading) or trends identified when reviewing a stock’s chart.

- Heavy emphasis on identifying patterns using candlestick price charts

- Looks for opportunities to trade based on recent price movements within the stock
Emphasizes the identification of a proper entry point. This is when a stock hits a certain price (identified through your analysis) that should potentially maximize your opportunities for a profit over the next few weeks.

- This type of analysis focuses on [indicators](/blog/indicators-for-swing-trading) such as: recent price movement, historical stock price, trading volume, overbought or oversold levels, and moving averages

Our [swing trading course](/swing-trading-course) teaches these techniques and is included with our service.  Joining our group only costs [$19 per month](/pricing).

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#### Fundamental Analysis:

Another trading technique that may be employed focuses on identifying a stock's fair market value.

- Fundamental analysis considers a multitude of factors such as: current economic factors, underlying companies’ financial statements, and industry conditions 

Although these may sound like conflicting strategies, they should be viewed as complementary trading techniques. Using these techniques in tandem may help identify a proper opportunity for a swing trade. Traders may use recent price action, historical trends, current economic news, and trading volume when looking for a swing trading opportunity. 

We discuss these sorts of fundamental analysis in our [swing trading discord chat room](/swing-trading-discord).  It’s included as part of our service. 

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### What’s the Difference Between Trading and Long-term Investing?

As previously noted, trading takes a short-term outlook. Traders look to gain profits from short-term term investments. A long-term investor may look to gain profits by holding a stock for many years. Here are some other key differences between trading and investing:

- Long-term Investors tend to disregard any current market volatility

- Volatility is considered part of investing and it does not impact an investor’s long-term assumptions of the underlying business

- Long-term Investors prioritize identifying strong businesses they believe will grow in the future

- Conversely, a trader may buy shares of a company that might not be suitable for a long-term viable investment

- Traders actively look for mispriced stocks in the market

- Long-term Investors generally believe that if you run a strong business, your share price will go up over time

- Long-term Investors usually prefer a basket of stocks, bonds, mutual funds, and other financial instruments

- Since a trader is looking to maximize profits in the short term, they tend to only invest in stocks as they are more likely to see immediate price movement (higher volatility)  

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### Key Factors when Identifying a Swing Trade

We’ve talked about the differences between investing and trading, now let’s take a closer look at some of the key identifiers when considering a swing trade.


#### Identifiers When Considering a Trade:

##### 1\. Pre-Market Movers:

- It's important for a swing trader to start their morning early. You’ll want to get a good sense of what is happening in the pre-market. Try to identify early in your day if you believe this could be a bullish or bearish day in the market. Identify the hot sectors and look to see if there are any trades you can take advantage of.

##### 2\. Current Events:

- It’s equally important that swing traders stay up to date on news and current events. This means understanding what is happening in the US economy and abroad. Unexpected news is a common driver for quick changes in a stock’s price. If something happened during the close, you can use that news to make pre-market decisions the following morning. Current events may also include an upcoming press release or even a pending decision on a pharmaceutical drug.

##### 3\. Identifying Hot Sectors

- Much like current events, traders need to take a holistic view of the entire market. Even if you aren't looking to trade in a certain sector, it's important to know what industries are performing in the current economic environment.

##### 4\. Changes in Trading Volume

- Traders will consistently monitor the trading volume before considering a trade. High volume might mean a quick change in price is imminent. 

##### 5\. Moving Averages (MA)

- Moving averages are a great technical indicator based on a stock’s price movement. Moving averages are used to represent where a stock price has previously been and help you get a clear view of the trend.

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### What are Common Swing Trading Strategies?

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Here at the Swing Trading Club, we always preach the importance of having a plan and sticking to it. Now that we’ve discussed some key indicators you can look for when swing trading, we’ll shift our focus to talk about some common strategies for swing trading. Here are just a few:
</div>

##### 1\. Channel Trading

- Based on identifying strong resistance and support lines. 

- These lines may help identify a range that the stock has commonly traded within.

- Assume a stock will trade within this range barring any significant changes or volatility. 

- If the stock is trading around its support line, that is seen as an opportune time to trade.

- Conversely, when trading near its resistance line, (or price it has struggled to surpass), that may be seen as a good time to sell or even short the stock.

##### 2\. Moving Average Convergence Divergence (MACD)

- Studying a stock’s recent moving averages can be a great technique to use when swing trading.

- MACD is a momentum indicator that is calculated through recent price action in the stock. 

- MACD is commonly derived from subtracting the 26-day exponential moving average from the 12-day EMA.

##### 3\. Fibonacci Retracements

- This swing trading technique believes that stocks tend to give back a percentage of any recent gains before reversing again. (Profit-taking) 

- Retracement levels are then plotted out to form an overview of the chart. 

- Great for reversal recognition

There are many different techniques a trader may use. We are not recommending any technique over the other, but merely stressing the importance of having a plan. Try different techniques over time and in different scenarios. Be sure to always keep a journal- you can improve your skills if you simply document your decisions and your rationale when making trades. 

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### Summary

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Unlike long-term investing, swing trading looks to capitalize on gains and minimize losses, all within a  few weeks or months. When swing trading, emphasis is placed on reading a stock’s recent price chart to identify trends that may lead to quick profits. When swing trading, you will also need to stay relevant to current events or any significant movement within a stock’s trading volume. Above all else, always have a plan when swing trading.

What are the best strategies to learn Swing Trading?

How to Learn Swing Trading


## How to Learn Swing Trading

In this article, we’ll discuss: 
- How to Learn Swing Trading 
- Getting Started with Swing Trading
- Learning How To Enter Swing Trade Positions
- The Best Traders to Learn Swing Trading From
- Joining [The Swing Trading Club](/pricing)

Swing trading is a type of short-term trading where positions are held for anywhere from a few days to a few months. The key principle of [swing trading](/blog/what-is-swing-trading) is to look for price “swings” or “legs” within a larger trend. These swings provide opportunities to enter and exit trades at favorable prices.  

There are a number of different techniques that swing traders can use to try to capture gains. Some swing traders use technical analysis to look for patterns in the prices of stocks, while others use fundamental analysis to try to identify stocks that are under or overvalued.

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### Getting Started with Swing Trading

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If you're interested in swing trading, there are a few things you need to do to get started. First, you need to educate yourself about the basics of the stock market and how stocks are traded.   [This is a good article](https://cashblog.com/how-to-buy-stocks-for-beginners/) that shows step by step how to buy stocks for beginners.

Once you have a basic understanding of how to buy and sell stocks, then it’s time to learn actual [swing trading strategies](/blog/best-swing-trading-strategies).  Most of them revolve around looking at the price charts of stocks and looking for particular patterns in the price charts.

Certain [patterns](/blog/pattern-finding-in-swing-trading) can reflect bullish or bearish outlooks for the stock.  And the name of the game for a swing trader is identifying charts with these patterns and making a trade based on it.  The idea is that these patterns might give you an idea more  often than not which way the price is headed over the next few days or weeks.  That’s why if you want to learn swing trading, it’s a foundational step to learn these patterns.

Another thing traders often look at is [swing trading indicators](/blog/indicators-for-swing-trading).  There are some common ones, like [RSI](/blog/best-rsi-settings-for-swing-trading), moving averages, and MACD.  Learning how these indicators work can be a key aspect of becoming a profitable swing trader.

If this all sounds overwhelming, don’t worry.  We have a [swing trading course](/swing-trading-course) here that teaches all these concepts.  It’s designed to help beginners learn how to swing trade.

It’s included for anyone who signs up for our service, which only costs $19 per month.

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### Learning How to Enter Swing Trade Positions

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Once you know the strategies and indicators, it’s time to [pick stocks](/blog/swing-trading-stock-picks) that are good for swing trades.  Learning how to do this is another key step of getting proficient.

You can use a stock screener to find stocks that meet the criteria of your swing trading strategies.  Most trading platforms have them and you can configure them to your liking.

Another way to get stock ideas is by logging in to our [swing trading discord](/swing-trading-discord) chat room.  That’s where our members congregate and share ideas.

You’ll see [swing trade alerts](/blog/swing-trade-alerts) all the time in there, and those will help you learn what swing trades you want to make yourself.

Once you see a trading opportunity you’re interested in, you need to decide how much money you're willing to risk. You also need to have a plan for how you're going to exit the trade if it doesn't go your way.

If you're buying a stock, you'll need to decide how many shares you want to buy. Once you've made your decision, you need to place your order.

Once your order is placed, all you can do is wait and see what happens. It’s important to understand that not every trade is a winner, and that’s one of the final pieces most swing traders need to learn to get to an expert level of proficiency.  The emotional side of dealing with losses, which are inevitable, is just as important as learning the strategies themselves.

Swing trading is a great way to make money in the stock market, but it's not for everyone. If you're uncomfortable with taking on risk, stick to something safer. But if you're willing to take on some risk and you're patient enough to wait for the right opportunities, swing trading can be a great way to make money in the stock market.

Swing trading is a speculative activity, and it carries a high degree of risk. Swing traders need to be able to handle losses, as they will inevitably occur from time to time.

</div>

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### Best Traders to Learn Swing Trading From

<img class="non-clickable-image" style="float: right; width: 200px; margin: 0; margin-left: 50px" src="/static/investor-growth-graphic.svg">

We like to think we have some of the best swing traders in our own chat room here at the Swing Trading Club.  You can learn from other people who have been doing it for years and who are out there on the front lines making real trades.

Another swing trader we like is Eric Ferguson from [Mindful Trader](https://www.mindfultrader.com/).  He influenced some of the trading strategies that we actively use here by providing research about the historical effectiveness of them.  He’s also a great guy to learn from because his teaching style caters well to beginners.

Finally, another great swing trader is Tony Saliba. Saliba is the author of How to Make a Living Trading Stocks, and he is a well-known swing trader. Saliba has been trading for over 30 years, and he has developed several different swing trading strategies.

One of the key features we offer here is our swing trading watch list

Swing Trade Watch List


## Swing Trade Watch List

One of the key features we offer here is our swing trading watch list.
We add to the watch list regularly inside our [discord chat room](/swing-trading-discord).

Everyone who [joins the Swing Trading Club](/pricing) gets full access to our swing trading watch list.
Members of our community contribute ideas to the watch list each day for everyone to benefit from.

Here is an example of the types of swing trade watch lists you might find in our discord chat room:

![](/static/discord-watchlist-example-1.png)

![](/static/discord-watchlist-example-2.png)

You can see that our watch lists give you all sorts of ideas for [stocks to swing trade](/blog/finding-stocks-to-swing-trade).  

Some members post watch lists that have a lot of description for each swing trade idea.  Some members post watch lists that don’t have an explanation but have very clear rules for when to enter and exit the trade.

What you’ll find if you join is that you might gravitate toward watch lists posted by particular members.  Every trader is different and you can find the watch lists that match your trading style.

Many members don’t post watch lists, and that’s ok too.  Each person gets to decide their own preferred level of involvement in the chat room.

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### How to Use Our Swing Trading Watch List

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A watch list can be helpful it lets you configure your swing trades ahead of time.  

So instead of needing to rush to react to a trade opportunity that already happened, you can look at the watch list and analyze each ticker ahead of time, and then decide which ones are of interest to you and how you’re going to set up those trades.

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Here is an example.  Let’s say these are the tickers on a watch list that’s posted in our swing trading chat room:

[AAPL](https://cashblog.com/how-to-buy-apple-stock-step-by-step/)

[AMZN](https://cashblog.com/how-to-buy-amazon-com-stock-step-by-step/)

[TSLA](https://cashblog.com/how-to-buy-tesla-stock-step-by-step/)

For each one, you can look at the chart and determine:
1. Do you like the trade setup?  Sometimes the watch list will describe the trade setup, which makes it easy to analyze.  Other times, you might need to have a grasp of swing trade strategies, which we teach in the [swing trading course](/swing-trading-course) that all members get access to.

2. If you like the trade setup, then you decide at what price you would enter the trade.  Sometimes the person posting the watch list will indicate the entry price.  Either way, you can set up a buy limit order at the price you’d like.

3. You can then determine what your exit strategy will be for the trade.  If the watch list itself doesn’t give a suggestion, you can determine exit price points on your own using your own knowledge or using the tutorials from our swing trading course, and then set up sell orders accordingly.

When you combine our watch list with the knowledge you get in our trading course, it could improve your odds of [making money swing trading](/blog/how-to-make-money-swing-trading).

A swing trading watch list is also generally a great source of trade ideas in general.  It gets your attention on the right charts without needing to scroll through hundreds of stock charts on your own.  It’s essentially like a way of giving you [stock picks](/blog/swing-trading-stock-picks).

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### How We Create Our Watch List

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Our swing trading watch list is the result of a group effort from the members of the Swing Trading Club.  Each person who submits items to the watch list is basing it on the [swing trading strategies](/blog/best-swing-trading-strategies) that they think are the best.

We teach a ton of those strategies in our course.  We cover [swing trading indicators](/blog/indicators-for-swing-trading) like RSI, MACD, and ATR.  

We also teach [swing trading patterns](/blog/pattern-finding-in-swing-trading) like bull flags, ascending triangles, and consolidation breakouts.

You don’t have to be an expert at all these indicators and strategies in order to benefit from our swing trading watch list.  But those are at the core of how each watch list is put together.  And if you choose to learn these trading strategies, it will improve your odds of being able to capitalize on trading opportunities that show up on the watch list.

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There are a number of different technical indicators used to identify potential swing trading opportunities

Indicators for Swing Trading


## Indicators for Swing Trading

In this article, we’ll discuss:
- The Indicators for Swing Trading
- Learning How to Use Swing Trading Indicators
- Finding Swing Trade Opportunities Using Indicators
- Using Moving Averages to Trade
- Joining [The Swing Trading Club](/pricing)

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<img class="non-clickable-image" style="float: right; width: 200px; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

Swing trading is a type of short-term trading that is based on technical analysis of price charts. The key principle of [swing trading](/blog/what-is-swing-trading) is to look for price “swings” or “legs” within a larger trend. These swings provide opportunities to enter and exit trades at favorable prices.

There are a number of different technical indicators used to identify potential swing trading opportunities.  Understanding indicators is one of the foundational components of [learning to swing trade](/blog/how-to-learn-swing-trading).

</div>

Some of the most popular swing trading indicators include:

- **Moving Averages:** Moving averages are a swing trading indicator that is used to smooth out price action and help identify the direction of the underlying trend. When prices are above the moving average, it is generally indicative of an uptrend. Conversely, when prices are below the moving average, it is generally indicative of a downtrend. 

- **Bollinger Bands:** Bollinger Bands are a technical indicator that consists of an upper and lower band. The upper band is typically two standard deviations above the 20-period moving average, while the lower band is typically two standard deviations below the 20-period moving average. Bollinger Bands can be used by swing traders to identify overbought and oversold conditions and potential reversals. 

- **Relative Strength Index ([RSI](/blog/best-rsi-settings-for-swing-trading)):** The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements. The RSI can be used to identify potential reversals in price.  It helps swing traders identify when stocks are overbought or oversold.

- **[MACD](/blog/best-macd-settings-for-swing-trading):** The MACD is another swing trading indicator consisting of a fast and slow line. The fast line is typically the 12-period EMA, while the slow line is typically the 26-period EMA. The MACD is another type of momentum oscillator that identifies potential reversals in price.

These are just a few of the technical indicators that can be used for swing trading.  Seasoned traders often use one or more of these indicators as part of their [trading strategies](/blog/best-swing-trading-strategies).

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### Learning How to Use Swing Trading Indicators

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We teach each of these swing trading indicators in our [swing trading course](/swing-trading-course).  For each indicator, we explain when exactly you would make an entry according to the rules of the indicator, as well as when you could make an exit.

That makes it very easy to manage your trades.  Using indicators in that way makes swing trading more formulaic.  Rather than shooting from the hip with your trades, you simply follow the rules of the indicator and manage your trades that way.  Those are the precise rules we teach in our course.

The best way to find out which indicators work best for you is to experiment with different combinations and see what works best for your trading style.

</div>

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### Finding Swing Trade Opportunities Using Indicators

Learning about swing trading indicators is the first step to [making money swing trading](/blog/how-to-make-money-swing-trading).

The next step is finding stocks or [options](/blog/can-you-swing-trade-options) that meet the criteria of those swing trading indicators.

And that’s one of the benefits of our [swing trading discord](/swing-trading-discord) chat room.  That’s where all our members get together to talk about trades.

You’ll find out in real time when someone in the group spots a stock where the swing trade indicator is flashing a buy signal.  Getting those sorts of [trade alerts](/blog/swing-trade-alerts) can have a big impact on your ability to make profit in the stock market.

Our service costs [$19 per month](/pricing) and you get access to everything we offer.

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#### Using the Moving Average Indicator to Make Swing Trades

There are a few different ways that you can use moving averages in your trading. One way is to use them as a way to identify the overall trend. If the moving averages are pointing upwards, then this is generally indicative of an uptrend. 

That means you can try to find opportunities to get into the stock based on the direction of the moving average.

Another way that you can use the moving average indicators is by using them as support and resistance levels. For example, if the price is bouncing off of the 20-period moving average, then this could be seen as a potential support level. Similarly, if the price is struggling to break above the 200-period moving average, then this could be seen as a potential resistance level.

If this sounds foreign to you, don’t worry.  These are things we teach in great detail in our course and our community.  And in the chat room, we encourage people to ask any questions they have, whether about swing trading indicators or anything else.

Moving averages are a versatile indicator that can be used in a number of different ways by swing traders. The best way to use them will depend on your own personal trading style and strategy. However, they can be a valuable addition to any trader’s toolkit and can help you make better-informed trading decisions.

There are a number of ways to find stocks to swing trade

Pattern Finding in Swing Trading


## Swing Trading Patterns

In this article, we’ll discuss:
- Swing Trading Patterns
- What are Swing Trading Patterns
- Popular Swing Trading Patterns
- Learning How to Use Swing Trading Patterns
- Finding Stocks with Swing Trading Patterns
- Sectors with the Most Volatility
- Joining [The Swing Trading Club](/pricing)

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[Swing trading](/blog/what-is-swing-trading) is a strategy that involves holding a stock for some time, usually a few days to a few weeks, in an attempt to profit from price changes or 'swings.' A swing trader typically uses technical analysis to look for stocks with short-term price momentum.

Technical analysis involves looking at the price chart of a stock and analyzing it.  For example, you could look at the price chart for [Apple stock](https://cashblog.com/how-to-buy-apple-stock-step-by-step/) over the last 6 months and see how the price has changed.

When looking at that chart, particularly the recent history of it, you can look for patterns that reflect swing trading opportunities.  Sometimes a pattern might reflect a bullish condition (where the odds might favor the price going up).  Sometimes a pattern reflects the opposite.

There are a number of different chart patterns used to identify potential swing trading opportunities.  Understanding these patterns is one of the foundational components of [learning to swing trade](/blog/how-to-learn-swing-trading).

</div>

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### Popular Swing Trading Patterns

Some of the most popular swing trading patterns include:

- **Wedge:**  This swing trading pattern is created when there is price consolidation that forms what looks like a triangle.  The price keeps “wedging” into a smaller and smaller corridor.  If the price breaks out of the corridor to one direction or another, that can be considered a swing trade entry signal.

- **Head and shoulders:** This swing trading pattern is created when the price of a stock forms a peak (the head), followed by a lower peak (the left shoulder), and then another lower peak (the right shoulder). The right shoulder is typically lower than the left, which creates a "head and shoulders" shape. This pattern is considered to be a bearish signal, as it indicates that the price is likely to continue to fall.

- **Inverse head and shoulders:** This swing trading pattern is the opposite of the head and shoulders pattern and is considered to be a bullish signal. It is created when the price of a security forms a trough (the head), followed by a higher trough (the left shoulder), and then another higher trough (the right shoulder). The right shoulder is typically higher than the left, which creates an "inverse head and shoulders" shape.

- **Double top:** This swing trading pattern is created when the price of a security reaches a peak, pulls back, and then reaches that same peak again. This pattern is considered to be a bearish signal, as it indicates that the price is likely to continue to fall after the second peak.

- **Double bottom:** This swing trading pattern is created when the price of a security reaches a trough, pulls back, and then reaches that same trough again. This pattern is considered to be a bullish signal, as it indicates that the price is likely to continue to rise after the second trough.

- **Triple top:** This swing trading pattern is created when the price of a security reaches a peak, pulls back, and then reaches that same peak two more times. This pattern is considered to be a bearish signal, as it indicates that the price is likely to continue to fall after the third peak.

- **Triple bottom:** This swing trading pattern is created when the price of a security reaches a trough, pulls back, and then reaches that same trough two more times. This pattern is considered a bullish signal, as it indicates that the price will likely continue to rise after the third trough.

These are just a handful of the chart patterns that can be used for swing trading.  Seasoned traders often use one or more of these indicators as part of their [trading strategies](/blog/best-swing-trading-strategies).

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### Learning How to Use Swing Trading Patterns

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We teach each of these swing trading patterns in our [swing trading course](/swing-trading-course).  For each pattern, we explain when exactly you would make an entry according to the rules of the pattern, as well as when you could make an exit.

That makes it very easy to manage your trades.  Using patterns in that way makes swing trading more formulaic.  Rather than shooting from the hip with your trades, you simply follow the rules of the pattern and manage your trades that way.  Those are the precise rules we teach in our course.

The best way to find out which patterns work best for you is to experiment with different combinations and see what works best for your trading style.

Once you have identified a swing trading chart pattern you like, you can use that information to decide when to buy or sell the stock. Each pattern typically has a specific pre-determine point when it suggests buying the stock.

It is important to remember that no single chart pattern is guaranteed to be successful and that you should always use other information (such as support and resistance levels, trend lines, and moving averages) to confirm your decision.

Swing trading can be a great way to make money in the stock market, but it is not without risk. Before you start swing trading, make sure you understand the risks involved and have the plan to manage them.

</div>

&nbsp;  

### Finding Stocks with Swing Trading Patterns

Learning about swing trading patterns is the first step to [making money swing trading](/blog/how-to-make-money-swing-trading).

The next step is finding stocks or [options](/blog/can-you-swing-trade-options) that meet the criteria of those swing trading chart patterns.

And that’s one of the benefits of our [swing trading discord](/swing-trading-discord) chat room.  That’s where all our members get together to talk about trades.

You’ll find out in real time when someone in the group spots a stock where the swing trade pattern is flashing a buy signal.  Getting those sorts of [trade alerts](/blog/swing-trade-alerts) can have a big impact on your ability to make profit in the stock market.

Our service costs [$19 per month](/pricing) and you get access to everything we offer.

Aside from that, you can also look through your trading platform at the charts in there.  You can literally take your favorite stocks and just flip through them one at a time, looking for any swing trading pattern you like.

Some trading platforms have screeners or scanners that look for particular chart patterns.  For example, if you’re looking for a stock that’s been in a consolidation pattern, you could try looking for stocks that have a very narrow price range over the last several days.  Or a swing trader might look for stocks that have recently experienced a breakout from a consolidation pattern.

Once a swing trader has found a stock that they believe is ripe for a swing trade, they will need to determine an appropriate entry point and position size.  These are things that are helpful to determine up front.

Once in a trade, swing traders will typically set a stop-loss order to protect their position. They will also often set a target price, at which point they will take profits.

Swing trading can be a profitable strategy for traders who are able to find stocks that are suitable for this type of trading. However, it is important to remember that swing trading is a higher-risk strategy than buy-and-hold investing, and it is important to use stop-loss orders and take profits when they are available.


One of the key features of our service at the Swing Trading Club is our swing trade alerts

Swing Trade Alerts


## Swing Trade Alerts

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/swing-trade-alerts.jpg">

One of the key features of our service at the Swing Trading Club is our swing trade alerts.
Those alerts come from our [discord chat room](/swing-trading-discord).

Everyone who [joins the Swing Trading Club](/pricing) gets full access to our chat room and swing trade alerts.
Members of our community are the ones who post the trades that get alerted.  

We have members who have been trading for years and who know [swing trading strategies](/blog/best-swing-trading-strategies) inside out.
We have trade alerts for both stocks and options trades.

Also, some of our members subscribe to other popular [swing trade alert](https://cashblog.com/best-swing-trade-alert-services/) services, which means that our chat room has a lot of sources of trading intelligence.

</div>

&nbsp;  

### Format of Our Swing Trade Alerts

The trade alerts comes through discord.  If you aren’t familiar with discord, don’t worry!  It’s simply a type of chat room.  We have a tutorial that shows exactly how to get started with our discord chat room and also how to ensure your alerts are enabled.

The actual alert itself for each swing trade will be based on the settings you configure with our discord chat room.  You can get audible sounds from your device each time someone posts a new trade alert.  You can also get emails.

Another cool thing about our swing trade alerts is that you can turn them on or off as needed.  If you don’t want to be getting alerts at particular times of the day, it’s easy to turn them off.

Here are examples of what the trade alerts look like:

![](/static/discord-alerts-example-3.png)

![](/static/discord-alerts-example-2.png)

Some of the terminology in these trade alerts may seem foreign to you right now, but we have tutorials that explain exactly how to understand these trade alerts. Most people get through the learning curve pretty quickly.

Some members post trade alerts that have a lot of description for each swing trade. Some members post trade alerts that don’t have an explanation and require you to rely on your own knowledge of [swing trade indicators](/blog/indicators-for-swing-trading) and [patterns](/blog/pattern-finding-in-swing-trading). Every member gets access to our swing trading course that teaches all the trading strategies we know and use.

What you’ll find if you join is that you might gravitate toward trade alerts posted by particular members.  Every trader is different and you can find the traders who match your trading style and focus just on their alerts.

&nbsp;  

### How to Use Our Swing Trade Alerts

With trade alerts, you’re finding out about the trade after someone else has already gotten into the trade.  So that means you typically need to decide quickly whether you want to take action (although most swing trades last 1-4 weeks so in the big scheme of things it probably doesn’t have to be that much of a rush).

After getting the alert, you can review the exact trade that was posted.  You can see what was written about it in our discord chat, and you can look at the chart for yourself in your trading platform.

For example, if the trade posted was for [Home Depot stock](https://cashblog.com/how-to-buy-home-depot-stock-step-by-step/) (which has the ticker symbol “HD”, as shown in the screenshot above), then you can pull up the chart for HD in your trading platform and see if you like the trade setup.

If you like the trade setup, you can then go in and buy the stock or option, and then determine what your exit strategy will be.

If you don’t want to learn the trade strategies yourself, you can strictly follow trade alerts where the member posts all the details (like entry price, profit target, and stoploss).  That takes the guesswork out of it and makes for quick decisions that don’t take a lot of time.

The goal of our swing trade alerts is for all the members of the community to [make money](/blog/how-to-make-money-swing-trading). That’s the key reason we’re all here.  

One of the side benefits of signing up and getting our trade alerts is that you join a community of like-minded investors.  Our group’s mindset is to support each other so that we all succeed.


Swing trading is a type of trading that attempts to capture gains in a stock or other security within a short period of time

Swing Trading for Beginners


## Swing Trading for Beginners

In this article, we’ll discuss:
- Swing Trading For Beginners
- How to Learn Swing Trading
- Understanding Swing Trading as a Beginner
- Joining [The Swing Trading Club](/pricing)

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/swing-trading-for-beginners.jpg">

Swing trading is a type of stock market investing that attempts to capture price gains in a stock or option within a short period of time, usually within a few days to several weeks. A swing trader typically uses technical analysis to look for stocks with short-term price momentum.

The goal of [swing trading](/blog/what-is-swing-trading) is to identify the beginning of a price trend and ride it out until the end. The goal of swing traders is to sell a stock or option for a higher price than they bought it for.

Swing trading can be a great way to [make money](/blog/how-to-make-money-swing-trading) in the stock market. However, it is important to remember that stock prices can go up or down, and you could lose money.  

For beginners who are just starting with swing trading, this is often one of the most important aspects to come to terms with.  Many beginners get discouraged after their first losing trade.  

And what savvy veterans will tell them is that you need to be able to take a punch in the stock market or you’ll never make it in the long term.  The challenge, though, is that there is real risk involved and it is therefore quite difficult to accept when there are losing trades.  This is one of the hardest parts for beginning swing traders.

</div>

If you're new to swing trading, here are a few things you should know.

1. **You need to have a plan.** <br/>
	Before you start swing trading, you need to have a plan. You need to know what you're trying to achieve and how you will do it.

2. **You need to be disciplined.** <br/>
	Swing trading requires discipline. You must stick to your plan and not let emotions get in the way.

3. **You need to be patient.** <br/>
	Swing trading can take time to learn. You need to be patient and not expect to make much money immediately.

4. **You need to have a system.** <br/>
	A good swing trading system can help you make money in the stock market. There are many different systems out there, and we teach a lot of them in the [swing trading course](/swing-trading-course) that’s included with our service.

5. **You need to be flexible.** <br/>
	The stock market is constantly changing, so you need to be flexible and willing to change with it.


If you're new to swing trading, make sure you have a plan, are disciplined, patient, have a system, and are flexible.

&nbsp;  

### How Beginners Can Learn Swing Trading

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

Unlike day trading, which seeks to take advantage of small intraday price movements, or scalping, which seeks to take advantage of small bid-ask spreads, swing trading focuses on larger price movements.

The key to successful swing trading is finding stocks whose prices are also likely to move in the right direction for the foreseeable future.  For beginners, this can be hard.  That’s why it can be beneficial for beginners to pay the [$19 per month](/pricing) and get full access to our service.

Many factors can affect a stock's price movement.  It can be difficult to predict which way a stock will move next. However, there are a few things that you can look for that will help you find stocks that are more likely to continue moving in the direction you want them to.

One of the most important things to look for when swing trading is a stock's price action. This is the movement of a stock's price over time, and it can give you a good idea of where the stock might head next.

If a stock is moving in a strong uptrend, for example, it might be likely to continue moving up. Similarly, if a stock is in a strong downtrend, it might be likely to continue moving down. Of course, there are no guarantees, but by looking at a stock's price action, you can get a good idea of which way the stock might be headed.

Another thing to look for when swing trading is momentum. This is the rate at which a stock's price is moving, and it can give you an idea of how long the current trend is likely to continue.

If a stock is moving quickly in one direction, that might pose an opportunity to profit.  Momentum means the stock price is moving fast, which is music to the ears of most swing traders.

Finally, another thing to look for when swing trading is volume. This is the number of shares being traded, which can give you an idea of how much interest there is in a stock. If a lot of people are trading a stock, it might be likely to continue moving in the direction that it is currently moving. Conversely, if a stock is being traded by only a few people, it is likely to be more volatile and less predictable.

</div>

&nbsp;  

### Swing Trading as a New Trader

Swing trading is a popular style of trading for many reasons. It can be a great way for beginning traders to get started in the market, as it doesn't require a large amount of capital. Swing trading can also be a great way to generate income, as it can be a [profitable strategy](/blog/best-swing-trading-strategies) if done correctly.

There are a few things that all swing traders need to be aware of before getting started:

1. It is important to have a clear understanding of what swing trading is and how it works.

2. Swing traders need to be aware of the risks involved in swing trading and manage their risks properly.

3. Swing traders need to have a solid plan in place before they start trading.

One of the values of our service here at the Swing Trading Club is that we have a community of swing traders who want to collaborate and help.

If you are a beginner and you feel overwhelmed by everything, then you’re in the right place.  We have a course that teaches [swing trading indicators](/blog/indicators-for-swing-trading), [patterns](/blog/pattern-finding-in-swing-trading), and terminology.  

And when you couple that with our [swing trading discord chat room](/swing-trading-discord), you get a full-scale learning experience that can get you up to speed.

As a beginner, when you first enter our chat room, you probably won’t be contributing many trade ideas to the group.  But others will contribute, and that will give you ideas for possible swing trades to make. It’s like people are [alerting you to swing trade ideas](/blog/swing-trade-alerts), which can help a lot with growing your knowledge and making profit. 

Another thing that helps beginners is that a lot of people in the chat room post their [watch lists](/blog/swing-trade-watch-list).  New swing traders can review those watch lists to understand why those stocks are ones to consider trading.

And along the way, you can ask any questions you want in our chat room.  All beginner questions are welcome.

As you go through the motions, you’ll find your knowledge growing and you’ll start to establish muscle memory.  And at some point, you might find that you are one of the ones posting trade ideas and helping the next generation of beginners.

One of the key features of our service at the Swing Trading Club is our swing trading stock picks

Swing Trading Stock Picks


## Swing Trading Stock Picks

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/swing-trading-stock-picks.jpg">

One of the key features of our service at the Swing Trading Club is our swing trading stock picks.
Those picks come from our [discord chat room](/swing-trading-discord).

Everyone who [joins the Swing Trading Club](/pricing) gets full access to our chat room and stock picks.
Some members of our community post their trades in real time, and those are the stock picks we offer.

We have members who have been trading for years and who know [swing trading strategies](/blog/best-swing-trading-strategies) inside out.  

Also, some of our members subscribe to other popular [swing trade picking](https://cashblog.com/best-swing-trade-alerts/) services, which means that our chat room has a lot of sources of trading intelligence.

</div>

&nbsp;  

### Format of Our Swing Trading Stock Picks

The stock picks comes through discord.  If you aren’t familiar with discord, don’t worry!  It’s simply a type of chat room.  We have a tutorial that shows exactly how to get started with our discord chat room and also how to find the swing trading stock picks. 

You can configure your discord setting in such a way that you [get alerted](/blog/swing-trade-alerts) each time there is a new stock pick posted.  The actual pick itself for each swing trade will be based on the settings you configure with our discord chat room.  You can get audible sounds from your device each time someone posts a new trade.  You can also get emails.

Here are examples of what the stock picks look like:

![](/static/discord-alerts-example-3.png)

Some of the terminology in these stock picks may seem foreign to you right now, but we have tutorials that explain exactly how to understand the swing trades that are posted.  Most people get through the learning curve pretty quickly.

Some members post trades that have a detailed description of the trade setup.  Some members post trades that don’t have an explanation and require you to rely on your own knowledge of [swing trade indicators](/blog/indicators-for-swing-trading) and [patterns](/blog/pattern-finding-in-swing-trading).  Every member gets access to our [swing trading course](/swing-trading-course) that teaches all the trading strategies we know and use.

What you’ll find if you join is that you might gravitate toward stock picks posted by particular members.  Every trader is different and you can find the traders who match your trading style and focus just on their trades.

&nbsp;

### How to Use Our Swing Trading Stock Picks

<img class="non-clickable-image" style="float: right; width: 250px; margin: 0; margin-left: 70px" src="/static/investor-growth-graphic.svg">

After seeing the stock pick, you can review the exact trade that was posted.  You can see what was written about it in our discord chat, and you can look at the chart for yourself in your trading platform.

For example, if the trade posted was for [Home Depot stock](https://cashblog.com/how-to-buy-home-depot-stock-step-by-step/) (which has the ticker symbol “HD”, as shown in the screenshot above), then you can pull up the chart for HD in your trading platform and see if you like the swing trade setup.

If you like it, you can then go in and buy the stock and then determine what your exit strategy will be.

If you don’t want to learn the trade strategies yourself, you can strictly follow stock picks where the member posts all the details (like entry price, profit target, and stoploss).  That takes the guesswork out of it and makes for quick decisions that don’t take a lot of time.

The goal of our swing trading stock picks is for all the members of the community to [make money](/blog/how-to-make-money-swing-trading).   That’s the key reason we’re all here.  

One of the side benefits of signing up and getting our stock picks is that you join a community of like-minded investors.  Our group’s mindset is to support each other so that we all succeed.


MACD Is a common indicator for Swing Traders to use when conducting trades

Best MacD Settings for Swing Trading


## Best MacD Settings for Swing Trading

In this article, we’ll discuss: 
- Best MACD Settings for Swing Trading
- Advantages of Using MACD in Swing Trading
- Disadvantages of Using MACD in Swing Trading 
- Joining the [The Swing Trading Club](/pricing)

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/best-macd-settings-for-swing-trading.jpg">

[Swing trading](/blog/what-is-swing-trading) is a short-term trading strategy used to trade stocks and options. The key to swing trading is identifying when a stock is likely to experience a short-term price change and entering and exiting trades accordingly.  Swing trades typically last for a few days to a few months.

The MACD is one of the most popular [technical indicators](/blog/indicators-for-swing-trading) used by swing traders. The MACD is a trend-following momentum indicator that can be used to identify the start and end of trends. 

The default MACD settings are considering the best MACD settings for swing trading.  They are the settings designed by the creators of the MACD indicator.

These are the best MACD settings:  the MACD should be calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The MACD line is then plotted on a separate line above or below the zero line. A nine-period EMA of the MACD line is also plotted on the chart and is referred to as the "signal line."  The 12-period EMA is referring to as the “fast” line, and the 26-period EMA is referred to as the “slow” line.

The MACD can be used to identify overbought and oversold conditions in swing trading. MACD readings above 0.00 indicate that the 12-period EMA is trading above the 26-period EMA, which is considered an overbought condition. MACD readings below -0.00 indicate that the 12-period EMA is trading below the 26-period EMA, considered an oversold condition.

The MACD is a versatile indicator that can be used for swing trading. The MACD can be used to identify trends' direction and strength and to generate, buy, and sell signals. MACD buy signals are generated when the MACD line crosses above the signal line, while MACD sell signals are generated when the MACD line crosses below the signal line.  These can be profitable at times for swing traders when you use the default settings.

If you are interested in swing trading, check out our [swing trading course](/swing-trading-course). It’s included as part of our service and only costs $19 per month.  This course will give more examples of ways to use the MACD indicator as well as all the other core [swing trading patterns](/blog/pattern-finding-in-swing-trading) and indicators we use.

</div>

&nbsp;  

### Advantages of Using MACD in Swing Trading

<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

There are a number of advantages to using the MACD when trading. These include:

1. It is a trendy indicator, so a lot of information and resources are available.  Almost every trading platform features the MACD indicator, which means you can not only see it on your stock charts but you can set up stock scans using the best MACD settings for swing trading.

2. The MACD is a popular indicator because it can be used to trade a variety of market conditions. For example, when the MACD is above the signal line, it is a bullish signal, and when it is below the signal line, it is a bearish signal.

3. It can be used in many different ways, so you can tailor it to your own trading style.  You may find that the best MACD settings for you are even more overbought or oversold than the default settings, and it’s very easy to modify your approach using those MACD settings.

4. It is a versatile indicator that is usable in a variety of different markets and time frames.

5. It can be used as a standalone indicator or in conjunction with other indicators.
If you are new to trading, using the MACD is a great start. It is a popular indicator that is relatively easy to understand and use. It is also versatile, so you can tailor it to your own trading style.  And by most accounts, the best MACD settings are the default settings.

&nbsp;  

### Disadvantages of Using MACD in SwingTrading

There are also some disadvantages to using the MACD as a trading tool.

One of the biggest disadvantages is that the MACD is a lagging indicator. It is based on past price data, which is only sometimes accurate in predicting future price movements.

The MACD is also not the easiest indicator to learn as a beginner.  Even when using the best MACD settings, it’s still a bit of a learning curve for a swing trader to get up to speed with it.  Many traders love it, though, so it’s all a matter of how committed you are to learning it.

Another disadvantage of the MACD is that it is prone to false signals. This means that the indicator can give signals that a stock is about to move in a specific direction, when in reality, the stock may not move at all or may even move in the opposite direction.

Lastly, the MACD is a relatively simple indicator, and as such, it does not take into account all of the factors that can affect a stock's price. This can lead to inaccurate signals and poor trading decisions.

Despite these disadvantages, the MACD is still a popular indicator among traders. This is because it can be a helpful tool in identifying potential trading opportunities. However, it is essential to remember that the MACD is just one indicator and should not be used as the sole basis for trading decisions.

One benefit to the service we offer here is that there is a [swing trading discord](/swing-trading-discord) chat room.  It’s where all our members congregate to talk about trades.

It allows you to see other peoples’ trades and also to share your own.  You can ask your own questions too.

So if you see a [swing trade alert](/blog/swing-trade-alerts) from someone and they say it’s based on the MACD settings of the stock, you can review what they said and determine if you want to also get involved in the trade.

Or if you find a stock that meets the criteria for the best MACD settings using a scan in your trading platform, you can post the idea in the chat room and see if others have any feedback.  It’s a great way to ensure you’re making well-informed swing trading decisions.

&nbsp;

### Conclusion

Swing Trading can be profitable with the right team, training, and tools. If you got this far, we’d love for you to join our [Swing Trading Club](/pricing).

What are the best Swing Trading strategies to make consistent profit?

Best Swing Trading Strategies


## Best Swing Trading Strategies

In this article, we’ll discuss: 
- The Best Swing Trading Strategies 
- How to Be a Profitable Swing Trader 
- How to Avoid Losing Money as a Swing Trader 
- Joining the [The Swing Trading Club](/pricing)

<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/best-swing-trading-strategies.jpg">

[Swing trading](/blog/what-is-swing-trading) is one of the most popular investing strategies among active traders. It's a style of trading that attempts to capture gains in a stock or other security within a short timeframe, usually within a few days to a few weeks.

There are many different swing trading strategies that traders can use, but some of the most popular include:

1. **Trend following**

	One of the most popular swing trading strategies is trend following, which involves buying stocks that are in an uptrend and selling them when you’ve reached a satisfactory profit or when they start to trend downward.

	To identify an uptrend, you can use technical [indicators for swing trading](/blog/indicators-for-swing-trading) like moving averages, Keltner Channels, or the Relative Strength Index (RSI). 

	We teach all these indicators and their exact entry and exit points in our [swing trading course](/swing-trading-course). It’s included as part of our service and only costs $19 per month.  

	Some people like to buy pullbacks when a stock is trending (at time when the stock price comes down during an overall uptrend), and others like to buy breakouts when a stock is trending (buying only when a new high is set, expecting the new high to create more buying pressure).  Both are valid swing trading strategies, and it’s ultimately up to you which you prefer.

	&nbsp;  

2. **Support and resistance**
	
	Another popular swing trading strategy is to buy stocks when they reach a support level and sell them when they reach a resistance level.

	A support level is a price level where the stock has historically found buyers and started to rebound. A resistance level is a price level where the stock has historically found sellers and started to fall. By buying at support and selling at resistance, you can attempt to capture profits in the stock as it swings between these two levels.

	These are both considered a form of [chart pattern](/blog/pattern-finding-in-swing-trading), which is a foundational aspect of many swing trading strategies.

	Sometimes you will find double bottoms and double tops that occur at support and resistance levels.  These are popular swing trading strategies for people who are active investors in the stock market.

	&nbsp;  

3. **Momentum**

	Momentum swing trading is a strategy that involves buying stocks that are showing strong momentum and selling them when their momentum starts to wane. To identify stocks with strong momentum, you can use technical indicators like the Relative Strength Index ([RSI](/blog/best-rsi-settings-for-swing-trading)) or the Stochastic Oscillator.

	Once you've identified a stock with strong momentum, you can buy it and hold it until its momentum starts to wane or until you’ve captured a satisfactory amount of profit.

	&nbsp;  

4. **Breakouts**

	A breakout is when a stock price breaks out above a resistance level or below a support level.

	Buying Breakouts is a swing trading strategy that involves buying stocks when they break out above a resistance level and selling them when they break out below a support level. 

	To identify breakout opportunities, you typically look at the stock chart and look for places where price “peaks” line up.  Those peaks are referred to as swing highs (and the troughs are referred to as swing lows). 

	The peaks might be emblematic of a resistance level.  If the price goes above that line, it might be a breakout.

	&nbsp;  

5. **Reversals**

	A reversal is when a stock price that has been trending in one direction starts to trend in the opposite direction.

	Reversal swing trading is a strategy that involves buying stocks when they start to reverse from a downtrend to an uptrend or from an uptrend to a downtrend. To identify reversal opportunities, you can use technical indicators like the [MACD](/blog/best-macd-settings-for-swing-trading) or the RSI.

	&nbsp;  

5. **Consolidation**

	Price consolidation can be a signal of a possible looming price explosion.  It’s a popular swing trading strategy that many like to capitalize on.

	Sometimes the consolidation happens near a support level or resistance level.  Sometimes the consolidation takes the form of a wedge, an ascending triangle, a descending triangle, or a cup and handle.  They’re all forms of consolidation, and each one is a base for a swing trade strategy.

	&nbsp;  

There are many other [swing trading strategies](https://cashblog.com/best-swing-trading-strategies/) that traders can use. Which strategy you use will depend on your own trading style and preferences.

If you're still a beginner and [learning to swing trade](/blog/how-to-learn-swing-trading), it's a good idea to paper trade first to get a feel for how the strategies work. Once you're comfortable with a particular strategy, you can start trading with real money.

One benefit to the service we offer here is that there is a [swing trading discord](/swing-trading-discord) chat room.  It’s where all our members congregate to talk about trades.

It allows you to see other peoples’ swing trade strategies and also to share your own.  You can ask your own questions too.

So if you see a [swing trade alert](/blog/swing-trade-alerts) from someone and they say it’s based on a head and shoulders chart pattern, you can review what they said and determine if you want to also get involved in the trade.

Or if you find a stock that appears to be in a consolidation pattern, you can post the idea in the chat room and see if others have any feedback.  It’s a great way to ensure you’re making well-informed trading decisions.

&nbsp;  

### How to be a Profitable Swing Trader

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

Swing trading is all about making money from short-term price movements in the market. It's a style of trading that involves holding a position for a few days or weeks, rather than for just a few minutes or hours.

To be a profitable swing trader, you need to have a good understanding of technical analysis and be able to identify potential support and resistance levels in the market. You also need to be patient and disciplined, as it can take time for a trade to play out.

</div>

Here are a few tips to help you become a profitable swing trader:

1. **Use technical analysis**
	
	Technical analysis is a vital tool for swing trading. It can help you identify potential support and resistance levels, as well as trends in the market.

	It is technical analysis that will help you identify that patterns and indicators that make up the best swing trading strategies, so it could be paramount to your success.

	&nbsp;  

2. **Set realistic goals**

	When swing trading, it's important to set realistic profit goals. Trying to make too much money from each trade can lead to impulsive decisions and, ultimately, losses.  

	It literally can be considered a trading strategy in and of itself to specifically not try to get rich overnight.

	&nbsp;  

3. **Be patient**

	Swing trading can take time to play out. It's important to be patient and wait for the right opportunity to enter a trade.

	&nbsp;  

4. **Be disciplined**

	Discipline is key in swing trading. Once you've entered a trade, it's important to stick to your plan and not get emotional about the market movements.

	If you’re using a solid swing trading strategy, such as buying a pullback on an up-trending stock, and the trade doesn’t go your way out of the gate, it doesn’t mean the strategy doesn’t work and it doesn’t mean you need to have a knee-jerk reaction and adjust on the fly.  Create your swing trading strategy, and then plan to stick to it.

	&nbsp;  

5. **Manage your risk**

	Risk management is essential in any given swing trading strategy. You need to be aware of the potential risks involved in each trade and have a plan to exit if the trade doesn't go your way.  

	You also need to make sure you position size in a way limits your risk to a level that’s acceptable to you.

	By following these tips, you can improve your chances of becoming a profitable swing trader.  These are all the things we teach in our swing trading course here at the [Swing Trading Club](/pricing).

&nbsp;  

### How to Avoid Losing Money as a Swing Trader

Swing trading is a popular style of trading for many investors and traders. It can be a great way to make money, but it can also be a great way to lose money if you don't know what you're doing. Here are a few tips to help you avoid losing money as a swing trader.

1. **Have a plan.**

	The most important thing you can do to avoid losing money as a swing trader is to have a plan. You need to know what you're doing and why you're doing it. Without a plan, it's easy to get caught up in the excitement of the market and make impulsive or emotional decisions that are not rational and that can lead to losses.

	&nbsp;  

2. **Know your limits.**

	Another important thing to avoid losing money as a swing trader is to know your limits. Don't over-leverage yourself, and don't risk more than you can afford to lose. It's important to remember that the market can go up and down, and you need to be prepared for both.  A good strategy for a swing trader is to determine how much they’re willing to risk up front, and then stick to it like glue.

	&nbsp;  

3. **Have a stop loss strategy.**

	A stop loss strategy is an important tool to help you avoid losing money as a swing trader. This is a plan that you put in place to sell your position if it reaches a certain price. This can help you limit your losses and protect your capital.  

	Some people set stop losses at 5% below their entry price.  Other people use a stoploss strategy that is based on the recent volatility of the stock price.

	&nbsp;  

4. **Be patient.**

	One of the most important things to remember when swing trading is to be patient. Don't try to force trades, and don't get impatient if the market isn't moving the way you want it to. Sometimes the best thing to do is to wait for the market to come to you.  Imagine someone wise and calm.  It could be your strategy to try to embody that when swing trading.

	&nbsp;  

5. **Take profits when you can.**

	Another important tip to avoid losing money as a swing trader is to take profits when you can. It's important to remember that your goal is to make money, and you shouldn't let profits run too far. If you let your profits run too far, you could give them back to the market.

	&nbsp;  

6. **Be flexible.**

	The market is constantly changing, and you need to be able to adapt to those changes. If you're not flexible, you're more likely to miss out on opportunities or make mistakes.

	&nbsp;  

7. **Learn from your mistakes.**

	Everyone makes mistakes, and it's important to learn from them. If you lose money on a trade, don't be afraid to admit it and learn from it. You can use your mistakes to help you become a better trader.

	&nbsp;  

8. **Have fun.**

	The best swing trading strategy of all:  remember to have fun! Swing trading can be a great way to make money, but it's also important to enjoy the process. If you're not having fun, you're more likely to make mistakes.

&nbsp;  

Swing trading can be a great way to [make money](/blog/how-to-make-money-swing-trading) but also a great way to lose money. These tips can help you avoid losing money as a swing trader.


Option trading and Swing Trading work well together if traders can use tools to look into future movements

Can you Swing Trade Options?


## Can you Swing Trade Options?

In this article, we’ll discuss: 
- Can You Swing Trade Options 
- What is Options Trading?
- Swing Trading Options Example
- Joining the [The Swing Trading Club](/pricing)

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/can-you-swing-trade-options.jpg">

Swing trading is a type of short-term trading that is based on technical analysis of price charts. The key principle of [swing trading](/blog/what-is-swing-trading) is to look for price “swings” or “legs” within a larger trend. These swings provide opportunities to enter and exit trades at favorable prices.  

It is indeed possible to swing trade options. It leans on all the same principles as using stocks to swing trade, except it uses options as the trading vehicle.

There are a number of different ways to swing trade options. The most popular is to buy simple call options if you think the price of the stock is going to go up. Another way is to buy put options when you think the underlying stock price is going to go down.

Options are a great tool for swing trading because they provide leverage and can help you control a large position with a small amount of capital.

When swing trading options, choosing the right strike price and expiration date is important. The strike price is the price at which you can buy or sell the underlying security. The expiration date is the date at which the option expires and can no longer be traded.

Choosing the right strike price is important because it will determine how much profit or loss you make on the trade. If the stock price moves differently from how you hoped, you can lose money.

The expiration date is also important because it will determine how long you have to wait for the trade to play out. If the stock price doesn't move in the direction you expected, the option will expire worthlessly, and you will lose the entire premium you paid.

In our [swing trading course](/swing-trading-course), we talk about how to choose the right strike price and expiration to use.  There is a way to do is that minimize the premium you pay to control the option, and therefore lowers the risk involved.

Our course also shares a lot of different [swing trading strategies](/blog/best-swing-trading-strategies).  If you are just getting into it and want to learn swing trading itself, we offer a good foundation that you can anchor to.

Swing trading options can be a great way to make money in the stock market. However, it's important to understand the risks before you start trading.

Options are a leveraged product, which means they can provide significant gains and losses. Before swing trading options, you should understand how options work and the risks involved.

</div>

&nbsp;  

### What is Options Trading?

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

Options trading is a type of trading that allows you to buy or sell a security at a set price within a certain period. Options trading can be used to speculate on the direction of a stock.  That’s why they can be effective for swing trading.

Options contracts are traded on exchanges, and there are two main types: call options and put options.

A call option gives the holder the right to buy the underlying asset at a set price, called the strike price, within a certain period. A put option gives the holder the right to sell the underlying asset at the strike price within a specific length of time. 

Options trading is a versatile way to trade markets, and it has some advantages over other types of trading.

Options trading is a leveraged way to trade, which means you can control a large amount of the underlying asset with a small amount of capital. It can magnify your profits and your losses, so it's important to understand the risks before you start trading.

It’s also a complex form of trading, and there are many different strategies that you can use. Here at the Swing Trading Club, we normally like to keep it simple and most members of our [swing trading discord](/swing-trading-discord) chat room trade call options.

That means when you see options [trade alerts](/blog/swing-trade-alerts) in our club, they typically will indicate a simple call option and a ticker symbol.

Our service costs [$19 per month](/pricing) and you get access to everything we offer.

</div>

&nbsp;  

### Swing Trading Options Example

The goal of swing trading is to capture most of the price movement in a stock over a short period. For example, if a stock is trading at $10 and it moves up to $12, the swing trader would aim to capture $2 per share.

And if you buy options for that same underlying stock, you might buy the options with the $8 strike price and pay $2 for them, which means if the price of the underlying stock goes up by $2, then your option could be worth $4, and effectively double your money on that one trade.

A stop loss is an order that is placed with your broker to sell a security when it reaches a specific price. For example, if you buy an option at $2 and set a stop loss at $1, the broker will execute the order if the option price reaches $1. This will help you to limit your losses if the option price falls.

Another risk to be aware of when swing trading is the possibility of getting caught in a trend reversal. This can happen if the stock price moves in one direction and then reverses course.

If this happens, getting out of the trade can only be possible by incurring losses. The best way to avoid this is to use technical analysis to identify trends and trade in the trend's direction.  

This is what we teach in our course.  There is no way to be perfect, and there will always be at least some losses, but we aim to use information and analytics to maximize profitability on our options swing trades.

Swing trading can be a great way to [make money](/blog/how-to-make-money-swing-trading) in the markets, but it is essential to remember that it does come with some risks.

The most important thing in Swing Trading is finding stocks that are about to move. We offer a weekly watchlist!

Finding Stocks to Swing Trade


## Finding Stocks to Swing Trade

In this article, we’ll discuss: 
- Finding Stocks to Swing Trade 
- Find Stocks to Swing Trade Using Technical Analysis
- Find Stocks to Swing Trade Using News Events
- Find Stocks to Swing Trade Using Fundamental Analysis
- Using Stock Picks as a Swing Trader 
- Watch List for Swing Trading 
- Joining the [The Swing Trading Club](/pricing)

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/finding-stocks-to-swing-trade.jpg">

Swing trading is a type of short-term trading that is based on technical analysis of price charts. The key principle of [swing trading](/blog/what-is-swing-trading) is to look for price “swings” or “legs” within a larger trend. These swings provide opportunities to enter and exit trades at favorable prices.  

When it comes to swing trading, one of the most important things you need to do is find the right stocks. After all, if you're going to be holding a stock for a short period, you need to make sure it has the potential to make big moves.

So if you’re trying to find stocks to swing trade, then you’re basically asking the million dollar question, because if you know that, then you should be able to make a profit.

</div>

&nbsp;  

### Find Stocks to Swing Trade Using Technical Analysis

There are a number of different ways to find stocks to swing trade. One of the most popular methods is to use technical analysis. This involves looking at charts to identify stocks that are making bullish or bearish [chart patterns](/blog/pattern-finding-in-swing-trading).

Bullish chart patterns are ones that indicate the stock might have good odds of increasing in price.
Bearing chart patterns are the opposite.  They indicate the stock might have good odds of going down in price.

If you can learn to spot these patterns on charts, then that will help you identify which stocks to swing trade, and how exactly to manage your trade.

These are things we teach here in our [swing trading course](/swing-trading-course).  We teach all the core patterns we like to use as well as when to enter the trade and when to exit.

For only [$19 per month](/pricing), it’s a pretty affordable way to get up to speed and get an education on how to find stocks to swing trade.

&nbsp;  

### Find Stocks to Swing Trade Using News Events

Another popular method for finding stocks to swing trade is to use news events. 

For example, if a company is about to release earnings, that could be a good time to buy or sell the stock.  Or if it was just announced that a company is under investigation for some reason, that could provide an opportunity for swing trading.

One way to find these stocks is to join our [swing trading discord](/swing-trading-discord) chat room.  It’s included as part of our service.  The members of our chat room regularly call out news-related events that could affect particular stocks’ prices.

![](/static/discord-alerts-example-3.png)

It’s a great way to identify which stocks to swing trade in a way that’s timely.  You can even get [alerts for each trade](/blog/swing-trade-alerts) that gets posted in the chat.

&nbsp;  

### Find Stocks to Swing Trade Using Fundamental Analysis

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

You can also use fundamental analysis to find stocks to swing trade. This involves looking at a company's financials to see if it is undervalued or overvalued.

This is typically best for swing traders who are ok with holding on to the stock for a longer period.  We’re not talking about a long term investment per se (holding it for years), but trades like this could definitely last for months.

Finding stocks to swing trade by using fundamental analysis is one of the less popular approaches.  It comes up sometimes in our chat room here, but not very often.

</div>

&nbsp;  

### Stock Picks as a Swing Trader

Swing trading is a short-term trading strategy that can be used to trade various securities, including stocks. One key to swing trading is to identify the market's overall trend and then look for stocks that are trading in a similar direction.

Essentially what you are doing is coming up with a list of your [swing trading stock picks](/blog/swing-trading-stock-picks).  You’re trying to find the stocks that have the best odds of profitability for a swing trade.  That’s one of the things we try to help members with here at the Swing Trading Club.

Once you have a list of potential stocks, it's important to do your own research. This includes looking at the company's financials, news, and charts. By doing your own research, you can get a better idea of which stocks are worth swing trading.

When swing trading, it is important to use technical analysis to identify potential entry and exit points. Some common technical indicators that can be used include moving averages, support and resistance levels, and momentum indicators like [RSI](/blog/best-rsi-settings-for-swing-trading) and [MACD](/blog/best-macd-settings-for-swing-trading).

One of the most important things to remember when swing trading is to keep your emotions in check. It can be easy to get caught up in the excitement of a trade, but it is important to stick to your plan and not let your emotions influence your decisions.

If you are new to swing trading, starting with small position sizes and gradually increasing your position size as you become more comfortable with the strategy is important. It is also important to have a solid risk management plan in place to protect your capital.

Swing trading can be a great way to generate profits in the stock market. However, it is important to remember that risk is involved, and you can lose money if you don't stick to your plan.

&nbsp;  

### Watch List for Swing Trading

Swing trading is all about taking advantage of price movements in the market. By identifying stocks in a strong uptrend or downtrend, swing traders can capture profits by riding the wave of momentum.

The key to swing trading is to find stocks in a strong trend, then entering and exiting trades at the right time. This can be difficult to do if you are new to the markets, but luckily there are a number of resources available that can help you.

One such resource is a [swing trade watch list](/blog/swing-trade-watch-list). It’s a list of stocks that are in a strong uptrend or downtrend and that someone thinks are likely to continue moving in that direction. 

And in our chat room, we feature these kinds of watch lists.  They allow you to review different stocks to swing trade before the trade even occurs.

By using any of the swing trade watch lists we feature, you can identify stocks that you feel are worth trading.  And then at that point, you are effectively creating your own watch list.

Aside from looking at other peoples’ watch lists in the group, you can also learn the [swing trading strategies](/blog/best-swing-trading-strategies) we teach and then look in your trading platform for stocks to add to your watch list.

One popular method is to use a stock screener. Stock screeners allow you to filter stocks based on a number of different criteria, and many trading platforms have them.  You can set up a screener to filter stocks based on particular [swing trading indicator](/blog/indicators-for-swing-trading) values, for example.

Another popular method for creating a watch list is to use a stock chart. By looking at a stock chart, you can quickly identify stocks that are in a strong uptrend or downtrend or that reflect chart patterns that are good for swing trading.

Once you have created your watch list, you can monitor the stocks on the list. This can be done by setting up price alerts or by using stock charting software. By monitoring the stocks on your list, you can know when it’s time to enter a trade.

Swing trading can be a great way to make money in the markets. However, it is important to remember that swing trading is not without risk. Before entering any trade, be sure to do your homework and understand the risks involved.

What does it mean to Swing Trade and how can I make money?

How to Make Money Swing Trading


### What is Swing Trading?

Swing trading is a short-term trading strategy where traders utilize technical analysis, fundamentals, and market-shaping events to gain profits. It’s a popular way for people to make [money in the stock market](https://cashblog.com/how-to-make-money-in-the-stock-market/).

Most swing traders typically hold their position for a few days to a few weeks.  This short-term model allows for swing traders to obtain quick profits, which can have a noticeable effect on compounding account growth.

&nbsp;  

###  How Do You Make Money Swing Trading?

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 300px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/how-to-make-money-swing-trading.jpg">

To make money with swing trading, you need to [buy a stock](https://cashblog.com/how-to-buy-stocks-for-beginners/) or option and then sell it at a higher price.  That’s how you generate a profit.  You sell a stock or option for higher than you bought it for.

The challenge is figuring out exactly when to buy and sell in such a way that you accomplish that.  And we’ll tell you something right off the bat:  It’s not as easy as it sounds and there also is no “holy grail” that will ensure you always make profits on your swing trades.

Ultimately, it comes down to learning [swing trading strategies](/blog/best-swing-trading-strategies) that have a track record of success and becoming comfortable with implementing them on a consistent basis.

</div>

&nbsp;  

### How to Swing Trade Like a Pro

Although some people might get lucky and make money swing trading on Day 1 without any knowledge or skills, that luck is not likely to last for the long term.  Anyone can get lucky on a trade or two.

To make serious money swing trading, you have to be able to repeat your success.  And to do that, you have to learn the strategies and skills like a pro would.

Our [swing trading course](/swing-trading-course) teaches the strategies, which includes swing trading patterns and indicators.  Those should prove to be tools that help you make money swing trading.  Our trading course is included with our service and only costs [$19 per month](/pricing).

&nbsp;  

### The Swing Trading Community

The Swing Trading Club is a group of people from all walks of life who all have the common goal of making money in the stock market.  We do our best to be welcoming to new members and to share the love.

Our [swing trading discord chat room](/swing-trading-discord) is where we all get together to talk about trade opportunities and share our successes.

Being able to engage with others and hear their [trade alerts](/blog/swing-trade-alerts) can be a great way to make money swing trading.

As anyone who has built anything worthwhile can tell you, it all starts with the foundation.  Our tight-knit group will help you build this foundation and ensure all your questions get answered.

&nbsp;  

### Our Swing Trading Performance

**Swing Trade Example 1:**

We added Diamondback ($FANG) to our [watch list](/blog/swing-trade-watch-list). We noted this might be a longer hold but we liked the direction of the entire energy sector, specifically this oil and natural gas producing company. 

The energy sector had arguably been the hottest industry in the market, and we didn’t see that changing over the short term. With favorable market conditions in an industry poised to benefit from the great reopening, it only took 3 weeks to turn this into a big-time swing trade for our members.

This 3-week hold translated to nearly a 20% gain for the Club members who took the trade. 

![](/static/blog-page-assets/make-money-swing-trading-1.jpeg)

&nbsp;  

**Swing Trade Example 2:**  

We added Upstart ($UPST) to our watchlist. 

Upstart is an AI lending platform that has been a popular trade. We noted that, “After its most recent drawdown, we're once again approaching reasonable levels to open a position. As we trace back to the 100 Day MA, it’s important to note the current downtrend. Make sure to wait for the suggested entry as this play might take longer to form. Short term trends suggest continuation of toward movement.”

A huge nod to our traders for this [swing trade pick](/blog/swing-trading-stock-picks), they nailed it! Not only did the trade return earlier than expected due to powerful tailwinds, but we made a 168% gain.

![](/static/blog-page-assets/make-money-swing-trading-2.jpeg)

Using an RSI to identify Swing Trading Opportunities

RSI Settings for Swing Trading


## Best RSI Settings for Swing Trading

In this article, we’ll discuss: 
- Best RSI Settings for Swing Trading
- Advantages of Using RSI in Swing Trading
- Disadvantages of Using RSI in Swing Trading 
- Joining the [The Swing Trading Club](/pricing)

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 350px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/best-rsi-settings-for-swing-trading.jpg">

[Swing trading](/blog/what-is-swing-trading) is a short-term trading strategy used to trade stocks and options. The key to swing trading is identifying when a stock is likely to experience a short-term price change and entering and exiting trades accordingly.  Swing trades typically last for a few days to a few months.

One of swing traders' most popular [technical indicators](/blog/indicators-for-swing-trading) is the Relative Strength Index (RSI). The RSI is a momentum indicator that measures the magnitude of recent price changes to identify overbought and oversold conditions. 

An RSI reading above 70 indicates that a security is overbought, while an RSI reading below 30 indicates that a security is oversold.  These are considered the best RSI settings for a swing trader according to the creator of the RSI indicator.

Swing traders often use the RSI to identify potential entry and exit points. For example, a trader might buy a stock when the RSI indicates that it is oversold and likely to rebound. Alternatively, a trader might sell a stock when the RSI indicates it is overbought and likely to pull back.

The RSI can also be used to identify trends. For example, a rising RSI indicates that a stock is in an uptrend, while a falling RSI indicates that a stock is in a downtrend.

While the RSI is a popular indicator, it is important to remember that it is just one tool in a trader's toolbox. The RSI should not be used in isolation but in conjunction with other technical and fundamental indicators.

If you are interested in swing trading, check out our [swing trading course](/swing-trading-course). It’s included as part of our service and only costs $19 per month.  This course will give more examples of ways to use the RSI indicator as well as all the other core [swing trading patterns](/blog/pattern-finding-in-swing-trading) and indicators we use.

</div>

&nbsp;  

### Advantages of Using RSI in Swing Trading

<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

There are a number of advantages to using the RSI when trading. These include:

1. It is a trendy indicator, so a lot of information and resources are available.  Almost every trading platform features the RSI indicator, which means you can not only see it on your stock charts but you can set up stock scans using the best RSI settings for swing trading.

2. It is relatively easy to understand and use.  It’s great for beginners.

3. It can be used in many different ways, so you can tailor it to your own trading style.  You may find that the best RSI settings for you are even more overbought or oversold than the default settings, and it’s very easy to modify your approach using those RSI settings.

4. It is a versatile indicator that is usable in a variety of different markets and time frames.

5. It can be used as a standalone indicator or in conjunction with other indicators.

If you are new to trading, using the RSI is a great start. It is a popular indicator that is relatively easy to understand and use. It is also versatile, so you can tailor it to your own trading style.  And by most accounts, the best RSI settings are the default settings.

&nbsp;  

### Disadvantages of Using RSI in Swing Trading 

The RSI is a momentum indicator that measures how fast a stock is moving up or down. It can be used to identify overbought or oversold conditions and to spot potential trend reversals. While the RSI can be a helpful tool, there are also some disadvantages to using it.

One of the biggest disadvantages of using the RSI is that it is a lagging indicator. This means that it will only tell you what has already happened and not what will happen. This can be a problem because even if you use the best RSI settings, by the time the RSI signals that a stock is overbought or oversold, the move may already be over.

Another disadvantage of the RSI is that it is subject to false signals. The indicator can give you a buy or sell signal even when there is no actual change in the underlying trend. This can lead to traders making bad decisions and losing money.

Finally, the RSI is a relatively simple indicator, and as such, it can't take into account all of the factors that affect a stock's price. This means that it is not always accurate, and traders need to be aware of this before using it.

Despite these disadvantages, the RSI can still be a helpful tool for traders. Just be sure to use it in conjunction with other indicators and to always do your own research before making any trading decisions.

One benefit to the service we offer here is that there is a [swing trading discord](/swing-trading-discord) chat room.  It’s where all our members congregate to talk about trades.

It allows you to see other peoples’ trades and also to share your own.  You can ask your own questions too.

So if you see a [swing trade alert](/blog/swing-trade-alerts) from someone and they say it’s based on the RSI settings of the stock, you can review what they said and determine if you want to also get involved in the trade.

Or if you find a stock that meets the criteria for the best RSI settings using a scan in your trading platform, you can post the idea in the chat room and see if others have any feedback.  It’s a great way to ensure you’re making well-informed trading decisions.

&nbsp;  

### Conclusion

Swing Trading can be profitable with the right team, training, and tools. If you got this far, we’d love for you to join our [Swing Trading Club](/pricing).

There are two main strategies traders use to make profits: scalping and swing trading

Scalping vs. Swing Trading


## Scalping vs. Swing Trading

In this article, we’ll discuss: 
- What is Scalping?
- What is Swing Trading?
- Joining [The Swing Trading Club](/pricing)

<div style="overflow: auto">
<img class="non-clickable-image" style="float: right; width: 300px; max-width: 50%; margin: 0; margin-bottom: 20px; margin-left: 50px; margin-top: 20px" src="/static/blog-preview-assets/scalping-vs-swing-trading.jpg">

Regarding active trading, two of the main strategies traders can use to make profits are scalping and [swing trading](/blog/what-is-swing-trading). Both approaches have their pros and cons, and in this blog post, we will take a closer look at each strategy to help you decide which is right for you.

</div>

&nbsp;  

### What is Scalping?

Scalping is a short-term trading strategy that involves taking small, quick profits on small price movements. Scalpers typically hold their positions for just a few minutes or even seconds, and they use a variety of technical indicators to make decisions.

Scalping is a type of day trading.  There are many day traders who hold their positions for longer than scalpers.  [Here is an article](https://cashblog.com/swing-trading-vs-day-trading/) that shows the difference between swing trading and day trading in general.

&nbsp;  

#### Pros of Scalping

The biggest advantage of scalping is that it can be highly profitable. Because scalpers are only looking for small price movements, they can enter and exit trades quickly, making many trades rapidly. This can lead to a lot of profits, even if the individual trades are small.

Another major advantage of scalping is limited risk.  You’re in and out of the trade so fast that it typically can limit the amount of losses you can incur on any given grade.

&nbsp;  

#### Cons of Scalping

The most significant disadvantage of scalping is that it can be very stressful. Because scalpers are looking for small price movements, they must be speedy in their decision-making. This can lead to high stress, as there is always the possibility of missing out on a profitable trade.

It also requires a lot of screen time.  You have to constantly be watching your computer screen to look for opportunities.  To make a lot of profit from scalping can be like a full time job, and after you’ve done it for long enough, it can start to get boring and repetitive in a lot of ways since you’re just staring at a screen all day.

Scalping is at a disadvantage when it comes to the bid and ask spread when compared to swing trading.  Here’s an example.  Imagine that the stock is [Apple](https://cashblog.com/how-to-buy-apple-stock-step-by-step/) (AAPL),  and that the bid is 100.00 and the ask is 100.01.  

If the scalper wants to buy the stock, they have to pay the ask price of 100.01.  That means they are already one cent down to start the trade.

The same is true for a swing trade, but with a scalper the target profit might only be 5 cents whereas with the swing trader it might be 5 dollars.  So in other words, the bid and ask spread has a much more significant impact for a scalper.

Another disadvantage of scalping is that sticking to your trading plan can be difficult. Because scalpers are looking for small price movements, they can often be tempted to enter trades they shouldn’t. This can lead to losses, as well as missed opportunities for profits.

One final disadvantage of scalping is that it requires a lot of capital.  Brokerages don’t let you take on more than 3 “round trip” trades in a week unless you have at least $25,000 in your account.  That means you could only do 3 scalp trades per week if you have less than that amount.

&nbsp;  

### What is Swing Trading?
Swing trading is a longer-term strategy involving taking profits on larger price movements. Swing traders typically hold their positions for a few days or even weeks, using various technical and fundamental indicators to make decisions.

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#### Pros of Swing Trading

<img class="non-clickable-image" style="float: right; width: 300px; max-width: 40%; margin: 0; margin-left: 50px;" src="/static/course-training-graphic.svg">

One big advantage of swing trading is that it can be less stressful than scalping. Because swing traders are looking for larger price movements, they don’t have to be as quick in their decision-making. Swing trading is a lower-stress option, as there is more time to decide.

Along the same lines, it requires way less time than scalping.  Imagine being able to be a profitable trader and spending less than an hour per day on it.  That’s one of the benefits swing traders get.  You’ll find a bunch people who have full time jobs and yet are also avid swing traders.

Another advantage of swing trading is that it can be more profitable than scalping. Because swing traders are looking for larger price movements, they can make more money on each trade. This can lead to greater profits, even if the number of trades is smaller.

It’s also probably easier to [learn to swing trade](/blog/how-to-learn-swing-trading) than it is to learn to scalp profitably.  That means that swing trading is good for beginners who are just entering the world of stock market trading.

It’s often just a matter of learning [chart patterns](/blog/pattern-finding-in-swing-trading) and [swing trading indicators](/blog/indicators-for-swing-trading), which doesn’t require as much mental computational power as learning to scalp effectively.

Another advantage of swing trading is that it requires less capital.  You can literally take on a swing trade with just $10 (assuming the stock price was $10 or less).

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#### Cons of Swing Trading

One disadvantage of swing trading is the risk involved, although this type of risk is faced in all forms of trading.

Also, if you’re the type of person who likes action and wants to be doing stock market activities all day, then swing trading can be hard because you get the urge to over-trade.  Swing trading often requires patience, and in some ways it might hurt your profitability if you watch the trades too closely.

Another disadvantage of swing trading is that it can take longer to see results. Because swing traders are looking for larger price movements, a trade can take days or even weeks to play out. This can lead to frustration and the possibility of missing out on other opportunities.

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### Joining the Swing Trading Club

If you feel like swing trading is up your alley, then consider joining our club.  We have a [swing trading discord](/swing-trading-discord) chat room where our members discuss trade ideas and celebrate success.

We also teach the [swing trading strategies](/blog/best-swing-trading-strategies) that we like the best.  We talk about how to enter the trades and how to exit them.

Anyone who signs up gets access to our [swing trading course](/swing-trading-course) as well.  We think it’s a pretty sweet deal at only $19 per month for everything we offer.

If you feel like you are drawn toward scalping, then this group is probably not a good fit for you, but we wish you the very best!  The stock market is made up of so many types of traders and investors, and we truly appreciate every aspect of it.

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