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Swing Trading

Wednesday, February 18, 2009 | Labels: , | |


Swing trading

Swing trading: Swing trading is ability of Trader to catch low and high trend of stock or Index. Using this Trends or pendulum movement of price to gain profit.

Market is battle field between buyers and seller, who is powerful decide profit or loss. Nature of competition in market must be understand by trader else he will vanishes its money day by day.

Swing trader must be one step ahead of crowd then only they can manage to get good amount of money on their trade.Every one can get information as early as possible of net. Every news get stuck on your head with occurring condition of news. so this make difficult to trade with this information to gain profit. Discipline pay important role in this situation.

Protecting capital in market is one of the first and important point. Without capital you are no one in market. In market first you think about long time survival. Then after you can go for profit else you only ruin your capital.

Emotion is one of the great factor which drives market. It makes illusion so every one trade with its own illusion. Crossing in mental illusion and emotional illusion is cause of profit or loss.

Successful trade must required accurate prediction and perfect timing. Investor , trader are double engined fighter jet. One engine is fear and another one is greed

Rising price attract greed. This greed increases with market or stock goes high with passing days. At the end of Bull run greed convert into fear when market suddenly crashed.

Falling price awakens fear.Deepen and more deepen prices in red make pale to investor when they loose their confidence fully, market make reverse move.

Swing trader must exploit emotion of other in terms of gain and keep his emotion under his control.

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