Better System Trader 181: Short-term Swing Trading Techniques – Ivanhoff
Mar 3, 2021
In this discussion, swing trading techniques take center stage as the host and expert delve into the essentials of short-term trading. They reveal the importance of market conditions and how to pinpoint hot sectors. Listeners learn about managing trades in volatile environments and the value of strategies like trailing stops. The psychology of trading is explored, alongside the balance of buying breakouts versus dips. Valuable insights into gauging market trends and the critical role of price action enhance understanding for aspiring traders.
AI Snips
Chapters
Transcript
Episode notes
Why Swing Trading Targets Short Trends
- Swing trading targets the 20% of time stocks trend instead of the 80% they consolidate.
- Capturing short trends reduces drawdowns while compounding capital faster.
Always Start With Market And Sector
- First check the market environment and the leading sector before taking a swing trade.
- Then pick volatile stocks with tight consolidation to enter with small stops.
Choose High-Volatility Stocks With Tight Entries
- Target stocks with higher-than-average daily ranges and tight entry ranges so stops stay small.
- If ATR is 4% and your stop is 2%, the odds favor capturing a move larger than your risk.