Swing trading using momentum | stockbee

12/08/2009

Swing trading using momentum

For short term trading momentum based method is ideal. It keeps giving you opportunities in fast moving stocks. Those are the stocks where money is currently flowing. They are also the stocks currently in play due to either sector momentum, or earnings news or any other news.

As a trader if you cannot make money from fast moving stocks then what makes you think you will make it from other stocks which are not in play.

The list is just a starting point, after that one must look for a setup. All swing traders basically trade a setup. Setup is a set of conditions a stock must fulfill for it to be considered for a swing trade.

Swing trading has been around for 100 years or more and the basic principles are same. You find a stock with momentum and then find a low risk entry point in it for entry. You exit with a target or exit if certain setup conditions are fulfilled.

Some swing traders use pullback as a setup, some use indicator based setup , some used breakout as a setup for entry, while some use chart patterns. For exit some use fixed price target, some use channels, some use indicators, some use trailing stops and so on.

Traders give exotic names to their setups or indicators so that it sounds and feels like a secret. So some call it high frequency trading, some call it mean reversion strategy, some call it adaptive stops, some cal it lizard strategy, some call it swing action zone, some call it cross hair trading, and so on and so on. But the basic logic behind all swing trading methods do not change.

There are several books on swing trading which give details of most commonly used swing trading methods.

70 stocks with momentum...

AIXG
AM
AMD
APWR
ASIA
ATPG
AWI
BEXP
BLC
BONT
CAAS
CATM
CGA
CMFO
CNO
CPBY
CSIQ
CVVT
CYD
CYTX
DAL
DAN
EBIX
FACT
GAP
GOL
GPRE
GY
HAR
HEAT
HGSI
HL
HPJ
HTE
ICTG
IO
IOC
IPSU
IWA
KFN
KGN
KNDI
MED
MIC
MOD
NANO
NTRI
PLX
PRSC
REV
RINO
ROY
SCSS
SEED
SKX
SNIC
SOLF
SRI
THM
TRGT
TSL
TSTC
UAUA
UFS
USEG
VCI
WSII
XRA
XTEX
ZGEN

Out of this 23 stocks are on my watchlist currently:
AM
ATPG
AWI
BONT
CAAS
CNO
CPBY
EBIX
GAP
HAR
HGSI
IO
IOC
KFN
MIC
NANO
REV
SCSS
SKX
UFS
USEG
XRA
XTEX


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